‘Dragon’ survey ship

October 11

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– Photo courtesy the OPM’s Facebook page

October 11

The Prime Minister visited the offshore tug/supply ship acquired to help plan exploitation of Dragon gas field, for which Trinidad and Tobago obtained a two-year licence from the US Treasury Office of Foreign Asset Control (OFAC) to extract Venezuelan natural gas, exempting TT from US sanctions on its neighbour.

TT also has a 30-year licence with Venezuela, with first gas expected by 2027. The Dragon field is estimated to hold 4.2 trillion cubic feet of gas, with a projected output of 185 million cubic feet per day.

Dr Keith Rowley toured the vessel which will soon depart to conduct surveys and collect technical data on the Dragon gas field.

Energy Minister Stuart Young gave a status update on the project, as part of the team accompanying Dr Rowley.

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Energy Minister Young and Dr Rowley examine workstations on Dona Jose II
The ship will help determine the design and route of the pipeline which will bring gas to Shell’s platform. Young referred to the ship, built in 2004 sailing under the flag of Colombia.

“Ten months after obtaining the 30-year licence to explore, produce and export gas from the Venezuelan Dragon gas field to TT, a survey vessel is departing to commence the technical survey exercise of the Dragon field and the sea bed between Dragon and the Hibiscus platform in TT. Work has been proceeding apace to ensure the future of TT.”

Shell begins Dragon surveys

2024, 10/15

Shell’s geo-operations project manager, Patrick Desrouleaux, explained the layout and technology of the Dona Jose 2 vessel to Prime Minister Dr Keith Rowley and Minister of Energy, Stuart Young, during their visit at Tembladora Port, Chaguaramas.

Preliminary work on the Dragon Gas project has started, as an assessment to pave the way for gas to be pumped from the Venezuelan gas field to a platform in Trinidad has begun.
The Ministry of Energy said the Dona Jose 2 began a geophysical and geotechnical survey from the Dragon field to the Shell-operated Hibiscus Platform. Prime Minister Dr Keith Rowley and Energy Minister Stuart Young, with representatives from Shell and state-owned National Gas Company toured the vessel at Tembladora Port, Chaguaramas .

The Dona Jose 2 vessel, chartered by Geohidra, a Venezuelan company contracted by Shell, will conduct the survey to acquire data with the vessel’s side scan sonar, multibeam echo sounder and other survey technology onboard. This first phase of the project is critical as it represents the first physical work by Shell on the Dragon field.   These subsea surveys will allow Shell to collect technical data to assess the status of existing infrastructure and technical data to support the design of new facilities to be installed as well as the design and routing for the installation of a 22-kilometre pipeline from the Dragon subsea field to the Shell operated Hibiscus platform, pending Final Investment Decision.

The Dragon Gas project is expected to export gas from the Dragon Field in Venezuela to Shell’s Hibiscus platform off T&T’s North Coast after commencement of the geotechnical surveys at an accelerated speed of only ten months after T&T received a 30-year licence to explore, produce and export gas from the Venezuelan natural gas field to T&T

15 October 2024

 

 

Acquiring Loran Gas Field from Venezuela

Energy Minister Stuart Young revealed Trinidad And Tobago (T&T) is in advanced negotiations to acquire the gas-rich Loran field from Venezuela. Discovered in 1983, the Loran-Manatee cross-border reservoir is estimated to contain ten trillion cubic feet (tcf) of natural gas. Loran, on Venezuela’s side of the border, is said to hold 7.3 tcf of gas, while Manatee, situated on T&T’s side,may hold 2.7 tcf.

On August 16, 2010, the governments of Trinidad and Tobago and Venezuela executed a unitisation agreement to explore and develop the Loran-Manatee field. However, on October 15, 2019, the unitisation agreement was terminated, separating the development of the Manatee field from the Loran field.

