Kamla gets ‘good news’ after Rubio talks: Dragon gas deal back on

TRINIDAD and Tobago has received a much-needed lifeline for its energy sector and economy, after it got the support of the US to approve relevant licenses to develop cross-border energy resources in Venezuela, specifically the Dragon gas project.

The announcement was made in a statement by the Office of the Prime Minister (OPM) on September 30, after a meeting between Prime Minister Kamla Persad-Bissessar and US Secretary of State Marco Rubio earlier in the day at the US State Department in Washington, DC.

In a video released after the meeting, Persad-Bissessar said, “We had some very important discussions for bilateral interest.” She added, “More will be disclosed later; we have some good news and we will share with you later.” She gave no further details.

In a video on September 29, Persad-Bissessar identified national security and energy issues as two matters that were on the table for discussions with Rubio.

In its statement, the OPM said after the meeting, government was informed that Rubio “supports the approval of the relevant Office of Foreign Assets Control (OFAC) licences to begin discussions toward developing its cross-border hydrocarbons.” OFAC falls under the US Treasury Department.

While the OPM did not identify any specific cross-border resource, the US State Department identified Venezuela’s Dragon gas field as one such resource that is back on the front burner arising from the meeting between Persad-Bissessar and Rubio.

Principal Deputy Spokesperson Tommy Pigott said Rubio “outlined US support for the government’s Dragon gas proposal and steps to ensure it will not provide significant benefit to the (Venezuelan President Nicolas) Maduro regime.”

Piggott said Rubio acknowledged the importance of energy security to TT’s economic prosperity and regional stability.

In a WhatsApp comment on September 30, Energy Minister Dr Roodal Moonilal said this was a great day for TT.

Moonilal said Persad-Bissessar delivered “the most telling achievement in obtaining US government support for our renewed proposal to resurrect the Dragon project.”

He claimed the project died at the hands of former prime minister and energy minister Stuart Young, former prime minister Dr Keith Rowley and Opposition Leader Pennelople Beckles.
Moonilal said, “In four short months, the prime minister has delivered a profound and most remarkable contribution to our economic recovery.”

After a ministerial swearing-in ceremony at President’s House, St Ann’s on May 6 , Persad-Bissessar said the Dragon gas deal was dead and “we will be foolish not to look elsewhere.”
She added,”That is dead. The PNM kept it alive for ten years and if you couldn’t do it in ten years, you cannot possibly do it now.”

At that time, Persad-Bissessar said she had discussions with Rubio about the energy sector but there were no discussions about the Dragon gas project.

On December 21, 2023, the Venezuelan government issued a 30-year licence to the NGC (National Gas Company) and Shell to develop and export natural gas from the Dragon gas field to TT. The OFAC played a key role in granting this licence under the then Joe 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 a year later. Trump was president at that time.

Last July, the former PNM government secured a 20-year licence from Venezuela for bpTT to exploit the Cocuina 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.

These announcement come in the midst of heightened tensions between the US and Venezuela, with the former having deployed naval forces in the southern Caribbean Sea since August 23. Persad-Bissessar has openly supported the deployment and the US position that the deployment is an anti-narcotics exercise.

She has also promised to allow US forces access to TT territory if Venezuela makes an incursion into Guyana and the US makes the appropriate request to TT. That deployment would be under a Status of Forces Agreement (SOFA) signed last December under the former PNM administration.

Maduro has condemned Persad-Bissessar for supporting the US deployment and asked if she had lost her mind. But Maduro also called for respectful relations between TT and Venezuela.

He has said Venezuela is willing to engage in dialogue with TT.

This story was originally published with the title "Government gets US support for Venezuela-TT energy projects" and has been adjusted to include additional details. See original post below.

GOVERNMENT has received the support of the US to approve the relevant licences to develop cross-border energy resources in Venezuela which will benefit Trinidad and Tobago's energy sector and economy.

The announcement was made in a statement issued by the Office of the Prime Minister (OPM) on September 30, after a meeting between Prime Minister Kamla Persad-Bissessar and US Secretary of State Marco Rubio earlier in the day at the US State Department in Washington, DC.

Persad-Bissessar had earlier said she had "good news" to share with the country.

The statement said after the meeting, government was informed that Rubio "supports the approval of the relevant Office of Foreign Assets Control (OFAC) licences to begin discussions toward developing its cross-border hydrocarbons." OFAC falls under the US Treasury Department. The projects in question which could be affected by this decision are the Dragon and Manakin-Cocuina gas projects

A subsequent statement issued by Principal Deputy Spokesperson Tommy Pigott said Rubio "outlined US support for the government’s Dragon gas proposal and steps to ensure it will not provide significant benefit to the (Venezuelan President Nicholas) Maduro regime."

Piggott said Rubio acknowledged the importance of energy security to Trinidad and Tobago’s economic prosperity and regional stability.

At a news conference at Whitehall on April 8, then prime minister Stuart Young announced the US Treasury Department's Office of Foreign Assets Control (OFAC) had revoked licences issued for the Dragon and Manakin-Cocuina fields in Venezuela. Those licences were granted under the former Joe Biden administration in 2023. Trump won the November 2024 US presidential election.

The statement from the Office of the Prime Minister on April 18 said Young had a telephone conversation with Rubio.

It added, “They both agreed to continue working towards the successful pursuit of TT’s energy initiatives.”

The statement said Rubio also recognised energy security was important to TT’s prosperity and economy and suggested any adverse effect on TT was not meant to harm relations.

“Any outcomes of sanctions upon the Maduro regime and Venezuela is in no way indicative of our relationship with TT and the value we place on it.”

It added, “Both sides agreed that we are going to work very closely to find a solution that achieves US objectives regarding Venezuela without harming TT.”

The statement suggested any compromise, however, must be in line with the US policies regarding Venezuela.