Venezuela

2024, 04/06

Francisco Monaldi, Director of the Latin America Energy Program at the Center for Energy Studies at Rice University’s Baker Institute for Public Policy in Texas,  predicts that in the short term, US sanctions will affect the development of the Manakin-Cocuina gas field between T&T and Venezuela.

However, in the long term the project will get off the ground. Monaldi told media that Venezuela holds 80 percent of Latin America’s natural gas reserves, though it is still only a minor producer. T&T natural gas reserves are dwindling, but it counts on a large industry dependent on the resource, from Liquefied Natural Gas (LNG) terminals to steel manufacturing.

He commented on the Manakin-Cocuina gas field project.
“This is an important development. As far as I know there were discussions in the past about bp getting on the Venezuelan side of Manakin-Cocuina field. There have been studies before.

Similar to Loran-Manatee gas field, this is the potential next step in the development of gas from Venezuela that can be exported to T&T. It’s a relevant development. The sanction regime will totally impact this as much as the project with Shell. Even more so, to some extent as this will be the joint development of a field that is cross border and depending on how you do it, the infrastructure on both sides will be tied.”

In a separate project that the United States is also monitoring, Reuters reported that Shell is seeking a long-term licence from the US before making a final investment decision on the Dragon natural gas project in Venezuela, signed last December.

After Shell was initially granted a two-year licence in 2023, the British multinational seeks a 15-year US licence before it makes the FID to co-develop the field with the National Gas Company (NGC).

Venezuela’s presidential election is due in July and Monaldi does not think that the US will greenlight this project until they see transparent democratic elections.

“I think the US will be willing to issue a two-year licence as they did with Shell. However, I don’t think it will happen at the moment until the dust settles on the elections. The US is in wait-and-see mode as President Maduro is not fulfilling his side of the Barbados agreement. I don’t think it will happen in the next few months.”

BP and Venezuela are jointly discussing the development of a gas field in T&T, which it shares with Venezuela.

President of bpTT, David Campbell was in Venezuela in March with T&T Minister of Energy Stuart Young.

Young told Parliament in March, “Yesterday and the day before I was in Venezuela with BP conducting continued negotiations on behalf of T&T for a Cocuina/Manakin project with BP and Venezuela. That is top of the news in the global energy reports .”

London-based BP currently operates the Manakin field, situated in T&T waters. The company is evaluating business opportunities in Venezuela amidst renewed U S threats of sanctions on the Venezuelan oil industry.

Technical aspects of the Manakin and Cocuina fields were reviewed in the meeting held by delegations in March.

According to Venezuela’s state-owned oil company, PDVSA, the meeting was held to evaluate granting a licence to explore, exploit and export non-associated gas from the Cocuina field in Venezuelan waters, contiguous to Manakin in the maritime area of T&T.

While the Manakin-Cocuina field is estimated to contain some 1 trillion cubic feet of natural gas, the Manatee field could hold as much as eight times that. For BP, this would be a welcome source of new gas amid falling production when demand is rising .

Business-friendly environment
The visit of the bpTT president to Venezuela is indicative of Venezuela making serious attempts to invite foreign investors to develop its gas fields.

“It is without a doubt another symbol of Venezuela not only wanting to monetise the gas that has been under- developed. This is also a geopolitical play because they know that Europeans care about the gas even more than oil from Venezuela. This generates interest across Europe. It causes the Europeans to push the US to keep flexibility with regard to sanctions. It is a clear element of a new strategy for Venezuela.”

Manakin-Cocuina field project will be more complex as there will be development on the T&T side and further development of the Venezuelan side.

“There are a lot of things to iron out and developing a unified field has layers of complexity. The bottom line is it is in the interest of the US to approve this but there might be hiccups in the middle. Different from the moment when Shell’s licence was approved, in which the US wanted to signal they were opening up to give incentives to President Maduro. Right now, they are in a more cautious mode as Maduro has not fulfilled the agreements.”

Private companies will be “very hesitant” to invest billions of dollars in a project until the political horizon is clear.

“I think both projects in the long run will require a licence, but a perspective that the political situation will not return to sanctions. I am optimistic that this project will eventually move ahead but it will take time. First for the initial approval for the licence and then it will take even longer because they need to develop the infrastructure.”

Risks involved
Economist Dr Anthony Gonzales mentioned risks with this project as with the Dragon gas field and other international projects in which Venezuela is involved.

“The export of such gas would be subject to the same policies of the US regarding the Dragon gas. It is not clear if the Office of Foreign Assets Control (OFAC) special exception also would cover this or if another special application would have to be made. Anyway, given US sanctions on Venezuela and their possible renewal later in the year if President Maduro does not respect the Barbados Accord, this project would entail the same risks.”

US Confirms Reimposition of Sanctions against Venezuela
The State Department confirmed that Washington will not renew a reprieve issued to Caracas for oil and gas activities, accusing the Maduro regime of failure to honor a commitment to upholding fair elections.

“After a careful review of the current situation in Venezuela, the United States determined Nicolas Maduro and his representatives have not fully met the commitments made under the electoral roadmap agreement, which was signed by Maduro representatives and the opposition in Barbados in October 2023”, the State Department said .

“Therefore, General License 44, which authorizes transactions related to oil or gas sector operations in Venezuela, will expire at 12:01 AM on April 18”.

The Treasury Department issued the six-month license last October 18 allowing transactions related to, per the official license text, the “production, lifting, sale, and exportation of oil or gas from Venezuela, and provision of related goods and services; payment of invoices for goods or services related to oil or gas sector operations in Venezuela; new investment in oil or gas sector operations in Venezuela; and delivery of oil and gas from Venezuela to creditors of the Government of Venezuela, including creditors of PdVSA Entities, for the purpose of debt repayment”. The Treasury was referring to state-owned Petróleos de Venezuela SA.

The State Department said, “Despite delivering on some of the commitments made under the Barbados electoral roadmap, we are concerned that Maduro and his representatives prevented the democratic opposition from registering the candidate of their choice, harassed and intimidated political opponents, and unjustly detained numerous political actors and members of civil society”.

Simultaneous with the announcement, the Treasury issued a license for affected companies to wind down their operations. The wind-down period runs through May.

“Effective April 17, 2024, General License No. 44, dated October 18, 2023, is replaced and superseded in its entirety by this General License No. 44A”, stated the wind-down license notice. The State Department added, “Treasury’s Office of Foreign Assets Control also will consider requests for specific licenses to continue activities beyond the end of the wind-down period on a case-by-case basis”.

The Treasury has multiple times extended wind-down licenses for companies with Venezuelan assets since the Trump government’s issuance in January 2019 of an executive order extending sanctions to PDVSA and the Central Bank of Venezuela. The U.S. in Executive Order 13857 reiterated the government of President Nicolás Maduro was illegitimate, contesting his 2018 reelection for another six years.

The January 25, 2019, order also cited “human rights violations and abuses in response to anti-Maduro protests, arbitrary arrest and detention of anti-Maduro protestors, curtailment of press freedom, harassment of political opponents and continued attempts to undermine the Interim President of Venezuela and undermine the National Assembly”.

It was referring to the parallel government of opposition leader Juan Guaido, which the U.S. backed but which dissolved itself in 2022.

The State Department said, “We again call on Maduro to allow all candidates and parties to participate in the electoral process and release all political prisoners without restrictions or delay”.

U.S. officials have repeatedly denounced the decision by Venezuela’s Supreme Court to bar an opposition bet for this year’s presidential poll.

On January 27, the State Department said, “The Venezuelan Supreme Court’s January 26 decision to disqualify democratic opposition primary winner Maria Corina Machado is inconsistent with the commitment by Nicolás Maduro’s representatives to hold a competitive Venezuelan presidential election in 2024”.

The court’s decision affirming an electoral ban on Machado “lacked basic elements, as Machado neither received a copy of the allegations against her nor was afforded the opportunity to respond to those allegations”, the State Department said at the time.

Amid the ban, Machado last month named a replacement for her presidential bid freshly “after authorities arrested two of her campaign staffers and issued warrants for seven more, accusing them of links to an alleged anti-government plot”, U.S. independent news agency The Associated Press reported March 23.

Late that month Maduro filed candidacy seeking another presidential term, as reported by his United Socialist Party and state media. The vote has been scheduled for July 28, as announced by Venezuela’s National Electoral Council March 5.

Following the announcement of the oil and gas reprieve expiry, Republican Senators Jim Risch and Marco Rubio said in a joint statement the action was “insufficient given the realities on the ground in Venezuela”.

“For three long years, President Biden has repeatedly appeased and granted concessions to Maduro and his cronies, even as the criminal regime has increased repression on Venezuelan democratic opposition and continues to threaten neighboring democratic countries”, the lawmakers added.

jov.onsat@rigzone.com

by Jov Onsat|Rigzone , April 18, 2024 |

 

 

 

 

PDVSA-Chevron JV Launches Venezuela Drilling Campaign

by Jov Onsat|Rigzone Staff

April 05, 2024 |

Petróleos de Venezuela SA (PDVSA) and Chevron Corp. have started new drilling in the Orinoco oil belt, launching their exploration campaign for 2024.

“The EDV-43 drill began work in February 2024, in the Carabobo 2 Block of the Hugo Chávez Orinoco Oil Belt, in compliance with the operating plan drawn up by the joint venture”, PDVSA said, referring to Petroindependencia SA.

“The CMI14 well, the first of 17 contemplated in this year’s business plan, represents an important milestone for the increase in production of this joint venture, under the premise of operational excellence. This operational achievement of PDVSA Petroindependencia, working as a team, ratifies the commitment to promote the rebirth of the nation’s main industry, providing the barrels of crude oil necessary for the well-being of the Venezuelan people, in compliance with the oil industry recovery plan of the President of the Bolivarian Republic of Venezuela, Nicolás Maduro Moros”.

San Ramon City, California-based Chevron holds a 35.8 percent stake in Petroindependencia, from 34 percent previously, according to the U S company’s annual filing for 2023 with the U.S. Securities and Exchange Commission.

Chevron’s assets in Venezuela have had no proven reserves according to the regulatory disclosure February 26, 2024. Besides Petroindpendencia, Chevron also holds a 39.2 percent stake in Petroboscan SA, 30 percent in Petropiar SA and 25.2 percent in Petroindpendiente SA, according to the filing.