During the 25th anniversary and restructuring event of Atlantic LNG on September 27, 2024, Prime Minister Dr Keith Rowley mentioned ongoing negotiations with Venezuela regarding the Loran gas field. ‘.. Minister Young will tell you that the conversations about Loran, which is 73% of that field, to use the same infrastructure that brings forward the Manatee portion, is well advanced.”

Furthermore, in July, Shell Trinidad and Tobago Ltd, a subsidiary of Shell plc, announced that it had taken a final investment decision (FID) on the Manatee project.

‘That work is far advanced now and it holds out for us the prospect of bringing gas here to at least maintain the levels where we are now … if we don’t add new gas to the mix coming in, we are not only talking about decline but even holding production where we are now-we need a strong stream of gas to maintain the levels at which we are now. Manatee does that for us.”

Overall, these energy projects will help meet the increasing demand for natural gas globally, while addressing energy needs of Trinidad and Tobago given its declining production. Real GDP growth in T&T is forecast at 2.1% in 2024 and 2.0% in 2025, down from Fitch Solutions’ 2023 estimate of 2.5%. Growth will be supported by a strong non-energy sector given continued decline in the energy sector. As these energy projects come on stream, T&T could grow beyond the 2.0% forecast for 2025.

 

Order of the Republic of TT

The Prime Minister and Energy Minister said the country owes a debt of gratitude to “Citizen Mark” Loquan for his tireless work, for many years, to secure key energy agreements including the restructuring of Atlantic LNG (ALNG),that will redound to the benefit of future generations.

Rowley and Young praised the former National Gas Company (NGC) president during a ceremony at ALNG ‘s administration building in Point Fortin on September 27 to mark ALNG’s 25th anniversary and the agreement for its restructuring was signed in London last December. Under the terms of the agreement, ALNG’s restructured format goes into effect from October 1. Loquan received the nation’s highest honour, the Order of the Republic of Trinidad and Tobago (ORTT) at the National Awards ceremony on Republic Day, September 24.

 

 

 

ORTT don: TT must complete digital transformation

ORTT recipient Prof. Patrick Hosein says Trinidad and Tobago needs to complete its digital transformation and build out its technological basics in order not to be left behind in an increasingly technology-based world. “I think in certain areas we are moving too slowly. Technology is moving at a much faster pace than in the past. In the past we could take our time and do things, but now we can’t. We can’t afford to waste time. We need to do all the groundwork to use things like AI (artificial intelligence), computer science, IoTs (the internet of things) and all these fancy technologies. But because the basics are missing, that would take some time.”

When TT starts to build these basics, it would have to import solutions that may not necessarily be geared to the environment. Since AI depends on data, to react as needed, TT would have to install mechanisms to collect data more efficiently and train algorithms to perform better in a local environment.

This build-out, however, will take time. Hosein, a professor of electrical and computer engineering at UWI St Augustine, received TT’s highest award in recognition of his contribution to the sphere of technology, innovation and engineering.

Receiving the ORTT was rewarding. His official bio praised his transformative contributions to telecommunications engineering, his advocacy for multi-stakeholder collaboration and his commitment to fostering inclusivity and innovation in the digital landscape. He returned to TT from the US 14 years ago, after his children left for university, with the intention to help students and develop research.

 

 

Pursuing pariah polluters

October 28

Energy Minister Stuart Young was unfazed by attorney Nyree Alfonso’s assertion that money from the potential sale of the tugboat Solo Creed would not cover the costs of the clean-up of the oil-spill off Tobago. On February 7, the tug was towing the barge Gulfstream which overturned on a reef, leaking bunker oil in the sea off Cove, Tobago. The contaminant reached Grenada and Bonaire.

With 51,000 barrels of oil spilt, the Tobago House of Assembly (THA) requested $134 million towards a clean-up, of which the government paid $50 million, with compensation due to be paid to fishermen.

Although the PM was in Africa when the tug was in Angola, the tugboat was elusive for over 6 months as efforts continued to extract the remaining oil from the Gulfstream before it was towed to Trinidad.

