A consortium comprising BP and Shell has inked an agreement with Trinidad and Tobago, greenlighting the exploration of three deepwater blocks—25a, 25b, and 27—for hydrocarbon production.
Trinidad and Tobago’s Minister of Energy, Stuart Young, confirmed that the cabinet has approved the award of these three deepwater blocks. The parties are slated to formalise the production sharing contracts (PSCs) on September 26, 2023.
This development comes nearly nine months after the consortium’s initial bids were rejected by the Trinidad government due to failure to meet specified standards, as reported by Reuters. Subsequently, the consortium revamped its proposals, now committing to drilling at least three deepwater wells as part of a minimum work program. This program also includes acquiring 3D seismic imaging of the unexplored acreage.
According to a statement from the Trinidad and Tobago Ministry of Energy and Energy Industries, negotiations between the ministry and the consortium have been intricate, considering the deepwater location of the blocks, which necessitated innovative considerations due to the expected exploration and potential future production.
Before licenses are granted, the agreement awaits approval from the attorney general’s office, Reuters noted, citing sources familiar with the matter.
Both BP and Shell, as cited by the news agency, expressed their proximity to finalising negotiations with the government of Trinidad and Tobago concerning the deepwater blocks offshore the country.
This agreement is expected to accelerate offshore exploration and production in Trinidad and Tobago, a crucial step as the nation seeks to secure more natural gas supply to support its liquefied natural gas and petrochemical industries.