Energy law consultant Hugh Howard says there must be clear rules of engagement for the US$50 million revolving fund between T&T and Venezuela to ensure T&T suppliers are paid.
"I think it is a good idea. T&T manufacturers would welcome any additional markets to sell their goods, so if Venezuela is an accessible market that would help," he told the T&t Guardian.
"However, Venezuela seems strapped for cash as they owe many countries. Venezuela owes CAL millions of US dollars. If goods are taken from T&T there must be no impediment from the Venezuelan side for payments."
The fund, agreed to on Monday during an official visit to this country Venezuelan President Nicolas Maduro, will be used by Venezuela to purchase manufactured goods. Agreements were also signed for the monetisation of cross border gas and other areas of co-operation in energy, however Howard said two countries have spoken about this for years but Venezuela had never moved with the urgency required.
"Loran Manatee field is something that governments have been talking about. It started out during the Manning regime and everyone was hoping it would have come to conclusion some years ago. It did not. People in the industry said that it would be important to T&T because of the volume but in terms of gas reserves in Venezuela that is a drop in the ocean. Venezuela did not see any type of urgency in developing that field," he said.
Howard said with Venezuela now in deep recession the Loran Manatee field could become important and they would want to monetize it. He said T&T would also stand to benefit if this happens.
"If Loran Manatee comes on stream and that gas is channeled to Atlantic, gas going from NGC to Atlantic can be re-directed to some of the companies that need gas on the Point Lisas Industrial Estate," he said.