PORT OF SPAIN, Trinidad, CMC -The Trinidad and Tobago government says its oil agreement with Venezuela over the development of the Loran–Manatee natural gas field, which is located on the continental shelf of the Atlantic Ocean, will go ahead regardless of the current political situation in the South American country.
The head of the National Electoral Council (CNE), Elvis Amoroso, said that with 80 percent of ballots counted, President Nicolas Maduro had 51 percent of the vote, compared to 44 percent for his main rival.
The Venezuelan opposition dismissed the CNE’s announcement as fraudulent and promised to challenge the result. It said its candidate, Edmundo González, had won 70 percent of the votes and insisted he was the rightful president-elect.
Many Western countries, including the United States and Europe, have also disputed the polls’ results and called for transparency in the process.
The Caribbean Community (CARICOM) countries are divided on the issue. The seven-member Organisation of Eastern Caribbean States (OECS) congratulates Maduro, while Trinidad and Tobago says it is awaiting the final official results of the poll.
Guyana, which has a long-running border dispute with Venezuela, has also indicated that it wants clarification on several issues related to the poll.
“With Venezuela, we know there is always a level of uncertainty, and the first thing we have to understand in Trinidad and Tobago is that you control what you could control,” Energy and Energy Industries Minister Stuart Young said.
“What has happened in Venezuela has not changed things for Trinidad and Tobago… The first thing we need to understand is Loran- Manatee…which is a gas field with part in Venezuela and part in Trinidad.
Young told radio listeners on Tuesday evening that 27 percent of the field is in Trinidad, which is called Manatee, with the remaining 73 percent in Venezuela.
The field is believed to hold around 10 trillion cubic feet (tcf) of natural gas, with 7.3 tcf on Venezuela’s side and the remaining 2.7 tcf on T&T’s side.
Young said the Trinidad and Tobago government spoke with Caracas when the United States imposed sanctions against Venezuela in 2018, indicating that “Trinidad and Tobago would like you to delink” the project to allow its continuation.
“You don’t delink because both countries share it, but we would want you all to consider that you allow Trinidad and Tobago to develop the Manatee field without Lorain,” Young said, adding that by 2019, “I was making trips to Venezuela and we secured an agreement.
“It was not easy because this thing has not happened in the energy landscape in the world before, where they allowed you to develop your side, and you don’t have to come up with a plan for my side yet.
“We secured that in 2019 …an agreement from the Venezuelan Government to go ahead and develop Manatee. We have been progressing it (and) that is being developed by Shell,” Young said, brushing aside remarks by “so-called experts” and even a former energy minister that the project would not be going forward.
“We kept the country abreast. It is delinked. Venezuela in 2019…I got it signed in Caracas. We have a binding agreement with the Government of Venezuela, whoever is in office, Trinidad and Tobago to go ahead and develop Manatee.
“We worked with the Shell hierarchy, we worked with the top people. Trinidad and Tobago, one of the things I want to say is that we are always competing. Trinidad and Tobago is not the only place in the world with oil and gas; we are competing with many other countries with companies with other investments in other countries to persuade them to spend time in Trinidad and Tobago”.
Young said that in July, the Government announced that it was pleased that Shell had agreed to pump a significant amount of money into developing the Manatee field, adding, When the Venezuelan Government gave us the go-ahead in 2019, we then sat down…and in 2021, we signed a new (agreement) with Shell.
“We signed a new PSC with Shell, which meant we signed the new commercial terms to go ahead. We announced that to the country. At the time, the Prime Minister (Dr Keith Rowley) joined the announcement.
‘Shell has done a PSC with Trinidad and Tobago for Manatee, and what you see here today is another advancement. At the start of July, Shell globally announced that they took FID (final investment decision) on Manatee,” Young said, noting that Shell has since contracted a company to proceed with the project.”.
SHELL Trinidad and Tobago Ltd said it has taken an FID to develop the Manatee gas field, projected to produce a peak of 604 million standard cubic feet of natural gas daily.
Shell stated that this development is part of its overall plan to expand its liquefied natural gas (LNG) business. It believes that LNG will play a critical role in the global energy transition, with overall demand estimated to rise by more than 50 percent by 2040.
Young said he continues to remain engaged with Shell “at every step of the way (and) the work is proceeding and Manatee is coming to be regardless of what happens in Venezuela.
“Regardless of what happens in Venezuela or the United States, Manatee can proceed because of our work. The foresight of the prime minister…in getting this thing to delink.
“That is secure; Shell has gone ahead; Shell has hired the contractor. So regardless of the United States, regardless of Venezuela, this is the largest development in the oil and gas )sector) in Trinidad and Tobago in decades”.
Young told listeners that the restructuring of Atlantic LNG with Shell and BP also played a vital role in the Manatee project going forward. Trinidad and Tobago is hoping to receive the first gas from Manatee by 2027.
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