British oil and gas companies Shell and BP could return to work in Venezuela after the US operation to overthrow President Nicolas Maduro, The Daily Telegraph reported.
Shell is interested in developing the Dragon gas field in the Caribbean Sea, which contains an estimated 120 billion cubic meters of gas reserves. The project is expected to generate annual profits of $500 million for 30 years (total $180 trillion). It is noted that the project was previously suspended due to disputes with US authorities over Shell's licensing, but the situation may change under new political realities.
According to the publication, despite US President Donald Trump's main desire for American companies to restore Venezuela's oil and gas industry, Shell may also participate in projects in the republic. “The Daily Telegraph“ noted that this would likely require the British energy giant to create joint ventures with American firms.
“The main winners will be large American companies, especially Chevron, which is already active in Venezuela. Large European companies will be excluded from the most lucrative deals, but will be invited later, as American companies will seek joint ventures to spread the risks.“ “Companies like Shell and BP would be the first choice“, said Ashley Kelty, an analyst at British investment bank Panmure Liberum.
BP may also be interested in resuming operations in Venezuela. The company was granted a license to develop the Manaquin-Coquina gas field in 2024, but the Trump administration revoked the permit last April. BP has been lobbying to have the license reinstated.