Trinidad and Tobago Secures U.S. Licenses for Energy Collaboration with Venezuela

The landscape of energy diplomacy in the Caribbean is evolving, and at the forefront of this change is the Government of Trinidad and Tobago. Recently, they secured two United States general licenses that permit specific oil and gas activities involving Venezuela. Prime Minister Kamla Persad-Bissessar has characterized this development as a significant milestone aimed at fortifying regional energy cooperation and enhancing economic stability.

A New Regulatory Framework

In a statement released on X, Persad-Bissessar highlighted that these approvals establish a “clear and structured legal framework” under U.S. law for engaging in energy operations both within Venezuela and along their shared maritime border. This structured approach not only provides clarity but also reassures stakeholders about the legality and framework within which these operations will take place.

Strengthening Hemispheric Partnerships

The Prime Minister emphasized that this agreement presents a unique opportunity for Trinidad and Tobago to deepen its relationships within the hemisphere. By reinforcing its role as a reliable and trusted regional energy hub, Trinidad and Tobago aims to unleash its potential in the energy sector while fostering stable economic relationships across the region. “We are optimistic about the potential to enhance our role as a responsible energy hub in the Caribbean,” she remarked, underlining the importance of safeguarding jobs and ensuring dependable supply chains.

Compliance and Transparency

The government has made it clear that all activities stemming from these licenses will adhere strictly to legal and regulatory requirements. This commitment to transparency and sound governance is particularly crucial in a region often marred by historical governance issues. Such diligence not only upholds the integrity of the operations but also serves to cultivate trust among both domestic and international stakeholders.

Financial Guidelines Under the Licenses

The newly issued licenses come with specific financial guidelines that dictate how Trinidad and Tobago can engage with Venezuelan entities. Any payments related to oil or gas taxes or royalties must be directed to Foreign Government Deposit Funds or accounts designated by the U.S. Department of the Treasury. Moreover, the licenses explicitly prohibit arrangements that are deemed commercially unreasonable, such as debt swaps and payments in gold or digital currencies associated with Venezuela. This financial stipulation highlights the intricate nature of energy operations and helps maintain compliance with U.S. regulations.

A History of Energy Diplomacy

The recent licenses emerge against the backdrop of a tumultuous period in regional energy diplomacy. Previously imposed restrictions by Washington had effectively suspended joint development projects across their borders, notably affecting the Dragon and Manakin-Cocuina gas fields. These fields are of significant importance, with the Dragon field alone estimated to hold around four trillion cubic feet of natural gas.

The challenges escalated in 2025 when earlier approvals were revoked due to geopolitical tensions and governance concerns in Venezuela, halting the hopeful developments in production. The subsequent revised authorization introduced stricter conditions, eventually leading to the new general licenses that the government now regards as a timely opportunity.

Geopolitical Shifts and Economic Resilience

The geopolitical environment in Venezuela is evolving. With recent shifts in U.S. sanctions policy and renewed involvement, the landscape has opened up avenues for international energy collaboration. For Trinidad and Tobago, these licenses are not merely a gateway to energy opportunity; they symbolize a strategic pathway to bolster economic resilience.

By securing access to long-term gas supplies, Trinidad and Tobago is positioning itself not only to enhance its energy capabilities but also to play an influential role in the Caribbean’s changing energy paradigm. This strategic decision underscores a broader ambition to maintain leadership in the regional energy sector while adapting to global market dynamics.

In summary, the securing of these U.S. general licenses serves as a pivotal moment for Trinidad and Tobago, reflecting a proactive approach to regional energy cooperation and economic stability. As the situation develops, the implications for both countries—and the Caribbean at large—are profound and far-reaching.