BP Seeking Natural Gas Opportunities In Trinidad-Venezuela Waters
Trinidadian energy minister Stuart Young (left), Venezuelan oil minister Rafael Tellechea (middle), and BP president for Trinidad and Tobago, Sir David Campbell (right).
On Wednesday, BP president for Trinidad and Tobago, Sir David Campbell met with Trinidadian energy minister Stuart Young and Venezuelan oil minister Rafael Tellechea.
The British oil and gas “supermajor” is exploring opportunities in the cross-border region, as it would be trying to follow in the footsteps of Shell to extract natural gas mostly from Venezuelan waters while using Trinidad’s existing LNG export infrastructure.
In December, Shell announced plans to export gas from the Venezuelan-Trinidadian offshore gas field known as Dragon; most of the reserves are in the Andean country’s waters.
According to PDVSA, the meeting was held to evaluate granting a license to explore, exploit and export nonassociated gas from the Cocuina field in Venezuelan waters, which is contiguous to Manakin in the maritime area of Trinidad and Tobago. BP did not respond to a request for comment.
In December, Reutersreported that Venezuela was trying to have Chevron, BP and Shell revive the Plataforma Deltana offshore project.
Antero Alvarado, director of Gas Energy Latin America, says that in this area there is a favorable policy and a strong alienation between government and enterprise. “This is the opposite of what has been happening with Colombia, which has been considering the import of natural gas from Venezuela, but deals are yet to materialize.”
Venezuela sits on 80% of Latin America’s natural gas reserves, though it is only a minor producer. Whereas Trinidad and Tobago’s reserves are dwindling, but it counts on a large industry dependent on the resource, from LNG terminals to steel manufacturing.
Unresolved recognition dilemma
U.K.-based corporations will eventually have to face their home country’s recognition dilemma. Since 2019, Downing Street does not recognize the administration in Miraflores Palace, as it said the legitimate authority in Venezuela was that led by Juan Guaido and his Interim Government.
In December 2022, the Interim Government was dissolved, so Downing Street does not formally recognize any Venezuelan ruler. This could become an obstacle if British firms continue to seek opportunities in Venezuela.
The Bank of England is holding 31 tonnes of gold from the Central Bank of Venezuela. The reserves are immersed in a legal battle between Caracas and what was the Interim Government, which continues.
The U.K. government initially supported Guaido’s legal case by saying that recognition was “clear and not ambiguous”. After the dissolution of the Interim Government, the Foreign Office reiterated that it did not recognize President Nicolas Maduro, and the reserves remain unaccessible for Venezuela.
However, recognition was ambiguous from the start. Unlike the U.S., the U.K. never expelled the ambassador representing the government of Maduro, Rocio Maneiro. She remained in charge of the embassy and consulate in London, as she was still recognized by the head of state—the monarch. The U.K. also maintained its embassy in Caracas, again contrasting with the U.S.
Meanwhile, Downing Street said it recognized Guaido from February 2019, whose self-appointed ambassador was Vanessa Neumann. However, the U.K. government at the time never accepted credentials from any Interim Government diplomats. Neumann said that she resigned in late 2020.
On Saturday, The Times said that former Prime Minister Boris Johnson visited President Maduro secretly in February. He also spoke to the British chargé d’affaires, Collin Dick. Johnson and Maduro spoke about the war in Ukraine, the territorial dispute over the Essequibo, and elections this year.
