Trinidad and Tobago is optimistic about new exploration efforts that could unlock nearly 60 trillion cubic feet (tcf) of natural gas.
“Exploration resources stand at 58.84 tcf and offer much promise for the exploration to be undertaken by successful companies in the recent bid-rounds,” Trinidad’s Minister of Energy and Energy Ministries Stuart Young said at the recent opening of its flagship Energy Conference.
Young had said that TT has about 10 years of gas production left based on less than 12 trillion cubic feet (tcf) of natural gas reserves. An audit by DeGolyer and MacNaughton found that TT’s unrisked technically recoverable quantities of proven (P1) and contingent (C1) gas are estimated at 11.498 tcf.
TT has in recent years launched bid rounds to tap the potential of oil blocks in the deep-water, onshore and offshore areas.
According to Young, “…all of our recent bid rounds have resulted in the grant of production sharing contracts or exploration and production licenses to the successful bidders. The outcome of the grants and licenses will result in an upsurge in the level of domestic upstream activity over the next five years.”
TT signed production sharing contracts with a BP Exploration Operating Company Limited and BG International Limited (Shell) consortium for Blocks 25(a), 25(b) and 27.
Young said the first phase of exploration, ending in 2025, will involve conducting 1,990 square kilometers of 3D seismic surveys across three deep-water blocks. If successful, the second phase will include a well program with a US$128.37 million investment over three years. Preliminary estimates suggest the blocks contain 2.04 tcf of natural gas and over 400 million barrels of liquid hydrocarbons.
In 2024, seismic surveys were completed on the three deep-water blocks, followed by immediate surveying of the Manakin-Cocuina field after securing the license from Venezuela. This was followed by surveying a shallow-water block after finalizing a PSC with Shell, which Yound said showcases the “unprecedented confidence and competence” of TT’s current energy sector.
For onshore, Young said in June 2024, licenses were issued to successful bidders for five blocks following the Onshore Bid Round. The six-year licenses require geological studies, seismic data acquisition and reprocessing, and drilling of at least 25 exploration wells. In the first two years, licensees will reprocess 1826.22 line-km of 2D and 152 square km of 3D seismic data, with drilling beginning with two wells and intensifying to 23 in the remaining years. The total investment in the onshore exploration and production program is estimated at US$84.27 million.
Young reported too that in 2023, bids were invited for 13 shallow water blocks, with three bidders—EOG Resources, BP Exploration, and BG International (Shell)—submitting six proposals for four blocks. Following evaluation, Production Sharing Contracts were awarded to EOG Resources for Blocks NCMA 4(a) and Lower Reverse L, BP Exploration for Block NCMA2, and BG International for Block U(c). Notably, Shell immediately contracted a seismic vessel to survey Block U(c), and EOG’s two PSCs were the company’s first new agreements in Trinidad and Tobago in 20 years.
The Energy Minister explained that the companies have committed to geological studies, seismic data acquisition and reprocessing, and well drilling as part of their work programs. In the first phase (3 years), they will reprocess 506 square km of 3D seismic data and acquire 700 square km of new 3D seismic data, aiming to develop a portfolio leading to exploration well drilling. One exploration well will be drilled in Block 4(a), with potential wells in other blocks in the second phase. The estimated capital expenditure for the shallow water exploration and development program exceeds US$1 billion, with first gas expected between 2029 and 2036.
More recently, TT launched a 2025 deep water bid round with 26 blocks up for grabs. Successful bids will be announced three months following the close of bidding.
According to the Energy Minister, “We believe that the global outlook on fossil fuels, especially concerning oil and gas, has shifted, as leading energy firms have reduced their investments in renewables to concentrate on the more profitable, and needed, oil and gas sectors. It is essential for us to capitalize on this opportunity and continue our efforts to aggressively attract upstream investment.”
Trinidad’s annual gas output has dropped from 1.479 tcf in 2012, to 0.988 tcf in 2022. The government has been working to promote partnerships with Venezuela for joint gas development, in hopes that this will partially reverse the gradual decline in Trinidad’s output.
