Dragon in doubt as Trump trains guns on Maduro's energy deals

Acting Prime Minister Stuart Young speaks during the post cabinet news conference at Whitehall in Port of Spain, on February 27. - Photo by Ayanna Kinsale
Acting Prime Minister Stuart Young speaks during the post cabinet news conference at Whitehall in Port of Spain, on February 27. - Photo by Ayanna Kinsale

ACTING Prime Minister Stuart Young has given the population the assurance he and the government will do all in their power to ensure cross-border energy deals with Venezuela come to fruition.

Young, who is also Energy Minister, gave the assurance at a post-cabinet news conference at Whitehall on February 27.

In a post on social media, US secretary of state Marco Rubio said, "Today, pursuant to @POTUS 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."

On February 26, 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.

The announcements follow an increased bounty offer on Maduro by the US government in early January, US$25 million was offered for information leading to the Venezuelan president's arrest on outstanding narco-terrorism charges filed in the US in 2020.

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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.

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

Last July, government secured a 20-year 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 water.

Young: I will fight for TT

Young, who will succeed Rowley as prime minister when he resigns on March 16, said, "I can give the assurance to the people of Trinidad and Tobago standing here today, this role and the future role, I will fight for TT. I will do all that I can advocating for TT."

He noted the cancellation of the Chevron licence and said what was missed was a few months ago under the Trump administration rolled over this licence.

"It appears as though a decision was taken at this stage to reverse that."

Young said, "I have been in touch with persons that we have been working with on the continuation of our transactions with both the US as well as Venezuela."

He added Cabinet began its meeting later than usual earlier in the day because of this.

Like the media and the population,Young continued, "I too am concerned how will things affect Trinidad and Tobago."

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He said, "At this stage, there has been no indication of any negative effect on TT. "

Young added, "We have always said it is impossible to predict the future, certain administrations, what decisions they may take."

He said one of his conversations was with energy multinational Shell which is working to develop the Dragon field.

"Both of us are reaching out to the various contacts that we have. I have reached out to the US government through certain channels here in Trinidad. There are proposals for engagement with Secretary Rubio's office which was always part of the plan."

Referring to Rubio's post, Young said, "We the government continue to be engaged and continue to work every angle we can."

The Dragon deal, he continued, was critical for TT's energy security, Caricom and South America's stability.

Young said TT has had consistent conversations with the US about the importance of the deal to geopolitics of the region, Europe and other entities.

He repeated government remains engaged on this matter, is aware of who the decision makers are and continue to do all it can to ensure a positive outcome.

"Can we provide any assurance at this stage? The answer is obviously no. Are we engaged with the right people we believe? We think we are. We will continue to work and at every step of the way, if there is something for us to report, we will."

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Young recalled government managed circumstances in 2018-2019 when administrations changed in the US to ensure Dragon continued.

He said it was disheartening Opposition Leader Kamla Persad-Bissessar continued to try to scuttle the deal by attacking Venezuela.

Young supported Rowley in condemning a statement made by Persad-Bissessar in this regard on February 25.

He was shocked Persad-Bissessar could make the statements she did.

"This deal. This cross border gas is not for PNM. It is not for UNC. It is not for any political entity. It is for you. You the citizens of TT."

Young said, "This deal. This gas being delivered in 2027 is what is going to help us with the foreign exchange It is going to help us paying the bills on your behalf."

He reminded the media, he has been dealing first hand with Dragon and other cross-border energy initiatives with Venezuela for the past several years.

In a statement issued after Young's media conference, Persad-Bissessar described Rubio's post as humiliating for the TT government.

She said, "Marco Rubio’s X post today was the latest humiliation dealt to Young and Rowley following a series of failures.

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"Stuart has been out of his depth in government for the last 10 years. He is simply an unremarkable junior lawyer foisted onto the country by Rowley...

"All metrics in the energy sector are down, and he had no solid or sensible answers today when asked about the future of our country’s gas production or

oil-refining industries."

Energy Minister: TT not bankrolling V'zuela govt

Young said government had not bankrolled the Venezuelan government, when asked to comment on Rubio's comment about "providing foreign policy guidance to terminate all Biden-era oil and gas licenses that have shamefully bankrolled the illegitimate (Venezuelan president Nicolas) Maduro regime."

He added until production begins on Dragon begins, "we certainly don't fall into any large payments or payments being made to the Venezuelan government."

Young referred to the other part of Rubio's statement on providing foreign policy guidance.

He repeated this is why government is engaging with the US and advocating what is best for TT and Caricom.

Young said fees paid in relation to the granting of any licence was standard operating procedure and could not be described as bankrolling.

On whether the Venezuelan government had responded to Persad-Bissessar's criticism of the Dragon deal, he continued, "One of the thing in international diplomacy is when you engage with world leaders and you have certain conversations. Until you get the agreement to talk outside of that, it's best you don't."

Young said in previous conversations with the Venezuelan government, comments were made about the UNC's views on the deal.

"I have been in contact over the last 24 hours with the leadership in Venezuela."

Asked what government would do if the US terminated the licences for the Dragon and Cocquina Manakin projects, Young said, "We will continue to engage as we have done before."

He reminded the media the OFAC licence for Dragon was for 30 years.

Asked if Dragon and Cocuina-Manakin could be developed without OFAC licences, Young said legal advice would have to be sought on that.

"Right now, we know what the law is."

Young did not see the absence of a US ambassador as hindering dialogue with the US government on the matter.

He said the absence of a TT ambassador in Washington, DC, was not a problem in that regard either.

Young added government was working to fill that post.

Last March, Ambassador Brig Gen Anthony Phillips-Spencer was recalled to TT to be appointed interim head of the Strategic Services Agency (SSA) as a result of questionable activity in the agency.

Young said government would roll out its economic diversification plans in due course.

He repeated government did not place all its eggs in one basket with respect to cross-border energy initiatives with Venezuela.

Young identified the Manatee project as an example.

Last July, Shell announced its final investment decision on the Manatee field, which straddles the TT-Venezuela maritime border between TT and Venezuela. Shell plans to bring gas production from Manatee online by 2027.

He repeated, "Dragon coming on will help boost us to levels where we would like to be."

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