T&T – US Grants Trinidad and Tobago Licenses to Conduct Energy Business with Venezuela

2026-02-14 - 14:10

The Government of Trinidad and Tobago has secured two United States general licenses authorizing specific oil and gas activities involving Venezuela, a development Prime Minister Kamla Persad-Bissessar described as a significant step toward strengthening regional energy cooperation and economic stability. In a statement posted on X on Friday, Persad-Bissessar said the approvals provide “a clear and structured legal framework” under United States law for engagement in energy operations both within Venezuela and along the countries’ shared maritime border. She noted that the arrangement presents an opportunity for Trinidad and Tobago to deepen hemispheric partnerships while reinforcing its role as a trusted regional energy hub. “As a longstanding close partner of the United States, Trinidad and Tobago views this development as an important opportunity to deepen hemispheric energy cooperation, strengthen regional stability, and reinforce trusted commercial ties,” the prime minister stated. “We are optimistic about the potential to enhance our role as a responsible energy hub in the Caribbean, supporting domestic industry, safeguarding jobs, and contributing to reliable supply chains that benefit the wider region.” The government emphasized that all activities will proceed in strict compliance with applicable legal and regulatory requirements, “and in keeping with our commitment to transparency and sound governance.” According to the terms outlined in the licenses, any payment of oil or gas taxes or royalties to the Venezuelan government or state oil company entities must be directed to Foreign Government Deposit Funds or other accounts designated by the US Department of the Treasury. The authorization also prohibits arrangements deemed commercially unreasonable, including debt swaps, payments in gold, or transactions conducted through digital currencies or tokens issued on behalf of Venezuela. The licenses follow a turbulent period in regional energy diplomacy. Earlier restrictions imposed by Washington had halted joint development of cross-border gas resources, including the Dragon and Manakin-Cocuina fields, projects involving multinational energy companies and Trinidad and Tobago’s state-owned National Gas Company. The Dragon field alone is estimated to contain roughly four trillion cubic feet of natural gas. Those earlier approvals were revoked in 2025 amid geopolitical tensions and concerns surrounding governance issues in Venezuela, effectively freezing planned production. A revised six-month authorization later allowed negotiations to resume under stricter conditions, setting the stage for the newly issued general licenses. The latest move also unfolds against a rapidly shifting geopolitical environment in Venezuela, where renewed US involvement and changes in sanctions policy have reshaped access to the country’s vast oil reserves and reopened avenues for international energy cooperation. For Trinidad and Tobago, officials view the licenses not only as an energy opportunity but as a strategic pathway to economic resilience, positioning the twin-island republic to secure long-term gas supplies while reinforcing its standing within the Caribbean’s evolving energy landscape.