US seeks to terminate all Venezuela oil, gas licences

THE US is seeking to terminate all oil and natural gas licences with Venezuela that were approved by the former Joe Biden administration.

In a post on social media, US secretary of state Marco Rubio said, "Today, pursuant to @POTUS (president of the United States) directive, I am providing foreign policy guidance to terminate all Biden-era oil and gas licenses that have shamefully bankrolled the illegitimate (Venezuelan president Nicolas) Maduro regime."

This announcement comes one day after US president Donald Trump announced a license granted under the Biden administration in November 2022 for Chevron to operate joint ventures with Venezuela's state-controlled oil company PDVSA, was cancelled.

One of the licences granted by the Biden administration was for the TT-Venezuela Dragon gas deal.

On December 21, 2023, the Venezuelan government issued the licence to NGC (National Gas Company) and Shell to develop and export natural gas from the Dragon gas field to TT.

The Office of Foreign Assets Control (OFAC), which falls under the US Treasury, played a key role in granting this licence under the Biden administration.

Concerns were raised about whether the Dragon project could be in jeopardy after Donald Trump won the presidential election on November 4.

The US$1 billion Dragon gas deal was first signed between TT and Venezuela in August 2018. But it was left in limbo after the US imposed sanctions on Venezuela in 2019. Trump was president at that time.

In a letter to Trump on November 6, the Prime Minister said, "The Republic of TT and the USA share a long and enduring relationship, founded on deep ties across many sectors, including trade, security, culture and people-to-people exchanges."

Dr Rowley added, "We look forward to further strengthening our co-operation in the years ahead."

Reuters reported on February 25 that government would meet with the US to extend the licence for the Dragon project.

At the TT Energy Conference in Port of Spain on February 11, Rowley said government intends to engage the Trump administration on the importance of several energy projects, including the Dragon Project and the Manakin-Cocuina Project.

He said the projects were important not only to TT, but also to the region's energy security.

“Energy security is a major issue for the majority of countries in the Caribbean with oil and gas accounting for 60 per cent of the energy needs of the region.”