The National Gas Company has acquired Heritage Petroleum’s Non-Operated Joint Venture (NOJV) participating interest in Block 3(a), off Trinidad’s east coast.
NGC announced the acquisition in a press release posted to its website.
NGC said this move will increase its participating interest in the block from 11.41% to 31.54%.
The company also stated as a result of the deal it will now have access to additional equity crude, which will bolster its marketing and trading portfolio.
In July 2020, NGC previously executed a Gas Sales Contract with BHP to purchase 100% of the gas produced from Block 3(a) to add to its existing portfolio of natural gas supply.
NGC’s President Mark Loquan said, “NGC continues to demonstrate its resolve to deepen participation in the domestic energy sector, and to expand its suite of commercial investments along the energy and natural gas value chain. Our increased stake in the upstream sector signals our commitment to creating value for Trinidad and Tobago, strengthens our position in the upstream and enables us to collaborate more closely with our partners in that sector. Through this acquisition, we are also building a stronger commodity trading portfolio, diversifying our income stream and declaring our brand as an integrated energy player.”
According to NGC, the acquisition of Heritage’s participating interest in Block 3(a) will allow the Government of Trinidad and Tobago to maintain its investment stake in the acreage.
NGC said the move was positive for the country “as the intent is to seek value optimisation from this ownership and derive the maximum financial benefits which will redound to the nation.”
The company added, “NGC is already invested in both the upstream and downstream sectors and is leveraging these investments to increase the value generated for the country from its business. This acquisition represents another step towards the realisation of NGC’s growth strategy, which targets a greater presence for the Company along the natural gas value chain.”
The company also stated its intention to explore other investments in other offshore NOJVS.
— Peter Christopher