“In 2023, the company conducted activities in Venezuela consistent with the authorization provided pursuant to general licenses issued by the United States government”, Chevron said in the filing.

Two years ago, amid sanctions imposed by Washington on Caracas, the U.S. granted Chevron a license to resume extraction activities in Venezuela. General License (GL) 41 was issued November 26, 2022, as a nod to a humanitarian agreement between the Maduro regime and the Venezuelan opposition.

The Treasury Department said at the time, “This action reflects longstanding U.S. policy to provide targeted sanctions relief based on concrete steps that alleviate the suffering of the Venezuelan people and support the restoration of democracy. GL 41 authorizes activity related to Chevron’s joint ventures in Venezuela only, and does not authorize other activity with PdVSA…

GL 41 authorizes transactions ordinarily incident and necessary to certain activities related to the operation and management by Chevron Corporation or its subsidiaries of its joint ventures involving blocked Venezuelan state-owned oil company Petroleos de Venezuela, S.A. or any entity in which PdVSA owns, directly or indirectly, a 50 percent or greater interest”.

The U.S. adopted several Venezuela sanctions regulations that Congress says have targeted criminal, antidemocratic or corrupt entities.

The latest Venezuela sanctions regulation was passed in 2019 under the Trump administration, based on updates on the online portal of the Office of the Federal Register.

A briefing by the Congressional Research Service (CRS) January 26, 2024, said, “Since 2005, the United States has imposed targeted sanctions on Venezuelan individuals and entities that have engaged in criminal, antidemocratic, or corrupt actions.

In response to increasing human rights abuses and corruption by the government of Nicolás Maduro, in power since 2013, the Trump Administration expanded U.S. sanctions to include financial sanctions, sectoral sanctions, and sanctions on the government.

The Biden Administration has sought to leverage sanctions relief to incentivize Maduro to allow presidential elections in 2024 to be as free and fair as possible”.

Last October the government issued a six-month license authorizing transactions involving the oil and gas sector in Venezuela.

GL 44, issued by the Treasury October 18, 2023, allows transactions related to, per the official text, the “production, lifting, sale, and exportation of oil or gas from Venezuela, and provision of related goods and services; payment of invoices for goods or services related to oil or gas sector operations in Venezuela; new investment in oil or gas sector operations in Venezuela; and delivery of oil and gas from Venezuela to creditors of the Government of Venezuela, including creditors of PdVSA Entities, for the purpose of debt repayment”.

jov.onsat@rigzone.com

 

 

Milei’s calls to sanction Venezuela

April 5th 2024

The Venezuelan president argued that his Argentine colleague represented Zionism and fascism

President Nicolás Maduro criticized his Argentine counterpart for promoting sanctions against Venezuela. The Bolivarian successor of Hugo Chaves Frías stressed that with Milei came “Zionism, which is the new fascism.” Maduro warned during his weekly broadcast,

“Now Milei is going to lead a crusade for Venezuela to be sanctioned, surrounded and beaten. From the neighborhoods of Caracas, I tell Milei, you and how many others, Milei look at yourself in the mirror of Bolsonaro, look at yourself in the mirror of Macri, whoever messes with Venezuela, dries up.

I have a thesis about Maradona’s death, I have said it before. I believe that Maradona was killed (…) I talked to him on his birthday, days before he died, and I told him ‘Diego, come to Venezuela, we take care of you here; I am worried about you because I had already told him personally in January:

‘Take care of yourself, Diego. There are very bad people, fascists, and they know that you are the voice of the rebellion of the people, the one who says what nobody dares to say in Argentina and in the world.

I believe that it was an operation to finish with the symbols of rebellious Argentina, deep Argentina, and first they finished off Diego, I am certain of that. And then they wanted to finish off [former President] Cristina [Fernández de Kirchner] live and on television, they were going to kill her. By finishing off Diego and Cristina, Argentina would be left without any deep, impacting voices. I believe in that plan for fascism to arrive,”

He was confident that the truth eventually will come to light.

 

 

 

UNC warns about Dragon

2024, 04/22

TT Opposition again. questioned stability of the Dragon gas deal. The United National Congress (UNC) warned about legal documents published by the Venezuelan government, which state that the 30-year exploration and production licence granted to T&T could be revoked if the United States imposes sanctions against the Bolivarian Republic.

Opposition MP David Lee quoted from the document published on January 29 under Venezuela’s Ministry of People’s Power of Petroleum, Section 66 which states, “In the event that non-compliance with any of the licensees obligations, in fact, results from the imposition of the sanctions and economic blocks stipulated in article 64 of these General Conditions, the Ministry will grant an exceptional and single period of six (6) months, at the end of which this Licence will be considered terminated.”

T&T Government sought to excite the population with an agreement that is nowhere near fruition. The Office of Foreign Assets Control (OFAC) Licence, issued to T&T on October 17, 2023, was valid until October 31, 2025. However, despite the licence, which allows Shell, NGC and contractors to continue exploring, producing and exporting natural gas from the Venezuelan Dragon field, officials are still only in the planning stages.

“The Opposition is not against getting gas for this country but when this Government has placed all their eggs, as they say, in that Dragon gas deal to the detriment of not doing the proper incentivisation within our borders to continue aggressively developing our oil and gas sector within our own borders, that is the concern the Opposition has.”

Minister of Energy Stuart Young slammed the Opposition for its critique of the arrangement but admitted that he could not guarantee that the arrangement would be unscathed by geopolitics.

“The UNC’s continued bad-mouthing of the Dragon gas project and attacking it, hoping that it will not be successful, should be carefully noted by the population. I cannot give any assurance as to matters that are wholly out of my control but I can reassure the population that we continue to be very engaged with the US government and decision-makers as well as the government of Venezuela, and we have a two-year specific OFAC licence for the Dragon project, along with a 30-year exploration and production licence from Venezuela for the Dragon gas field.

“I can also give the assurance that we will continue to work assiduously to ensure a future energy sector for T&T, as opposed to what was done in the period of 2010-2015.”

The Government had worked overtime to try to ensure a diverse energy future for T&T.

“I remind you that we have secured the production of the Manatee field, we have supported successful onshore gas production, completed successful onshore/nearshore bid rounds, awarded deepwater blocks and are negotiating the first deepwater gas production with Woodside (project Calypso) and worked with the upstream producers of gas to get infill drilling done and to chase and produce stranded pockets of gas. I list these as factual examples of the diversity of what we have done to ensure future gas supply.”

Venezuelan cross-border gas was not the singular example of what Government did to secure future gas production.

Lee again questioned how much the state spent every month to mothball the Petrotrin Refinery in Pointe-a-Pierre. He challenged the claim by Guaracara Refining Company chairman Newman George, at a Public Accounts and Enterprises Committee that it cost TT$500,000 per month to preserve the refinery. Lee said he received information that the figure should have been in US dollars. George reiterated that the preservation costs for the refinery was $500,000 and that his quotation in local currency was accurate.

There is a contract in place and he promised to present the agreement signed between GRC and the local contractor.

 

 

 

 

Appeal Court blanks access to Dragon deal

Secrecy is the hallmark of corruption

Former government minister Devant Maharaj will not get the information related to the Dragon Field gas deal with Venezuela.

On April 30, the Court of Appeal dismissed Maharaj’s appeal after he was refused access to the information and challenged it in the High Court. In a majority ruling, Justices of Appeal Nolan Bereaux and Peter Rajkumar held that the National Gas Company’s response to refuse access to information “outweighed the public interest” considerations as it could have compromised its negotiating position or jeopardised the existence of the project.

Justice of Appeal Ronnie Boodoosingh disagreed.

Rajkumar said, “The access decision contained NGC’s assertion that discussions would contain commercially sensitive information for itself and for the other parties….NGC asserted the potential for derailment of those sensitive multiparty negotiations, still then at a preliminary stage, as a result of disclosure (damage)….The disclosure of information in those circumstances is difficult to justify when balanced against the claim by NGC that such disclosure could affect the very continuation of the then-ongoing negotiations.

The aborting of those negotiations would mean that the possibility of future access to the Dragon field and other Venezuelan gas fields would evaporate. The elimination of these alternative supplies of natural gas that were being explored would come to an end.

The importance of such an additional supply of natural gas and the fact that it is critical to the economy of this country is not a matter to be lightly dismissed.”

Rajkumar also said NGC had considered the section 35 (of the Freedom of Information Act) balancing exercise to determine if the information sought could be disclosed. Some of the information sought did not exist, while there was evidence that issues raised by Maharaj…

“were raised by journalists. In many cases, answers have been supplied. The FOIA, therefore, is not the only source of information or source of the ability to ensure accountability and transparency in relation to this project.”

Maharaj had asked for, among a list of things, copies of all agreements, memoranda of understanding and/or contracts between Venezuela’s state-owned Petróleos de Venezuela, and the TT Government and/or NGC, whether the TT Government and/or NGC obtained legal advice on the potential of international impact/sanctions as a result of the gas deal with Venezuela, copies of documents on the cost of the construction of the pipeline and who will be paying for it; the procurement process for coming to the deal; and the cost per unit of gas TT was obliged to pay.

According to NGC’s evidence, the majority of the requests were for documents that did not exist at the time of the request, as there were “only discussions and negotiations exploring the possibility of arriving at an agreement with respect to a possible deal.

“It cannot be said to be unreasonable that at the stage of discussions and negotiations which had not culminated in any agreement that the public interest considerations alleged by the appellant may not yet have been relevant or of sufficient weight as to risk jeopardising the eventual existence of the project by allowing access to the information requested.

“In any event, however, it would not be unreasonable for NGC to conclude that their disclosure could compromise negotiations or undermine any competitive advantage or negotiating position that may be held by it.

“Given the importance of the project as indicated by NGC, a legitimate balancing exercise conducted by it could reasonably have been weighed against disclosure, given that the termination of the project as a result of disclosure could readily outweigh any advantage in obtaining any information about it at that stage,” Rajkumar said.

Maharaj was represented by Anand Ramlogan, SC, Dr Che Dindial and Ganesh Saroop. The NGC was represented by Russell Martineau, SC, Kerwyn Garcia, SC, and Vishma Jaisingh.

 

 

 

 

Griffith doubts Dragon

National Transformation Alliance (NTA) political leader Gary Griffith is uncertain that the Dragon gas deal with Venezuela will bear any fruit  after a decision by the US to reimpose sanctions on Venezuela.

