Trinidad and Tobago is urging the US government to amend the terms of a license authorising the joint development of the Dragon offshore natural gas field, reported Reuters.
Earlier this year, Washington issued a two-year license to allow the Caribbean nation to operate the field with Venezuela’s state-run oil company Petroleos de Venezuela (PDVSA), which is heavily sanctioned.
However, under US authorisation, cash transfers to the government or state-owned enterprises of Venezuela are not permitted.
Located near the maritime border of Venezuela and Trinidad and Tobago, the PDVSA-owned Dragon project was estimated to start production more than ten years ago.
The field’s development was stalled due to US sanctions and lack of funding.
Recently, US Presidential Coordinator for International Energy Security Amos Hochstein and US Vice President Kamala Harris’ team spoke with Trinidad and Tobago Prime Minister Keith Rowley and Energy Minister Stuart Young to discuss the proposed reforms.
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Young told the news agency that the reforms are partly related to the financial terms.
“There are still some changes that need to be made that we are pursuing. But that is always part of very complicated and sophisticated energy negotiations,” the minister said.
Requests for comment from PDVSA, Venezuela’s oil ministry, and the US White House did not immediately receive a response, reported the news agency.
Treasury Department officials chose not to comment.
This month, Trinidad and Tobago and Venezuela are anticipated to meet to discuss Dragon’s business arrangements.
In earlier meetings, the parties agreed to keep all information private and signed confidentiality agreements.
The Dragon field is claimed to contain up to 4.2 trillion cubic feet of gas.
The news comes as Trinidad and Tobago tries to address the falling oil and gas production. Earlier this week, it was reported that the island nation could disclose winners for six of eight onshore oil and gas exploration blocks.