The U.S. Treasury Department has granted a license to Trinidad and Tobago to develop a major gas field located in Venezuelan territorial waters, a senior Biden administration official said on Tuesday, marking a further easing of some sanctions on Venezuela.

The U.S. license, issued at the Trinidad government’s request, means the Caribbean island nation will be allowed to resume doing business with Venezuelan heavily sanctioned state-run oil company PDVSA related to the Dragon gas field.

Speaking to Reuters on condition of anonymity, the senior official said that “the Maduro regime will not be permitted to receive any cash payments from this project” and that all remaining U.S. sanctions would remain unchanged and still be enforced.

“This decision is the result of extensive diplomacy between Vice President Kamala Harris and Caribbean leaders, who have made it clear that granting this specific license would help ensure their energy security and decrease the region’s reliance on energy resources from other countries, including Russia,” the official said.

PDVSA has found reserves of 4.2 trillion cubic feet (TCF) in Venezuela’s Dragon field, off the country’s eastern coast. The project was headed for production almost a decade ago, but stalled over lack of capital and partners, and sanctions.
Source: Reuters (Reporting By Matt Spetalnick, Editing by Rosalba O’Brien)