To implement an orderly process following the expiration of General License 44, the State Department said the US will issue a 45-day wind-down license. The US Treasury’s Office of Foreign Assets Control (OFAC) also will consider requests for specific licenses to continue activities beyond the end of the wind-down period on a case-by-case basis.

Griffith was concerned that renewed US sanction could drive Venezuelans to Trinidad and Tobago which was unprepared for this and the economic impact. He asked whether US sanctions could affect efforts to obtain natural gas from the cross border Loran-Manatee field. Manatee lies on TT territory. An agreement was previously reached to delink it from Loran, on the Venezuelan side of that border and access Manatee’s gas reserves.

“The lesson here perhaps is about not putting all our eggs in one basket because as is widely known, one trip and it’s a total disaster.”

On April 19, the Prime Minister said the Government received a 30-year exploration and production licence from the Venezuelan government on December 21, 2023, for the Dragon gas field, and the work to develop the field is continuing.

“The NGC and Shell have been looking at the elements necessary to get the project done.”

Gestation periods for projects of this period are lengthy and involve different components. These include getting vessels to survey the reserves in the Dragon field and doing the designs for any pipeline infrastructure needed to extract the natural gas that is there. These were necessary precursors for the successful undertaking of the relevant physical activity to come.

On April 18, UNC activist Ravi Balgobin-Maharaj claimed a statement made on the same day by the Office of Foreign Assets Control (OFAC), which falls under the US Treasury, meant the Dragon deal was in jeopardy

“As was expected, the US is making good on their promise to not extend the life of OFAC General License 44 when it expires on April 18, 2024. As such, it was just announced by OFAC that all entities operating under General License 44 will be given until May 31, 2024, to wind down all oil and gas operations in Venezuela.”

The Energy Ministry said Balgobin-Maharaj was wrong. “This amendment to the OFAC General Licence 44 does not affect the specific amended OFAC licence that was issued to the Government of the Republic of Trinidad and Tobago on October 17, 2023, which authorised the Government of Trinidad and Tobago, the National Gas Company of Trinidad and Tobago Ltd (NGC), Shell PLC and their affiliates to conduct business with the Government of Venezuela and Petróleos de Venezuela (PDVSA) with respect to the Dragon Gas Field in Venezuela.”

“The specific amended OFAC Licence issued to Trinidad and Tobago on October 17, 2023, is valid until October 31, 2025, and permits Shell, NGC and contractors to continue the works being undertaken to explore, produce and export natural gas from the Venezuelan Dragon Gas Field.”

TT and Venezuela signed the US$1 billion deal in August 2018. Those involved included energy giant Shell, Venezuela’s state oil company PDVSA, and the NGC. The Dragon deal will see TT developing the field, which it is estimated will produce approximately 150 million standard cubic feet of gas a day. The gas will be imported through a billion-dollar pipeline to the Hibiscus platform off the northwest coast of TT. The platform is jointly owned by the Government, NGC and Shell.

 

 

 

GeoEconomics of Gas curtailment

2024,  04/25

A new paperback edition of Daurius Figueira’s 2014 book on natural gas links between T&T and Venezuela published in March 2024 is on sale for US$14.99 on Amazon.

Geopolitical factors such as US sanctions on Venezuela and business decisions of energy multinationals impacted on T&T’s declining gas industry.  These are some of the contemporary issues covered in the revised edition of the 275- page book on T&T’s gas industry and its relationship with Venezuela by local author Daurius Figueira.

The first edition of “The Geo-politics of LNG in Trinidad and Tobago and Venezuela in the 21st century” published in 2014 presented a comparative analysis of the plan by late President Hugo Chávez for developing Venezuela’s petroleum industry, including the offshore gas reserves of the Deltana platform, the Mariscal Sucre project. the Cardon 4 Project and the LNG sector of T&T from the 1990s to 2013.

“This first edition then presented an analysis of Chávez’s plan of development for offshore Venezuela gas in the context of the discourse that underpins the planning document titled: ‘Sowing the Oil’ which included a treatment of the geopolitics of Venezuelan energy and the Caribbean region exemplified by the Petro-Caribe programme.

In the case of T&T, the discourse of the natural gas economy articulated by BP officials was presented and deconstructed to reveal BP’s agenda for LNG in T&T given its position as the largest single gas producer for the gas sector of T&T.

The terrain of gas exploration and production, mergers and acquisitions amongst gas players for the period were also analysed, as was the creation and expansion of Atlantic LNG to four trains.”

The 2014 edition highlighted Venezuelan energy realities under President Chávez with details in English not readily available to the reader lacking Spanish language capability.

“In addition to the analysis of the creation and evolution of the LNG sector of T&T across time/space, the death of Chávez, the leadership of Maduro , the USA action and the worsening gas shortfall in T&T since 2013 demanded the revised edition of 2024. raising questions of which only the passage of time will reveal the outcomes.”

According to a summary on Amazon, this updated edition presents the developments in the gas sectors of Venezuela and T&T from 2014 to 2024 thereby analysing the pressing reality of the impact of geopolitics on the LNG sector of both T&T and Venezuela in the 21st century.

“Likewise, the evolution of the gas production shortfall and the measures slated to mitigate this shortfall in T&T, including the dance with Venezuela for the supply of Venezuelan gas to T&T which involves the grave risk of US measures impacting the gas supply relationship with Venezuela with telling impact on the gas sector of T&T must be analysed.”

When it was constructed in 2005 and for the first few years of its operation, Train IV was the world’s largest LNG train, with a capacity of 5.2 million tonnes of LNG per annum.

Train 4 began commercial operations on May 1, 2007 and supplies Natural Gas Liquids (NGL) to Phoenix Park Gas Processors Ltd (PPGPL) under a long-term agreement. Creation of Train IV is significant to understanding the collapse of gas production in T&T.

The first edition ends in 2013 with the fall in gas production already evident and it continued to worsen since then. The nature of President Maduro’s governance since the death of President Chávez in 2013, action by the USA and its impact on the Venezuelan economy and social order, the worsening gas shortfall of T&T forcing it to return to Venezuela seeking a gas supply as it did with Train IV and the continuing threat of US measures demanded a revised edition of the book to bring it up-to date as at March 2024.

Figueira claimed that the refusal of bp and BG to accept the gas deal offered by President Chávez for feeding Train IV and the decision to run Train 4 only with T&T’s gas created this gas supply crisis today.

Train IV was designed to only run on Venezuelan gas feedstock, so why build the plant when the offer of Venezuelan gas was refused by BP and BG?

Any return to the measures of the Trump presidency will mean no Venezuelan gas supply to T&T and the heightening of a gas supply crisis in T&T to the gas sector with negative impact on the economy.

In 2024 gas majors in T&T are hedging their bets as T&T now has capacity but an inadequate local supply of gas feedstock to maximise profit from that capacity.  He doubts T&T’s ability to turn around gas production and the economy given its historic underdevelopment and over reliance on the energy sector.

“Our gas reserves are now at the stage where the future is the deep water, which remain an unknown entity until development drilling begins. At what price per million standard cubic feet would this deep-water gas cost the end users?

Already the Republicans are preparing us for a return to the days of the Trump presidency but the second time around it will be on steroids given tension with China and Russia and in Gaza.

Can a neo-colonial, neo-liberal economy addicted to foreign exchange it does not earn, but loves to spend, build it way out of this debacle with export propelled growth? To-date they have indicated no vision, capacity and willingness to bite this bullet.”

 

 

Former Venezuelan Oil Minister placed under arrest

 April 9th 2024

El Aissami’s career took off when he was mentored by former President Hugo Chávez’s brother Adán

Venezuelan authorities Tuesday arrested former Oil Minister Tareck El Aissami in a corruption probe after about one year at large following his resignation. Attorney General Tarek William Saab said the former official intended to dent the country’s economy. Saab noted a conspiracy with serious potential consequences given Washington’s unilateral measures against Caracas’ regime.

El Aissami’s front man Samark Lopez and former Economy Minister Simón Alejandro Zerpa were also detained after following leads disclosed by “at least five witnesses.” According to local media, El Aissami, who held the position of chairman of Venezuela’s state-owned oil company PDVSA among other achievements during his career, faces charges of treason,  appropriation or distraction of public patrimony, boasting or valuing relations or influences,  capital legitimization and   illicit association.

“It was possible to detect and dismember a network of officials who used their positions to carry out illegal oil operations,” Saab explained. The outlaw organization sought to drive the parallel dollar upward.

El Aissami, a 49-year-old lawyer and criminologist, graduated with honors from the Universidad de Los Andes (ULA). He was born in El Vigía, Mérida state, where he grew up in a family of immigrants from Syria and Lebanon.

 

 

 

 

UN Human Rights Office resume operations in Venezuela

 April 24th 2024

Khan announced plans for his team to return to Venezuela in three weeks to collaborate with local experts.

The office of the United Nations High Commissioner for Human Rights (OHCHR) is set to return to operate in Venezuela, signaling a thaw in relations with the international community.

President Nicolas Maduro announced the decision at the Miraflores palace where he was joined by International Criminal Court (ICC) prosecutor Karim Khan, who is investigating Venezuela for crimes against humanity.

Maduro agreed to allow reopening of the UN Human Rights Office in Venezuela, stating, “Let’s overcome the differences, the conflict we had.” His remarks were welcomed by Khan, who thanked Maduro for his commitment to facilitating the return of the UN office. “I am very grateful that you have expressed your commitment…to allow the office of the UN High Commissioner to return to Venezuela,” Khan said.

Expulsion of the UN Human Rights Office from Venezuela occurred two months ago, following its expression of concern over the arrest of Rocio San Miguel, an activist and expert on military issues. San Miguel was detained on charges of terrorism allegedly linked to a plot to assassinate Maduro.

The government’s decision to expel the UN office was met with condemnation and accusations of bias. Maduro’s recent announcement signals a willingness to mend relations and address differences constructively. “The doors of the Miraflores palace are open…so that we can talk about the differences we have, the conflict that arose and overcome it.”

The return of the UN Human Rights Office is seen as a positive step towards addressing human rights concerns in Venezuela. The office, led by former President Michelle Bachelet in 2019, had highlighted both progress and challenges in the country’s human rights situation.

Volker Türk, the current High Commissioner, visited Venezuela in January 2023 and emphasized the need for measures to end torture and release arbitrarily detained individuals.

