GEISHA KOWLESSAR-ALONZO
geisha.kowlessar@guardian.co.tt
Exploration and production licences for five hydrocarbon blocks were awarded by the Ministry of Energy at a signing ceremony arising out of the 2022 onshore and nearshore competitive bidding round yesterday.
Speaking at the event, which was held at the offices of Ministry of Energy, International Waterfront Complex, Port-of-Spain Energy, Energy Minister Stuart Young explained the blocks are located in the central and southern onshore areas of Trinidad and have significant untapped potential for future discoveries.
Young said the grant of these licences will allow the country to progress current opportunities within these acreages and identify new prospects as well.
This exercise, he added, is a part of Government’s ongoing programme to maximise the exploration and development of the country’s hydrocarbon resources.
"Hence our continuing programme of promoting ongoing exploration on land, shallow water and deep-water regions, to sustain our energy sector. To this end, we remain steadfast in our commitment to leaving no hydrocarbon molecule behind," Young added.
The 2022 Onshore and Nearshore Competitive Bid Round was opened on July 8, 2022 and remained open for six months until 12 noon on January 9, 2023.
Companies were given six months to submit a bid on any of the 11 blocks available.
Upon the closure of the bid round, 16 bids were received for eight blocks.
The bid proposals were reviewed by a technical evaluation committee and an overview committee established by Cabinet, comprising representatives of the Ministry of Energy and Energy Industries, the Ministry of Finance, Office of the Attorney General and Ministry of Legal Affairs.
The reports and recommendations of these committees were then submitted for Cabinet’s approval.
Based on recommendations, Cabinet agreed to the award of licences for five of the eight blocks, namely the Aripero; Buenos Ayres; Charuma; Cipero and St Mary’s, for which negotiations were successfully completed.
The six energy companies signing the licences for the five blocks are NABI Construction, Heritage Petroleum Company, Oilbelt Services, A&V Oil and Gas, Primera Oil and Gas and NGC E&P Investment.
Young said the negotiations on the terms of the licences for the remaining three blocks namely: the Tulsa, Guayaguayare (onshore) and South-West Peninsula (onshore) blocks are ongoing and a decision is expected to be made soon.
NGC's chairman, Dr Joseph Khan said the signing will see the company assume a participating interest in two onshore blocks.
"NGC –through our wholly-owned subsidiary NGC E&P Investments Ltd–will have a 20 per cent carried participating interest in these blocks for the exploration phase. However, our aim is to work collaboratively alongside the operator, Touchstone to help monetise any resources that may be found in this acreage, for the benefit of T&T," he said.
Khan added that the start-up of production in the Ortoire Block gives great cause for optimism, noting that the company has taken an important step towards developing the Charuma and Cipero Blocks.