Trinidad and Tobago’s Ministry of Energy and Energy Industries (MEEI) will be launching a shallow water bid round, targeting over 23 blocks in its offshore acreage.
MEEI featured a booth at Guyana’s International Energy Conference and Expo 2023 in Georgetown.
The country is attempting to revive its upstream petroleum sector and gas production levels.
But with mixed results from previous bid rounds, T&T’s Prime Minister, Keith Rowley said the country may move to a direct proposal arrangement for the issuance of oil and gas concessions.
“The competitive bid round process has been successful and has ensured that Trinidad realizes the optimum value from the exploitation of its remaining hydrocarbon resources,” Dr. Rowley said. “However, a number of countries, such as Indonesia, in order to maximise the exploration and development of their hydrocarbon resources, have included a direct proposal arrangement.”
This method is what Guyana is moving away from. Guyana has its first offshore auction in progress with 14 blocks up for grabs.
To incentivise investors, TT will be overhauling its oil and gas taxation regime in order to ensure it remains an internationally competitive hydrocarbon province.
The country will also be reviewing the necessity of its three main petroleum taxes – Petroleum Profits Tax (Corporation Tax), Supplemental Petroleum Tax and Royalty – both onshore and offshore, in the deep water and shallow water, and for large and small producers.
And the government will be examining the relevance of T&T’s existing suite of fiscal incentives, licensing regimes and production-sharing contracts to give investors “motivation” to bid for blocks and explore and produce oil and gas, all while ensuring T&T citizens get their fair share of revenues from the natural resources.