Trinidad energy minister: Chàvez victory to speed Venezuela unitization accord

The recall referendum election survival of Venezuela's President Hugo Chàvez will help speed negotiations for a cross-border hydrocarbons unitization agreement between Trinidad and Tobago and its South American neighbor, claims Trinidad and Tobago Energy Minister Eric Williams.

Aug. 17, 2004

2 min read

Curtis Williams
OGJ correspondent

PORT OF SPAIN, Aug 17 -- The recall referendum election survival of Venezuela's President Hugo Chàvez will help speed negotiations for a cross-border hydrocarbons unitization agreement between Trinidad and Tobago and its South American neighbor, claims Trinidad and Tobago Energy Minister Eric Williams.

Williams said Chàvez victory "will bring a level of stability to the process and point a way forward."

Chàvez on Sunday survived an attempt to have him recalled by gaining a majority of the votes in a referendum (OGJ Online, Aug. 16, 2004).

The results of the referendum have been certified by former US President Jimmy Carter and other international observers.

Unitization attempts
Trinidad and Tobago and Venezuela have been attempting to unitize and jointly produce hydrocarbons from fields that straddle both countries' borders.There are at least three fields on the Trinidad side of the border that it is believed share the same reservoir with fields in Venezuela's Plataforma Deltana area.

During a visit to Trinidad and Tobago last year, Chàvez gave a commitment to have Venezuela's gas processed in Trinidad (OGJ, Sept. 8, 2003, p. 34). It is believed that the Atlantic LNG export complex will process the Venezuelan gas in a fifth train for a 15-year period.

Trinidad and Tobago is the largest exporter of LNG to the US and last year was responsible for over 75% of the total imports of LNG into the US.

Greater stability cited
Williams said, "There is no doubt that the failure to have President Chàvez removed from office will result in greater stability and point a way forward as we attempt to negotiate the cross-border agreements, and we hope it could be completed by the end of this year."

Trinidad's Energy Minister told OGJ, "The survival of President Chàvez has already had the effect of calming the oil market, and you can see that with the cooling of record high oil prices."

He added that the Chàvez victory would allow the continuance of several initiatives such as the PetroCaribe and the PetroAmerica proposals. Williams admitted that there are major issues involving Venezuela's proposal to have Caribbean countries access petroleum products at concessionary prices and said next week's meeting of regional energy ministers in Jamaica is designed to address the proposals' legal, commercial, and other ramifications.

The Trinidad and Tobago government has been supportive of the Chàvez administration and helped him during last year's national strike in Venezuela by providing refined products to the South American neighbor.