Washington revokes Trinidad and Tobago’s licence for Venezuelan gas

The US decision halts Trinidad and Tobago’s gas ambitions tied to the offshore Dragon field, undermining agreements with Caracas and several major energy companies.

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

The United States has revoked the licence allowing Trinidad and Tobago to develop the Dragon gas field in partnership with Venezuela, Trinidadian Prime Minister Stuart Young announced at a press conference. The decision ends the authorisation granted on 18 December 2023 by the Office of Foreign Assets Control (OFAC), an agency under the US Department of the Treasury. It follows similar revocations affecting several international companies operating in Venezuela, including Chevron, Repsol and Maurel & Prom.

Diplomatic pressure and halted operations

Stuart Young noted he had not received any additional details about the revocation and said he had requested a meeting with US Secretary of State Marco Rubio for clarification. The cancellation jeopardises a key project for Port of Spain, which aimed to secure gas supply capacity through cross-border development with Caracas.

The move is part of a shift in US foreign policy led by President Donald Trump, who has strengthened sanctions against Venezuela. Since February, the US administration has ended waivers that previously allowed certain foreign companies to continue operations in Venezuela, in response to the contested 2024 re-election of President Nicolás Maduro.

Impacts on joint offshore projects

Trinidad and Tobago is the second-largest natural gas producer in the Caribbean region. In recent years, the country has signed several strategic agreements with Venezuela, involving companies such as BP and Shell. One of these included a contract between the Trinidadian state-owned National Gas Company (NGC) and Petróleos de Venezuela S.A. (PDVSA), targeting the Cocuina-Manakin fields on the Deltana Platform.

These fields are estimated to hold one billion cubic feet of natural gas. Another agreement, signed in 2023, concerned the development of the offshore Dragon field, located in Venezuelan territorial waters in the northeast of the country, near the maritime border with Trinidad and Tobago. This project, involving Shell, aimed to extract 120 million cubic metres of gas for export.

Economic fallout and diplomatic strain

The licence revocation undermines Trinidad and Tobago’s energy standing in the Caribbean, particularly amid efforts to diversify supply sources and strengthen regional integration. The Dragon field was intended to bolster liquefied natural gas (LNG) exports, supporting existing Trinidadian infrastructure.

According to Port of Spain officials, the project’s suspension may affect contractual obligations and the planning of regional gas flows. Stuart Young confirmed that legal assistance has been engaged in Washington to explore available avenues of appeal.

Al-Harfi and SCLCO signed agreements with Syrian authorities to develop solar and wind capacity, amid an ongoing energy rapprochement between Riyadh and Damascus.
Faced with risks to Middle Eastern supply chains, Thai and Japanese refiners are turning to US crude, backed by tariff incentives and strategies aligned with ongoing bilateral trade discussions.
France intercepted a tanker linked to Russian exports, prompting Emmanuel Macron to call for a coordinated European response to hinder vessels bypassing oil sanctions.
The activation of the snapback mechanism reinstates all UN sanctions on Iran, directly affecting the defence, financial and maritime trade sectors.
Commissioner Dan Jørgensen visits Greenland to expand energy ties with the European Union, amid plans to double EU funding for the 2028–2034 period.
European and Iranian foreign ministers meet in New York to try to prevent the reinstatement of UN sanctions linked to Tehran’s nuclear programme.
Canadian Prime Minister Mark Carney announces a bilateral agreement with Mexico including targeted investments in energy corridors, logistics infrastructure and cross-border security.
The US president has called for an immediate end to Russian oil imports by NATO countries, denouncing a strategic contradiction as sanctions against Moscow are being considered.
Tehran withdrew a resolution denouncing attacks on its nuclear facilities, citing US pressure on IAEA members who feared suspension of Washington’s voluntary contributions.
Poland’s energy minister calls on European Union member states to collectively commit to halting Russian oil purchases within two years, citing increasing geopolitical risks.
Athens and Tripoli engage in a negotiation process to define their exclusive economic zones in the Mediterranean, amid geopolitical tensions and underwater energy stakes.
European powers demand concrete steps from Tehran on nuclear issue or United Nations sanctions will be reinstated, as IAEA inspections remain blocked and tensions with Washington persist.
Brussels confirms its target to end all Russian energy imports by 2028, despite growing diplomatic pressure from Washington amid the ongoing conflict in Ukraine.
Donald Trump threatens to escalate US sanctions against Russia, but only if NATO member states stop all Russian oil imports, which remain active via certain pipelines.
The two countries agreed to develop infrastructure dedicated to liquefied natural gas to strengthen Europe's energy security and boost transatlantic trade.
Ayatollah Ali Khamenei calls for modernising the oil industry and expanding export markets as Tehran faces the possible reactivation of 2015 nuclear deal sanctions.
The Ukrainian president demanded that Slovakia end its imports of Russian crude, offering an alternative supply solution amid ongoing war and growing diplomatic tensions over the Druzhba pipeline.
The United States cuts tariffs on Japanese imports to 15%, while Tokyo launches a massive investment plan targeting American energy, industry, and agriculture.
Brazil’s Cop 30 presidency aims to leverage the Dubai commitments to mobilise public and private actors despite ongoing deadlock in international negotiations.
Brasília has officially begun the process of joining the International Energy Agency, strengthening its strategic position on the global energy stage after years of close cooperation with the Paris-based organisation.