Young optimistic over Dragon deal

ENERGY Minister Stuart Young was optimistic the deal for TT to market gas from Venezuela's Dragon gas field could survive current events in geopolitics, he told journalist Darian Marcelle in a "live" interview on Radio 95.5 FM on August 13.

He said the TT/Venezuela agreement to de-link TT's Manatee field – from the formerly unified Loran-Manatee field straddling both countries' borders – was still valid.

With Venezuela's incumbent leader Nicolas Maduro and Opposition candidate Edmundo Gonzalez both claiming to have won the July 28 presidential elections, that country has seen street protests met by a tough police crackdown on protesters.

While Russia, Iran and China viewed Maduro as election winner, the US supported Gonzalez, thereby raising fears as to whether the US Treasury's Office of Foreign Assett Control (OFAC) would still license TT to exploit gas from a Venezuela that was otherwise under embargo. Young firstly said the Manatee field did not need any grant of a licence to TT.

"No one can take away Manatee from us.

"Manatee is not 'going anywhere' regardless of what is happening in geopolitics."

He said Shell has taken a final investment decision on Manatee, calculated to hold 2.7 trillion cubic feet of gas. set to produce 104,000 barrels of oil equivalent (604 million cubic feet) per day.

Young said at the outbreak of the Russia/Ukraine War, TT had said it could be part of an energy solution whereby building certain infrastructure could boost TT's supply to the world of liquefied natural gas (LNG), ammonia and methanol.

He said subsequently TT had been granted an OFAC licence for the Dragon field plus a subsequent amendment to the licence to let TT pay Venezuela in cash. He boasted that while US multinational Chevron usually gets OFAC licences for just three or six months, TT had one for two years. Further, TT had a 30 year licence with Venezuela for the Dragon field.

He said Shell has the expertise and money to drill wells and get things done and was a "terrific partner."

Young said TT also had a 20 years licence from Venezuela for bpTT to exploit the Cocunia field on the Venezuela side of the unified one trillion cubic feet Cocuina/Manakin field of which bpTT already has an operatorship of the Manakin part lying in TT waters. Both Loran-Manatee and Manakin-Cocuina lie in an east-south-east direction off TT's coast.

Young asked who in TT has the leadership qualities to take the country's energy sector in the right direction. "Who has the confidence and competence?

"Success in the last nine years was because you have people who are not corrupt batting for TT."

Young expressed optimism over the Dragon field which is to be exploited on TT's behalf by Shell.

"Shell have appointed a dedicated general manager based right in Port of Spain – I met with him a few weeks ago – for their Venezuela operations.

"They would not have done that if they were not serious.

"They also appointed a subsurface person to focus on getting the Dragon project done."

He said two weeks ago, TT had delivered the development plan for the Dragon field to the Venezuelans.

"All of that is progressing

"Shell has told me, 'We are going full speed ahead with Dragon, until...

"Let us hope something does not interrupt it. But they said, 'Listen, Minister Young, we are pursuing it full speed ahead. So we are progressing.

"Shell and NGC are working overtime to get that thing done. Right now, fortunately, the work continues. It proceeds.

"Trinidad and Tobago, for our sake let us hope that despite all of the geopolitics taking place, that we are able to pursue the Dragon and bring that to market in 2027." In the event of hiccups, he said TT has a 30-year licence with Venezuela over Dragon.

Reflecting on whether TT need fear a change of government in Venezuela regarding the Dragon and Cocuina licences, he said, "Those licences can stand up to any scrutiny. They are above board. Those licences – anybody looking at it, international consultant – will say those are good deals for the people of Venezuela and for the people of TT." He said the terms of the Dragon and Cocuina licences could stand up to scrutiny.

The licences were valid, even among ongoing sanctions on Venezuela, Young said.

"We have not seen any tightening on Venezuela. I can't predict the future. Let is hope it stays that way."

Young said he had also engaged the European Union (EU), which knew what TT was doing, he said.

"Remember the EU needs gas. They need LNG.

"So we have told them once we get these things going, they will get a supply of LNG."

Mulling the US presidential elections in November, he said, "We have talked to the Republicans, we have talked to the Democrats. We keep the channels of communication open."