Trinidad and Tobago has won US permission to negotiate a gas deal with neighboring Venezuela

The United States has allowed Trinidad and Tobago to negotiate a gas deal with neighboring Venezuela without facing any US sanctions. Caribbean The country’s Attorney General said on Thursday.

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

With Venezuela affected by US sanctions, Trinidad and Tobago required a license to develop gas fields located in Venezuelan waters. According to Attorney General John Jeremy, the license was granted following a request by Trinidad and Tobago in May.

“We have six months to negotiate within the parameters,” Jeremy said at a news conference. “You have to hit targets, both with respect to their stance with the US and Venezuela.”

He said that American companies have certain business goals. He declined to provide further details, but said the targets were reasonable and “not difficult” to meet.

Government officials and experts consider the gas project important as Trinidad and Tobago seeks to boost its gas production. The government is looking for new sources of revenue as its budget has seen higher expenditure than income in recent years.

Jeremy said the license does not cover the entire gas project but allows for initial negotiations. He declined to provide details about the business conditions of the license and said only certain profits were allowed. Jeremy said that once the first phase is successfully completed the process will move towards exploitation of the gas.

Permission was secured after the US Secretary of State marco rubio Met with the Prime Minister of Trinidad and Tobago on 30 September. During that meeting, Rubio outlined U.S. support for the gas deal and “takes steps to ensure that it will not yield significant benefits.” maduro regime,” the US State Department said.

Earlier, in October 2023, the US Treasury Department had given the license for this gas project. But in April this year, the Prime Minister of Trinidad and Tobago announced that it had been cancelled, a blow to the country’s energy security.

According to the Attorney General of the twin-island republic, the terms of the new license are different from the previous license. Asked if any contacts had been made with Venezuela to start negotiations, Jeremy said, “I’m not ready to go into that at this time.”

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