By Sue-Ann Wayow
THE Ministry of Energy has offered 11 onshore/nearshore blocks to companies in the 2022 competitive bid round.
The blocks include: Aripero, Buenos Ayres, Charuma, Cipero, Cory D, Cory F, Guayaguayare, St Mary’s, South West Peninsula Onshore, South West Peninsula Offshore and Tulsa.
Details were provided at the Seventh Conference of the Geological Society of T&T 2022 held at the Hyatt Regency Hotel in Port of Spain on Monday.
The ministry’s Senior Geologist Kimberlee London said bids will be opened for six months.
The deadline for submissions is January 2023.
After the close in April 2023, the blocks will then be awarded in three months.
London explained that prospective bidders must pay a bidding fee of US$30,000 or the equivalent in TT dollars before the close of bids.
The Petroleum Regulations (Onshore and Nearshore Bidding) Order, 2022 was published in the Gazette on July 8, 2022.
There was an amendment of Clause Five of the Regulations to allow payment in local currency.
She said, “They indicated that based on the type of companies that we expect to come in and the range of blocks that we have for the onshore that we should be able to allow the process to include payment in TT dollars and we have incorporated that into our bid round.”
This fee entitles the bidder to receive the data package and the right to bid on any or all of the blocks.
The data package contains:
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Seismic Surveys, well data, and reports
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The Petroleum Regulations Competitive Bidding Order
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Exploration and Production Licence
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Joint Operating Agreement
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The Local Content and Local Participation Framework for the Republic of Trinidad and Tobago dated 7th October, 2004
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The relevant information with respect to the blocks for which bids may be presented
Clause 4 states that bids should be submitted in duplicate under confidential cover in sealed envelopes marked “Bid for Exploration and Production (Public Petroleum Rights) Licence”.
London added that it must be submitted to the Office of the Permanent Secretary, Ministry of Energy and Energy Industries by 12 noon on the deadline date.
All bidders are also required to deliver an oral presentation in support of their technical and commercial evaluations to the relevant ministry personnel.
Successful bidders shall execute an Exploration and Production License with the state within 30 days of notification of their successful bid.
The key provisions of the Model Exploration and Production (Public Petroleum Rights) Licence include an initial period of six contract years from the effective date which may be extended for an additional period of 25 years from the effective date. The additional 25-year term may be further extended, for a period of five years.
The financial obligation of the licensee include:
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Signature, production, technical equipment and environmental bonuses, royalties, minimum payments, training and research and development contributions, scholarships and annual surface rental.
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Maintain an escrow account in order to fund expenses and costs associated with the relinquishment and abandonment of the Licensed Area.
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The foregoing payments and escrow account are to be satisfied at the Licensee’s own expense.
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All other payments including import duties, income tax, excise duties, charges and fees for services rendered and fees of general application as may be appropriate to the Licence and in accordance with any applicable law.