African Union diplomats failed to advise TT envoys in London and AU about owners of the tug and barge.

On October 23, Finance Minister Colm Imbert told the Senate that five days before, Trinidad and Tobago had arrested the Solo Creed in Angola, pending legal action.

However, maritime attorney Nyree Alfonso warned that despite arresting the Solo Creed, the government was unlikely to recover the $244 million spent on clean-up efforts, from the owners of an ageing boat.

“If the owners want to get back their boat, they put up security (in escrow) and say, ‘I will take my boat in return for the security and then we’ll litigate and we can fight up in court. Nobody in their right mind will put up more money than their vessel is worth and my rough estimate is that this boat is worth maybe $US500,000 – US$750,000. So that means the likelihood of somebody coming forward to put up security is next to nil.”

Meanwhile other costs could accrue, including lawyers fees, security charges and port charges.

Young replied, “No one said that the sale of the Solo Creed would cover the cost of the oil spill. The pursuit and arrest of the vessel was what is required by a responsible government taking all reasonable action to find the persons who are responsible for the oil spill.”

TT secured an order from the Oil Pollution Compensation (IOPC) Funds that TT will recover reasonable and legitimate costs of the oil spill from the IOPC Funds, part of an international liability and compensation regime for oil spills from tankers.

“As part of that arrangement we will seek to find the owners and recover any sums of money that we may be able to from those who are responsible. Any monies recovered from those responsible will assist in setting costs of the oil spill.”

 

 

 

 

T&T, Ghana investment agreement

2024, 09/25

The T&T Government and the Government of Ghana entered an Agreement for the Reciprocal Promotion and Protection of Investments (ARPPI).

The agreement was signed by Minister of Foreign and Caricom Affairs, Dr Amery Browne and Shirley Ayorkor Botchwey, Minister of Foreign Affairs of Ghana, in New York on the margins of the 79th Session of the United Nations General Assembly.

The agreement marks a significant milestone in the relationship between both countries, solidifying T&T’s partnership, laying a foundation for deeper collaboration and diversification of existing political relations, fostering economic growth by incentivising expansion of trade and commercial relations between the two countries by their private sectors.

Trinidad and Tobago has long-standing historical and cultural relations with Ghana, which have grown over the years. Ghana, gateway to West Africa with a population of approximately 34 million, is currently one of Trinidad and Tobago’s top ten trading partners on the continent, offering opportunities for expanded collaboration.

Key sectors such as manufacturing, maritime logistics, business process outsourcing, hotel and resort development and agro-processing present significant potential for deepening economic partnerships and fostering growth.

Minister Browne highlighted the important work by the Ministry of Trade and Industry under the Minister Paula Gopee-Scoon. The signing of the agreement complements the assiduous efforts of the Government of Trinidad and Tobago to create a conducive environment to attract investment and to further stimulate economic growth.

Gopee-Scoon led a 50-member delegation in March to Ghana, comprising the business community and government agencies . She met Asantehene Otumfuo Osei Tutu II, King of Ashanti Kingdom who was guest of honour at Emancipation Day in 2023.
In May, Prime Minister Dr Keith Rowley met with president Nana Akufo-Addo during a visit to Ghana. Among the issues raised was the imminent finalisation of a natural gas deal between the countries.

The agreement signed yesterday provides the necessary investment framework to support and protect new investments between both T&T and Ghana. It enables investors from both countries to engage in investment with confidence, as it guides investors and ensures that the rights of investors and States are protected. The agreement offers protection such as fair and equitable treatment and protection against expropriation and establishes mechanisms for resolving investment disputes.

 

 

 

 

US don: No significant impact from ConocoPhillips ruling

2024, 10/23

US energy analyst Francisco Monaldi believes that the T&T Supreme Court ruling in September, which will pave the way for US oil giant ConocoPhillips to seize T&T payments to Venezuela under the Dragon Gas field contract, will not negatively affect the energy and business relationship, as both Governments optimistically declared that technical surveys have started on the Dragon Gas field project.

