Shell has formally submitted applications to the U.S. Office of Foreign Assets Control (OFAC) seeking permission to develop and produce natural gas in two jointly held offshore fields spanning Trinidad and Tobago and Venezuelan waters. The filing, made on March 15, requests authorization to purchase specialized drilling equipment and to transfer technical personnel through U.S. soil. Industry sources estimate the combined recoverable reserves at approximately 2.5 trillion cubic feet, with first gas production targeted for late 2026. Approval would unlock an estimated $800 million in new capital expenditures over the next three years and could increase Shell’s global LNG supply capacity by 5%.

Shell has elevated its Vaca Muerta shale position in Argentina into the final stages of a strategic portfolio review, engaging with several international oil and gas groups and private equity firms. Internal forecasts peg the block’s recoverable oil equivalent at 150 million barrels and 200 billion cubic feet of gas. Management narrowed its shortlist to two potential bidders and expects binding offers by early Q3 2024. A successful divestment could raise between $1.2 billion and $1.5 billion in gross proceeds, allowing Shell to redeploy capital into higher-margin deepwater and renewable energy projects.

As part of its ongoing restructuring plan, Shell has earmarked proceeds from asset sales in Argentina to accelerate development in key growth regions, including the ultra-deepwater Gulf of Mexico and the Permian Basin. The company recently approved a $2.3 billion final investment decision on the Gulf Apex offshore project, expected to start production in 2027 at a plateau rate of 100,000 barrels per day of oil equivalent. Concurrently, Shell has committed to expand its U.S. hydrogen network, with plans for three new electrolyzer hubs capable of 500 megawatts of green hydrogen by 2028.