Prime Minister Stuart Young confirmed on Tuesday that the United States has revoked Trinidad and Tobago’s licence to develop the Dragon Gas Field in collaboration with Venezuela.
The licence had been granted by the U.S. Office of Foreign Assets Control (OFAC), allowing Trinidad and Tobago—through a partnership with BP, Shell, and the state-owned National Gas Company (NGC)—to tap into gas reserves in Venezuelan waters. The Dragon field, located just 15 kilometres from Trinidad’s shores, was seen as a strategic project that could bolster energy supplies for Trinidad and other Caribbean nations.
Speaking at a press conference in Port of Spain, Young explained that the revocation of the licence by the OFAC was not unexpected, adding that he has requested a bilateral meeting with U.S. Secretary of State Marco Rubio.
According to Young, during Rubio’s recent visit to Jamaica where he held talks with Caribbean leaders, he had made it clear that U.S. foreign policy was not aimed at harming Trinidad and Tobago, particularly in relation to its energy diplomacy and efforts to ensure regional energy security. “We are not going to harm Trinidad and Tobago,” Young quoted Rubio as saying during their engagement.
Young described the meeting as “frank and detailed,” stating that he emphasized the strategic importance of the Dragon Gas Project, not only for Trinidad and Tobago but also for CARICOM nations that rely on the country’s downstream energy products.
Young said he brought the news to the public as soon as he was informed and would now be reaching out to BP and Shell for further discussions.
BP, Shell, and the National Gas Company (NGC) had previously secured licences from OFAC to explore and develop gas fields straddling the maritime boundary between Venezuela and Trinidad and Tobago. BP was focused on the Manakin-Coquina field, while Shell was working on the Dragon field, both positioned to access substantial natural gas reserves in the region.
The licences, granted for two years, enabled the companies to negotiate with Venezuela and proceed with development plans.
Last May, Young revealed that Trinidad and Tobago was already paying over US$1 million annually in taxes to Venezuela as part of the deal, which included royalties, a special 5% commission, surface tax, social contributions, and a confidential signing bonus.
The Dragon field is located just 15 kilometres away from Trinidad, but with the revocation of the licence, the deal now appears to be effectively nullified.
