Shell, the British oil and gas giant, is moving forward with a marine survey at Venezuela’s offshore Dragon gas field ahead of a U.S.-imposed May deadline to cease all operations tied to energy projects in the country, according to several media reports.

The Colombia-flagged survey vessel Dona Jose II arrived in U.S.-sanctioned Venezuela earlier this month to collect crucial data for Shell and Trinidad and Tobago’s state-owned National Gas Company (NGC), LSEG vessel monitoring data shows. The information gathered will help Shell identify potential drilling locations and develop pipeline infrastructure in case Washington later approves the project, which is intended to supply natural gas to Trinidad, multiple media outlets reported.

The exploration work, which is expected to conclude in the coming weeks, comes at a critical time. Earlier this month, the Biden administration rescinded a license originally granted in 2023 under former President Donald Trump’s administration that had allowed Shell and NGC to plan and begin development of the Dragon field. Shell had already chartered the Dona Jose II prior to the license’s revocation. The companies now face a May 27 deadline to wind down their activities in Venezuela, as stipulated by the U.S. Treasury Department.

Since imposing energy-related sanctions on Venezuela in 2019, the United States has required foreign firms to obtain special licenses in order to conduct oil and gas business with Venezuela’s state-run oil company PDVSA. These restrictions have complicated efforts by regional nations to tap into Venezuela’s vast natural gas reserves.

Trinidad and Tobago, Latin America’s top exporter of liquefied natural gas (LNG) and a major global supplier of ammonia and methanol, has faced dwindling gas reserves. The country has increasingly turned to Venezuela’s offshore fields and maritime border areas to help sustain its vital energy sector.

The Dragon gas project has been viewed as a rare and valuable opportunity for Trinidad to secure long-term gas imports while providing Venezuela with a pathway to monetize its extensive offshore gas resources. In 2023, Venezuela awarded Shell a 30-year license to operate the Dragon field, with plans for gas exports to begin as early as 2024. The gas would be transported to Trinidad, where it would be processed into LNG for export.

The U.S. government has justified its sanctions by accusing Venezuelan President Nicolás Maduro of failing to implement democratic reforms and facilitate the return of Venezuelan migrants residing illegally in the United States. Venezuelan officials have characterized the sanctions as an “economic war,” according to various media reports.