Prime Minister Kamla Persad-Bissessar, in a statement posted Friday on X, said the licences represent an opportunity to deepen hemispheric energy cooperation and strengthen regional stability.
“As a longstanding close partner of the United States, Trinidad and Tobago views this development as an important opportunity to deepen hemispheric energy cooperation, strengthen regional stability, and reinforce trusted commercial ties,” she said.
“We are optimistic about the potential to enhance our role as a responsible energy hub in the Caribbean, supporting domestic industry, safeguarding jobs, and contributing to reliable supply chains that benefit the wider region.”
The prime minister said the twin-island republic will proceed in full compliance with all applicable legal and regulatory requirements and in keeping with its commitment to transparency and sound governance.
According to the licence terms, any payments of oil or gas taxes or royalties to Venezuela, its state-owned energy company Petróleos de Venezuela SA (PdVSA), or related entities must be directed to foreign government deposit funds or to other accounts as instructed by the US Department of Treasury.
The licence also stipulates that it does not authorise payment arrangements deemed commercially unreasonable or involving debt swaps, gold payments or digital currencies issued by or on behalf of the Venezuelan government.
Background to cross-border energy projects
The development comes amid ongoing negotiations surrounding cross-border natural gas projects between Trinidad and Tobago and Venezuela, including the Dragon and Manakin-Cocuina fields.
In April 2025, Washington revoked Office of Foreign Assets Control (OFAC) licences that had previously allowed Trinidad and Tobago to pursue the Dragon and Manakin-Cocuina natural gas projects with Venezuela, citing concerns over democratic governance and migration issues in the South American nation.
The Dragon field alone is estimated to hold about four trillion cubic feet of gas and had been expected to supply Trinidad and Tobago’s energy sector for years, with first exports originally projected for 2026.
The revoked licences froze the projects, despite Trinidad and Tobago already paying more than US$1 million annually in taxes to Venezuela related to the anticipated 20-year Dragon initiative.
By October 2025, a revised six-month OFAC licence was granted to allow renewed negotiations under strict conditions, marking a partial reopening of energy cooperation between the two countries.
Wider geopolitical backdrop
The latest licensing decision comes amid major geopolitical changes involving Venezuela.
Last month, the United States launched a military operation in Venezuela that resulted in the detention of President Nicolás Maduro and his wife on drug- and weapons-related charges. US officials later said Washington would administer the country temporarily while overseeing a political transition.
Persad-Bissessar had publicly supported the US military presence in the Caribbean after Washington initially framed the deployment as part of efforts to combat illegal drug trafficking.
With the new licences now in place, Trinidad and Tobago says it intends to move forward with energy cooperation in a manner consistent with US law while positioning itself as a key regional energy hub.
