Khan: Dragon Deal almost at a standstill

ENERGY Minister Franklin Khan says the Dragon gas deal is "almost at a standstill" owing to the situation in Venezuela.

He was responding to a question in the Senate on Tuesday from Opposition Senator Wade Mark on whether the deal between TT and Venezuela needed to be ratified by the National Assembly of Venezuela.

Khan said the gas agreement is between the National Gas Company, Shell and PDVSA. He said PDSVA was required to provide contractual representation that it has obtained and will maintain in force all consents and approval required for that entity to enter into and perform its contractual obligations.

"It is therefore the responsibility of PDVSA to obtain the requisite approvals under Venezuelan law for PDVSA to enter into the Dragon Deal. I am advised that PDVSA has indicated to NGC/Shell that all requisite consents and approvals have been obtained."

Mark asked what the next steps were in executing the agreement.

Khan said the three parties have signed a term sheet which covers quantity and price in particular, which are the hardest parts of an agreement to negotiate. He said the next step of the agreement is the formalisation of the other clauses and this has been taking some time.

"There is no secret there has been a slowdown, almost a standstill, based on what is currently transpiring in Venezuela."