“I don’t think the ruling will have a significant impact. It is mostly about a negotiation between ConocoPhillips and PDVSA. They have done this in the past in Curacao and other Dutch Caribbean islands and basically this allows ConocoPhillips to have leverage in the negotiations of payments with PDVSA that has been ongoing. They have announced that they have received a licence to negotiate with PDVSA. Also, they are the largest creditor of Venezuela behind China because of the expropriation of their oil projects in Venezuela in 2007,” said Monaldi, director of the Latin America Energy Program at the Center for Energy Studies at Rice University’s Baker Institute for Public Policy.

For now, the payments that Venezuela is receiving from T&T and Shell are “minimal. I think it is the special commission, social contributions and surface tax which is roughly US$1 million dollars or so per month. But the bottomline is that we are talking about an amount that is negligible. So, I think it’s just a way to negotiate the eventual development of the field and the payments are further down the line. This just gives ConocoPhillips leverage in the negotiations with PDVSA.”

The most recent development is an “important precedent” for ConocoPhillips.
“But they have already done it a few years back with the Dutch Caribbean islands and they have been suing PDVSA in the US to get the PDVSA-owned, US-based refinery, CITGO. So it is a complicated story of the arbitration, which happened a while ago, but they have to now enforce the arbitration which is more than one arbitration, which has led to more than US$10 billion in money owed by Venezuela and PDVSA to ConocoPhillips.”

Economist and retired director of the Institute of International Relations of the University of the West Indies (UWI) Dr Anthony Gonzales advised that many details must be revealed to the public on the latest court ruling. However,Venezuela will not continue any business and energy project if they are not being paid.

“I am not clear on the Court’s decision and whether it will apply in this case where Shell, a foreign company, is to make the final investment decision to invest in developing and exploring Venezuela’s Dragon gas. Shell has to pay either PDVSA or the Venezuelan government for that gas. So, there is no direct payment between a local T&T company and PDVSA…but I cannot see the Venezuelan Government and PDVSA pursuing this if they know that they would not be paid by Shell. That would also apply to the cross- border fields, such as Manakin and possibly Loran where BP and Shell are the foreign companies making the investment and then selling the gas to NGC.”

Landmark ruling
In the last week of September, ConocoPhillips persuaded T&T Supreme Court to appoint a receiver for payments that Venezuelan SOC PDVSA owes the US oil company as part of its efforts to recover US$1.3 billion under an International Chamber of Commerce (ICC) award.

In July,, Energy Minister Stuart Young told the Senate that the State had not been served with an order of the High Court related to any ConocoPhillips matter or arbitral award.

ConocoPhillips has in recent months moved to seize payments to the OPEC founder from the Dragon Gas offshore natural gas project being developed by PDVSA, Shell and the National Gas Company (NGC). ConocoPhillips was recently granted a licence from the US Treasury Department to seek the payments.

The European-based energy website, energynews.pro on September 30 opined that the recent decision by the Supreme Court of T&T is a significant milestone in this strategy.

“Judge Frank Seepersad authorised the seizure of payments linked to PDVSA’s participation in the Dragon gas project, estimating that the company might transfer its assets out of jurisdiction to avoid its obligations. He highlighted PDVSA’s prior move of its European headquarters to Moscow as a worrying precedent for international creditors.”

Energynews.pro added that beyond the financial implications for PDVSA, this court decision raises broader questions about energy cooperation between T&T and Venezuela.

“For several years, the two countries have been trying to establish cross-border collaboration to exploit gas resources in a region where energy demand is growing. However, legal disputes and asset seizures make this cooperation challenging, potentially discouraging other players from getting involved in similar projects.”

