(Trinidad Guardian) T&T’s Ministry of Energy said yesterday that the decision by the US government to reimpose sanctions on Venezuela’s oil and gas sector does not affect the special amended licence that was issued to the Government of T&T on October 17, 2023.
That licence, which was issued by the Office of Foreign Assets Control (OFAC) of the US Department of Treasury, authorises the T&T Government, state-owned National Gas Company (NGC), Shell PLC and their affiliates to conduct business with the Government of Venezuela and its state-owned energy company, Petróleos de Venezuela SA, better known as PDVSA.
The statement by the Ministry of Energy came hours after an announcement from Washington DC that the Biden administration reimposed energy sanctions on Venezuela.
The US government’s action is being seen as an attempt to punish President Nicolás Maduro’s attempts to consolidate his rule just six months after the US eased restrictions in a bid to support now fading hopes for a democratic opening in the OPEC nation.
A senior US official, discussing the decision with reporters, said any US company investing in Venezuela would have 45 days to wind down operations to avoid adding uncertainty to global energy markets. The official spoke on the condition of anonymity to discuss US policy deliberations.
In October, the US granted Maduro’s government relief from sanctions on its state-run oil, gas and mining sectors after it agreed to work with members of the opposition to hold a free and competitive presidential election this year.
While Maduro went on to schedule an election for July and invite international observers to monitor voting, his inner circle has used the ruling party’s total control over Venezuela’s institutions to undermine the agreement. Actions include blocking his main rival, ex lawmaker Maria Corina Machado, from registering her candidacy or that of a designated alternative. Numerous government critics have also been jailed over the past six months, including several of Machado’s aides.
Yesterday’s actions essentially return US policy to what it was prior to the agreement hammered out in Barbados, making it illegal for US companies to do business with state-run oil producer Petróleos de Venezuela SA, better known as PDVSA, without a specific license from the US Treasury Department.
In a news release, the Ministry of Energy noted that the specific, amended OFAC licence issued to T&T last October is valid until October 31, 2025, and it permits Shell, NGC and contractors to continue the works being undertaken to explore, produce and export natural gas from the Dragon gas field.
In the news release, Energy Minister, Stuart Young reminded the population that T&T secured a 30-year exploration and production licence from Venezuela government for the Dragon gas field on December 21, 2023.
He said the work to explore, produce and export the natural gas from Dragon to T&T is continuing. (with files from AP)
