09 / 4 / 25
From  the FT

The Atlantic LNG Natural Gas Plant in Point Fortin, on the south-west coast of Trinidad   © AP

The Special licenses which were awarded by the Biden Administration through the US OFAC have was revoked late on Tuesday evening by DonaldTrump’s administration as part of the wider tariff policy.

The full FT article in which this is reported can be found here.

Washington’s action also represents a blow to Trinidad and Tobago’s struggle to supply the Atlantic LNG project, which has idled a fifth of its capacity since 2020 because of shortages of domestic gas.

Stuart Young,  said the Trump administration had informed his government that both licences were revoked. He said his government would seek to appeal.

“This does not come necessarily as a surprise, seeing how volatile things are, not only with respect with Venezuela, but what we are seeing for example with the application of tariffs . . . There seems to be a lot of unsettling times in Washington, DC.”

[See the map above for the locations of the two fields ]

US revokes Venezuela gas exploration licences

2025, 04/09

Prime Minister Stuart Young yesterday announced that the United States revoked the Office of Foreign Assets Control (OFAC) licences striking a significant blow to progress on major cross-border natural gas deals with Venezuela, which facilitated the development of the Dragon and Cocuina-Manakin gas fields.
The OFAC licence for Cocuina-Manakin, granted on May 31, 2024, was valid until May 31, 2026.The revised licence for the Dragon gas field was granted on October 17, 2023, expiring on October 31, 2025. The decision was unsurprising,after the first Presidential Order from President Donald Trump on March 24, announced tariffs on oil-based products from Venezuela.
Young committed to securing an audience with US Secretary of State Marco Rubio, who leads foreign policy for Washington with emphasis on Venezuela. Young recalled a “very good conversation” with Rubio in Jamaica on March 26, when Rubio gave an assurance that they will not seek to harm Trinidad and Tobago and discussed how Caricom stood to benefit from energy deals the Government had negotiated with the Bolivarian Republic. Rubio made it clear he understood what was communicated and pledged to continue engaging with T&T.
Blaming this latest setback on shifts in the geopolitical landscape, Young said T&T attorneys in Washington are hoping to make an application for amendments. The current licences are set to wind down by May 27, 2025, which is their window to do so. He reached out to US Special Envoy for Latin America Mauricio Claver-Carone, requesting a telephone conversation with Rubio and expects to be given an audience..” the opportunity to continue to make our case,”
With local economic hopes hinging on the success of the energy deal, Young assured the Government’s efforts will continue.
To his detractors, Young said despite this hurdle he has proven he can successfully negotiate deals on behalf of T&T and sought to give assurance that all is not lost, as Plan B, Plan C and Plan D are already in play.
He disclosed the news locally before contacting with Venezuelan officials, BP ( working on the Cocuina-Manakin field) and Shell (which had responsibility for the Dragon Field). In May 2024, Young said T&T was paying an unstated portion of over US$1 million per year in taxes to Venezuela for the Dragon gas field.
Shadow energy minister David Lee said UNC would work with the US administration and incentivise local companies to produce more gas within T&T territorial waters if it is returned to government. In Preysal, Lee said Government risked it all on the deal.

“You placed all your eggs in the basket of the Maduro government in respect of drilling for oil and gas and again we see the situation, the Trump administration has pulled those licences. We told them so … they did not incentivise our energy sector over the last 10 years with respect to the energy companies that had been in T&T for a number of years. Now a setback affects the revenues that this PNM administration had projected … there is no boom given what has happened with these OFAC licences. We will work with the Trump administration and their team to see how best they can assist our oil and gas sector.”

On the unsurprising revocation of the licences, UWI don Dr Bishnu Ragoonath suggested that Young may be the sole citizen who believed the US Secretary of State when he said the US meant no harm. The political scientist expects the Opposition to use this tool in the upcoming election.

“Yesterday the PNM suffered a defeat in the courts.. one of the things it is campaigning on … is Mr (David) Lee, who is before the courts on charges that have been removed. Now we don’t have the OFAC licences to go forward. So, yes, the UNC is going to use these successes or even the failure of Trinidad and Tobago in this context to their advantage.”

Analyst Derek Ramsamooj agreed with this sentiment, adding both parties must convince the populace of their capability to drive the nation forward and stimulate economic activity. This latest act by the United States proves they are still in complete control of the allocation of Caribbean resources. The population has a lot to consider heading into the April 28 General Election and both political leaders ought to be questioned about their economic plan for the next two years.

