TRINIDAD AND TOBAGO is in advanced negotiations to acquire the gas-rich Loran field from Venezuela, Energy Minister Stuart Young has revealed.
Young made the announcement during the recently concluded budget debate which took place in the House of Representatives.
The Loran-Manatee cross-border reservoir was discovered in 1983 and is estimated to contain ten trillion cubic feet (tcf) of natural gas.
Loran, located on Venezuela’s side of the border, is said to comprise 7.3 tcf of gas, while Manatee, situated on T&T’s side, is estimated to hold 2.7 tcf.
On August 16, 2010, the governments of Trinidad and Tobago and Venezuela executed a unitisation agreement for the exploitation and development of the Loran-Manatee field.
However, by government-to-government agreement dated October 15, 2019, the Loran-Manatee Unitisation Agreement was terminated, separating the development of the Manatee field from the Loran field.
In July, Shell Trinidad and Tobago Ltd (Shell), a subsidiary of Shell plc, announced that it had taken final investment decision (FID) on the Manatee project.
“Manatee has taken FID, final investment decision, by Shell in July of this year; that is the single largest hydrocarbon project in decades, and Manatee was complicated because we have to deunitise it from Loran in Venezuela,” Young said in the House of Representatives on October 4.
“And as the Prime Minister hinted to the population on Friday last week, we are deep in conversations and negotiations to get the Loran field from Venezuela as well, which is over 7 tcf of gas,” he said.
During the 25th anniversary and restructuring event of Atlantic LNG on September 27, Prime Minister Dr Keith Rowley mentioned ongoing negotiations with Venezuela regarding the Loran gas field.
“And, of course, Minister Young will tell you quietly if you talk to him that the conversations about Loran, which is 73% on that very same field, to use the same infrastructure that brings forward the Manatee portion, that discussion is well advanced,” Rowley said.
Rowley lauded the work on Manatee so far.
“For 17 years, we made no progress in bringing Manatee gas to Trinidad. Fortunately, we eventually got Venezuelan agreement to have an operator extract Trinidad and Tobago’s 27% in Manatee in the Loran-Manatee field.
“That work is far advanced now, and it holds out for us the prospect of bringing gas here to at least maintain the levels which we are now, because if we don’t add new gas to the mix coming in, we are not only talking about decline, but even holding our production where we are now—we need a strong stream of gas coming in to maintain the levels at which we are now. Manatee does that for us,” Rowley said.
In announcing the FID, Shell said that Manatee will allow it to competitively grow its Integrated Gas business by building on development efforts in the East Coast Marine Area (ECMA) in Trinidad and Tobago.
The ECMA is currently home to Shell’s largest gas-producing fields in the country, including Dolphin, Starfish, Bounty and Endeavour.
“This project will help meet the increasing demand for natural gas globally while also addressing the energy needs of our customers domestically in Trinidad and Tobago,” said Zoë Yujnovich, Shell’s Integrated Gas and Upstream director.
“The investment bolsters our world-leading LNG portfolio, in line with our commitment to invest in competitive projects that deliver more value with less emissions,” Yujnovich said.
‘Forget geopolitical
distractions’
Rowley also cautioned against distractions from geopolitical situations that could impact this project and others involving Venezuela.
“Let us not be distracted too much by the geopolitical; both Trinidad and Tobago and Venezuela, and the United States—we all have an interest in success, in peace and security, and good commercial arrangements between the neighbouring countries of Venezuela and Trinidad and Tobago,” Rowley said.
Young said that due to the ongoing work, he is confident that production in the country will improve significantly starting in 2027.
According to Shell, Manatee will start production in 2027.
“Once online, Manatee is expected to reach peak production of approximately 104,000 barrels of oil equivalent per day (boe/d) (604 MMscf/d),” Shell said.
Dragon survey ship
Another significant development involving Venezuela and Trinidad and Tobago is the progress on the Dragon gas field, Young said.
Young yesterday announced on his X page that survey work for the Dragon gas field has officially begun.
“The 30-year licence for the exploration, production and export of natural gas from Venezuela to TT was executed on Dec 21, 2023. Work has been progressing apace on this project,” he said.
The survey ship Dona Jose II is scheduled to be launched from T&T waters to survey the Dragon gas field located in Venezuela.
“Shell Trinidad and Tobago Ltd advises that on or about October 13, 2024 the Dona Jose II vessel (IMO#9309306) will mobilisie from Chaguaramas to conduct its geophysical and geotechnical site surveys for the cross-boundary Dragon Development Project,” an advisory notice from Shell said.
“The company plans to commence its data acquisition which is expected to be a duration of approximately 90 days of cross-boundary survey work. Upon completion of the scope, the vessel will return to Chaguaramas for demobilisation,” it said.
The survey should help determine the design and route of the pipeline to bring gas to Shell’s platform.
On Friday, Rowley and Young toured the vessel and were given a status update on the project from Adam Lowmass, senior vice-president and country chair for Shell Trinidad and Tobago.
On October 17, 2023, Trinidad and Tobago was granted a licence by the Office of Foreign Assets Control (OFAC), Department of Treasury of the United States government.
This licence authorises the Government of Trinidad and Tobago, the National Gas Company of Trinidad and Tobago Ltd (NGC), Shell PLC and their affiliates to conduct business with the government of Venezuela and Petroleos de Venezuela (PDVSA), with respect to the Dragon gas field in Venezuela.
The specific amended OFAC licence issued to Trinidad and Tobago on October 17, 2023, is valid until October 31, 2025.
Additionally, on December 21, 2023, Trinidad and Tobago secured a 30-year exploration and production licence from the government of Venezuela for the Dragon gas field.