Trinidads Prime Minister Keith Rowley describes negotiations over the Dragon gas field as a significant challenge theyve addressed since 2018.The Dragon field lies in Venezuelan waters but is close to Trinidad and Tobago, the Caribbeans largest gas producer.It holds 120 million cubic meters of gas.
The area neighbors Trinidadian fields run by Shell, a British oil firm.In 2016, Trinidad and Venezuela agreed to study joint field development.
They signed a document to guide their efforts.Trinidad Navigates Complex Gas Field Deal with Venezuela.
(Photo Internet reproduction)But United States sanctions on Venezuela have made things tough.
These sanctions aim to change Venezuelas leadership.In January 2023, the United States gave Trinidad permission to develop the Dragon field.
The catch was no money payments to Venezuela.Rowley states that this payment issue is the biggest hurdle now.
To find a solution, the energy minister has often met with United States and Venezuelan officials.Venezuelas President Maduro calls the United States move colonial.
He insists that both nations are free and independent.Maduro also stated that the United States limits how Venezuela can receive payment for the gas.
He says it cant be in dollars or cash, only in goods or products.BackgroundTrinidad and Tobago has a history of working with other countries in energy projects.
Venezuela has vast natural resources, especially oil and gas.Despite its resources, the country faces economic challenges.The United States sanctions on Venezuela began around 2014.
They have impacted its economy and foreign relationships.This adds complexity to Trinidads negotiations with Venezuela.
The sanctions are part of the United States strategy to promote democratic change in Venezuela.Talks between Trinidad and Venezuela began before these sanctions.
These sanctions have stalled many potential deals.The United States has strict control over foreign assets through its OFAC office.
This office gave Trinidad the special permit for the Dragon field.