(Updates with Shell's response in the third paragraph)

Shell (SHEL) has kicked off a tendering process for drilling services at its Dragon offshore gas project in eastern Venezuela, pressing ahead with its plan to start drilling four wells from Q2 2027, Reuters reported Tuesday, citing two unnamed people familiar with the process.

The contract is expected to be awarded by the end of September, the people told the news agency, if a positive final investment decision is made for the 4.2 trillion-cubic-foot development.

"We continue to progress the Dragon project in full compliance with applicable laws, regulations and sanctions," Shell said Friday in an emailed statement to MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)