Shell And Trinidad NGC's Imminent $1B Deal Poised To Ignite Venezuela's Stalled Gas Industry

Shell PLC SHEL and Trinidad and Tobago's National Gas Company (NGC) are reportedly nearing an agreement to credit Venezuela's state-run oil firm PDVSA for its $1 billion investment in a gas field they aim to develop jointly.

This action might accelerate a long-delayed offshore development initiative, as per a Reuters report citing four insiders close to the matter.

In January, the United States authorized Venezuela's PDVSA, Shell, and NGC for two years to revitalize the project, the report added.

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A significant portion of the $1 billion that Venezuela seeks recognition for comes from a gas line connecting the offshore field to its shores, it noted. 

A substantial part of the $1 billion for which Venezuela seeks credit is allocated to a gas pipeline connecting the offshore field to the country's coastline, according to the report.

The field is in Venezuela's waters, and previous attempts to find partners faced challenges due to PDVSA's compensation demands, mentioned the report.

However, Shell and NGC have not given the final commitment to PDVSA on the reimbursement but are ready to settle for "all legitimate claims," Reuters added.

Price Action: SHEL shares are trading flat at $62.84 on the last check Tuesday. 

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