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US Ambassador: Dragon deal, a major achievement

January 14, 2024
in News
US Ambassador: Dragon deal, a major achievement
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Clint Chan Tack

3 Hrs Ago

US Ambassador Candace Bond - File photoUS Ambassador Candace Bond – File photo

UNITED States Ambassador Candace Bond identified the securing of a 30-year licence to explore, produce and export natural gas from Venezuela’s Dragon field as a major economic achievement for US and Trinidad and Tobago.

She made this statement during a reception at her official residence at Flagstaff Hill, St James on January 11.

The US$1 billion deal was signed between TT and Venezuela in August 2018. Those involved included energy giant Shell, Venezuela’s state oil company PDVSA, and the NGC.

The deal will see TT developing the field, which is estimated to produce approximately 150 million standard cubic feet of gas a day. The gas will be imported through a billion-dollar pipeline to the Hibiscus platform off the northwest coast of TT. The platform is jointly owned by the Government, NGC and Shell.

The deal was left in limbo after the US imposed sanctions on Venezuela in 2019.

On January 24, Rowley announced that the US had lifted the sanctions to allow TT to extract gas from Venezuela. This waiver came after almost four years of lobbying led by Dr Rowley and supported by other Caricom leaders.

Rowley said the waiver came with stipulations, one being a two-year licence with an optimistic view of an extension and priority given to Caribbean countries, except Cuba.

In October, the US Office of Foreign Assets Control (OFAC) offered an extension of the licence it issued to TT to access natural gas from the Dragon gas field and the ability to pay for that gas in different ways.

Young announced the extension of the licence to October 31, 2025 at a news conference on October 17.

He said the extension also allows Government to pay for gas from the field in “fiat currency, as well as US dollars, as well as (Venezuelan Bolivars), as well as via humanitarian measures.”

The licence was secured on December 21, after Energy Minister Stuart Young signed the final documents at a ceremony in Caracas.

In a Facebook post shortly after the signing, Young said, “Historic moment as the Bolivarian Republic of Venezuela has granted the licence for the Dragon Gas Field to NGC and Shell to develop and produce gas for export to TT. This is a huge win for the people of Venezuela and TT.”

In her address, Bond said the securing of the licence was the most critical economic achievement for our two countries that took place in 2023.

She said a strong partnership between the US and TT, together with the assistance of other players, got the deal over the line.

Bond was confident this licence would go a long way towards fostering greater energy security and regional stability.

She also said progress was made on other matters such as trade, ensuring protection and humane treatment for migrants, and improving citizen security.

But Bond added, “We still have more work ahead.”

Going forward, she continued, the US will continue to work closely with local stakeholders on many shared objectives which are interrelated or reflect cross-cutting themes.

“One of those themes is the rule of law, since it not only has an impact on safe communities and controlling borders but also sets the conditions for easier yet secure trade and a more competitive investment climate.”

Bond said,”Those conditions benefit foreign companies and investors, but also ensure that local companies thrive and local innovators and entrepreneurs are able to make economic contributions.”

She identified climate change and more reliable access to public services as other areas which the US will continue to collaborate with local partners.

Bond said, “The only way we make progress on any of these objectives is by joining forces with our partners. That means that more than ever, we look to our strongest.”

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