Government and BPTT have completed negotiations for the extension of 92 of the energy giant’s exploration and production licences in the Columbus Basin.
In a release Wednesday, the Energy Ministry said Government and BPTT, along with its co-licensees – EOG Resources Trinidad Ltd, Perenco TT Ltd, the National Gas Company and Heritage Petroleum Ltd – agreed to licence extensions to the Teak, Samaan and Poui fields. BPTT’s East Mayaro exploration and production licence has also been extended.
The agreement represents the outcome of continuing negotiations on gas-related issues, the release said. The first phase, which was completed in December 2018, resulted in a ten-year extension of BPTT’s South East Galeota licence, with a financial benefit to the State in the sum of $1 billion for settlement of legacy issues. Negotiations on behalf of the Government were led by the empowered negotiation team headed by Energy Minister Franklin Khan, including Minister in the Office of the Prime Minister Stuart Young, technical advisers Poten and Partners UK Ltd and lawyers White and Case LLP.
Under the terms of this agreement, the licenses have each been extended for ten years. Further discussions are scheduled to bring the licences up to date with the modern licences, the release said. The benefit to the State will be about US$250 million up to September 2024.
“The affirmative action taken by the Government in engaging upstream producers has been mutually beneficial (and) placed the sector on a more solid and sustainable footing. Government policies have also enabled the country to derive a greater share of revenue from the monetisation of hydrocarbon resources,” the release said.
In a brief media statement, BPTT confirmed the agreement and said negotiations have been successfully completed for a 10-year extension on 92 of its licences in the Columbus Basin.
“BPTT has been operating in TT for over 50 years and this agreement gives us the confidence to continue to invest in the development of resources in our Columbus Basin acreage. BPTT appreciates the continued partnership with the Government of Trinidad and Tobago in the long-term development of the country’s energy resources,” the statement said.