Shell signs new oil and gas exploration deals with Venezuela

Shell plc has formalized several energy agreements with the government of Venezuela, marking a significant expansion of its operations in the South American nation. According to a company statement released on Thursday, the deals encompass both offshore gas initiatives and onshore oil and gas opportunities.

In addition to the state-level agreements, the energy major signed technical and commercial contracts with the Venezuelan engineering firm VEPICA, as well as with KBR, Inc. and the United States-based Baker Hughes Company. These partnerships come amid a period of renewed diplomatic and economic engagement between Caracas and Washington.

Venezuelan interim President Delcy Rodriguez hosted U.S. Interior Secretary Doug Burgum this week, marking the second visit by a U.S. cabinet official since January. This follows a February visit by U.S. Energy Secretary Chris Wright.

A primary focus of these agreements is the Dragon offshore gas project. While the project faced various setbacks due to shifting U.S. foreign policy, Shell indicated in February that new general licenses for oil and gas exploration issued by the U.S. government would allow the project to move forward.

The investment climate has also been influenced by a sweeping oil reform passed by the Venezuelan legislature in January. The new laws reduced taxes, expanded the decision-making authority of the oil ministry, and granted greater autonomy to private producers in an effort to attract foreign capital.

Commenting on the development, the Venezuelan state television channel TV FANB noted the significance of the deal on social media.

The new agreements with Shell reaffirms that Venezuela continues to be a safe and reliable destination for foreign investment.