Young: T&T could Still be Deepwater Player

By Sue-Ann Wayow

He made this comment on Wednesday at the signing of production-sharing contracts for three blocks between the Ministry of Energy and a Consortium comprising BP Exploration Operating Company Limited and BG International Limited for Blocks 25(a), 25(b) and 27.

 Young said it was a good step towards energy security as there was still  a large area of the deepwater province that is unexplored.

He said, “Trinidad and Tobago has the potential to be a significant deepwater player. In this regard, we will continue to collaborate with out world-class upstream operators to optimize the development of our hydrocarbon province and to provide a competitive fiscal environment that encourages investment.”

The signing on Wednesday was also the result of the recognition of the importance of remaining competitive in order to attract investment, Young said.

“Through continuous engagement with our upstream companies, the Government will continue to evaluate and determine the additional fiscal incentives required to ensure that Trinidad and Tobago remains an internationally competitive hydrocarbon province,” he said.

The minister said the award was the result of a comprehensive and transparent process which also accounted for the length of time it took to sign off on the contracts.

According to Young, the bid proposals were reviewed by a Technical Evaluation Committee and an Overview Committee established by Cabinet and comprised of representatives of the Ministry of Energy and Energy Industries, the Ministry of Finance and the Office of the Attorney General. 

The reports and recommendations of these Committees were then submitted for Cabinet’s approval. Arising from this process, Cabinet authorized negotiations between the Consortium and the Ministry of Energy and Energy Industries to seek improved fiscal and technical terms to the PSCs. 

The negotiations for the PSCs were guided, in part, by the provisions of the Petroleum Regulations (Deep Water Competitive Bidding) Order 2021 and terms and conditions outlined in the 2021 Model Deep Water Production Sharing Contract. 

“It brings me great joy to announce that the parties were able to successfully negotiate improvements in both of these areas that were mutually acceptable,” Young  said.

With the execution of these PSCS, the Consortium was committed to undertake Minimum Exploration Work Programme for Blocks 25(a), 25(b) and 27 and to meet financial obligations such as Administrative Charge and Minimum Payment, Training Contributions, Research and Development Contributions, Technical Assistance / Equipment Bonuses, Production Bonuses and Scholarships, he said.

Activity on in the respective blocks are programmed to commence within 24 months of the effective date of the PSC. 

Young  said, “We are satisfied that the negotiations achieved its objective of arriving at equitable terms that will accrue to the mutual benefit of Government as resource holder and the bidders as key stakeholders and investors in Trinidad and Tobago’s Deepwater province.”