ICC prosecutor Khan inaugurated the international prosecutor’s office in Caracas during his fourth visit to Venezuela. Khan’s visit follows the ICC’s rejection of Venezuela’s appeal regarding its investigation into crimes against humanity during anti-government demonstrations in 2017.

Despite differences, Khan emphasized the importance of dialogue and cooperation. “We agree to disagree on some issues…but at the same time with this independent and thorough investigation, we are creating spaces and dialogue for complementarity.”

Khan announced plans for his team to return to Venezuela in approximately three weeks to collaborate with local experts. He revealed the government’s intention to incorporate the Rome Statute into Venezuela’s legislation, signaling a commitment to international legal standards.

 

 

 

UN Security Council to review Essequibo controversy

April 10th 2024 –

Guyana requested the United Nations Security Council to review Venezuela’s territorial claims over the Essequibo region, under the jurisdiction of the former British colony since 1899, but which Caracas has annexed to all its official maps following a referendum..

The Government of President Irfaan Ali insisted that it had “repeatedly asked Venezuela to participate fully in the judicial proceedings and comply with the decisions of the International Court of Justice (ICJ). “

In 2018, Guyana filed a lawsuit against Caracas before the ICJ. In April last year, the ICJ declared itself competent to rule on the case, despite Caracas’ objections.

Guyana Foreign Minister Hugh Todd said that his country expected the UN Security Council to issue a declaration that “obeys the norm of international law” and argued that the UN Security Council needs to be the main body “to discuss Venezuela’s violations as a member of the international community.”

Foreign Secretary Robert Persaud said the Security Council will focus on the alleged “violation of norms of international law” by Venezuela.

Persaud also wrote that the UN Security Council would look at the matter from the perspective of Maduro’s violation of the rules of international law requiring states to respect the sovereignty, territorial integrity, and political independence of other states. He pointed to the ICJ order on Provisional Measures, issued on Dec. 1, 2023, which bans Venezuela from any action interfering with Guyana’s administration and control of its Essequibo region “pending the court’s final ruling on the merits of the controversy”.

On Monday, Guyana welcomed Venezuela’s decision to file a document before the International Court of Justice (ICJ) on ownership of the Essequibo region.

It therefore stated that it “welcomes Venezuela’s submissions on the substantive issues on which the Court will ultimately decide.”

Venezuela’s Foreign Ministry Thursday rejected Guyana’s disapproval of the Law for the Defense of the Essequibo. Caracas ”fully and forcefully“ rejected Guyana’s statement on the Organic Law for the Defense of Guyana Esequiba, approved by the Venezuelan Legislative and Judicial Branches on Wednesday.

”The approval of the aforementioned law is a sovereign act, which is the sole responsibility of Venezuelans and its objective is to defend and preserve the unquestionable rights of Venezuela over the territory of Esequiba Guyana under the aegis of international law,“ the Ministry said. For the Venezuelan Government, ”the only valid instrument to solve in an amicable, practical and satisfactory manner the territorial controversy“ is the Geneva Agreement of 1966.

Guyana’s Foreign Ministry published Thursday a communiqué dated April 3 in which it assured that Venezuela’s territorial claim was an attempt to annex more than two-thirds of Guyanese land in ”a flagrant violation of the most fundamental principles of international law.“

Caracas then replied that Venezuela would continue to be ”a guarantor of peace and good international coexistence and will resort to all available means, within the framework of diplomacy and international law” to safeguard its interests. The government of Venezuelan President Nicolás Maduro said that it had delivered to the ICJ “a document and its respective copies with the historical truth and evidence” that would prove that Venezuela has sole ownership over the territory west of the Essequibo River.

The Caribbean Community (Caricom) accused Venezuela of provoking “an unacceptable escalation of tensions” that threatens to “undermine peace and security in Latin America and the Caribbean.” The 15-member regional organization denounced that the Venezuelan government has acted “in a unilateral, hasty and potentially dangerous manner” by enacting the so-called Organic Law for the Defense of Guiana Essequiba, which is regarded in Georgetown as a roadmap to annex the 160,000-square-kilometer petroliferous area.

Venezuela argues that the 1899 arbitration award is null and void because it “fraudulently affected 159,500 square kilometers of the territory” and recognizes the 1966 Geneva Agreement 1966 with the United Kingdom (before Guyanese independence) as the only legal instrument to resolve this dispute. The deal called for a negotiated solution that was never achieved.

Supporting Georgetown’s stance was the Organization of American States (OAS) which was also critical of the Venezuelan legislative move. The OAS said it was a threat to regional peace and security which starkly contradicts fundamental principles of international law and underscores the dictatorial tendencies of Caracas’ regime. The OAS said,

“The Venezuelan regime, which a few days ago approved a fascist “law” to combat “fascism, neo-fascism, and similar expressions,” also approved a so-called “Law for the defense of Essequibo” whose “legislative” standards recall sad historical episodes that led to annexations by force, military aggression, and destruction.

“Regional peace and security depend on stopping the Venezuelan regime from advancing these threatening objectives. International law condemns the crime of aggression, condemns the threat of aggression, condemns unilateral actions to resolve bilateral problems, condemns non-compliance and violation of current Arbitration Awards, and, as an international community, we must condemn bellicose attitudes and intimidation of countries and international actors,”

In light of these developments, the OAS urged the international community to condemn Venezuela’s belligerent actions and stand in solidarity with those affected by its aggressive posturing.

 

 

Canada Gas Firm wins Venezuela Contracts

April 25, 2024
Jov Onsat Rigzone Staff

LNG Energy Group Corp. won two contracts to develop hydrocarbons in Venezuela covering five producing fields. The contracts were signed just a day before the expiry of a reprieve for oil and gas activities issued by Washington to Caracas, based on a press release by LNG Energy Group announcing the awards. The Ontario, Canada-registered company said it intends to comply with the reimposition of United States sanctions.

LNG Energy Group said its wholly owned subsidiary LNGEG Growth I Corp. (LNG Venezuela) “entered into a binding agreement with PDVSA Petroleo S.A., a subsidiary of Petroleos de Venezuela S.A. (‘PDVSA’), the Venezuelan national oil company, for the operation of the Nipa-Nardo-Niebla and the Budare-Elotes CPPs [Productive Participation Contracts] in onshore Venezuela”.

The blocks sit in the adjacent northern states of Anzoátegui and Monagas. They contain five fields with a light and medium oil production of about 3,000 barrels per day, the Latin America-focused company said.

“LNG Venezuela will provide the required investment to further develop the fields and conduct operations and has 120 business days from the date of signing to satisfy the required contractual conditions precedent in order to be awarded the CPPs and initiate operations”, LNG Energy Group said.

The deal gives it a 50–56 percent share of production.

However, on April 17, the disclosed date of the signing of the LNG Energy Group-PDVSA agreement, the Biden administration announced it would not renew a license issued to Venezuela for oil and gas activities, accusing the Maduro regime of failure to honor a commitment to upholding fair elections.

“After a careful review of the current situation in Venezuela, the United States determined Nicolas Maduro and his representatives have not fully met the commitments made under the electoral roadmap agreement, which was signed by Maduro representatives and the opposition in Barbados in October 2023”, the State Department said at the time.

“Therefore, General License 44, which authorizes transactions related to oil or gas sector operations in Venezuela, will expire at 12:01 AM on April 18”.

The Treasury Department issued the six-month license last October 18 allowing transactions related to, per the official license text, the “production, lifting, sale, and exportation of oil or gas from Venezuela, and provision of related goods and services; payment of invoices for goods or services related to oil or gas sector operations in Venezuela; new investment in oil or gas sector operations in Venezuela; and delivery of oil and gas from Venezuela to creditors of the Government of Venezuela, including creditors of PdVSA Entities, for the purpose of debt repayment”.

The State Department said, “Despite delivering on some of the commitments made under the Barbados electoral roadmap, we are concerned that Maduro and his representatives prevented the democratic opposition from registering the candidate of their choice, harassed and intimidated political opponents, and unjustly detained numerous political actors and members of civil society”.

Simultaneous with the announcement, the U.S. Treasury issued a license for affected companies to wind down their operations in Venezuela. The wind-down period runs through May.

“Effective April 17, 2024, General License No. 44, dated October 18, 2023, is replaced and superseded in its entirety by this General License No. 44A”, stated the official wind-down notice.

LNG Energy Group said, “The CPPs were executed within the term of General License 44 issued by the US Office of Foreign Assets Control. License 44 has been replaced by License 44A requiring US persons to wind down oil operations in Venezuela before May 31, 2024. The Company will assess in the coming days the applicability of License 44A to its intended operations in Venezuela and determine the most appropriate course of action. The Company intends to operate in full compliance with the applicable sanctions regimes”

,

Colombia

Ecopetrol to produce oil and gas in Venezuela

Fabiola Zerpa, Bloomberg April 10, 2024

Colombia is working on a deal to produce oil and gas in Venezuela, President Gustavo Petro said following a trip to Caracas.

State-controlled Ecopetrol SA could develop “high quality” oil and gas in western Venezuela under the agreement, while Colombia could export clean energy to its neighbor, Petro said.  Petro flew to Venezuela for his fifth meeting with President Nicolás Maduro since 2022. The trip was preceded by friction between the two allies, after Petro last month criticized Maduro’s government for blocking the main opposition leaders from the presidential election in July.

Petro said the oil and gas would be developed in Venezuelan fields near the Colombian province of Norte de Santander, while electricity would be provided from La Guajira province on Colombia’s Caribbean coast.

Petro was elected in 2022 on a pledge to phase out fossil fuels and his government declined to award exploration licenses to oil companies.

Colombian exports to Venezuela will reach $1.2 billion this year, while imports will be between $200 million – $300 million, A bilateral commission for food exports, via Colombia’s Meta river, will be up and running soon.. After taking office , Petro immediately patched up the acrimonious relationship between the two countries, restoring diplomatic ties and reopening the border. Petro said he met opposition leaders, and Colombia would be prepared to mediate in Venezuela’s political conflict.

 

Parex Resources and Ecopetrol to explore Colombia’s high-potential Llanos Foothills

11 Apr 2024

Parex Resources and its strategic partner Ecopetrol entered into definitive agreements to consolidate their position along the Llanos Foothills trend in alignment with current Colombian government objectives to secure gas supply and support energy transition initiatives.

