Link to FT article :
The US is reimposing sanctions on oil from Venezuela, saying President Nicolás Maduro’s revolutionary socialist government has “fallen short” on commitments to hold a free and fair presidential election this year.
The measure amounts to a recognition by the Biden administration that sanctions relief, granted six months ago, has so far failed to persuade Maduro to run a genuinely competitive contest.
Dragon
2024, 04/18
Energy Minister Stuart Young met Venezuela President Nicolas Maduro on December 21, 2023 in Caracas, Venezuela before signing of the 30-year licence from the Venezuelan government.
After an announcement from Washington DC that the US administration reimposed energy sanctions on Venezuela, T&T Ministry of Energy said yesterday that the decision by the US government to reimpose sanctions on Venezuela’s oil and gas sector does not affect the special amended licence that was issued to the Government of T&T on October 17, 2023.
That licence, issued by the Office of Foreign Assets Control (OFAC) of the US Department of Treasury, authorises the T&T Government, state-owned National Gas Company (NGC), Shell PLC and their affiliates to conduct business with the Government of Venezuela and its state-owned energy company, Petróleos de Venezuela SA, PDVSA.
The US government’s action is seen as an attempt to punish President Maduro’s attempts to consolidate his rule six months after the US eased restrictions to support now fading hopes for a democratic opening in the OPEC founder.
Speaking on the condition of anonymity to discuss US policy deliberations, a senior US official, discussing the decision with reporters, said any US company investing in Venezuela would have 45 days to wind down operations to avoid adding uncertainty to global energy markets.
In October, the US granted Maduro_s government relief from sanctions on its state-run oil, gas and mining sectors after it agreed to work with members of the opposition to hold a free and competitive presidential election this year.
While Maduro went on to schedule an election for July and invite international observers to monitor voting, his inner circle used the ruling party_s total control over Venezuela_s institutions to undermine the agreement. Actions include blocking his main rival, ex lawmaker Maria Corina Machado, from registering her candidacy or that of a designated alternative. Numerous government critics have been jailed over the past six months, including several of Machado’s aides.
Yesterday_s actions return US policy to what it was prior to the agreement in Barbados, making it illegal for US companies to do business with PDVSA, without a specific license from the US Treasury Department.
The Ministry of Energy noted that the specific, amended OFAC licence issued to T&T last October is valid until October 31, 2025, and it permits Shell, NGC and contractors to continue the works being undertaken to explore, produce and export natural gas from the Dragon gas field.
T&T secured a 30-year exploration and production licence from Venezuela for the Dragon gas field on December 21, 2023.Work to explore, produce and export the natural gas from Dragon to T&T is continuing.