2nd August 2024

The governments of Trinidad and Tobago and Venezuela have signed an agreement for the exploration and production of natural gas from the Cocuina-Manakin field.

The 20-year agreement to exploit the field, which extends across the maritime boundary between the two countries, was signed in Venezuela days before the now controversial presidential election in there.

The deal grants a licence to British energy giant bp, and the state-owned National Gas Company of Trinidad and Tobago (NGC) to develop the Venezuelan side of the Cocuina-Manakin field.

Trinidad and Tobago’s Energy Minister, Stuart Young led the country’s delegation to the event, which was attended by several high-ranking Venezuelan officials including President Nicolas Maduro.

“We continue to take monumental steps as you say, Minister Stuart Young, to consolidate a relationship of good neighbourliness and brotherhood which is and should always be a relationship that serves as a model in the world for relations of cooperation and peace, increasingly,” said President Maduro.

teleSur reported that among the documents signed were authorisation for the tax admission of the production of the Cocuina Field of the Deltana platform, agreements on the timeframe for the implementation of the Manakin-Cocuina Field Area Unit, the Approval Act for its functional and governance structure, and the licence for the exploration and exploitation of non-associated gaseous hydrocarbons in the Cocuina Field of the Deltana platform.

“Once again we have shown the world what happens when two fraternal countries work in a way united, in difficult times, stand up for what is right, the sovereign rights of two countries,” said Stuart Young at the signing ceremony held in Caracas and broadcast live on Venezuelan state television.

The field, estimated to contain 1tn cubic feet of gas, is expected to form part of the rejuvenation efforts to increase production in Trinidad and Tobago’s flagging oil and gas sector. The deal follows the July final investment decision (FID) announcement by Shell T&T Ltd, local subsidiary of Shell plc, for the long-awaited Manatee liquefied natural gas (LNG) project.

“The award of the licence would not have been possible without the significant diplomatic efforts by the Government of T&T and its leadership in driving strong collaboration between bp, the National Gas Company and the governments of T&T and Venezuela,” said bpTT President David Campbell who was also present for the signing.

The press release noted that securing the licence is an important milestone which will allow the company to move forward with planning for the development of these significant resources in a bid to bring more gas into the country’s existing gas infrastructure during this decade.

The agreement now means that bpTT has licences and operatorship for both the Manakin and Cocuina gas fields which the company says will simplify the joint development plan from the unitised field.

The deal was also welcomed by acting President of NGC Verlier Quan Vie who called the development “a continuation of efforts to export natural gas from Venezuela to Trinidad and Tobago,” adding that the NGC is excited to work collaboratively with all the parties to progress this and other opportunities for the benefit of the citizenry. 

Local stakeholders have also praised the government for successfully negotiating the deal to allow the development of the gas field.

The Energy Chamber of Trinidad and Tobago congratulated bpTT, NGC and the Rowley Administration for what it sees as a project that can provide significant volumes of natural gas to the LNG and petrochemical sectors and help extend the life of the gas industry and create business and job opportunities in the country.

The Cocuina-Manakin agreement is the second major deal after the Dragon Field deal, which will proceed following a US Treasury Department licence issued in May, allowing the project despite existing energy sanctions on Venezuela.

However, with intense protests ongoing in Venezuela after both Maduro and opposition candidate Edmundo Gonzalez claimed victory in the election, many are looking at the US reaction after the Biden Administration accused President Maduro of election manipulation.

“We are going to take that into account as we map forward where we may head with respect to sanctions toward Venezuela,” said an unnamed US official in an interview with Reuters.

Photo: AP Photo/Lucanus Ollivierre