By: Staff Writer
March 17, 2023
A Trinidad and Tobago cabinet minister led a delegation to Venezuela to start negotiations with Venezuela on the upcoming gas deal between both countries.
Stuart Young, Minister of Energy and Energy Industries, said in a Facebook post that he led the team and included with him was, “the Permanent Secretary of the Ministry of Energy and Energy Industries, Ms Pennelope Bradshaw Niles, Mr Mark Loquan, President of NGC, Major General (Ret’d) Edmund Dillon, Trinidad and Tobago’s Ambassador to Venezuela and other members from NGC’s Executive. Also present was Mr Eugene Okpere, Senior Vice President of Shell Trinidad and Tobago and other members of Shell.
“Leading the team for PDVSA was Mr Pedro Rafael Tellechea, President of PDVSA who was supported by Vice Presidents of PDVSA and other key members of PDVSA.
“We executed a confidentiality agreement (Non Disclosure Agreement) which governs the negotiations between the parties and the exchange of information as we progress the technical and commercial aspects of the planned development.”
This deal is expected to revive Venezuela’s gas production, which contributes a large part of its export revenue and has been in decline. The joint venture could supply gas to Trinidad’s liquefied natural gas and petrochemical industry.
Mr Young had travelled to Venezuela twice already to inaugurate the negotiations since the United States in January issued a license allowing the two nations to revive the Dragon gas field on the Venezuelan side of the maritime border with Trinidad. That project has been idled for over a decade.
Trinidad hopes to speed up discussions on the terms of a partnership expected that would include Venezuelan state oil company PDVSA and British energy firm Shell (SHEL.L), which produces gas in Trinidad.
Now that the US has given its blessing for the gas deal, this signing of NDA’s between both countries is expected to speed up the negotiations process towards a successful completion.
However, there are still concerns about the stability of the Venezuelan government in that of its President, Nicholas Maduro, who has thumbed his nose at the Biden administration for “allowing” this gas deal between his country and Trinidad to take place. Maduro has condemned the decision by the United States to grant licenses to countries and companies to resume taking crude oil from Caracas on the condition no funds be paid to Venezuela.
Maduro in a broadcast, remained critical of Washington’s decision to exempt companies doing business with sanctioned Venezuelan state firms from paying cash to his administration.
“They tell a country it has permission to negotiate with Venezuela, but it cannot pay in dollars or any form of cash. It must pay with food or products,” Maduro said, adding “that is colonialism”.