The Ministry of Energy and Energy Industries (MEEI) has awarded Production Sharing Contracts (PSCs) for Blocks NCMA 4(a) and Lower Reverse L to EOG Resources Limited. The contracts were signed on January 29, by Stuart Young, the Minister responsible.
The awards stem from the Shallow Water Competitive Bid Round 2023/2024, which opened on October 2, 2023, and closed on May 27, 2024. The round invited bids for shallow water blocks off the North, East, and West coasts of Trinidad and the West coast of Tobago.
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“EOG continues to be very important to the fabric of the energy sector here in Trinidad and Tobago. We saw through the results of the Shallow Water Bid Round and the operators are invested in Trinidad and Tobago,” Young said at the signing ceremony.
“We at the Ministry of Energy and Energy Industries have to continue to ensure the relationship is as we have built it to be, with open communication and then we proceed to get more done,” he added.
According to George Viera, Managing Director of EOG Resources Lt., “The last time we signed a PSC was in 2005 so it has been a while, approximately 20 years ago and we are excited to get this going.”
EOG initially submitted bids for three blocks: NCMA 4(a), Modified U(c), and Lower Reverse L. Trinidad’s Cabinet selected EOG as the preferred bidder and negotiations began on September 11, 2024, following EOG’s acceptance of the ministry’s offer on August 27, 2024. Cabinet approved the final PSCs on December 18, 2024.
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Block NCMA 4(a), located in the North Coast Marine Area, lies in water depths of approximately 100-200 meters. This award marks EOG’s entry into an area primarily operated by other companies. Block Lower Reverse L, located off the South East Coast of Trinidad in water depths of 80-200 meters, is near existing EOG infrastructure and producing assets.
According to the MEEI, the execution of the PSCs is expected to enhance Trinidad and Tobago’s hydrocarbon reserves while contributing to economic growth through EOG’s financial obligations for research, development, training of nationals, and scholarships.
