Consultant offers help with Dragon gas project

LOCAL energy consultant Derek Smith has offered his services freely to the Government with respect to the Dragon gas project in Venezuela.

Smith, founder of Derek Smith & Associates Petroleum Consultancy Services, made his offer directly to the Prime Minister at a Conversations with the Prime Minister at Skiffle Bunch Pan Yard, Coffee Street, San Fernando on March 5.

Trinidad and Tobago secured a 30-year licence to develop the Dragon field in Venezuela's territorial waters.

The US$1 billion deal was signed in August 2018. Those involved included energy giant Shell, Venezuela’s state oil company PDVSA, and the National Gas Company (NGC). But it was left in limbo after the US imposed sanctions on Venezuela in 2019.

Last January, Rowley announced that the US had lifted the sanctions to allow TT to extract gas from Venezuela.

The Dragon deal will see TT developing the field, which is estimated to produce approximately 150 million standard cubic feet of gas a day. The gas will be imported through a billion-dollar pipeline to the Hibiscus platform, off the northwest coast of TT. The platform is jointly owned by the Government, NGC and Shell.

The US waiver came after almost four years of lobbying led by Dr Rowley and supported by other Caricom leaders.

Rowley said the waiver came with stipulations, one being a two-year licence with an optimistic view of an extension and priority given to Caribbean countries, except Cuba.

In October, OFAC offered an extension of the licence it issued to TT to access natural gas from the Dragon gas field and the ability to pay for that gas in different ways.

Energy Minister Stuart Young announced the extension of the licence to October 31, 2025 at a news conference on October 17.

He said the extension also allows Government to pay for gas from the field in "fiat currency, as well as US dollars, as well as (Venezuelan bolivares), as well as via humanitarian measures."

Smith told Rowley, "I want to push that dragon oil field for you, sir."

He said he has worked in Venezuela for seven years. Smith added that he had also worked on the Loran/Manatee fields, which straddle the TT-Venezuela maritime border. He identified a Venezuelan in the audience whom he believed Rowley should speak with about the Dragon field.

"I like to help and I wish to offer myself and my services free of charge."

Before Smith took his seat, Rowley asked him a question.

"Are your proposing that drilling be done under San Fernando to hit the cretaceous (rock)?"

Smith told Rowley that since he left university in 1976, many people have claimed there is no more oil to be found in TT. He said this was not true and that oil accumulates in certain places every 30 years..

"I am telling you that there is oil under San Fernando and it is seeping as we speak."

Rowley suggested to Smith that he speak with Young about the matters he had raised.