“The discipline within the framework of political economy, the relationship between national politics, international politics, local economy, and international economy are what is at stake now. It’s a time for serious discussion, not political mauvaise langue.”

Venezuela gas revocation disappoints business chambers

2025, 04/09

Business chambers are disappointed that the United States revoked two OFAC special licences for development of the Dragon and Cocuina gas fields . The Energy Chamber of Trinidad and Tobago said it was not unexpected given the previous cancellation of other general and special licences for companies working in Venezuela. Iimportation of pipeline gas from Venezuela for processing and onward sales to international markets as either LNG or petrochemicals remains a significant economic opportunity for T&T. The Energy Chamber indicated that it is important that the government continues to engage actively with governments of the United States and Venezuela to find a mechanism to pursue this opportunity. At the same time, significant opportunities to develop natural gas fields within T&T’s exclusive economic zone must also be pursued actively and urgently. Several fields, including Mento, Coconut, Ginger, and Manatee, are currently being developed and others, including Calypso, Blackjack, and Onyx where companies are working towards taking a final investment decision, should be pursued to help maintain and increase upstream gas production.
President of the San Fernando Greater Chamber (SFGCC) Kiran Singh said the news was very disconcerting.

“Our economy is energy-driven. We depend on gas exports more than oil for external revenue to meet capital and recurrent expenditure. The petrochemical sector, while a significant contributor to forex generation, cannot sustain the fiscal demands of the economy. We are heavily dependent on foreign inputs for all sectors of the economy. It cannot be business as usual.”

Diversification must take centre stage and the mid-year review and the next budget must address alternative revenue-generating streams. This is not a time to panic but the government must carefully strategise a financial plan for the immediate future.

“The government has been utilising some frugal economic means to manage our limited resources. No doubt, this will have to continue indefinitely with a serious prioritising of expense management. We do have a forex buffer of several months in the Heritage Stabilisation Fund. This fund may have to be tapped while the government engages the US in further gas exploration negotiations.”

Lee: We warned government over Dragon deal

Sean Douglas 15 Hrs Ago 9 apr

Former Pointe-a-Pierre MP David Lee reacted to the US withdrawal of Trinidad and Tobago’s OFAC licences for the Dragon and Cocuina gas fields by saying that for the past ten years, the opposition has been warning government of such an eventuality.

In 2023, the US Treasury’s Office of Foreign Assets Control (OFAC) gave TT a two-year licence to develop the Dragon field while Venezuela granted TT a 30-year licence for that field.In 2024, OFAC granted a specific licence for the National Gas Company, bp and the government to negotiate an agreement to develop the cross border Manakin-Coquina field with Venezuela.

“We told the government that they had to do things properly with these licences and the new Trump administration.”

The opposition UNC warned the government against “placing all their eggs in one basket with (Venezuelan president Nicolas) Maduro. They should have – and I keep repeating – for the last ten years this government should have been incentivising energy companies in Trinidad to continue drilling and exploring within our territorial waters. The opposition kept saying we have no problem if you get the gas from Venezuela, but not at the expense of jeopardising our own exploration and drilling in our own territorial waters. So we are not surprised. We told this government that this could happen.. that a new (American) administration is a whole different ball game. Even when Stuart Young met Rubio, if you listened to Rubio, he was sending a subtle warning to this government. So we are not surprised and we told this government that for the last ten years, when Stuart Young started to play with Maduro, that you are jeopardising the welfare of TT at the expense of our own exploration and drilling in our own territorial waters.”

Lee said all the money energy firms Shell and bp invested was now in jeopardy.

“It is money that could have been spent elsewhere, within our own territorial waters.”

US severs gas lifeline

9 apr

Border energy deals with Venezuela were now dead in the water.

The United States government revoked the licences US Department of the Treasury’s Office of Foreign Assets Control (OFAC) granted for monetisation of gas from the Dragon and Manakin-Cocuina cross-border gas fields with Venezuela.

“We have now been informed that our licence from OFAC, dated December 18, 2023, our Manakin-Cocuina licence has been revoked by OFAC . It came after the others. I can tell TT, because I don’t have more details than that, that I have been in touch with our attorneys-at-law in Washington, DC. There is a process for, I wouldn’t say appeal of this revocation, an application for it not to be, or for amendments. We are going to be engaging that process on behalf of TT.”

