UK ‘first-in-line’ for multi-billion dollar Venezuela oil windfall | UK | News
UK energy giant Shell could make billions of dollars from new Venezuelan gas projects after Donald Trump ousts Nicolás Maduro.
The British oil company wants to target rich gas fields located between Venezuela and the neighboring offshore islands of Trinidad and Tobago, but has faced a years-long delay due to US sanctions, according to the Telegraph.
Mr Trump’s intervention means a potential acceleration of the massive Dragon gas field project in Venezuelan waters. The project could generate an estimated $500 million (£370 million) in revenue per year for up to three decades, representing a multi-billion dollar opportunity.
The Dragon field contains an estimated 120 billion cubic meters of gas; That’s nearly three times what the UK uses in a year. There are much larger deposits in nearby fields.
Development of the project has stalled due to licensing wrangles with US authorities, but Shell is expected to renew its focus on Venezuela following Mr Trump’s intervention.
US companies will lead, UK and European majors will follow
The US president called on oil companies to invest in the country to increase oil and gas production and improve infrastructure; However, he called on US companies in particular to take the lead in this regard, suggesting that Shell may need to look for a partner.
Ashley Kelty of investment bank Panmure Liberum said: “The biggest winners will be the US majors, especially Chevron, because it is already active in Venezuela.”
“European giants will be deprived of the best stuff but will be invited later because American companies will want joint ventures to spread the risk and companies like Shell and BP will be the first choice.”
The Express contacted Shell via email for comment.
BP also has a smaller interest in the region that could be revived. BP received an exploration and production license for the Manakin-Cocuina field in 2024, but the US approvals were revoked by the Trump administration in April last year. BP is lobbying for these people to be reinstated.
Oil companies cautious due to uncertainty
Oil companies have so far refrained from publicly announcing whether they will invest in Venezuela due to uncertainty about its future. Chevron, which already operates there under government control, is the only global supermajor to comment.
A spokesperson said: “Chevron remains focused on the safety and well-being of our employees as well as the integrity of our assets. We continue to operate in full compliance with all applicable laws and regulations.”
But Venezuela represents a great investment opportunity. Although the Latin American country has the world’s largest oil reserves, it ranks only 20th in the world in terms of production.
Opec’s weakening control and potential market volatility
While Venezuela’s opening up may be a boost for Western companies, it is a disaster for OPEC, the cartel of oil-producing countries.
The bloc, led by Saudi Arabia, aims to control production and thus ensure that its members get the best price for their oil, especially from Western Europe, the United States and China.
But Mr. Trump’s promise to increase Venezuelan production threatens to undermine OPEC’s already weakened grip and send oil prices crashing. As a result, investors were prepared for possible fluctuations in global markets.
Bahraini political consultant Ahmed Khuzaie said: “Gulf states are of course worried because it will mean they will have to readjust their margins and that will affect their way of life.”
Greg Newman, chief executive of London-based oil market trader Onyx Capital, said: “OPEC’s control over global oil supply and demand is already fragile. If the US increases Venezuelan production, this would push global markets into surplus, with a potential surplus of one to two million barrels of oil per day on top of long-term declining markets.”
“Trump will most likely get the low oil prices he wants now, and more importantly, [it will] “gives it significant control over the entire global oil market and flows.”
OPEC’s attempt to support oil prices
Oil prices fell by 18 percent in 2025, a sign that OPEC’s power over the market was waning. This was the largest annual decline since the 2020 pandemic.
The Organization of the Petroleum Exporting Countries (OPEC) was founded in 1960, of which Venezuela is one of the five founding members, along with Saudi Arabia, Kuwait, Iran and Iraq. It currently has 12 member countries and there are 10 more countries in Opec+, including Russia.
OPEC+ decided to stop supply increases in the first quarter of 2026 at its meeting on Sunday in order to support the oil price.
