Trinidad Navigates Complex Gas Field Deal with Venezuela

Trinidad’s Prime Minister Keith Rowley describes negotiations over the Dragon gas field as a significant challenge they’ve addressed since 2018.

The Dragon field lies in Venezuelan waters but is close to Trinidad and Tobago, the Caribbean’s largest gas producer.

It holds 120 million cubic meters of gas. The area neighbors Trinidadian fields run by Shell, a British oil firm.

In 2016, Trinidad and Venezuela agreed to study joint field development. They signed a document to guide their efforts.

But U.S. sanctions on Venezuela have made things tough. These sanctions aim to change Venezuela’s leadership.

In January 2023, the U.S. gave Trinidad permission to develop the Dragon field. The catch was no money payments to Venezuela.

Rowley states that this payment issue is the biggest hurdle now. To find a solution, the energy minister has often met with U.S. and Venezuelan officials.

Venezuela’s President Maduro calls the U.S. move colonial. He insists that both nations are free and independent.

Maduro also stated that the U.S. limits how Venezuela can receive payment for the gas. He says it can’t be in dollars or cash, only in goods or products.

Background

Trinidad and Tobago has a history of working with other countries in energy projects. Venezuela has vast natural resources, especially oil and gas.

Despite its resources, the country faces economic challenges.

The U.S. sanctions on Venezuela began around 2014. They have impacted its economy and foreign relationships.

This adds complexity to Trinidad’s negotiations with Venezuela. The sanctions are part of the U.S. strategy to promote democratic change in Venezuela.

Talks between Trinidad and Venezuela began before these sanctions. These sanctions have stalled many potential deals.

The U.S. has strict control over foreign assets through its OFAC office. This office gave Trinidad the special permit for the Dragon field.