Fabiola Zerpa, Bloomberg News

CARACAS
EnergiesNet.com 10 18 2023

Trinidad and Tobago obtained an amended license from the US Treasury on Tuesday that will allow them to pay Venezuela in cash for the natural gas it will import from a project with the South American nation, Oil Minister Stuart Young said in a news conference.

The amendment allows Trinidad to pay for Venezuelan gas from its Dragon field project in dollars and other currencies instead of humanitarian aid, as a previous US Treasury license allowed. The step is a major departure from US policy toward the Nicolas Maduro government, which limited payments by Venezuela’s partners to swaps or humanitarian aid.

Young said the waiver relates to an agreement to export natural gas from the PDVSA-owned Dragon offshore project to Trinidad. Negotiations were halted in 2019 due to US sanctions, but restarted after the US Treasury issued a waiver in January allowing Trinidad to re-engage in energy talks with Caracas. Ongoing negotiations are at “the granular level” of pricing, Young said.

The project entails using a field in Venezuelan waters to produce natural gas, which would be imported by the West Indies nation to be used in its petrochemical industry or processed as LNG for export to the international markets. 

“That OFAC license is a full green light for us to be able to do what needs to be done,” Young. Trinidad had requested amendments in March and September. Young said Trinidad was informed by the US officials on Tuesday noon.

Earlier Tuesday Venezuela’s government and a coalition of the nation’s opposition announced they had restarted talks that could pave the way for oil and banking sanctions relief in exchange for a demonstration of democratic principles.  

Read more: Maduro Says Venezuela, Trinidad Sign Deal to Share Gas Profits

bloomberg.com 10 17 2023