Shell prioritizes Venezuelan natural gas over heavy crude

Shell CEO Wael Sawan has identified Venezuela's natural gas potential as a primary competitive advantage for the company, prioritizing it over the exploitation of heavy crude oil. This strategic shift reflects a broader global trend where natural gas is increasingly viewed as a critical component of energy security.

Shell is currently evaluating several opportunities in Venezuela, supported by five agreements signed in June to develop oil and gas projects. A key focus is the offshore Loran gas field, which holds estimated reserves of 7 trillion cubic feet. The company is also involved in the Dragon field and is studying ways to expand gas production and management at the Muscar Operating Complex in Monagas state alongside PDVSA.

The company aims to export Venezuelan gas by processing it through infrastructure in Trinidad and Tobago to produce Liquefied Natural Gas (LNG) for international markets. While Sawan expressed a “cautiously optimistic” outlook, he noted that full confidence in the country will not return immediately.