Young reached out to US Special Envoy for Latin America and the Caribbean, Mauricio Claver-Carone and requested a telephone call with US Secretary of State Marco Rubio.

“I expect us to have the opportunity on behalf of TT to present our case. This doesn’t come necessarily as a surprise seeing how volatile things are not only with respect to the policy with Venezuela but what we’re seeing with the imposition of tariffs.”

Based on personal discussions with Claver-Carone and Rubio, as well as others being pursued, he expects TT will be given an audience and the opportunity to continue to make out its case.

“I am not surprised by the outcome because they did explain to me the US policy and what they were trying to achieve with respect to Venezuela, but the words ‘they would not harm TT,’ I believe and have no reason to doubt it whatsoever, remains in play. I also had discussions, which I am not at liberty to get into details now, as to what we may be able to go forward now. We will continue to fight for the ability and the opportunity to keep our energy sector whole and the future of TT and the Caricom region in the manner we have become accustomed to.”

Only the administrative notice had been received from OFAC, which contained very legalistic language.

“There is a process that allows you to advocate for why this shouldn’t be taken. There is a wind-down period, it is not immediate. The wind-down period for this is until May 27, which allows you an opportunity before it kicks in fully for you to engage with the US. The good thing is they understand and have taken careful note of what TT can do. I am going to have more discussions with them but they understand what we can do, and it’s not only in the energy sector.”

Asked whether the revocation of the licence would mean the gas would no longer be extracted from the Dragon field, or if extracted it could not be sold to the international markets, Young said he needed to continue meeting with the lawyers.

“It prevents payment at this stage to the Venezuelan government. We are going to continue doing the work. Secretary of State Rubio told me, ‘Stuart, in this thing there are many ways and times can change, but don’t worry, we’re not going to harm TT.’ “We are going to continue the engineering work. Shell was telling me, we were looking for a rig and we were about to sign a contract for a rig. Things are still progressing and we’re hoping there could be some cost benefits for the Manatee, which is full-speed ahead and we are expecting first gas in 2027, which is significant gas and we’re looking at how to increase that because we knew there was a possibility on the Dragon site.”

Young said he had not yet had discussions with the Venezuelan government, as he had made the announcement immediately on receiving the news.

“I am remaining in direct conversation with bp and Shell. I was in contact with the Venezuelan government up to a few days ago and I will be speaking with them as well.”

The population should not buy into the narrative that all eggs are in the Dragon gas deal.

“If you ask the people in the energy sector in TT, you’ve seen that rise in activity that has kept us stable at 2.6 billion cubic feet a day in production, with the bp, Shell, EOG, Perenco, even on-shore with Touchstone for the gas industry and Woodside and bp up with deep water gas in Calypso project. You’re seeing the shallow water bid rounds were successful. What this would have done is give us that extra additional injection of gas that can use some of the capacity that exists at Pt Lisas and Pt Fortin in the LNG.”

Young was reminded that former PM Dr Rowley had said if the Dragon gas deal fell through, TT’s “coo coo would be cooked.” He was asked what government would do if the deal did not work out.

“We don’t have it yet. Every time there has been some adversity presented, I have found a new plan and we will now put in place a new plan. We will also be talking about the diversification plan we have, but don’t give up. Don’t give up hope. Go based on the track record you’ve seen and let’s get it done, what we can.”

This was not a failure of the PNM administration. He had been told by Rubio and Claver-Carone that TT’s reputation and how it is respected by the US administration was at a top-tier level due to the work put in by the administration.

“I’ll go as far to breach a bit of Mauricio’s confidence in the conversation he had with me. He said, ‘we are going to work with TT because we want TT to continue and be competitive in this area and we recognise the importance of TT for the energy security not only of TT and the region, but even out of the region.’ So they are going to work with us as they enforce their policies. Other people cannot get the types of audience and conversation we are getting.”

Asked how he would restore the public’s confidence in him, Young said the population had the report card beginning in 2016 where negotiations began on the issue, a commercial term sheet was negotiated with Venezuela in 2018, and negotiations continued after the first round of sanctions from the US came in.

“We pursued it, developed the strategy, had conversations with the policy-makers in Washington, DC. We were the first, other than Chevron, to get an OFAC licence. That says a lot. Then we got the amendment. So this is a track record of an ability to negotiate successfully on behalf of TT, and have a way to strategically develop relationships, which has also happened with the oil and gas companies.”