Parex and Ecopetrol are now strategically positioned with eight blocks, along with the creation of a mutual area of interest (‘AMI’), to capitalize on the approximately 500-kilometer geological trend and explore for new sources of domestic gas and liquids. This trend boasts world-class discoveries at both ends, which cumulatively have produced over 1.4 million barrels of oil(1), and roughly 4 trillion cubic feet of natural gas(1), with the middle of the trend largely unexplored.

The agreements signify progress in Parex’s long-term gas strategy to pursue underexplored liquids-rich plays, within an area with existing infrastructure that can be leveraged to accelerate exploration and development following new regulations approved by the Colombian government.

Imad Mohsen, President & Chief Executive Officer, commented, ‘After extensive joint efforts, Parex and Ecopetrol are proud to announce the execution of definitive agreements to explore the high-potential Foothills of Colombia and harmonize our respective land positions.

On behalf of Parex, I want to express my gratitude to Ecopetrol for their trust in our company, while reaffirming our commitment to the respectful treatment of community and stakeholder rights.

This collaboration not only supports Colombia’s energy position and the current administration’s initiatives, but also marks a transformative frontier for Parex as we advance our gas strategy alongside our strategic partner,’

‘Over the last three years, Parex has strategically strengthened our asset portfolio, such as carrying out the Arauca & LLA-38 farm-in and acquiring 18 new blocks in the 2021 Colombia bid round. This further partnership with Ecopetrol is a continuation of those efforts to expand and high-grade our portfolio as we focus on executing near-field exploration prospects – while concurrently drilling high-impact targets with step-change potential.’

Key Highlights

• • Assumed operatorship in all exploration and future development activities where
  • Parex holds a newly acquired working interest (‘W.I.’)(2).
  • Harmonized the LLA-4-1, LLA-16-1, and LLA-121 blocks(2) to become 50-50 joint venture partners as well as the option to jointly participate in two additional blocks within the trend is under evaluation.
  • Received a 50% participation share in the form of exploratory rights within the Sirirí Convenio(2), where the producing Gibraltar field is located, in exchange for drilling the Gibraltar Profundo exploration well and further capital investments of $11 million (gross).
    • The Gibraltar field is currently producing from the Mirador formation(3)(4), which is excluded from the definitive agreements(2) and will remain 100% Ecopetrol W.I.
    • Gibraltar Profundo is a 3D-defined exploration prospect targeting gas and condensate below the Mirador formation, and becomes one of the highest-ranking prospects in Parex’s high-impact big ‘E’ exploration portfolio; with expected results in 2025, the prospect is located within the existing facilities of the Gibraltar field where a discovery could be fast-tracked to existing pipeline infrastructure.
  • Created an AMI within the Foothills trend that includes the Niscota exploration area, whereby if either party acquires the rights within an area, each party has the right to acquire a 50% W.I. of the acquired area(5)(6).
    • The Niscota area is on trend to the producing fields of Cusiana, Cupiagua, Floreña, and Pauto Sur, which together produced over 23,000 bbl/d of oil(4) and roughly 1 bcf/d of natural gas(4) in 2023 from discoveries made in the 1980s and 1990s; peak average production from the combined fields was approximately 450,000 bbl/d of oil(1) and roughly 3 bcf/d of natural gas(1).
  • Continuing to work jointly to unlock transportation via recent changes in regulations that allow for the conversion of existing oil pipelines to multiphase pipelines, minimizing the need for new independent treatment facilities for each block, and accelerating commercial onstream time for successful gas production.

(1) Source: IHS – S&P Global.
(2) See “Block & Working Interest Summary” for additional information.
(3) The Gibraltar field currently produces approximately 37,000 mcf/d of natural gas and roughly 700 barrels of light crude oil from the Mirador formation (January 2024).
(4) Source: National Hydrocarbons Agency of the Republic of Colombia (“ANH”).
(5) Excludes the extension of the existing discoveries from the Piedemonte Convenio, where Ecopetrol will keep 100% rights over such area.
(6) Subject to government approval.

Llanos Foothills Block & Working Interest Summary

 

(1) New Parex operatorship.
(2) Pre-existing Parex operatorship.
(3) Parex receives 50% participating share in future exploration; Ecopetrol retains 100% W.I. and operatorship of current production, with 50% participating share in future exploration.
(4) Subject to government approval.
(5) Business Collaboration Agreement with Ecopetrol (Parex 50% Participating Share); Ecopetrol currently holds 100% of the W.I. in the Convenio Arauca while the assignment procedure is pending.

Source: Parex Resources

 

 

 

 

Venezuela hands former ConocoPhillips-operated assets to Roraima

Fabiola Zerpa, Bloomberg April 18, 2024

As the U.S. reimposes sanctions. Venezuelan firm A&B Investments will partner with Petróleos de Venezuela to run key heavy oil fields in the Orinoco Belt and an associated processing facility, once operated by ConocoPhillips. The deal was announced shortly before the deadline for the expiration of U.S. sanctions relief.

Restrictions will exclude investors hoping to enter Venezuela and could usher in a return to Trump-era restrictions on PDVSA activities.

The US administration reiterated its stance that President Nicolas Maduro failed to abide by commitments reached in October for democratic conditions for presidential elections on July 28, including allowing all candidates to run.

A Brazilian firm is financing the new joint venture Roraima, named after a Brazilian state. Venezuelan businessman Jorge Silva Cardona, who leads A&B, has a history of doing business with Brazilian firm J&F Investimentos SA, the holding company of the billionaire Batista family that owns the world’s largest meat producer, JBS SA.

Silva is a “commercial representative” for J&F and offers “investment opportunities for the group and shareholders to evaluate in Venezuela. J&F said none of its shareholders “has any investment commitments in Venezuela” and it continues to evaluate opportunities throughout the region.

Roraima is expected to acquire the Petro San Felix assets, including a port, which late president Hugo Chavez expropriated from ConocoPhillips in 2007. Its fields and upgrader subsequently fell into disrepair after economic collapse and US sanctions.

A&B’s plan targets production of 90,000 bpd within two years and calls for investments of $600 million for the upgrader. The venture was approved by the National Assembly, though terms of the deal have yet to be signed by PDVSA .

 

 

 

Cuba

Melbana finds gas

Preparing to test hydrocarbon indications consistent with Alameda-1 discovery

Australian oil and gas junior Melbana Energy (ASX: MAY) is preparing to commence logging of the Alameda-3 appraisal well in Cuba after intersecting sections of elevated formation gas.

 

 

 

 

 

Angostura income rises by 4.64%

2024, 03/30

Angostura Holdings Limited reported increased profits and revenues in its summary consolidated financial statements for the year ended December 31, 2023.

The December 1 fire at the House of Angostura did not dim profits as the company again topped $1 billion in revenues.

Angostura recorded after-tax profit of $151.9 million for the year, which represented an increase of 4.64 per cent compared to the $145.2 million the rum and bitters company earned in 2022. Profit before tax in 2023 was $220 million, 7.84 per cent more than the $203.9 million in 2022.

Chairman Terrence Bharath said, “This represents an improvement in our profitability ratio by 100 basis points to a 20.8 per cent profit before tax margin.

The company delivered a robust performance, as we confidently steered Angostura through the normalisation of the spirits market post the COVID-19 pandemic.

Building on last year’s historic achievement of surpassing the one-billion-dollar revenue mark, revenues reached $1.05 billion in 2023, growing by $26 million or 2.5 per cent.

This accomplishment was mainly driven by our successful internationalisation strategy, which led to 76 per cent of the company’s year-on-year growth. This was fuelled by key marketing investments driving revenue growth of 13 per cent for iconic Angostura® Bitters in the USA, whilst rums, 69 per cent being premium rums, continued to gain traction around the world, with nine per cent growth.”

The chairman pointed out that the Angostura brand is among the top ten trendiest rum brands, according to Drinks International, with the innovative Angostura Tamboo® spiced rum leading the way.

The Caribbean and Latin America markets also achieved strong revenue growth with increases of 12 per cent and 16 per cent, respectively, while Angostura® Chill continued to perform above expectations in the Caribbean region with revenue growth of four per cent or $14 million.

The local market also saw improvements. “Revenue from the local market grew by $10.7 million or 1.6 per cent, driven by the strategy to recapture consumer demand by investing in the on-trade and at Solera, our retail chain, which both achieved solid single-digit revenue growth complemented by a new Solera branch at Albion Plaza.
“Angostura’s premium rum range revenue grew by 11 per cent in the local market, together with the portfolio of agency brands which gained 13 per cent in the local trade.”
He hailed continued innovation in the rums segment with the launch of Symphony 2023 Edition, “a carefully crafted and bottled masterpiece of ages, flavours and aromas”.

Securing back-to-back revenues topping the billion dollar mark, Angostura is ripe for divestment of public assets which can be invested in priority areas of health, biofuel and food amid rising cost of living and escalating crime and corruption.

 

 

 

 

FAO commits to loans for region

2024, 04/17

Mario Lubetkin, FAO assistant director-general and regional representative and secretary general of ALIDE, Edgardo Alvarez, showed copies of the letter of intent at the signing ceremony, in Lima, Peru.

The Food and Agriculture Organisation of the United Nations (FAO) and the Latin American Association of Development Finance Institutions (ALIDE) signed a letter of intent to work on agreements to improve access to credit for small and medium-sized agricultural enterprises to accelerate agricultural transformation and sustainable rural development in Latin America and the Caribbean.

The FAO said this seeks to strengthen strategies for effective financing of agricultural and rural development in the region, adding it will improve food security, reduce rural poverty, and promote gender equality through initiatives such as studies and research, training, dissemination, and exchange of information.

“These initiatives will focus on strengthening development banks’ financing and technical assistance policies and strategies to support agricultural and agro-industrial production units, financial inclusion of small and medium-scale producers, and financial and nonfinancial services to improve access to credit for small and medium-scale agricultural enterprises.”

The agreement seeks to promote FAO’s “Hand in Hand” programme approach for accelerating agricultural transformation and sustainable rural development and for increasing and stimulating public and private investments to accelerate the transformation towards more efficient, inclusive, resilient and sustainable agri-food systems.

“It is critical to understand that, to achieve sustainable development through the transformation of agri-food systems, we must work closely with the Development Finance Institutions. This agreement will allow us to work to promote effective financing for agricultural and rural development in Latin America and the Caribbean, particularly in the most vulnerable areas.”

