Trinidad and Tobago plans to request an extension of a U.S. license that allows it to continue developing the Dragon natural gas field offshore Venezuela in partnership with Shell, sources familiar with the matter told Reuters.
In early 2023, the U.S. Treasury issued a license to Trinidad and Tobago, permitting the Caribbean nation to develop the Dragon gas field and conduct related business with Venezuela’s state-owned oil company, PDVSA.
Despite ongoing U.S. sanctions on Venezuela and its state oil firm, the U.S. has regularly granted licenses to foreign companies operating in Venezuela, including Chevron.
Now, Trinidad and Tobago, through its National Gas Company (NGC), is seeking an extension for the 2023 license from the Trump Administration. The current license is set to expire in October 2025, but Trinidad and Tobago and Shell need the extension before they can begin production at the Dragon field offshore Venezuela.
The final investment decision for the project is expected later this year, with gas production anticipated to begin in 2027.
The Dragon project is vital for Trinidad and Tobago’s natural gas supply.
One of the reasons the U.S. granted the original license was to support energy security in the Caribbean region.
At the end of last year, Trinidad and Tobago reported that preliminary work for the first phase of the project had begun, including geophysical and geotechnical surveys.
These subsea surveys will provide Shell with technical data to assess the current infrastructure and help design new facilities. This includes planning for a 22-kilometer (14-mile) pipeline from the Dragon field to the Shell-operated Hibiscus platform, contingent on the final investment decision.
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