Trinidad PM: Dragon gas deal safe
(Trinidad Guardian) The United States has confirmed to Government that Trinidad and Tobago will not be directly affected by the US’ upcoming reimposition of sanctions on Venezuela’s energy sector.
Prime Minister Dr Keith Rowley on Friday indicated that Government received this confirmation during his recent trip to the US.
Speaking at a media briefing at Whitehall, Portof-Spain, where he reported on his mission, Rowley added, “So I’m sorry to announce to those who love to say ‘the Dragon (project) dead,’ that T&T is alive and well and has a Government that looks out for the interest of all the people, especially our children. I’m concerned about our children who are in school today and deserve in the next few years to have at least what we had from our country - that’s my legacy.”
He noted that T&T has a two-year OFAC License from the US to pursue the Dragon Field venture with Venezuela.
Rowley said his delegation’s discussions in the US included talks with US National Security Council senior director (Western Hemisphere) Juan Gonzales, who represents that country in all dealings with Venezuela.
On Tuesday, the US announced the reimposition of sanctions on Venezuela’s energy sector, halting certain licences from April, after opponents to Venezuelan President Nicolas Maduro were barred from running against him in Venezuela’s elections.
Rowley said because the Government has seen US sanctions on Venezuela and T&T’s Cabinet was aware of its ramifications, “It’s why we’ve engaged this issue (Dragon Field) in the way we have.”
“When the US government issued its general License 44 - a global general licence to all and sundry - that didn’t limit Government’s enthusiasm to proceed on the path we’d started on. From day one, we didn’t put our argument or expectation under general License 44, which expires April 18. Those who rely on that license to do business with Venezuela, that expiry is
their problem. We never relied on that, otherwise we’d have been in that situation,” Rowley added.
He said Government sought, through the US’ Office of Foreign Asset Control (OFAC), to get a “carveout” and the two-year OFAC license was obtained.
“So we are not - and we got that confirmation from this meeting with Washington - we’re not directly affected by the April 18 activity,” he assured.
The OFAC license expires October 2025.
“And with respect to operation of the Dragon field, we have an exploration and production license for 30 years on that field - the outcome of the Government’s work in a very, very difficult situation,” he added.
He said Venezuela featured prominently in the US discussions and they had their view and T&T has its own that with respect to Venezuela, it has to be a partnership among the three countries.
First gas won’t be tomorrow or 2025
Rowley said first gas from Dragon Field won’t be seen until an assessment of the field is done - the very next thing “going on” - then drilling to be announced and information on the pipeline.
“It’s not going to be tomorrow or next year. But when it does, by having what we’ve done now - the documentation that’s in place - that triggers approval of the investment to be spent in the works.”
He said with the restructuring of LNG, documentation to use the Dragon field and Manatee, “We’ve unlocked billion of dollars in investment in T&T, but the actual molecule doesn’t appear for a few months - more like 36 months.”
Energy Minister Stuart Young goes to Caracas again next week. Rowley also goes to Caracas sometime ahead.
Rowley also trashed as “mischief” Opposition claims that the Dragon Field pipeline to the Hibiscus Feld will cost $100 million.
“We’ve not yet established the pipeline’s cost ...When the real figure comes out, I guarantee it’s not going to be anywhere near $100 million. None of us in Government or any of the companies ever mentioned a figure for the pipeline, as we’ve not yet got to that stage,” he said.
“The Opposition knows very well $100 million isn’t anywhere near the pipeline’s cost. They jump ahead and put that lie out there and when the real figure comes out, there’ll be all kinds of conspiracy theories between both figures.”
Derisking pace receded
Government also had renewed meetings with senior US Democrats, including Congresswoman Maxine Waters, who T&T met with on the crisis on derisking correspondent banking.
Prime Minister Dr Keith Rowley said while the (derisking) issue hasn’t disappeared and is still a threat, “Conditions have evolved considerably in our favour, where the pressure is a little off. The pace at which we were being derisked and debanked has receded.”
Out of the talks with the Exim Bank will come additional resource possibilities for T&T’s economic development. The US Trade Representative also is very eager to encourage T&T’s business sector to take more advantage of the Caribbean Basin Initiative, which has certain things which the US indicated T&T’s private sector largely isn’t taking advantage of.
Government also received commitment for funding for sustainable energy for construction of a 113MG of solar power plant, and intends more of that.