Secretary General of ALIDE, Edgardo Alvarez, declared that the letter of intent between FAO and ALIDE allows the relaunching of the institutional relationship between both organisations, putting at the base the priority issues of current relevance in the promotion and development of the agricultural and rural sector in the region, with the ultimate goal of achieving food security.

 

 

 

 

Turks and Caicos Conference

April 13th 2024

The third Commons and Overseas Territories Speakers’ Conference (COTSC) was held in the Turks and Caicos Islands during the first week of April with the participation among others of Keith Biles, JP, Speaker of the Falkland Islands Legislative Assembly.

Speakers, Parliamentary Clerks and technical experts, examined different aspects of building strong Legislatures and effective parliamentary democracy focusing on AI, Cyber and Physical Security of Parliaments and on Parliamentary Education and Outreach.

The Conference was hosted by the Speaker of the Turks and Caicos House of Assembly, Hon. Gordon Burton, MHA in Providenciales and Grand Turk. Speakers and Clerks attended from Anguilla, Bermuda, British Virgin Island, Cayman Islands, Falkland Islands, Montserrat, St Helena, Turks and Caicos and the United Kingdom.

The Commonwealth Parliamentary Association, CPA, Headquarters’ Head of Programs, Matthew Salik provided expertise on protocol and precedent as it relates to Commonwealth Speakers and used the Conference as a valuable opportunity to promote the CPA’s recent publication ‘Parliamentary Handbook on Disinformation, AI and Synthetic Media’.

The Secretariat for the COTSC Conference is provided by the UK House of Commons Speaker’s Office and the CPA Headquarters and CPA UK Branch are official partners.

All of the Legislatures attending were Branches of the Commonwealth Parliamentary Association across two of the CPA’s Regions – the CPA British Islands and Mediterranean Region and the CPA Caribbean, Americas and the Atlantic Region.

A communiqué at the conclusion of the conference highlighted the importance of continuing to work together to create a unique and modern partnership to strengthen parliamentary democracy. The next Commons and Overseas Territories Speakers Conference will be held in London in 2025.

 

 

 

 

Two Years to Save the World: Simon Stiell at Chatham House

10 April 2024

Transcript of a speech by UN Climate Change Executive Secretary Simon Stiell at Chatham House in London, England.

Two years to save the world… Good afternoon, Some of you may think the title of today’s event is overly dramatic. Melodramatic, even. So let me start by explaining briefly why the next two years are so essential in saving our planet.

• First, we know the stakes. You’ve heard me talk before about record shattering heat and massive damage to economies, and how there’s no room for half measures. Let’s take all that as a given.
• Second, we are at the start of a race which will determine the biggest winners in a new clean energy economy. And with the global index of living standards in constant flux, each country’s climate responses will be key to whether they rise up the ladder or fall. Whether they thrive or barely survive.
• Third, many countries will only be able to implement strong new climate plans if we see a quantum leap in climate finance this year.
• Fourth, it’s about how the Paris Agreement works. As of today, national climate plans – Nationally Determined Contributions or NDCs – in aggregate will barely cut emissions at all by 2030.

We still have a chance to make greenhouse gas emissions tumble, with a new generation of national climate plans. But we need these stronger plans, now.

And while every country must submit a new plan, the reality is G20 emissions are around 80% of global emissions. So G20 leadership must be at the core of the solution, as it was during the great financial crisis. That’s when the G20 came of age and showed major developed and developing economies can work together to avert global economic catastrophes.

• Fifth and finally, every citizen of every country has an opportunity to be part of this transition. Every voice makes a difference. This year and next, we will need every voice more than ever. Let’s consider for a moment what is up for grabs if we do make the next two years really count.

Bold new national climate plans will be a jobs jackpot and economic springboard to boost countries up that global ladder of living standards. In the face of crop-destroying droughts, much bolder climate action to curb emissions and help farmers adapt will increase food security, and lessen hunger.

Cutting fossil fuel pollution will mean better health and huge savings for governments and households alike. The transformative potential of bold climate action – in tandem with steps to advance gender equality – is one of the fastest ways to move away from business as usual.

For those who say that climate change is only one of many priorities, like ending poverty, ending hunger, ending pandemics, or improving education, I simply say this: none of these crucial tasks – indeed none of the Sustainable Development Goals – will be possible unless we get the climate crisis under control.

In fact, business-as-usual will further entrench the gross inequalities between the world’s richest and poorest countries and communities that unchecked climate impacts are making much worse. These inequalities are kryptonite for cooperative global climate action, and every economy, every country and its people pays the price of that.

To start curing this global cancer of inequality, we need to enable bold new national climate plans by all nations that protect people, boost jobs and drive inclusive economic growth. And we need them by early next year. The next generation of national climate plans must be investment plans for sustainable and strong economies. Which brings us back to the crucial importance of climate finance… …

Because it’s hard for any government to invest in renewables or climate resilience when the treasury coffers are bare, debt servicing costs have overtaken health spending, new borrowing is impossible, and the wolves of poverty are at the door. A quantum leap this year in climate finance is both essential and entirely achievable.

Every day, finance ministers, CEOs, investors, and development bankers direct trillions of dollars. It’s time to shift those dollars from the energy and infrastructure of the past, towards that of a cleaner, more resilient future… …And to ensure that the poorest and most vulnerable countries benefit.

This year, at COP29 in Baku, we need to agree a new target for climate finance that meets developing country needs. But it’s not enough to agree a target. We need a new deal on climate finance, between developed and developing countries. That deal should have four key components.

First, more concessional finance. Especially for the poorest and most vulnerable countries.

Second, we need new sources of international climate finance, as the G20, International Maritime Organization, and others are working on.

Third – as Prime Minister Mottley and President Ruto have made clear – we must reform development banks to make them work better for developing countries, embed climate in their decision-making, and build a financial system fit for the twenty-first century.

Fourth, debt relief for the countries that need it most to give them the fiscal space for climate investment. Developing countries spent more than four hundred billion dollars servicing debts last year. Experts have shown that if we do all of this together, we can meet developing country needs, mobilizing hundreds of billions of dollars.Ever-closer cooperation between international institutions is more important than ever.

I offer UN Climate Change’s partnership wherever it can help to support stronger and faster climate-related outcomes. To the World Bank, IMF at the upcoming Spring Meetings. To the G7, G20, and their finance ministers. Together we can make this deal real.Together we must step up the pace.

The Spring Meetings are not a dress rehearsal. Averting a climate-driven economic catastrophe is core business. It can’t slip between the cracks of different mandates.  We can’t afford a talkfest without clear steps forward, when there is an opportunity to make real progress on every part of the new climate finance deal all nations need.

At the Spring Meetings we need an ambitious round of replenishment for the World Bank’s International Development Association. Doing so could lift hundreds of millions of people out of poverty, and increase clean energy access, especially across Africa. Progress in Washington DC on revising the World Bank’s capital requirements could free up billions more for concessional lending without asking donors for more money.

Next, to help give countries the fiscal space they need for climate action, the IMF can help more countries deal with debts made worse by climate change and the pandemic. For example, by making more use of the Catastrophe Containment Relief Trust. The World Bank’s work on Climate Resilient Debt Clauses – which allow countries facing supercharged storms to focus on recovery – are another welcome step in the right direction.

Eligibility should now be expanded beyond small and island states to more countries and more climate impacts. The G7 has a crucial role too, this year chaired by Italy. G7 governments are the key shareholders in the World Bank and IMF. In truth, they provide both capital and direction. With their say-so, these institutions can do much more to use all the tools at their disposal to deliver large-scale impacts on the ground. It’s entirely in the interests of every G7 country to take much bolder climate action at home and abroad, including on climate finance.

Firstly, because serious progress on climate finance is a prerequisite for bold new national climate plans from developing countries, without which all economies, the G7’s included, will soon be in serious and permanent strife.

Secondly, because resilience building is equally urgent to protect the supply chains that all economies depend on. We have just seen what supply chain disruptions flowing from covid did to inflation, and to households and businesses. Well, you can bet your bottom dollar these disruptions and inflationary impacts will only get dramatically worse, without bolder climate action.

So too, the world needs the G20 to rise to this moment. We are all aware of geopolitical challenges. I do not downplay them. But they cannot be an excuse for timidity, amidst this worsening crisis. I’ll be candid: blame-shifting is not a strategy.

Sidelining climate isn’t a solution to a crisis that will decimate every G20 economy and has already started to hurt. So the financial firepower the G20 marshaled during the global financial crisis should be marshaled again and pointed squarely at curbing runaway emissions and building resilience now.

Brazil, who also host COP30, has a vital role to play to kickstart the ambitious action we need. I’m encouraged that the G20, under Brazilian leadership, is exploring ways to find new finance for climate and development. Brazil itself is also trialing new ways to reduce unreasonable borrowing costs for clean energy which could work for other developing countries.

Ultimately, it’s not enough to invest in clean energy and resilient infrastructure without measures that also speed up the decline of fossil fuels. Stronger domestic progress on carbon pricing is essential to reflect the real economics of fossil fuels, including the massive health and economic costs of greenhouse gas pollution, which should not be shunted on to government, households, and other industries to pay.

When I say we have two years to save the world, it begs the question – who exactly has two years to save the world? The answer is every person on this planet. More and more people want climate action right across societies and political spectrums, in large part because they are feeling the impacts of the climate crisis in their everyday lives and their household budgets… …Rising costs for fossil-fuel-powered transport… for heating and cooling… energy… rising food prices as climate disasters hit production and supply chains… to name just a few.

A recent survey by Gallup of 130,000 people in 125 countries found that 89% want stronger climate action by governments. Yet too often we’re seeing signs of climate action slipping down cabinet agendas. There is a disconnect – because in living rooms around the world, climate impacts and costs are rising quickly up the list of household worries.

The only surefire way to get climate up the cabinet agenda is if enough people raise their voices. So my final message today is for people everywhere. Every voice matters. Yours have never been more important. If you want bolder climate action, now is the time to make yours count. Thank you

 

 

 

G7 Meeting must be ‘game changer’

2024, 04/29

Chairman of the Alliance of Small Island States (AOSIS), Ambassador Dr. Pa’olelei Luteru, says the G7 Climate Ministerial countries must acknowledge the severe deficiencies in their existing emission reduction targets and demonstrate their global leadership by committing to lowering their greenhouse gas emissions by at least 58% by 2030.

