Talks between BP, PDVSA and the National Gas Company of Trinidad and Tobago to develop a natural gas project have advanced since the US granted an authorization for its implementation in May. The parties now aim to sign the Venezuelan license necessary to develop the field before the presidential elections on Sunday, July 28.
British oil and gas producer BP, Venezuelan state oil company PDVSA and Trinidad and Tobago’s National Gas Company (NGC) are accelerating negotiations for a Venezuelan license to develop natural gas deposits in the Caribbean Sea, four people familiar with the matter said.
The companies resumed negotiations last year to develop the Cocuina-Manakin gas field on the maritime border between Trinidad and Venezuela, which contains about 1 trillion cubic feet of natural gas, The agency highlighted Reuters.
Talks have been moving forward since the United States granted an authorization for the project in May, which means an exemption from energy sanctions imposed on Venezuela. The parties now aim to sign the Venezuelan license necessary to develop that part of the field. ahead of the presidential election on Sunday, July 28, several sources said.
The license signing ceremony that Venezuelan authorities had planned for last week was postponed due to pending agreements. Trinidad’s Energy Minister Stuart Young recently traveled to Caracas to take part in some meetings, the sources added.
BP, which declined to comment on the matter, had previously said it was actively pursuing development of the field. PDVSA, NGC and Trinidad’s energy minister did not immediately respond to requests for comment.
BP wants the gas primarily to supply Trinidad’s flagship Atlantic LNG projectA smaller portion of the output would go to NGC for use in Trinidad’s petrochemical sector, two of the people said.
Export natural gas
Trinidad is Latin America’s largest LNG producer and the world’s second-largest exporter of methanol and ammonia, but its industries have suffered from a shortage of natural gas over the past five years. Atlantic LNG has the capacity to produce about 15 million metric tons per year of this super-cooled gas.
The US authorization for Cocuina-Manakin is the second that Washington has granted for energy projects between Trinidad and Venezuela that it considers key to securing gas for international markets.
The U.S. Treasury Department granted a previous license early last year to Shell to develop the Dragón gas field in Venezuela. The project, whose infrastructure was partially built by Venezuela but remains dormant, could start producing gas by the end of next year.
Gas from both projects is expected to be converted into LNG in Trinidad for export to neighboring Caribbean nations, Venezuelan and Trinidadian officials said.
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