Trinidad secures US permission to negotiate gas deal with Venezuela

The United States has granted Trinidad & Tobago permission to negotiate a gas deal with neighbouring Venezuela without facing any US sanctions, the Caribbean nation’s attorney general has said.

The US Treasury Department granted an Office of Foreign Assets Control licence that allows parties to engage in a transaction that would otherwise be prohibited, according to the agency.

With Venezuela hit by US sanctions, Trinidad & Tobago needed the licence to pursue the development of a gas field located in Venezuelan waters. The licence was granted following a request that Trinidad & Tobago made in May, according to Attorney General John Jeremie.

“We have six months to negotiate, within parameters,” Jeremie said at a news conference. “You have to hit targets, with respect to the US and their posture with Venezuela.”

He said US companies have certain commercial targets. He declined to provide further details, but said those targets are reasonable and “not difficult” to meet.

Government officials and experts view the gas project as vital, since Trinidad & Tobago is seeking to boost its gas production. New streams of revenue are being sought by the government since its budget in recent years has seen spending outpace income.

Jeremie said the licence does not cover the entire gas project, but allows for initial negotiations. He declined to give details about the licence’s commercial terms, saying only that certain benefits are permitted. Once the first stage is successfully completed, Jeremie said the process would move towards exploiting gas.

The permission was secured after US Secretary of State Marco Rubio met with Trinidad & Tobago’s Prime Minister Kamla Persad-Bissessar on September 30. During that meeting, Rubio outlined US support for the gas deal and “steps to ensure it will not provide significant benefit to the Maduro regime”, the US Department of State said.

Previously, in October 2023, the US Treasury Department had granted a licence for the same gas project. But in April of this year, Trinidad & Tobago’s prime minister announced it had been revoked, a blow to the country’s energy security.

The terms of the new licence are different from those of the previous licence, according to the attorney general of the twin-island republic. When asked if there had been any contact with Venezuela to begin negotiations, Jeremie said, “I am not prepared to go into that at this time.”

AP