Government says this country stands to benefit from an enhanced revenue package for the sale of LNG following the signing of a new energy agreement between T&T and Shell at the energy company’s headquarters in The Hague, Netherlands on Wednesday.
Guardian Media has been reporting exclusively that this deal involved the extension of the production sharing contract for blocks 6d and 6e and involves a marketing and development plan for blocks 5c and 5d, the two blocks Shell is expected to develop to meet some of the shortfall from BPTT’s infill drilling programme. This will add another 300mmscf-d of gas per day into the system.
Shell is the single largest shareholder in Atlantic with a 51 per cent shareholding.
The agreement comes after Government complained bitterly about the country not getting its fair share of revenue, due to transfer pricing, in which one entity sells LNG to another entity and where the profits are made by another part of the same group, but which does not reflect in taxes in T&T.
The signing of the agreement on Wednesday was witnessed by Prime Minister Dr Keith Rowley and Ben van Beurden, Chief Executive Officer of Royal Dutch Shell. The agreement has been described as a significant milestone for the people of T&T.
A press release from the Office of the Prime Minister said the energy deal was the result of months of positive and relationship-building discussions between Shell and Government. The agreement reflects the “mutual importance of the relationship and the value Shell has placed on Trinidad and Tobago as a province.”
The parties have also committed to continuing their discussions on the development of the energy sector in T&T.
The agreement was signed by Energy Minister Franklin Khan on behalf of the government, while Derek Hudson, Vice President and Country Chairman of Shell T&T, signed on behalf of Shell.
Minister in the Office of the Prime minister, Communications and National Security Minister Stuart Young, who is also in the Netherlands as part of the T&T delegation, and De La Rey Venter, Executive Vice President of Shell’s Integrated Gas Venture Business, signed as witnesses.
Prior to the signing ceremony, PM Rowley met with Maarten Wetselaar, the Integrated Gas and New Energies Director at Shell.
Wetselaar is responsible for Shell’s integrated gas business, including the industry-leading liquefied natural gas and gas-to-liquids positions. He also leads the new energies business, including Shell’s investment in new fuels, new energy carriers and new business models for a low-carbon future.
Dr Rowley and the T&T delegation were due to visit the Shell Technology Centre in Amsterdam where they were expected to tour the facility and receive an update on the latest technology being developed and deployed across Shell and specifically in T&T to leverage improved returns in the energy sector.