Britain's Shell and Trinidad's National Gas Company (NGC) will pay Venezuela no less than 45% of gross revenues from the Dragon gas production project off Venezuela's coast, according to license terms published on Saturday.
In December, Venezuela and Trinidad and Tobago signed a 30-year license granting Shell and state-owned NGC rights to produce natural gas at the Dragon field and export it. According to Trinidadian authorities, the project could reach its first production in the next two years.
The agreement came after the U.S. granted an authorization for the project in January last year, following years of attempts to reach an exploitation agreement.
"In no case may the Venezuelan State's income from the project be less than 45% of the gross income of the licensees," according to Venezuela's official gazette published on Saturday.
Some 70% of the gas produced will be exported to Trinidad and Tobago for liquefaction at the Atlantic Plant and the remaining 30% will be destined to the petrochemical sector, according to the terms of the license.
Dragon and a nearby gas project called Manatee, located in Trinidadian waters, are expected to contribute up to 1 trillion cubic feet of gas in its first phase.
Trinidad and Tobago has been trying to gain access to its neighbor's vast gas reserves as its own production declines. For its part, Venezuela is seeking a new source of revenue through gas exports.
(Reuters - Reporting by Deisy BuitragoWriting by Mayela ArmasEditing by Drazen Jorgic and David Gregorio)