Lee: Deep-water exploration should have been priority

POINTE-a-Pierre MP David Lee has repeated the Opposition’s view about deepwater exploration being a priority for the energy sector.

He made this comment in response to the award of two production-sharing contracts (PSCs) to EOG Resources on January 29.

In a statement then, Energy Minister Stuart Young said the PSCs were for shallow-water blocks Lower Reverse L and NCMA 4(a).

“These are the first two PSCs that EOG has executed in 20 years. This is another tangible result of the work that has been done over the past few years.”

He added, “We have been engaged with EOG’s leadership in Houston, Texas, USA and Trinidad and Tobago and this is the result.”

Young also recalled EOG and BP recently launched the Mento platform and topside from TOFCO’s yard in La Brea.

He said Mento was moving quickly into production and that augured well for TT.

In a statement on February 2, Lee said, “Deep-water bids and monetisation of deep-water gas should have been the focus of this government from their very first term, not in this last hour, months away from a general election.”s

He repeated this should have been priority over government seeking to access cross-border natural gas reserves from Venezuela through the Dragon and Cocquina-Manakin projects.

On December 21, 2023, the Venezuelan government issued the licence to NGC and Shell to develop and export natural gas from the Dragon gas field to TT.

The Office of Foreign Assets Control (OFAC), which falls under the US Treasury, played a key role in granting this licence under the Joe Biden administration.

Concerns were raised about whether the Dragon project could be in jeopardy after Donald Trump won the presidential election on November 4.

The US$1 billion Dragon gas deal was first signed between TT and Venezuela in August 2018. But it was left in limbo after the US imposed sanctions on Venezuela in 2019. Trump was president at that time.

The Manakin-Coquina field straddles the TT-Venezuelan maritime border and has about one trillion cubic feet (tcf) of proven natural gas reserves.

In a letter to Trump on November 6, the Prime Minister said, “The Republic of TT and the USA share a long and enduring relationship, founded on deep ties across many sectors, including trade, security, culture and people-to-people exchanges.”

Dr Rowley added, “We look forward to further strengthening our co-operation in the years ahead.”

In his inauguration speech in Washington, DC, Trump said he signed an executive order aimed at expanding US energy production.

But he gave no details as to how and when that would happen.

At a news conference on June 24, Young said none of the initiatives being pursued with Venezuela would be affected by the outcome of elections in the US or Venezuela.

Venezuelan President Nicolas Maduro was re-elected in that country’s controversial election last year.

“We have legal documentation that secures us with Venezuela. We have legal documentation that secures us with the US government, despite who may be at the helm.”

At the recent celebration of the PNM’s 69th anniversary in Port of Spain, Rowley said the PNM negotiates deals with governments and not political parties, when it is in office.

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