Trilateral Commission for Offshore Hydrocarbon Development

Grenada Seeks Regional Cooperation for Offshore Energy

The Government of Grenada has formally proposed the establishment of a trilateral oil and gas coordination commission involving Venezuela and Saint Vincent and the Grenadines. This strategic move is aimed at defining clear maritime boundaries and providing legal certainty for potential investors in Grenada's emerging offshore hydrocarbon industry. The proposal was announced by Nazim Burke, Chairman of Grenada's Oil and Gas Technical Working Group, during a town hall meeting on October 9, 2025.

Prime Minister Dickon Mitchell has already submitted the trilateral proposal to President Nicolás Maduro of Venezuela and Prime Minister Dr. Ralph Gonsalves of Saint Vincent and the Grenadines. The initiative underscores Grenada's commitment to developing its offshore resources while addressing critical governance and boundary issues upfront.

Addressing Maritime Delimitation and Investment Certainty

The core mandate of the proposed commission is to delimit shared maritime boundaries, which are currently undefined between the three nations. Burke emphasized the importance of this step, stating, 'You cannot go about leasing out maritime space to people without knowing where your boundaries are.' Unresolved maritime delimitations can deter investment, heighten risk, and complicate environmental and regulatory oversight. By establishing clear maritime zones, Grenada aims to create an investment-ready hydrocarbon frontier.

The commission is envisioned as a ten-member body, comprising three representatives from each country and an independent chairman from a neutral state. This structure is designed to facilitate structured, high-level negotiations, guided by shared technical data and neutral mediation, ensuring transparency and regional unity. Grenada has prior experience in such negotiations, having successfully delimited its maritime boundaries with Trinidad and Tobago in 2012.

Grenada's Hydrocarbon Potential and Recent Developments

While Grenada currently has no proven oil production, the island nation has seen significant exploration activity. Key developments include:

• In 2017, the Nutmeg-2 well was logged by Global Petroleum Group (GPG) offshore Grenada, indicating potential gas discoveries.
• In 2024, a 38-year production sharing agreement covering approximately 7,500 km² of offshore blocks was announced between GPG and Nigeria's Oceangate Oil and Gas Engineering. This partnership is valued at up to $8 billion, depending on exploration results and production capacity.

The pursuit of hydrocarbon development aligns with a broader regional trend where Caribbean nations increasingly view energy resource development as a driver for economic growth. Despite a simultaneous focus on renewable energy, Grenada's government recognizes the need for robust institutional frameworks and regional cooperation to manage its energy resources effectively.

Regional Implications and Future Outlook

The trilateral commission proposal reflects a strategic approach to energy governance in the Caribbean. It offers advantages such as efficiency, by addressing multiple boundaries holistically, and enhanced credibility through a neutral chair. This initiative could serve as a model for cross-regional energy integration, demonstrating how emerging producers can navigate complex energy landscapes to attract sustainable investment and foster long-term growth. The success of the commission will depend on gaining political backing from all three countries and establishing a clear roadmap for boundary demarcation and investment readiness.