Trinidad gets ‘full green light’ for joint gas project with Venezuela

The United States has issued an amendment to the license granted to the government of Trinidad and Tobago allowing the joint development of an offshore gas project with Venezuela.

Trinidad and Tobago’s Minister of Energy and Energy Industries Stuart R. Young reported that the Office of Foreign Assets of the U.S. Department of the Treasury issued the amendment to the license with respect to the development and production of the Venezuelan Dragon gas field.

The amended license will run for a period of two years until October 31, 2025, and allows for payments in fiat currency, U.S. dollars, Bolivars, and via humanitarian means.

“This achievement on behalf of the people of TT will facilitate final negotiations on the Dragon Gas Field in areas such as commercial terms and technical terms,” Young said. “This is a significant step bringing closer to completion the development, production and export of Venezuelan gas from Dragon to Trinidad and Tobago.”

The amendment also allows Shell, which would operate the Dragon project, and Trinidad’s National Gas Company (NGS) to negotiate what is required to bring Venezuelan gas to the Carribean country, clearing the way for talks about other potential sources of gas from Venezuela, Young said in a press conference.

Trinidad and Tobago and Venezuela signed the agreement for the joint exploitation of gas in the territorial waters shared by the countries, as well as to work together on the Dragon field on September 21.

The Dragon field, which lies in Venezuelan waters near the maritime border with Trinidad, is said to hold up to 4.2 trillion cubic feet of gas.