The G7 Climate Ministerial brings together leaders of the richest economies. The 2024 G7 Ministers’ Meeting on Climate, Energy and Environment is being held from 28-30 April and the outcome is being closely watched by small island developing states (SIDS)—countries which contribute the least to global emissions yet suffer the brunt of climate change impacts.

AOSIS said: “The Alliance of Small Island States is calling for the G7 to bring the special circumstances of SIDS to the fore of their decisions. The unique challenges of small island nations include their small size and therefore, small economies, locations remote from international markets, vulnerability to external shocks, and fragile land and marine ecosystems. The actions of the world’s most powerful must no longer lead to the oppression of the world’s most vulnerable.

At our current level of warming we are seeing islands being swallowed by the seas, and record-breaking temperatures making essential activities like farming unbearable.”

AOSIS Chair Dr Luteru, Permanent Representative of Samoa to the United Nations, underscored that any inaction increases the danger to SIDS.

“Currently, the G7’s target of reducing emissions 40%-42% by 2030 falls woefully short of what is needed to keep our world within the agreed 1.5°C global warming limit.

Without significantly more ambitious plans to cut emissions, we will veer off the path to achieving net zero emissions by 2050. The lives and livelihoods of SIDS are already teetering on the brink due to climate impacts, and continued lack of ambition will send us over the edge.”

AOSIS also noted the technological and financial advantages of the G7 to achieve decarbonisation faster than the rest of the world, and how critical their support would be in helping developing countries decarbonise and achieve a just transition.

Bureaucratic UN and its agencies fail to resolve world problems and continue to benefit from the proceeds of energy investment, slavery, conflict and corruption.

Overpopulation is the elephant in the room, ignored as resources dwindle. Aid-addicted Africa doubles its population amid disease, tyranny, warfare and starvation instead of repatriating discontented diaspora demanding reparation while wreaking havoc in states as in Haiti.

 

 

 

Miller named UWI chancellor

April 26

The University of the West Indies (UWI) has appointed Dodridge D Miller its seventh chancellor. The chancellor is the highest office-holder in the UWI system, it said in a release

Miller is expected to serve a seven-year term beginning August 1, 2024.

He will succeed Robert Bermudez, who has served as chancellor since 2017.

Members of the University Council accepted the recommendation of the chancellor’s search committee to appoint Miller at its virtual annual business meeting on April 26.

Miller, a UWI graduate, is described as a Caribbean luminary with over 30 years of leadership experience in the banking, insurance and financial services sectors.

He was the group president and CEO of Sagicor Financial Company for more than two decades until he retired in March 2023.    Miller is globally recognised as the chief architect of Sagicor Financial, the largest financial services conglomerate in the region.

He is credited with transforming the old Barbados Mutual Life Assurance Society into the Sagicor Caribbean group, with strategic USA and Canadian investments, into the global corporation it is today. As a determined regionalist, he expanded Sagicor’s operations in Trinidad and Tobago, Jamaica, the Organisation of Eastern Caribbean States, and the Bahamas and created a pan-Caribbean identity for the company.

Miller is a fellow of the Association of Chartered Certified Accountants (FCCA). He has an MBA from the University of Wales and the Manchester Business School and an LLM in corporate and commercial law from UWI, where he also served as a member of the Cave Hill Campus Council. He received prestigious honours in his distinguished career, including the Order of Freedom of Barbados (FB), and from UWI, an honorary doctor of laws degree in 2008 and the award of the title professor of practice in 2019.

On confirmation of his appointment, the chancellor-designate said, “It is with great humility that I accept your appointment as chancellor of this distinguished and important university. For most of my adult life, I have been an advocate for a strong, vibrant UWI.

“As a corporate executive, I demonstrated my support for your mission and remained committed to the certainty of your path as you sought to build the capacity of the region’s human capital.

“As chancellor, I will strive to uphold the strong principles and values of the university and, with your guidance and support, hope to contribute to the very important task of fashioning a Caribbean that is sustainable and that can engage the rest of the world on equal terms.”

Bermudez said, “I am delighted to welcome Dr Miller as chancellor-designate. It is my belief that the university will benefit from his experience and contribution.”

Vice-chancellor Prof Sir Hilary Beckles, who chaired the search committee that recommended Miller for the post, said, “Miller is an eminent corporate transformational leader who possesses all the required skills to make an outstanding chancellor to his alma mater. The university community that knows him well is looking forward to working with him in this new role.”

Alumni hope UWI will pivot from reparation, identity and waste to fields aligned with economic priorities of the region, infested with gangs, drug-traffickers, people smugglers and arms.

 

 

 

 

Special Economic Zones in TT

2024, 04/25

Prime Minister Dr Keith Rowley greeted Beijing Construction Engineering Group (BCEG), deputy general manager He Haiqi at the opening of the Phoenix Park Industrial Estate in Point Lisas, in January.

Attending were Minister of Housing and Urban Development, Camille Robinson-Regis, T&T’s Ambassador to China, Analisa Low, PRC Ambassador in T&T, Fang Qiu and Minister of Trade and Industry Paula Gopee-Scoon who gave an overview of the ministry’s performance with the mid-year review expected to be delivered early next month.

Following overseas trade missions and trade shows in 2023 and 2024 thus far, 90 companies from sectors including food and beverage, construction, energy, logistics, and cosmetics established beneficial business relationships, which can lead to increased exports.

She said since the beginning of 2023 in collaboration with exporTT, the Trinidad and Tobago Manufacturers’ Association (TTMA), and the Trinidad & Tobago Chamber of Industry and Commerce (TTCIC), 16 Trade Missions have been held.

The ministry supported private sector participation in seven trade shows including the China International Import Expo (November 2023); Havana International Fair in Cuba (November 2023); Expocomer Trade Show in Panama (March 2023 and March 2024); Suriname Energy Oil and Gas Summit and Exhibition (June 2023); Japan Expo (September 2023); and Americas Food and Beverage Show (September 2023).

Four new trade missions will take place over the next two months: Guyana later this month, Curacao in May, Suriname in May and Jamaica in June.

On why the Special Economic Zone legislation has taken so long and when it is expected, Gopee-Scoon said the new Special Economic Zones (SEZ) regime, which will replace the existing Free Zones regime, is a comprehensive investment framework that encompasses a new policy, legislation, regulations, and the newly minted T&T Special Economic Zones Authority.

Given the scope and nature of the new regime, its impact on the operations of existing investors in T&T, and the need to ensure compliance with international best practices and developments, it was necessary that the full proclamation of the SEZ Act, 2022, was done with all the necessary measures in place.   The full proclamation of the SEZ Act, 2022, which will result in the replacement of the Free Zones Act, and the full operationalisation of the SEZ regime, is expected on June 01, 2024.

At the sod-turning ceremony for the Brydens Group’s regional distribution centre along Factory Road, Chaguanas, in January, the minister said the SEZ regime will bring into place a more modernised architecture of incentives, which the Government expects to attract many investors both local and foreign.

Asked what kind of incentives can investors expect to benefit from, she said” I don’t want to let the cat out of the bag fully yet. But it certainly is…very attractive. Benefits in terms of corporation tax and other types of taxes and so on. But I will leave the details of that for another day. Let me just say, reduced taxes for now”.

The House of Representatives unanimously passed the Special Economic Zone (SEZ) Bill, 2021, in Parliament in January 2022.

Possible collaboration between Ghana’s FZA and T&T’s SEZ
In March, the minister led a delegation from the private sector to Ghana, and the potential for collaboration between Ghana Free Zones Authority (GFZA) and T&T’s Special Economic Zone (SEZ) was discussed. The GFZA is focused on creating attractive and competitive free zone incentives in Ghana to promote economic development.

Gopee-Scoon met with GFZA officials and discussed the operations of Ghana’s Free Zone regime, and opportunities for working closely with T&T’s SEZ regime.

As the Prime Minister attends reunions in Ghana, the shadow of the Gulfstream looms after revelation of African links to the disaster and secrecy over the identity of the owner of the wrecked barge,

As it relates to the performance of the manufacturing sector since the last 2023/2024 budget, Gopee-Scoon indicated that the non-energy manufacturing sector has remained a significant earner of foreign revenue through exports as well as a substantial contributor to Trinidad and Tobago’s Gross Domestic Product (GDP).

The main drivers in the non-energy manufacturing sector were:

1. The food and beverage sector is valued at approximately $1.6 billion (October 2023 – March 2024). Specific increases were shown in the exports of: other cereals $9.8 million or five per cent
2. Aerated beverages increased by $6.2 million or four per cent.
3. Mineral waters increased by $4.4 million or five per cent.
4. Sweet biscuits increased by $4.6 million or six per cent.
5. Beer increased by $8.3 million or 122 per cent.

Secondly, she said the scrap iron subsector was valued at approximately $97.2 million for the period (October 2023 – March 2024) and the products accounting for this value were the export of steel scrap, aluminium scrap, mixed ferrous scrap as well as stainless steel scrap.

The subsector of the manufacture of non-metallic mineral products was valued at approximately $68.1 million for the period (October 2023 – March 2024), and contributing to this was the export of premium plus cement, cement blocks, pavers, and concrete slabs.

Paper and paper-related products subsector was valued at approximately $324 million for the period (October 2023 – March 2024), and contributing to this value were the exports of (corrugated cases) boxes, printed labels, paper along with various types of tissues and each of these items generated over $10 million in export value under the review period.

In its audited financial statements, for the financial year ended December 31, 2023, the Export-Import Bank of T&T’s (Eximbank), said for the period January 2022 – December 2023, its clients exported over $5.6 billion (US$800 million) based on the manufacturing forex facility. Chairman John Tang Nian said the bank served 165 manufacturers, with 87 per cent of all companies in the small and medium-sized enterprises (SMEs) category.

Eximbank delivered US$527 million to the manufacturing sector and US dollars repatriated to the country exceeded forex sold by at least US$100 million every year.

Phoenix Park Industrial Estate update
There are 20 investors (14 local, 6 international) at the PPIE, with projects at various stages of development. Total investment value of these projects is approximately $489.57 million, and, when fully operational, the estate is expected to generate employment for over 900 people. These include operations spanning several non-energy sectors, namely manufacturing, logistics, and distribution.

Summit (TT) Luggage, which manufactures high-quality luggage for major international brands, is fully operational at the PPIE.

