PORT OF SPAIN, Trinidad – The Trinidad and Tobago government says it will be seeking to “engage and apprise” the new Donald Trump administration in the United States of the importance projects being developed with Venezuela not only to Trinidad and Tobago but to the energy security for the region.
Prime Minister Dr. Keith Rowley addressing energy conference on Monday (CMC Photo)Addressing the three day, Trinidad and Tobago Energy Conference here on Monday, Prime Minister Dr. Keith Rowley said a joint venture project, the Loran-Manatee and the Venezuelan Dragon Gas field had been sanctioned for development and monetization in Trinidad and Tobago.
The conference organized by the Energy Chamber of Trinidad and Tobago, is being held under the theme “Investing for the Future”.
Rowley told delegates that in 2018, a term sheet was finalized for gas to be supplied from the Dragon field and a development plan for the Loran- Manatee field was being prepared by the exploration and production companies.
However both initiatives were curtailed due to sanctions imposed by the US government, which blocked US companies from doing business with the Venezuelan energy company, PDVSA.
Rowley told the conference that the sanctioning of the Loran-Manatee and Dragon projects was not in Port of Spain’s best interests, adding that the “2018 US decision denied Trinidad and Tobago access to Dragon gas field which was projected to come on stream in 2020 and sterilized Loran- Manatee project”.
But he said that given the country’s critical gas supply situation the matter had to be resolved and that in order to access gas from Trinidad’s Manatee field Trinidad and Tobago sought and received in 2019 the agreement of Venezuelan government to delink the Venezuelan Loran field from the Manatee field.
Rowley said that following the delinking of the gas fields and agreement between the government and Shell on contractual arrangements for the Manatee field final investment decision was taken.
He said the project is underway with production due to come on stream in 2027 at 600 mmscf per day.
“The development of the Manatee field provides a pathway for the monetization of the Loran field with its reserves of 7.2 tcf of gas in the future. The turnaround in the Manatee project is an example of the alacrity with which this government is progressing from decision making to execution,” Rowley said.
He said that for decades it has been confirmed that there are gas fields on the border, shared by Venezuela and Trinidad and Tobago.
“As per normal arrangements under these circumstances, the initial approach was to try to facilitate joint exploitation of these reserves. For 15 years this exercise was pursued but brought us no nearer to getting gas to shore. As declining Trinidad and Tobago reserves became more critical the government had to act on very many fronts.”
He said that one of the main decisions taken by his government was to approach Venezuela with a firm proposal to have both countries abandon the unitization approach to exploiting cross border fields. By obtaining early agreement on this idea, it opened the door for swift access to the Loran-Manatee field followed by other similarly placed deposits.
Rowley said the government, with the support of CARICOM and the Dominican Republic also simultaneously requested a review by the United States government on the sanctions on the Dragon gas Project.
“Following discussions and negotiations with US Government officials, the US Office of Foreign Assets Control (OFAC) approved a request by Trinidad and Tobago to waive ongoing sanctions against Venezuela to allow for the development of the neighbouring Dragon gas field.
“This was followed by a 30 year licence between Venezuela and Trinidad and Tobago that grants selected operators, Shell and NGC (National Gas Company), the right to produce and export gas to Trinidad and Tobago,” Rowley said, adding that the government in May last year, received an OFAC licence to pursue, with Venezuela, the exploitation and development of hydrocarbon reservoirs of the Manakin-Cocuina Field.
He said the exploration and production companies have been undertaking preparatory work to bring Manakin-Cocuina and Dragon Projects, which cumulatively possess 5.2 trillion tcf gas, on stream in the shortest interval.
“The government in collaboration with the government of Venezuela and our energy stakeholders have made great strides in advancing the development of both the Dragon Project and the Manakin-Cocuina Project.
“We will be seeking to engage and apprise the new US administration of the importance of these projects not only to Trinidad and Tobago but to the energy security for the region.”
Rowley said that energy security is a major issue for the majority of countries in the Caribbean with oil and gas accounting for 60 per cent of the energy needs of the region. “There is an opportunity for the petroleum producing countries in the region to pool their resources and optimize their monetization using existing infrastructure to the benefit of the resource owner and wider community. As a region susceptible to the effects of climate change, pooling of resources will contribute to reducing the carbon footprint of the region”.
Rowley said that it is this principle that governs economic co-operation between Trinidad and Tobago and Venezuela and which has been extended to Guyana, Grenada, Suriname and Barbados, “CARICOM partners with whom we have signed Memoranda of Understanding to facilitate future cooperation and collaboration in energy matters.
“Our energy assets comprising, LNG (liquified natural gas) assets, 10 ammonia plants, eight methanol plants, are not all operating at full capacity due to gas constraints. We also have a mothballed and preserved oil refinery, for which bids are currently being evaluated to conclusion.”
Prime Minister Rowley said that these existing international grade investment structures are available to the Caribbean neighbours and other participants to monetize their hydrocarbon resources.
He said the global oil and gas sector is currently at a critical juncture and that the interplay of global energy demand, climate change, financial decision-making and swift technological advancements is transforming the industry.
“This changing landscape offers both significant challenges and remarkable opportunities. Trinidad and Tobago has long been a leader in this business and will continue to be so as we make the urgent and necessary adjustments, even in turbulent geopolitical waters.
“Notwithstanding anything else, the oil and gas industry remains a cornerstone of global energy supply, even as it faces increasing pressure to evolve. In 2025, economic factors such as fluctuating demand, geopolitical tensions, and investment patterns will shape the industry’s trajectory.
“Global energy demand is growing steadily, largely influenced by Asia-Pacific’s energy needs, industrial expansion and the interest in natural gas as a cleaner alternative, especially in developing countries.”
Rowley said that Mc Kinsey & Company, the well-known American consulting and strategy firm, in its September 2024 report, projected that fossil fuels, including oil, natural gas, and coal, will continue to continue to play a role, in the global energy system to 2050, meeting between 40 and 60 per cent of global energy demand in 2050.
He said McKinsey further advised that investment and capital flow into fossil fuels are required for at least the next ten years to ensure the global energy system can keep up with demand.
“We, in Trinidad and Tobago, have resolved not to be left behind but instead to ensure that we get our share of the available investment in all our prospects whether they be inshore, cross border or across the border.”
He said offshore drilling in particular is projected to play a significant role in global energy supply, as next-generation drilling platforms offer faster setup and fewer emissions. Global investment in offshore drilling is projected to increase from US$43 billion in 2025 to US$64 billion by 2030.
He said one notable trend in the ongoing offshore revolution is a large increase in deep-water and ultra-deep-water drilling.
“For us this is of particular interest since we are currently turning our gaze into these horizons which only now are able to attract the necessary technical examination and required investment. Deepwater oil and gas production is set to increase by 60 per cent by 2030 and contribute eight per cent of overall upstream production, according to a new report from Wood Mackenzie, a leading global data analytic firm.
Rowley said as it stands Trinidad and Tobago’s deep-water province is largely unexplored but coming into view.
“Therefore, we stand to gain from the increase in exploration in deep-water, globally. The recent exploration work conducted in the deep-water area by Woodside has confirmed the prospectivity of our deep-water province.
“Of the fourteen exploration wells drilled eight were successful in discovering hydrocarbons. Following an evaluation of these discoveries, the Calypso project was developed targeting 3.5 tcf of reserves in Blocks TTDAA 14 and 23(a),” he said telling the delegates “if you do hear any of the contrived misinformation about our work and attention to the deep and ultra-deep horizons of Trinidad and Tobago offshore acreage, please ignore it, as the idle chatter that it is”.
