US Secretary of State Marco Rubio has revealed a new directive that eliminates oil and gas licences for foreign companies in Venezuela.
In a message on X, Rubio explained: “I am providing guidance to end State Department support for licences approved under Biden.”
The Trinidad and Tobago Government has been planning to request an extension from the US Government for a licence granted to Shell and the National Gas Company (NGC) to develop the Dragon gas project in Venezuela.
The licence, initially issued in early 2023, allows the companies to proceed with planning the project, which aims to supply gas to Trinidad by 2027.
The Dragon field is located in Venezuelan waters near the maritime border with Trinidad.
In 2023, the US amended the licence to permit payments to Venezuela and its state company PDVSA in hard currency or in kind, extending its expiration to October 2025.
Shell and NGC require an extension to begin production following their final investment decision (FID) expected this year.
Rubio's post said; "Today, pursuant to @POTUS directive, I am providing foreign policy guidance to terminate all Biden-era oil and gas licenses that have shamefully bankrolled the illegitimate Maduro regime."
According to Rubio, these authorizations improperly financed the government of Nicolás Maduro. The measure seeks to cut off resources that, in his opinion, sustain an illegitimate government and reinforces the hardline stance of the Trump administration.
The decision follows Donald Trump’s announcement on Wednesday, when he ordered the reversal of oil concessions granted by Joe Biden on November 26, 2022. Trump, from Truth Social, stated: “We reversed the concessions that Biden gave to Maduro, including those on oil transactions.”
He criticized the regime for not fulfilling electoral agreements or deporting “violent criminals” at the agreed speed, ordering the cancellation of the agreement as of March 1.
He also noted that the Maduro government's slow pace of deportations also played a role in this decision.
"They have not been transporting the violent criminals they sent to our country back to Venezuela at the rapid pace they had agreed to."
Trump and Rubio agree that the oil licenses have weakened U.S. security by benefiting Caracas.
The cancellation, effective in March, is intended to force changes in Venezuela by cutting off funds that both say Maduro uses to stay in power.
The move promises to disrupt the operations of foreign companies and reshape the regional energy landscape.
