Venezuela is nearing a choice to authorize a license for Shell and the National Gas Business of Trinidad and Tobago (NGC) to export gas to Trinidad from a brand-new overseas Venezuelan field, Reuters reported on Monday, pricing estimate sources knowledgeable about the matter.
Early this year, the U.S. Treasury approved a license to Trinidad and Tobago, permitting the Caribbean country to establish a gas field offshore Venezuela and operate associated to the gas field with Venezuela’s state oil company PDVSA.
Trinidad and Tobago requested for a license for the Dragon field from the U.S. Department of the Treasury in the middle of 2022, and the exemption was just recently given by the U.S. Administration.
Trinidad and Tobago anticipates to access to around 350 million cubic feet of gas each day from the overseas field Dragon, Prime Minister Keith Rowley informed a press conference in January, as brought by Reuters
Authorizing the license would indicate that Trinidad and Tobago might increase its gas imports, processing, and petrochemical exports, while Venezuela would get money or part of the gas production in the type of royalties.
According to Reuters’ sources, the overseas gas job would be run by supermajor Shell, which will hold 70% in the license, while Trinidad and Tobago’s NGC will have a 30% stake.
The U.S. raised most sanctions on Venezuela’s oil market after the Nicolas Maduro federal government reached a handle the opposition that might see elections held next year.
At the very same time, the U.S. Treasury likewise permitted Trinidad and Tobago to “work out with the Federal government of Venezuela and PDVSA to get expedition and production licenses to draw out gas, to run the Dragon field and to make different payments connected with such a job consisting of, taxes, royalties, costs and lease benefit payments,” Trinidad’s Ministry of Energy stated last month.
” The stated change more licenses GORTT, NGC, and Shell plc to pay to the Federal government of Venezuela in fiat currency, consisting of United States dollars or bolivars,” Trinidad and Tobago stated.
By Tsvetana Paraskova for Oilprice.com
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