Shell and bp Seek U.S. Approval for Cross-Border Gas Development

Shell and bp are seeking licenses from the U.S. Treasury’s Office of Foreign Assets Control (OFAC) to advance development of natural gas fields that straddle the maritime boundary between Trinidad and Tobago and Venezuela. The projects include the Loran-Manatee and Cocuina-Manakin fields, long viewed as strategically important for boosting gas supply to Trinidad’s LNG and petrochemical facilities.

Because the fields extend into Venezuelan waters, U.S. sanctions currently prevent American and Western companies from progressing without specific authorization. The license applications signal renewed confidence that regulatory pathways may be opening, and reflect the continued interest of international energy majors in Caribbean gas as global LNG demand remains strong.

Venezuela Moves to Open Oil Sector to Foreign Investment

In a parallel development, Venezuela’s National Assembly has approved an extensive reform bill aimed at opening the country’s oil sector to greater foreign and private participation, following sustained pressure from the U.S. The legislation dismantles key elements of state control, allowing private operators increased autonomy, more flexible fiscal terms and access to international arbitration mechanisms.

While questions remain over implementation, governance and legal stability, the move represents the most significant policy shift in Venezuela’s hydrocarbons sector in decades. For international investors, it signals at least a tentative willingness by Caracas to re-engage with global capital markets and restore production capacity after years of decline. The reforms also strengthen the link between domestic policy changes and potential sanctions relief, reinforcing the role of U.S. regulatory decisions in shaping the pace and scale of re-entry by international energy companies.

These developments point to a broader re-alignment in U.S. energy policy toward the Caribbean and northern South America, with sanctions and licensing increasingly used as tools to shape investment outcomes rather than restrict them. The willingness of bp and Shell to pursue OFAC approval suggests confidence that Washington may support cross-border projects that strengthen regional energy security while maintaining leverage over Caracas.

For Trinidad and Tobago, access to offshore Venezuelan gas represents a critical opportunity to sustain LNG output and reinforce its position as the Caribbean’s leading gas hub. At the same time, Venezuela’s legislative reforms – if followed by implementation – could begin to unlock its vast oil and gas reserves, creating new opportunities for U.S. firms and regional partners alike.

These shifts come at a pivotal moment ahead of CEW 2026, where policymakers, investors and industry leaders will convene to examine pathways for mobilizing U.S. capital into the Western Hemisphere oil and gas market. Against a backdrop of evolving sanctions policy, cross-border resource development and regulatory reform, the conference is set to serve as a timely forum for shaping the next phase of U.S. energy engagement in the Caribbean.