PORT OF SPAIN, Trinidad, CMC – The Trinidad and Tobago NGL (TTNGL) says the choice by the US authorities to revoke the licences relating to the exploration of gasoline fields in Venezuela has resulted in an after-tax lack of $35.8 million (One TT greenback=US$0.16 cents).
“Following the announcement of the revocation of licences issued by the Workplace of International Belongings Management (OFAC) of the US Division of the Treasury, relating to the exploration of gasoline fields in Venezuela, administration has re-examined its impairment evaluation of the corporate’s shareholding funding within the Phoenix Park Gasoline Processors Ltd (PPGPL) group.
“This evaluate was performed primarily based on the assessed most definitely outcomes and dangers related to up to date inputs and money flows offered by PPGPL and the Nationwide Gasoline Firm of Trinidad and Tobago,” the corporate mentioned in its condensed interim monetary statements for the six months ended June 30, 2025.
“This evaluation resulted within the recognition of an impairment lack of TT$85.2 million and consequently a loss after tax of TT$35.8 million (2024: revenue after tax of $46.7 million),” it added.
In April, the US revoked the OFAC licences that allowed Trinidad and Tobago to pursue pure gasoline tasks with Venezuela, particularly the Dragon subject and the Cocuina-Manakin subject.
The licences had allowed multinational vitality giants Shell and BP, together with Trinidad’s state-owned Nationwide Gasoline Firm (NCG), to develop offshore gasoline fields close to the Venezuelan maritime border. The Dragon subject alone holds an estimated 4 trillion cubic toes of gasoline, with first exports initially slated for 2026.
Trinidad had already begun paying over a million US {dollars} yearly in taxes to Venezuela for the anticipated 20-year Dragon mission. However the transfer by Washington, citing considerations over Venezuela’s failure to revive democratic norms and handle unlawful migration, has successfully frozen the deal.
The Vitality Chamber of Trinidad and Tobago, in an announcement following the revocation of the licences, mentioned the importation of pipeline gasoline from Venezuela for processing and onward gross sales to worldwide markets as both LNG or petrochemicals stays a major financial alternative for Trinidad and Tobago.
“ It’s important that the federal government of Trinidad and Tobago continues to interact actively with each the federal government of the US and Venezuela to discover a mechanism to pursue this chance,” the Vitality Chamber mentioned then.
After she was sworn into workplace because the nation’s new head of Authorities, Prime Minister Persad Bissessar gave the most important trace that her administration, not like the earlier Individuals’s Nationwide Motion (PNM) governments, wouldn’t be placing lots of emphasis on the Dragon Area mission with Venezuela.
She advised reporters, “We will likely be silly to not look elsewhere, and we should always have began that search way back; we should always not have put every thing into the Dragon gasoline.
“That’s useless. The(PNM) stored it alive for 10 years, and for those who couldn’t try this in 10 years, you can not do it now,” she mentioned, including that there may additionally presumably be oil and gasoline in Tobago’s territorial waters.
She talked about in her discussions with the US Secretary of State, Marco Rubio, shortly after taking workplace, that they didn’t focus on the Dragon gasoline mission throughout their dialog in regards to the vitality sector.
In its monetary assertion, TTNGL, which was included in 2013 by the NGS, permits the general public to take part in an Preliminary Public Providing (IPO) to personal an fairness curiosity in PPGPL. It benefited from its funding in PPGPL, which recorded an after-tax revenue of US$19.3 million within the six months. TTNGL’s share of the PPGPL revenue was TT$50.8 million.
In its assertion, TTNGL mentioned it has not been in a position to declare and pay dividends to its shareholders due to the problems regarding its impairment losses.
“TTNGL continues to discover the choices obtainable to treatment this, topic to requisite stakeholder and statutory approval.
The success of the Authorities’s continued commitments to additional exploration and continued efforts to safe a brand new OFAC license has a direct affect on the prospects for extra gasoline volumes to PPGPL. Ought to these materialise, they can lead to enhancements within the monetary efficiency of PPGPL and, consequently, TTNGL. We stay dedicated to updating shareholders on these issues,” it added.
