Trinidad and Tobago and Venezuela canceled the agreement signed to jointly develop a natural gas field along its maritime border in the Loran-Manatee area because of US sanctions against the state oil company of the South American country PDVSA.
Trinidad and Tobago Prime Minister Keith Rowley made the announcement on Monday during the opening of the Energy Conference held in Port of Spain, where he said that the United States sanctions against Venezuela had made it impossible to jointly develop that draft cross-border gas
“The development progress of the Loran-Manatee unified field has been hampered by the sanctions imposed by the United States Government, which prevents US companies from doing business with the Venezuelan oil company PDVSA,” Rowley said.
“This affects the American company Chevron, which has a 60% stake in the Loran field – the remaining 40% is from PDVSA – to participate in the development of the Loran-Manatee field,” said the official.
As for the Manatee field, Shell Trinidad and Tobago controls 100% of the area.
“As a result of all this, the Government of Trinidad and Tobago and Venezuela have agreed to independent development in the Loran-Manatí cross-border area, each within its maritime area,” Rowley said.
The Loran-Manatee gas field extends on both sides of the maritime border between Trinidad and Tobago and Venezuela.
It is estimated that it hosts 10.2 billion cubic feet (TCF) of gas, of which approximately 74% belongs to Venezuela and the remaining 26% belongs to Trinidad and Tobago.
According to Rowley, Shell is chatting with the Government and is working on several development scenarios to determine the best option.
“This important change of politician provides easy access to the market for all the gas in these fields if circumstances permit and the owners wish,” he said.
He also pointed out that the energy sector in his country should increase more and that oil production will increase in the future, with an estimated growth of 90,000 barrels per day by 2022.