Young: Beware of misinformation around OFAC licences

Energy and Energy Industries Minister Stuart Young said the Office of Foreign Assets Control (OFAC) licence granted to TT on October 17 by the US is separate from the general licence granted on October 18, 2023. He cautioned the public to be wary of misinformation on the topic.

In a release, the minister said the OFAC office issued a licence amendment to the TT government based on requests made by the government dated March 8 and September 15, 2023, with respect to, inter alia, the development of the Dragon gas field.

He said the OFAC licence amendment is specific to the government and NGC.

“It is for the benefit of the government, NGC, Shell public limited company (plc) and their subsidiaries, affiliates and contractors to pursue, inter alia, the planning, financing, development, execution and management of the Dragon gas field.

“The licence amendment granted to the government expires on October 31, 2025. Among other things, it permits the government to negotiate with the Venezuelan government and PDVSA to obtain exploration and production licences to extract natural gas, to operate the Dragon field and to make various payments associated with such a project including, taxes, royalties, fees and lease bonus payments.”

The release said the amendment further outhorised the government, NGC and Shell plc to pay the Venezuelan government in fiat currency, including US dollars or bolivars.

Young said a separate general licence was issued by OFAC relating to Venezuela on October 18, 2023, which expires on April 18, 2024. He said that general OFAC licence, Number 44, does not affect the work being done by the two governments to produce and export the gas from the Dragon gas field to TT.

The ministry cautioned against false and misleading information from individuals who have no knowledge and information of the work being undertaken by the TT and Venezuelan governments for the Dragon project, nor any knowledge and information with respect to the discussions and negotiations that have taken place between the TT and US governments, who are now seeking to mislead and create doubt by referring to the said general OFAC licence no. 44 issued on October 18, 2023 which expires on April 18, 2024.

The release reminded the public that Young would lead a TT delegation to Caracas, Venezuela in the coming weeks to complete negotiations with the Venezuelan government on the Dragon gas project.