Venezuela and Trinidad and Tobago are set to resume negotiations aimed at jointly developing a dormant offshore natural gas field, Reuters said with information from three sources familiar with the matter.
The two nations are scheduled to hold a meeting in mid-June in Caracas to further discuss the project.
The update follows a meeting between officials from both countries in March in Venezuela. Confidentiality agreements have been signed, which were necessary to establish a negotiation framework. These agreements were made possible by the issuance of a two-year waiver in January of its sanctions regime against Venezuela, specifically for the development of the Dragon gas field.
Known as the Dragon field, this natural gas reservoir lies along the maritime border between Venezuela and Trinidad and is estimated to hold up to 4.2 trillion cubic feet of gas. The development of this field is of significant importance to Trinidad as it seeks to enhance its liquefied natural gas and petrochemical industries. How Venezuela benefits from the deal is still to be determined.
TT Energy Expert urges cautious approach to Dragon Gas Deal | OilNOW
Trinidad’s Energy Minister, Stuart Young, expressed optimism about the project, stating that if negotiations progress smoothly, gas production could commence in as little as two years.
According to Reuters, to prepare for the upcoming meetings in Caracas, Trinidad’s National Gas Company (NGC) and the nation’s energy ministry are expected to hold technical workshops. These workshops will serve as a means to enhance preparations and ensure that both parties are well-prepared for the discussions.
Trinidad’s gas output has fallen way below its prime. The joint development of the Dragon field holds significant potential for the Trinidad’s energy sector, and its wider economic health.
The extension of the U.S. sanction waiver for the development of the Dragon field beyond the initial two-year timeframe will depend on the actions of Venezuela’s President, Nicolas Maduro, and the overall situation in Venezuela, according to the U.S. Assistant Secretary of State for Energy Resources, Geoffrey Pyatt.
