Oil platform off the coast of the island of Trinidad. Photo: Aneil Lutchman.
Guacamaya, February 25, 2025. Trinidad and Tobago intends to request the U.S. government to extend the license granted to British oil company Shell and the National Gas Company of Trinidad and Tobago (NGC) to develop the Dragon gas project in Venezuela, according to sources consulted by Reuters.
The license, initially issued in early 2023, has allowed the companies to advance in planning the project, which aims to supply gas to Trinidad by 2027. This concession was modified in 2023 to permit payments in hard currency or in kind to Venezuela and the state-owned PDVSA, and its expiration date was extended until October 2025.
The Dragon field, located in Venezuelan waters near the maritime border with Trinidad, contains at least 4.2 trillion cubic feet of gas, according to seismic and geotechnical data analyzed by Shell and NGC. Additionally, Shell has completed a seabed survey to identify drilling sites and pipeline routes. Together with NGC, it continues to work closely with Trinidad and Tobago’s Energy Minister Stuart Young and Venezuela’s Vice President Delcy Rodríguez.
In this regard, both companies need an extension to begin production once they make the final investment decision, expected this year. For his part, Trinidad’s Prime Minister Keith Rowley has emphasized the importance of maintaining these U.S. licenses to develop gas projects with Venezuela for reasons of regional energy security.
NGC and BP Hold Another License for Gas Exploitation
In a related development, in July 2024, Trinidad and Tobago received a specific license from the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) to develop a new gas project in the Venezuelan Cocuina-Manakin field, in collaboration with British energy company BP.
The Cocuina-Manakin field, which spans the waters of Venezuela and Trinidad, contains approximately one trillion cubic feet of gas. The license, valid for two years, will allow BP and NGC to plan and execute this ambitious project, which seeks to strengthen energy security in the Caribbean region.
The collaboration between Trinidad and Venezuela on these gas projects underscores the importance of regional cooperation in addressing energy and economic challenges in the Caribbean.
