Trinidad and Tobago’s (TT) Prime Minister Keith Rowley has cautioned that the country’s energy future is at risk if the Dragon gas deal collapses.
“If you see us losing that OFAC ( U.S. Office of Foreign Assets Control) licence, as you will see in the news if that happens, then you know that your ‘coo coo is cooked’. If you see the Venezuelans not allowing us to use the Dragon field, then you know that we are in difficulty,” he is quoted as saying in the TT Daily Express.
The deal is in jeopardy after the Trump administration announced plans to revoke oil and gas licences issued by the Biden administration to support Venezuela.
Trump first axed the Chevron license 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.
Trinidad and Tobago secured a 30-year licence from Venezuela in December 2023 to develop the Dragon gas field under a partial U.S. sanctions waiver. The project targets 350 million cubic feet of gas per day, with Venezuela guaranteed at least 45% of the gross income. A final investment decision is still pending.
In May 2024, Trinidad and Tobago obtained an OFAC licence for the Manakin-Cocuina Field, paving the way for a 20-year gas deal between Venezuela, BP, and The National Gas Company of Trinidad and Tobago Limited. Under this agreement, 25% of the gas will supply Trinidad’s petrochemical sector, while the remainder will support its LNG industry. The Cocuina field is expected to produce 400 million cubic feet of gas per day.
Both projects are critical to the nation’s energy security and long-term strategy.
