Prime Minister Persad-Bissessar expressed confidence in reaching a deal with Caracas despite backing a recent US military deployment in the region.
By Ricardo Vaz
CARACAS, (venezuelanalysis.com) – The Trinidad and Tobago government has secured Washington’s backing for offshore natural gas projects in Venezuelan waters.
In a statement published Tuesday, Trinidad Prime Minister Kamla Persad-Bissessar stated that she had received “support for the development of hydrocarbon cross-border resources” from US Secretary of State Marco Rubio following a meeting in Washington DC.
Caracas and Port of Spain had set up two joint initiatives in the Dragon and Cocuina-Manakin fields. The former, with four trillion cubic feet (Tcf) worth of reserves, is fully located in Venezuelan waters, while the latter, with 1 Tcf, is split 34-66 between Venezuela and Trinidad.
Shell and BP were chosen to operate the Dragon and Cocuina-Manakin projects, respectively.
In a press release, the US State Department confirmed the meeting with Persad-Bissessar and Rubio’s “support for the government’s Dragon proposal.” According to Reuters, the US Treasury Department could issue a new sanctions waiver for the project. It is presently unclear if the Cocuina-Manakin venture will also receive a green light.
The Venezuelan government has yet to comment on the announcements and the prospects of resuming the natural gas projects, which already had geological studies and infrastructure development in motion.
On Thursday, Persad-Bissessar told national reporters that she was “confident” of reaching an agreement with her Venezuelan counterparts, arguing that it was to the benefit of all parties and pledging to lead the negotiations herself.
Venezuelan relations with Trinidad and Tobago were frayed recently after Port of Spain voiced support for Washington’s military deployment in the Caribbean Sea, close to Venezuelan borders, on a purported anti-narcotics mission. US officials are reportedly weighing strikes inside Venezuelan territory against alleged drug targets.
Persad-Bissessar additionally praised the September 2 US military boat strike that killed 11 crewmen. US officials claimed the vessel carried US-bound drugs but provided no evidence. Experts have likewise dismissed US drug-trafficking accusations against Venezuela as unfounded and a pretext for regime change.
For his part, Venezuela’s defense minister Vladimir Padrino López warned Caribbean neighbours Trinidad and Tobago and Guyana against allowing their territories to be used in eventual attacks against Venezuela.
In April, the Trump administration withdrew licenses previously granted to Trinidad’s National Gas Company, Shell and BP as part of its efforts to ramp up economic pressure against Venezuela.
The state department’s communiqué added that the meeting also focused on “steps to ensure” that the joint initiatives do not provide “significant benefit” to Caracas. The Nicolás Maduro government had previously rejected the “colonial model” of US licenses that attempted to forbid cash payments to the Venezuelan state.
Venezuelan state energy company PDVSA was not included as a shareholder in the offshore ventures, with the Dragon and Cocuina-Manakin projects’ stakes split 30-70 and 20-80 between NGC and the respective corporate partner. Under the agreed framework, Venezuela would only collect taxes and royalties, but it was not publicly disclosed whether in cash or in kind with gas shipments.
In recent years, Caracas has touted the potential of its largely unexplored natural gas reserves in a bid to attract foreign investment. The South American country has 200 Tcf of certified natural gas reserves, the eighth-most worldwide. In contrast, Port of Spain is looking for new ventures to replace its ageing fields and boost its liquefied natural gas (LNG) exports.
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