PORT-OF-SPAIN–THE arrangement to jointly develop the Loran-Manatee natural gas field between Venezuela and Trinidad and Tobago is no more.
The ten trillion cubic feet of gas in these two fields will now be developed independently.
This was the revelation made by Prime Minister Dr Keith Rowley on Monday at the TT Energy Conference and Trade Show at Hyatt Regency, Port-of-Spain.
Rowley said the sanctions place on Venezuela by the United States have made it all but impossible to jointly develop the gas.
He said: “Progress in the development of the unitised Loran-Manatee field has been impeded by the sanctions imposed by the US Government, which inhibits US companies from doing business with Venezuelan Oil Company, PDVSA.
“This impacts on the ability of US company Chevron, which has a 60% interest in the Loran field, to participate in the development of the Loran-Manatee Field.
“As a consequence the Government of the Republic of Trinidad and Tobago and the Bolivarian Government of Venezuela have agreed to the independent development by each Government of the field within the Loran-Manatee cross-border that falls within its marine area.”
The Loran-Manatee gas field straddles the TT and Venezuela maritime border with just over 27 percent of the acreage in TT waters.
But, Rowley said Shell TT Limited, which holds 100 percent interest in the Manatee Field, has agreed to develop the field.
He said Shell was in conversation with the Government to determine the best option.
Rowley said, “This major policy shift which frees up investment and development of Manatee gas also provides easy access to market for all gas from these fields if the circumstances permit and the owners so desire.”