In a significant setback for Trinidad and Tobago's energy ambitions, Prime Minister Stuart Young announced that the United States had revoked crucial OFAC licences that enabled major cross-border natural gas developments with Venezuela.

According to Reuters, the revocations affect two key projects: the Shell-operated Dragon gas field, which holds approximately 4 trillion cubic feet of reserves and whose revised license was granted in October 2023 and set to expire in October 2025, and the Cocuina-Manakin gas field, operated by BP with a license issued in May 2024 and valid until May 2026.

Both energy majors require US authorisation to negotiate, plan and develop these projects due to Washington's sweeping sanctions on Venezuela's energy industry and state-owned Petróleos de Venezuela, S.A. (PDVSA).

This development aligns with broader shifts in US policy towards Venezuela since President Trump returned to office in January 2025. The administration has adopted a tough line against the regime of President Nicolas Maduro, systematically tightening restrictions on Caracas' vital oil industry, including revoking Chevron's licence and permissions for European firms to export Venezuelan crude.

Young characterised the decision as “unsurprising” given Trump's March 24 Presidential Order imposing tariffs on oil-based products from Venezuela. Nevertheless, he expressed determination to engage with US officials, particularly Secretary of State Marco Rubio, who now leads Washington's foreign policy on Venezuela.

“I expect that we will be given an audience. I expect that we will be given the opportunity to continue to make our case,” Young stated as per the Trinidad & Tobago Guardian, noting that he had previously received assurances from Rubio during a March meeting in Jamaica that the US would “not seek to harm Trinidad and Tobago.”

Young revealed that his government is working with attorneys in Washington to apply for amendments before the May 27 wind-down deadline. He has also reportedly reached out to US Special Envoy for Latin America Mauricio Claver-Carone to request a conversation with Rubio.

This diplomatic challenge highlights the vulnerability of Caribbean nations caught in a geopolitical crossfire between major powers. For Trinidad and Tobago, whose economic prospects increasingly depend on securing new gas supplies to offset declining domestic production, the revocation represents a significant obstacle to its energy security strategy and its economic prospects.