BP, PDVSA Rush to Complete Gas Deal Before Venezuela Election.

British oil and gas producer BP, Venezuela’s state oil company PDVSA, and Trinidad and Tobago’s National Gas Company (NGC) are hastening negotiations to secure a Venezuelan license to develop natural gas deposits in the Caribbean Sea, according to four sources familiar with the matter.

Last year, the companies resumed discussions about developing the Cocuina-Manakin gas field, located on the maritime border between Trinidad and Venezuela, which holds approximately 1 trillion cubic feet of natural gas. The U.S. granted authorization for the project in May, providing an exemption to energy sanctions on Venezuela. The parties aim to sign the Venezuelan license needed to develop the field before Venezuela’s presidential election on July 28, the sources said.

A planned license signing ceremony was postponed due to outstanding agreements. Trinidad’s energy minister, Stuart Young, recently traveled to Caracas for meetings related to the deal.

BP has previously stated its interest in developing the field, primarily to supply Trinidad’s flagship Atlantic LNG project. A smaller portion of the gas output would be allocated to NGC for Trinidad’s petrochemical sector.

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Trinidad, the largest LNG producer in Latin America and the second-largest exporter of methanol and ammonia globally, has faced a natural gas shortage in the past five years, affecting its industries. Atlantic LNG has the capacity to produce approximately 15 million metric tons of LNG per year.

The U.S. authorization for the Cocuina-Manakin project is the second such license granted by Washington for energy projects between Trinidad and Venezuela. The first was granted to Shell for developing Venezuela’s Dragon gas field. The Dragon project, partially built by Venezuela but currently idle, could begin gas output late next year.

Gas from both projects is expected to be converted into LNG in Trinidad for export to neighboring Caribbean nations, according to Venezuelan and Trinidadian officials.