As concerns mount for the future of the Dragon gas development, Trinidad’s Energy Minister Stuart Young told local media that the country has already doled out payments to Venezuela.
Young, quoted in the TT Daily Express said Venezuela was paid royalty, a special commission of 5%, surface tax and social contributions totalling US$1 million along with a confidential signing bonus.
The Dragon deal could possibly be on the chopping block after the Trump administration announced that it will be ending all oil and gas licences – granted by the Biden administration – to bankroll Venezuela.
Young told a TT news conference that “At this stage, there has been no indication of any negative effect on Trinidad and Tobago,” he said, as quoted in the Daily Express.
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.
President Trump recently killed Chevron’s oil export deal with Venezuela.
