Trinidad and Tobago secures US permission to negotiate gas deal with neighboring Venezuela

PORT-OF-SPAIN, Trinidad (AP) — The U.S. has granted Trinidad and Tobago permission to negotiate a gas deal with neighboring Venezuela without facing any U.S. sanctions, the Caribbean nation’s attorney general said Thursday.

The U.S. Treasury Department granted an Office of Foreign Assets Control license on Wednesday that allows parties to engage in a transaction that would otherwise be prohibited, according to the agency.

With Venezuela hit by U.S. sanctions, Trinidad and Tobago needed the license to pursue the development of a gas field located in Venezuelan waters. The license was granted following a request that Trinidad and Tobago made in May, according to Attorney General John Jeremie.

“We have six months to negotiate, within parameters,” Jeremie said at a news conference. “You have to hit targets, with respect to the U.S. and their posture with Venezuela.”

He said U.S. companies have certain commercial targets. He declined to provide further details, but said those targets are reasonable and “not difficult” to meet.

Government officials and experts view the gas project as vital since Trinidad and Tobago is seeking to boost its gas production. New streams of revenue are being sought by the government since its budget in recent years has seen spending outpace income.

Jeremie said the license does not cover the entire gas project but allows for initial negotiations. He declined to give details about the license’s commercial terms, saying only that certain benefits are permitted. Once the first stage is successfully completed, Jeremie said the process would move toward exploiting gas.

The permission was secured after U.S. Secretary of State Marco Rubio met with Trinidad and Tobago’s prime minister on Sept. 30. During that meeting, Rubio outlined U.S. support for the gas deal and “steps to ensure it will not provide significant benefit to the Maduro regime,” the U.S. Department of State said.

Previously, in October 2023, the U.S. Treasury Department had granted a license for the same gas project. But in April of this year, Trinidad and Tobago’s prime minister announced it had been revoked, a blow to the country’s energy security.

The terms of the new license are different from those of the previous license, according to the attorney general of the twin-island republic. When asked if there had been any contact with Venezuela to begin negotiations, Jeremie said, “I am not prepared to go into that at this time.”

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