Caption: Dr Roodal Moonilal

Summary

• CNOOC Blocks Approved: The T&T Cabinet has approved production sharing contracts for Blocks 24 and 25, located off the north coast, to the Chinese state-owned company CNOOC.
• Business Over Politics: Energy Minister Dr. Roodal Moonilal brushed off concerns about doing business with Communist China, emphasizing that CNOOC is a global entity and the focus remains strictly on exploration and production.
• Dragon Gas Timeline: A framework agreement between Shell and Venezuela has cleared the path for the Dragon gas project, with first gas now expected between the second and third quarters of 2027.
• Diversified Strategy: While advancing cross-border initiatives like Dragon and Loran-Manatee, the government is concurrently working on 11 other domestic energy projects to secure a reliable gas supply.
• Oil Price Impact: Rising global oil prices due to Middle East tensions could yield a modest US$10 million in additional monthly revenue for T&T, though this may be offset by higher fuel import bills.

 

THE Trinidad and Tobago government has approved production sharing contracts for two offshore blocks with the state-owned China National Offshore Oil Corporation (CNOOC).

Energy and Energy Industries Minister, Dr. Roodal Moonilal, told the weekly post-Cabinet news conference on Thursday evening that the Cabinet accepted a recommendation from his ministry to award Blocks 24 and 25 to the Chinese company following a competitive bid round conducted last year.

The offshore acreage lies roughly 45 to 50 miles off Trinidad’s north coast.

During the briefing, Moonilal brushed aside suggestions that Port of Spain—while publicly condemning a lack of democratic rule in Cuba—is comfortable doing business with Communist China.

“…you’re inviting me to jump out of my crease and swing down the wicket. And when you do that, you take the risk of being completely bowled,” Moonilal said. “So these are matters of politics that you raise, which, of course, have to do with international relations and so on. It is not my domain.”

He continued: “All I can indicate is that via our competitive bid rounds, the Chinese company did participate, satisfied those initial preliminary requirements, and we have approved two blocks for the company.”

Moonilal emphasized to reporters that CNOOC is a global corporation operating across the Western world, not just in China, adding, “with investments around the globe… we continue to do business with them.”

The Energy Minister insisted that his primary concern is to complete negotiations and finalize a production sharing contract to facilitate further exploration.

“As we said from the beginning, our motto is ‘keep it pumping.’ We need exploration and production,” Moonilal said. “In fact, the failure of this country over the last period, from 2016 to April 2025, was this dramatic decline in exploration and production. We are addressing that now with ExxonMobil, with CNOOC, and with others. We have had very strong interest from other oil majors. That is my concern, and that is the government’s concern at this moment.”

Dragon Gas and Cross-Border Initiatives

Moonilal also confirmed progress on a key cross-border gas initiative involving Shell and the Venezuelan government. He noted that Shell recently signed a framework agreement with Venezuela, establishing the structure for advancing the Dragon gas project. This agreement is expected to provide the regulatory and commercial certainty needed to proceed with development.

The government now has a clearer timeline for the project, with first gas expected between the second and third quarters of 2027, provided current schedules remain on track.

Dragon forms part of a broader set of cross-border energy projects being pursued to secure additional gas supply, including the Cocuina-Manakin and Loran-Manatee fields. However, Moonilal stressed that Trinidad and Tobago’s strategy is not solely dependent on cross-border gas.

“The coast is clear for the full exploration of production at the Loran-Manatee field, at Cocuina-Manakin, and at Dragon,” Moonilal stated. “But I want to make the point for citizens to understand that we are not depending on cross-border gas alone. We have what could be about 11 other projects that we are working on, almost on a daily basis.”

Global Oil Prices

Addressing the potential financial impact of rising global oil prices linked to geopolitical tensions in the Middle East—particularly involving Iran—Moonilal offered a measured outlook.

He explained that while higher crude prices could generate additional revenue for the country, the financial benefits would likely be modest. Based on current estimates, an increase in Brent crude prices from approximately US$72 per barrel to around US$85 could yield about US$10 million in additional monthly revenue.

However, Moonilal cautioned that higher global prices could simultaneously drive up the government’s fuel import bill, potentially offsetting those gains. (CMC)