“We have to continue with this. What you have to decide is who is capable of doing it, who has the credibility to be able to do it, because as the former PM said, without the ability and the opportunity to get access to cross-border gas, this is not for the government of today, it is for the future citizens of tomorrow.”

Young said this is not the first time a hurdle has been put in TT’s way. He said he had been discussing what could happen in the Manatee field with Shell’s President of Integrated Gas Cederic Cremers if there was a delay on the Dragon field.

Trinidad and Tobago hope to find gas after collapsed Venezuelan deals

9 apr

Unfortunate but not unexpected, is the news that the US has revoked Trinidad and Tobago’s OFAC licences Stuart Young told media the US government had informed him in a letter that OFAC licences which gave TT permission to operate in the Manakin-Cocuina gas field and the prolific Dragon field, were revoked.

TT is now in a dire position, at a crisis point not just in the short-medium term for two years. As the petroleum industry keeps the country afloat, it is a serious existential crisis for industries unless exploration finds 2-3 trillion cubic feet (tcf) as the economy will fold up and decline.

Vaalmikki Arjoon said the Dragon field in particular was pegged to serve as a catalyst for other cross-border gas projects, which would have bolstered LNG and downstream petrochemical exports of methanol and ammonia. At its peak, Cypre is expected to deliver around 45,000 barrels of oil equivalent a day, about 250 mscf/d

“There are significant reserves at the TT-Venezuelan maritime border, from the Gulf of Paria to the Columbus Channel with strong potential for new discoveries. Venezuela is not a gas-based economy despite having the ninth largest reserves globally, nor do they have the infrastructure and financing to monetize this gas.”

Dragon field, containing about 4.2tcf, could have supplied up to 350mmscf/d at its peak production. Venezuela had no intention to use its gas, presenting potential for TT to develop its fields..

“In the last decade, natural gas production fell by 38 per cent due to maturing reservoirs, project delays and slower than expected development of existing fields. We are currently producing on average 2.5 to 2.7 bcf/d, but we need at least 3.5 to 4 bcf/d for Atlantic LNG, Point Lisas plants and electricity generation.”

Energy contributes to 30 – 40 per cent of TT’s GDP and over 80 per cent of its export revenues, which were critical to foreign exchange earnings.

TT, like many other countries, has become a victim of geopolitical shifts.

This is global geopolitics playing out, part of the Trump administration’s agenda. TT is not an isolated case, with universal increases in tariffs , moves against Cuba and other countries . All are victims of politics.

Arjoon said the main obstacle in the way of TT accessing Venezuelan gas is the harsh geopolitical environment.

“(It is) a stark reminder of our vulnerability to geopolitical realities beyond our control. This situation underscores our vulnerability to the political and economic decisions of global powers. It highlights how important it is that while seeking cross-border projects, we also accelerate proactive measures to reduce our reliance and insulate ourselves from such uncertainties.”

“This involves more competitive bid rounds with continued improvements to fiscal terms to attract further multinational investment, leasing smaller fields to local operators, streamlining regulations for faster approvals, incentivising enhanced recovery from declining fields and so on.”

Encouragingly, the last deep-water bid-round awarded three blocks, and it is hoped that the recently launched bid-round offering 26 blocks will be even more successful.

Several domestic projects are ongoing. Last week bpTT confirmed that its Cypre development about 78 km off the TT’s south-east coast had safely delivered first gas. The Dragon field is the largest known reserve close to TT’s borders.

“There are only two courses of action – one, continue to lobby the US and see if we can get something, but I doubt that will make sense and two, try to encourage the energy companies again to continue exploration efforts so they can produce whatever gas there is in our territory.”

A local administration change could change the current environment.

The Energy Chamber of TT described the news of the revoked OFAC licenses as disappointing but not unexpected, given the previous cancellation of general and special licences for companies working in Venezuela. Its newsletter, Energy Now, the said importation of gas from Venezuela remains a significant economic opportunity.

It is important that the government of TT continues to engage actively with the governments of the US and Venezuela to find a mechanism to pursue this opportunity. At the same time there are significant opportunities to develop natural gas fields within TT’s economic zone- Mento, Coconut, Ginger and Manatee fields that are currently being developed, as well as Calypso, Blackjack and Onyx fields where companies are working toward a final investment decision. All these opportunities should be pursued to help maintain and increase TT’s upstream gas production.