President Donald Trump has cut off the Biden-era financial lifeline to Venezuela by revoking Chevron’s oil export deal. Now, questions loom over the Dragon gas project between Trinidad and Tobago and Venezuela—could it be next?
Trump, via his Truth Social account, said the Chevron license was revoked because Nicolás Maduro did not meet the democratic conditions for last July’s presidential election. While the Biden administration had already imposed sanctions for Maduro’s missteps, canceling the Chevron deal dealt an even harsher blow. Adding to Trump’s frustration, Maduro has reportedly been slow to facilitate the return of Venezuelan migrants.
But Trump has not mentioned anything about the Trinidad deals. It was what U.S. Secretary of State Marco Rubio later said on X (formerly Twitter) that could potentially put the Dragon deal on the firing line.
“Today, pursuant to @POTUS’s order, I am providing foreign policy guidance to end all State Department support for oil and gas licenses approved under the Biden administration that have shamefully served to fund the illegitimate Maduro regime,” Rubio tweeted.
A partial U.S. waiver of sanctions allowed for the TT government to get a 30-year licence from Venezuela to develop the Dragon gas field in December 2023. A final investment decision has not yet been made. The Dragon project targets production of 350 million cubic feet of gas per day (mcf/d). The deal stipulates that the Venezuelan State’s income from the project must always constitute at least 45% of the gross income generated by the licensees.
In May 2024, Trinidad and Tobago received a United States Office of Foreign Assets Control (OFAC) license to develop the Manakin-Cocuina Field with Venezuela. Venezuela then signed a 20-year natural gas production and exploration agreement with BP and The National Gas Company of Trinidad and Tobago Limited. The agreement mandates 25% of the gas produced will supply Trinidad’s petrochemical sector, with the rest feeding Trinidad and Tobago’s LNG industry. The Cocuina field is expected to produce 400 million cubic feet of gas per day.
Both projects are key to Trinidad’s long term energy strategy.
