The US has revoked two licences granted for the development of offshore natural gas projects between Trinidad and Tobago and Venezuela, according to Trinidad’s Prime Minister Stuart Young.
These licences were crucial to allow Trinidad, Latin America’s largest liquefied natural gas (LNG) exporter, to develop offshore fields in Venezuela and its maritime border to counter declining reserves.
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The projects were seen as significant opportunities for Venezuela to monetise its vast gas reserves and initiate exports, providing a new revenue source, reported Reuters.
The licences allowed Shell, BP and Trinidad’s National Gas Company to plan these projects as exemptions to US sanctions on Venezuela.
The companies now face a 27 May deadline to wind down activities.
In 2023, Venezuela granted Shell a 30-year licence to operate the Dragon field, which contains four trillion cubic feet of natural gas reserves, with plans to export gas to Trinidad for LNG conversion next year.
A similar licence was granted to BP for the Manakin-Cocuina cross-border field development.
US licences are essential for negotiating, planning and developing these projects due to Washington’s sanctions on Venezuela’s energy industry and its state-owned company Petróleos de Venezuela.
Last month, the Trump administration began suspending authorisations related to Venezuela, including those for Chevron, Eni and Repsol, with a 27 May deadline for winding down operations.
The US has accused Venezuelan President Nicolas Maduro of insufficient efforts to restore democracy and address illegal migration to the US.
Venezuelan officials have criticised the sanctions as an economic war.
Shell declined to comment, while BP and Venezuela’s government did not immediately respond to requests for comment.
Prime Minister Young stated that the revocation halts any payments to Venezuela related to the projects.
Trinidad is seeking a meeting with the US Government to discuss the suspensions and the recent tariff imposition on Chinese shipping, which could affect the Caribbean island and others in the region.
