Sunday, December 3, 2023

Venezuela is close to approving the license of Shell and Trinidad to develop the gas project

According to Reuters, this approval could launch Trinidad’s gas processing project and petrochemical exports.

The Government of Venezuela is close to approving a license for the British hydrocarbon company Shell and the National Gas Company (NGC) of Trinidad and Tobago to develop an offshore natural gas field and export that production to Caribbean islands.

According to Reuters, this approval could launch the Trinidadian gas processing project and petrochemical exports, as well as benefit Venezuela by generating additional income.

It is worth noting that Venezuela and Trinidad intend to accelerate the development of energy after the relaxation of sanctions in the United States, and both countries will increase their mutual demand for the production and export of gas.

People close to the matter indicate that Venezuela and Trinidad are still discussing some aspects of the license, but if these points are agreed upon, the agreement between the two countries could be signed in the coming days.

The Dragon Field contains up to 4.2 trillion cubic feet of gas and is located in Venezuelan waters, near the maritime border between the two countries.

It is important to specify that the exploration and production licenses discussed in the two countries will be valid for 25 years, Banca y Negocios reports.

Shell and Ngc

Shell and NGC will operate the Dragon field, with the British company having a 70% stake while the Trinidadian company has only 30%, as stipulated in the terms.

Although the state-owned Petróleos de Venezuela SA (Pdvsa) discovered the reserves and paid for the infrastructure, it will not participate in this project but will receive a cash payment or a share of the gas production as royalties.

Pay in advance

Sources involved in the issue say that PDVSA is “pushing” for an advance payment of US$65 million as a “signing bonus”, but Shell and NGC want to wait for the first gas supply. that can be done.

Venezuela and Trinidad are considering two separate lines to transport gas: one built by PDVSA to the town of Güiria, on the east coast of Venezuela, and the second, which will connect Shell’s Hibiscus field on the island of Trinidad.

World Nation News Desk
World Nation News Desk
World Nation News is a digital news portal website. Which provides important and latest breaking news updates to our audience in an effective and efficient ways, like world’s top stories, entertainment, sports, technology and much more news.
Latest news
Related news