The total contract sum for the development of the PPIE is approximately $688 million and to date approximately $641.33 million has been disbursed to the contractor.

The remaining sum is largely of retention money, for, among other things, the securing of ten investors by the contractor to operate at the PPIE. Beijing Construction Engineering Group (BCEG) is the contractor for the industrial estate.

 

 

 

 

Trade Ministry meets PRC delegation

2024, 04/27

In a bid to build greater trade and investment relations, Minister of Trade and Industry Paula Gopee-Scoon met a PRC delegation from Taizhou by Miao Weilun, Deputy Secretary of the Taizhou Municipal Committee of the Communist Party of China, ringing alarm bells over security risks as PRC expands footprints in BRI.

The meeting underscored the efforts of the Government to promote and facilitate trade and investment with PRC and recognised the importance of 2024, which represented 50 years of diplomatic relations .

Interest by Taizhou officials was a reflection of previous benefits experienced by PRC investments in Trinidad and Tobago, due to economic strength, political stability, highly educated population, new investment-friendly policies such as the upcoming Special Economic Zones (SEZ) regime, and tariff-free access to several markets throughout North, Central and South America, including Caricom.

Weilun said that the delegation visited the Phoenix Park Industrial Estate, and was impressed by the country’s abundant natural resources, level of development and great potential. He underscored Taizhou’s high degree of entrepreneurship, and their willingness to expand into new and exciting markets such as T&T.

Taizhou’s exports to Trinidad and Tobago comprise plastic products, furniture, knives, steel structures, pumps and vehicle parts, while Trinidad and Tobago exports are dominated by metals.

Officials of the Ministry present included permanent secretary Randall Karim, deputy permanent secretary Ava Mahabir-Dass and. Wang Tao, country manager, Beijing Construction Engineering Group T&T.

Total contract sum for the development of the Phoenix Park Industrial Estate was approximately $688 million. To date, approximately $641.33 million has been disbursed to the contractor. The remaining sum is largely of retention money, for, among other things, the securing of ten investors by the contractor to operate at the PPIE.
The  contractor is the Beijing Construction Engineering Group (BCEG).

Trade In February 2024:   the top exports of PRC to Trinidad and Tobago were Telephones ($1.71M), Motor vehicles; parts and accessories (8701… ($1.58M), Iron ($2.7M), and Rubber Tires ($1.37M).The top imports of China from Trinidad and Tobago were Acyclic Alcohols ($44M), Raw Plastic Sheeting ($1.81k), Commodities not elsewhere specified ($1.34k), Special Pharmaceuticals ($1.16k), and Other Ceramic Articles ($838)

 

 

 

T&T pavilion at Houston energy conference May 6- 9

2024, 04/27

Trinidad and Tobago will have its first ever country pavilion at the Offshore Technology Conference set to be held in Houston .

Ramps Logistics said this country will be represented at this global energy conference which brings together key influencers and decision-makers with jurisdiction over the Gulf of Mexico, the Caribbean and North and South America, serving as a pivotal platform for announcing strategic plans and campaigns.

Powered by The National Energy Corporation of Trinidad and Tobago and coordinated by Ramps Logistics Ltd., this pavilion marks a significant milestone in showcasing the nation’s influence across the global energy landscape.

Ramps said the T&T Pavilion will serve as a central hub for groundbreaking innovations and advanced solutions in the oil and gas sector, featuring diverse contributions from local industry leaders in HSSE, transportation, equipment, marine vessels, machining services and technology.

Apart from the National Energy Corporation of Trinidad and Tobago, the pavilion will feature Inland Offshore Contractors Ltd., Tembladora Energy Logistics, Dumore Enterprises Ltd., Qualitech Machining Services Limited and El Dorado Offshore.

The presentation will represent the vibrant spirit and dynamic capabilities of Trinidad and Tobago’s energy services. Shaun Rampersad, CEO of Ramps Logistics, said, “Presenting the Trinidad and Tobago Pavilion at OTC 2024 is a proud moment for us and a historic milestone for our country’s presence in the global energy sector. It’s not just an exhibition. It’s where strategic alliances are forged, and future industry leaders emerge. We are thrilled to demonstrate our innovative capabilities and robust energy solutions to the world.”

Ramps Logistics offers air freight, ocean freight, supply chain solution, customs brokerage solutions, offshore logistics and project logistics.

Over 31,000 offshore energy professionals from more than 100 countries attended the OTC in 2023 to discuss the latest advancements in the offshore oil and gas industry, while promoting the role the offshore energy industry plays within the energy transition.

 

 

EU supports Dragon gas

2024, 04/21

The European Union (EU) remains steadfast in its interest in, and potential support for, the Dragon Gas pipeline between Venezuela and T&T as US reimposed sanctions on Venezuela’s energy sector this week.

While EU ambassador to T&T, Peter Cavendish, signalled the group’s “willingness” to support the project , Hungary’s Minister of Foreign Affairs and Trade, Péter Szijjártó, said his country is willing to see the implementation of the 90-kilometre pipeline between both countries when Hungary assumes the presidency of the EU in July.

Cavendish said, “The European Union is, of course, very interested in diversifying its sources of energy, and in this context, the possible support to the exploitation of the Venezuelan gas field is of great interest. The European Union does not have a final position on any support; however, we are willing to look positively at any proposals that are brought to its attention.”

On a brief visit to T&T, Szijjártó said the EU has made important decisions to include two of T&T’s major projects into its Global Gateway programme. The first is the 90 kilometre-long submarine pipeline and the second is to make T&T’s petrochemical industry greener and more environmentally protected. While the latter is mentioned on the European Commission’s Global Gateway Latin America and the Caribbean website, the pipeline project is absent.

“The implementation of these two agreements will be started throughout our presidency term and we are committed to support you in the successful implementation of these two projects and to make sure the European support will be there for the entire length of these projects,” Szijjártó said.

The rotating EU presidency will next pass to Hungary which will be at the helm of the European body from July 1 through to the end of the year.
Last December, T&T signed an agreement with Venezuela allowing Shell and wholly state-owned National Gas Company of Trinidad and Tobago (NGC) to develop and produce natural gas from Venezuela’s Dragon field.

Can US sanctions stall Dragon deal?
As Szijjártó spoke, in Washington DC the Biden administration was reimposing oil sanctions on Venezuela over concerns about general elections there. The US government said it would not renew a licence that was set to expire early on Thursday that had broadly eased Venezuela oil sanctions. It came as a response to Venezuela President Nicolas Maduro’s alleged failure to meet election commitments.

The Ministry of Energy issued a statement saying the sanctions would not affect the exemption granted by the US government to pursue the Dragon deal. , “…this amendment to the OFAC General Licence 44 does not affect the Specific Amended OFAC licence that was issued to the Government of the Republic of Trinidad and Tobago on October 17, 2023.”

The licence issued by Venezuela to T&T is valid until October 31, 2025. A day later, Prime Minister Dr Keith Rowley told the media, “If the United States does things to Venezuela or about Venezuela, we can’t guarantee that some of those things would not be detrimental to us, as in fact, it has already been.”

With the EU set to support the pipeline between Venezuela and T&T, Szijjártó was asked if the latest US sanctions could derail the plan.

“We are against the approach of sanctions because we cannot recall one single sanction regime which would have been successful. We cannot recall any single sanction regime which would have hit – targeted – the leadership of that given country but we know many sanction regimes, which have, at the end of the day, harmed the people of that given country.

If there were no sanctions on the energy field, at least, new volumes of gas could be added to the global scene and also more gas could be added to the European market. If I understand it correctly, you as Trinidad and Tobago became a collateral damage of the sanctions imposed by the United States on Venezuela because those sanctions have made it impossible to work more closely with the Venezuelans on energy matters and helping Europe to diversify.”

Can a Trump presidency impact Dragon Gas?
With the US elections looming in November, a change of administration could have impact on T&T’s Dragon Gas deal with Venezuela. Hungarian Prime Minister Viktor Orban has been a longtime ally of former US president Donald Trump. Szijjártó echoed that support on numerous international trips, including in his interview with this newspaper.

When asked what could T&T expect if Trump wins the upcoming US elections and Hungary is leading the European Union, Szijjártó said, “I would say the following; with President Trump, there is a bigger chance for realistic discussions and for common sense-based decisions than with the current administration. More than my feeling, that’s my experience. That’s what the two track records have put forward.”

He believes “better circumstances will be created for further development of the energy cooperation in this region giving benefit to T&T. We will definitely be happy and supportive of that.”

Energy opportunities across the Atlantic
The government of Hungary has come under increasing criticism for its close relationship with Russia. Despite condemning Russia’s invasion of Ukraine, Hungary continues to buy billions of dollars of Russian oil and gas annually. despite most other Western nations’ cutting of economic ties with Russia. Szijjártó has insisted the deals are to ensure the energy security of his country.

However, he sees T&T playing a role in Europe’s energy security.
“When it comes to T&T, you can easily become a part of European Diversification Strategy. When it comes to diversification, we don’t mean substituting or replacing or changing the already existing sources but to have new sources. T&T can easily be the first gate, the first transit point, in the energy cooperation between the European Union and the Caribbean region.”

He praised T&T’s “fantastic” facilities such as the Atlantic LNG Port with its “€20 billion” capacity to be a great source for improving the diversification efforts in Europe.
“Since we have LNG facilities on the European seashores as well, for us it would be easy to move the gas from this region to our energy bases. The question is only technically if we are ready and what would be the price?” Szijjártó added. He says there is political openness and they are physically ready.

Trade opportunities beyond energy

Beyond the oil and gas industry, Szijjártó says T&T’s unique food industry “is absolutely adored” by Hungarians. “I’m pretty sure that the food products from this region, especially the ones developed in T&T, could hit big success on our market. I do believe that food industry exports from T&T towards Europe, including Hungary, can be a big success and we definitely do encourage it.” He pointed to T&T’s cocoa industry as well as chocolate.

His meetings with T&T’s Foreign Affairs minister Dr Amery Browne centred around matters of security and migration.
He hailed the T&T government’s position of “pro-peace and pro-diplomacy” as being very close to the position of the Hungarian government. He’s the first Hungarian Foreign Minister visit T&T and he said together with Dr Browne, his trip has made “huge steps” towards mutual understanding and working towards operation schemes which can improve the relationship between both countries.