Energynews.pro also stated that US support, in the form of special Office of Foreign Assets Control (OFAC) licences for the Dragon project, reflects the geopolitical importance of this collaboration. However, if PDVSA continues to see its payments seized by foreign creditors, this could deter T&T from further engaging in joint projects with Caracas, pushing the petrostate to turn to other regional partners.

“The outcome of this case could redefine how international energy companies approach their relationships with Venezuela, both in terms of managing legal risks and investment strategy.”

Despite the recent decision of the Supreme Court both countries are forging ahead with the Dragon Gas field project, with an update from Energy Minister Stuart Young.

“Ten months after obtaining the 30-year licence to explore, produce and export gas from the Venezuelan Dragon Gas Field to T&T, a survey vessel is departing to commence the technical survey exercise of the Dragon field and the sea bed between Dragon and the Hibiscus platform in T&T. Work has been proceeding apace to ensure the future of T&T.”

VENEZUELA’S VIEW
Venezuelan daily newspaper, El Ultimas Noticias reported that Vice President and Energy Minister Delcy Rodriguez made a statement on the update on the latest technical work on the Dragon Gas field project. Rodriguez praised arrival of the Doña José II vessel in the petrostate, which will begin the data update campaign for the development of gas production in the Dragón field, Sucre state, as part of the inter-government agreement between Venezuela and T&T. Venezuela continues to advance in the strategic plan to develop the potential of its gas belt, “giving a clear opportunity to foreign investment.”

 

 

 

Venezuela angry at BRICS exclusion

October 25th 2024 –

While Cuba and Bolivia were accepted into the BRICS bloc as associate states, the Bolivarian regime of President Nicolás Maduro blamed Brazil for Venezuela’s exclusion.

Denouncing “aggression” from the Luiz Inácio Lula da Silva administration, the Chavista Government claimed that South America’s largest country vetoed the Caribbean country’s entry.

In response, Agencia Brasil reported Itamaraty argued that the group only defined criteria and principles for new members during this week’s summit in Kazan, Russia.

”The Venezuelan people feel indignation and shame at this inexplicable and immoral aggression by Brazilian diplomacy (Itamaraty), maintaining the worst of Jair Bolsonaro’s policies against the Bolivarian Revolution founded by Commander Hugo Chávez,” the Venezuelan Foreign Ministry said.

Following a consensus among the ten BRICS member countries, Russia agreed to invite 13 countries to join the bloc as associate members.

Brazil has been diplomatically distancing itself from Venezuela after the July 28 elections Maduro allegedly won, when the opposition Unitarian Democratic Platform, international organizations and various countries, expressed doubts about the credibility of those results after the National Electoral Council (CNE) failed to produce the voting minutes of each polling station attesting to that assessment. PUD published 83% of those documents endorsing Edmundo González Urrutia’s victory. Notwithstanding, González Urrutia was forced to seek asylum in Spain when an arrest warrant against him was issued. Maduro is interested in joining the BRICS and participated in this week’s Summit.

Russian President Vladimir Putin said, “I sincerely hope that Brazil and Venezuela will resolve their bilateral relations during the bilateral discussion. I know President Lula to be a very decent and honest person and I am sure that he will approach this situation from an objective position. And he asked me to pass on a few words to the President of Venezuela during our telephone conversation. I hope the situation improves.“

Inclusion of new countries is by consensus of the full members. Itamaraty is not advocating the inclusion or exclusion of any given country, but merely advocated the creation of criteria and principles to guide the choice of new BRICS members. Brazil’s Secretary for Asia and the Pacific at the Foreign Ministry, Ambassador Eduardo Paes Saboia, said the criteria include defending a United Nations reform, not accepting unilateral economic sanctions, and having friendly relations with all the member countries.

“Cuba is honored to enter as a partner country in the BRICS, five letters and a great hope for the countries of the South, in the arduous path towards a more just, democratic, equitable and sustainable international order,” Cuban President Miguel Diaz-Canel wrote after its admission into the bloc.After meeting with Putin in Kazan, Bolivian President Luis Arce Catacora highlighted the current cooperation between the two countries in various fields, including political, economic, commercial, educational, and cultural. He also asked Putin whether Bolivia’s associate membership status would mean a step toward full membership.

