THE Trinidad and Tobago government Thursday said it will continue to advocate what is best for the country and the wider Caribbean Community (CARICOM) after the United States announced a new directive that eliminates oil and gas licences for foreign companies in Venezuela.
US Secretary of State Marco Rubio in a message posted on X, said he is “providing guidance” to end State Department support for licences approved under former President Joe Biden.
Port of Spain has been planning to request an extension from Washington for a licence granted to Shell and the National Gas Company (NGC) to develop the Dragon gas project in Venezuela.
The licence, initially issued in early 2023, allows the companies to proceed with planning the project, which aims to supply gas to Trinidad by 2027. The Dragon field is located in Venezuelan waters near the maritime border with Trinidad.
In 2023, the US amended the licence to permit payments to Venezuela and its state company PDVSA in hard currency or in kind, extending its expiration to October 2025. Shell and NGC require an extension to begin production following their final investment decision (FID) expected this year.
Rubio spoke of the termination of all Biden-era oil and gas licenses “that have shamefully bankrolled the illegitimate Maduro regime” adding that these authorisations improperly financed the government of Nicolás Maduro.
The measure seeks to cut off resources that, in his opinion, sustain an illegitimate government and reinforces the hardline stance of the Trump administration.
Speaking at a post Cabinet news conference, Energy and Energy Industries Minister, Stuart Young, told reporters that the Donald Trump administration seems to have taken a decision with respect to an OFAC (Office of Foreign Assets Control ) licence granted to US oil giant, Chevron.
Young said that it appears at this stage, a decision has been taken to reverse the licence.
“I have been in touch with persons whom we have been working with on the continuation of our transaction with respect to both the United States as well as Venezuela…and we spent the morning engaging in conversations and getting a better idea.
“Because like you, like the media, like the citizens, I too am concerned how will things affect Trinidad and Tobago,” said Young, who is scheduled to take over the government on March 16 when Prime Minster Dr. Keith Rowley steps down.
“At this stage there has been no indication of there being any negative effect on Trinidad and Tobago. We have always said it is impossible to predict the future, it is impossible to predict certain administrations, what decisions they might take etc.”
The specific amended OFAC licence issued to Trinidad and Tobago on October 17, 2023, is valid until October 31, 2025. Trinidad and Tobago also secured a 30-year exploration and production licence from the government of Venezuela for the Dragon gas field on December 21, 2023.
Young said that the government has remained completely engaged and earlier on Thursday he held talks with representative sof the Shell oil company “and we continue to do the work on Dragon (and) both of us are reaching out through various contacts we have.
“I have reached out to the US government through certain channels here in Trinidad and our proposals for engagement with Secretary Rubio’s office , which was always part of the plan.”
Young said he is aware of Rubio’s statement and that the government wanted to reassure citizens that Port of Spain continues to be engaged “at every angle we can.”
He said, “It is understood by many levels how important this deal…the Dragon deal…how important that is not only for the energy security of Trinidad and Tobago, but also the stability of the region, CARICOM as well as South America.
“The conversations we consistently have with the United States of America is how it also affects the geopolitics, not nly of the region, but far away as Europe as well as some other entities.”
Young said he wanted to inform citizens how important it is for the government to be “very aware” as to who the decision makers are “and we will continue to do all that we can.
“Can we provide any assurance at this stage? Chances are obviously not. Are we engaged with the right people?, we think we are and we will continue to work every step of the way and if there is something for us to report, we will do so.”
He said that the country could take heart in the government’s handling of the situation given that in 2018, 2019, when things changed, “we managed the relationship and we were successful there after.”
Young said, “This government will remain committed to the people of Trinidad and Tobago. We understand how important it is to be able to access these resources.”
The minister said, “it is very disheartening” to listen to the remarks being made by the Leader of the Opposition United National Congress (UNC) Kamla Persad Bissessar in her description of the Maduro government.
“This deal …and cross border gas is not for PNM (People’s National Movement), it is not for UNC, it is not for any political entity. It is for you, the citizens of Trinidad and Tobago. This deal and the gas being delivered in 2027 is what is going to help us with the foreign exchange, it will help us continue paying the bills…and continue ensuring that there are drugs in the hospital,” Young said.
