PORT OF SPAIN, Trinidad, CMC – The Trinidad and Tobago government says the United States has given it the green light to pay Venezuela for gas from the Dragon gas field in US dollars, Venezuelan Bolivares, fiat currency, and humanitarian aid.
Energy and Energy Industries Minister Stuart Young told a news conference that Washington has issued through the US Office of Foreign Assets Control (OFAC) to Port of Spain “an amendment to the license that we had requested in the terms that we have asked for.
Energy Minister Stuart Young speaking to reporters on Tuesday evening.
“The license will now run for two years until October 31, 2025, which is more than enough time for us to get what needs to be done.
“It also allows Trinidad and Tobago, working along with NGC and Shell, to negotiate and complete negotiations and all agreements with the Venezuelan government and PDVSA for the development, production and export of that gas from the Dragon gas field in Trinidad and Tobago for us to develop it, and for us to make payments in FIAT currency, as well as US dollars, as well as Bolivar, as well as via humanitarian measures, which is what was envisaged initially,” he added.
“So that OFAC license is a full greenlight for us to do what needs to be done. In the meantime, we have continued to be engaged with the government of Venezuela and PDVSA,” Young said.
Young said there are no restrictions on the amount of US dollars that could be used to pay Venezuela and that the agreement signed with Venezuela in September, in addition to continued negotiations for the development of the Dragon field, also permitted continued discussions with the Venezuelan government for other gas fields and other gas developments.
“It also got down to granular level detail concerning the allocation of gas and for all of the gas from Dragon to come to Trinidad and Tobago and the allocation of that gas both to our domestic petrochemical sector as well as the LNG sector, for Shell to continue to be our operator and our partner in these arrangements.”
Young said there have been several virtual meetings with the Venezuelan government and PDVSA “as we now get into the granular level of detail for the pricing of the gas development from Dragon.
“Very shortly, I will lead a team back to Venezuela, where I hope for us to finalize those arrangements.
“Not only are we negotiating the commercial terms, the pricing of the gas in Venezuela, the allocation, and the other things associated with the commercial terms, we are also negotiating the technical terms, working out with the engineers, particularly those at Shell, how quickly we can develop the Dragon gas field to bring this gas to Trinidad and Tobago,” he told reporters.
Young said that Shell will operate the Dragon field and that gas will be brought to the existing Hibiscus platform for onward transmission to plants in Trinidad.
Young said he remains hopeful that production could be done in less than two years.
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