Granted the new condition within BRICS were Algeria, Belarus, Indonesia, Kazakhstan, Malaysia, Nigeria, Thailand, Turkey, Uganda, Uzbekistan, and Vietnam.

The bloc initially comprised Brazil, Russia, India, China, and South Africa. It was extended with the entry of Saudi Arabia, Egypt, the United Arab Emirates, Ethiopia, and Iran on Jan. 1, 2024. It now represents almost half the world’s population, 40% of global oil production and around 25% of exports. Argentina was to have joined on January 1 following diplomatic efforts of former President Alberto Fernández. However, the Libertarian administration of Javier Milei declined the possibility after being inaugurated on December 10, 2023.

 

 

 

 

Maduro at BRICS Summit

October 22nd 2024

President Nicolás Maduro landed in Kazan, Russia, for a guest appearance at the BRICS Summit as he intends to have Venezuela join the bloc shortly. Arriving with First Lady and Congresswoman Cilia Flores, he was welcomed by local authorities, Executive Vice President Delcy Rodríguez and Foreign Minister Yván Gil, who reached Kazan the day before. Maduro said,

“We are already part of this engineering of the multicentric and pluripolar world being born and we come to share the experience of the historical struggle of the Venezuelan people.” He hoped the world would soon transition past colonialism, hegemonism and imperialism, where countries “from the Global South” could embrace “independence, development and prosperity. We have the possibility of accessing another economy not based on sanctions, blackmail, hegemony, but based on cooperation, truly free trade, shared investment and technology.”

His presence at this particular BRICS Summit was historic because it was the first time he was invited. On previous occasions, Venezuela was represented at a ministerial level. Maduro said that it was always thought that countries with the largest oil reserves in the world would be grouped in a common economic project and now there was BRICS,

“a significant advance in the new world geopolitics. Here we come to defend and bring the truth and the free voice of a rebellious people that has passed the desert and that is today standing, whole, complete, and victorious.”

In his view, BRICS is the epicenter of the new multipolar world and the diplomacy of peace. Maduro seldom travels abroad given the arrest warrant against him for drug trafficking issued by the United States and supported with a price tag on his head.

 

 

 

Venezuela arrests former oil czar

2024, 10/21

Venezuela’s top prosecutor announced the arrest of a former oil minister and accused him of working with the U.S. government to undermine the industry that drives the economy.

Attorney General Tarek William Saab announced the detention of Pedro Tellechea, who became oil czar in January 2023 following the resignation of one of President Nicolás Maduro’s closest allies under a cloud of corruption allegations. Saab said people in Tellechea’s inner circle were also detained but he did not name them or mention any specific charges.

Tellechea’s tenure as head of Venezuela’s most valuable industry ended in August, when Maduro reassigned his duties to the vice president and named him minister of industry and national production. Maduro replaced him by appointing a close ally, pardoned by U.S. President Joe Biden last year as part of a prisoner swap.

As oil minister, Tellechea was responsible for the SOC Petróleos de Venezuela, PDVSA. Saab accused Tellechea of “the delivery” of PDVSA’s automated command and control system “to a company controlled by the intelligence services of the U.S., thus violating all legal mechanisms and our national sovereignty.”

Describing the command system as PDVSA’s “brain,” he did not offer evidence to support the accusations.

Tellechea became oil minister following the resignation of Tareck El Aissami, who helped the Maduro regime devise a structure to evade international economic sanctions. El Aissami left amid corruption investigations that eventually led to his arrest.

Maduro appointed Alex Saab as minister of industry and national production. The new Cabinet member returned to Venezuela a free man in December after being in custody since 2020, when authorities in Cape Verde arrested him on a U.S. warrant for money laundering charges. U.S. prosecutors long regarded him as a bag man for Maduro.