The U.S. Tightens Grip on Venezuela’s Gas Fields

The U.S. government’s Office of Foreign Assets Control (OFAC) has made a significant decision regarding two special licenses held by UK-based Shell and BP for gas fields straddling the maritime boundary between Venezuela and Trinidad and Tobago. This move is part of America’s efforts to exert control over Venezuela’s government and halt plans for processing Venezuelan gas in Trinidad and Tobago.

Revocation of Licenses

Venezuela has been under U.S. sanctions for an extended period, and OFAC recently revoked the licenses granted to Trinidad and Tobago for the development of the Dragon and Cocuina gas fields. This decision comes on the heels of Chevron being given a 30-day deadline to cease its crude oil production and exports in Venezuela.

Trinidad and Tobago and Venezuela signed an agreement for joint gas exploitation in their shared territorial waters and collaboration on the Dragon field. The licenses granted to BP and Shell were crucial for advancing gas projects essential for regional energy security.

Development Plans

The Dragon field, located in Venezuelan waters near the Trinidad maritime border, holds an estimated 4.2 trillion cubic feet of gas intended for export to Shell’s Hibiscus platform offshore Trinidad and Tobago. Preliminary works, including surveys, were underway for this project following the issuance of a 30-year license for gas exploration, production, and export from the Venezuelan field.

Similarly, a two-year license was granted to BP and Trinidad and Tobago’s National Gas Company for the development of the Manakin-Coquina gas field, estimated to contain 1 trillion cubic feet of gas reserves.

Response and Future Opportunities

Trinidad and Tobago’s Minister of Energy and Energy Industries, Stuart Young, acknowledged the U.S. decision and highlighted the need for active engagement with both the U.S. and Venezuela to explore opportunities in the gas sector.

The Energy Chamber of Trinidad & Tobago expressed disappointment over the license revocations but emphasized the importance of pursuing opportunities within Trinidad and Tobago’s exclusive economic zone. They stressed the need to maintain and increase upstream gas production through active development of local gas fields.

BP’s recent gas projects offshore Trinidad underscore the potential for growth in the region’s energy sector. The Energy Chamber urged the government to focus on developing fields like Mento, Coconut, Ginger, and others to bolster gas production and seize economic opportunities.

As the U.S. tightens its grip on Venezuela’s gas fields, Trinidad and Tobago faces challenges but also opportunities to strengthen its energy sector and ensure regional energy security.