Reports surfaced last week that US energy company, Chevron was winding down its operations in Trinidad and Tobago. The company has entered an agreement to sell all its shares in Chevron Trinidad and Tobago Resources (CTTR) to Shell’s BG International Limited, and all its interest in Trinling, an LNG marketing and transportation company, to Shell’s BG Gas International Holdings, B.V.
The transaction includes CTTR’s interest in Block E, Block 5(a) and Block 6, located in the East Coast Marine Area (ECMA) offshore Trinidad.
Trinidad and Tobago’s former energy minister, Kevin Ramnarine, told OilNOW via email on Saturday “the acquisition of Chevron’s assets in Trinidad and Tobago by Shell has pros and cons for Trinidad and Tobago.”
He said Chevron has been operating in Trinidad and Tobago for many years and has played a big role in developing the ECMA.
The ECMA is an important gas producer in Trinidad, supplying gas to both the domestic and LNG markets.
Mr. Ramnarine said Chevron was also playing a role in the commercialization of the cross-border field Loran-Manatee. “It seems that Loran-Manatee is no longer a front burner issue for the Government of Trinidad and Tobago and the focus is now on getting gas from the Dragon field into Trinidad.”
The former energy minister said what should be of concern is the value Trinidad and Tobago gets from Shell’s marketing of its LNG. “This is a very serious question and I don’t know that the current Government is doing enough in this area,” he pointed out.
“It’s clear that Shell sees Trinidad and Tobago as important to its LNG strategy. That might be good for Shell but we in Trinidad and Tobago need to keep an eye on what value we get from the sale of LNG,” Mr. Ramnarine stated.
Shell has been in Trinidad & Tobago for more than 100 years and owns an interest in the Trinidad-based company Atlantic LNG.