Ministry of Energy launches onshore bid rounds

THE Ministry of Energy launched its 2022 bid rounds for onshore blocks on Monday.

Energy Minister Stuart Young declared the bid round opened as he spoke on Monday at the seventh Conference of the Geological Society at the Hyatt Regency, Port of Spain.

Acting senior geologist Kimberlee London said the bid round would last six months up until January 8. Awards of blocks were set for next April, she added.

Oil and gas companies can bid for exploration and production (E&P) on the blocks which run from central Trinidad to south-east, south and south-west Trinidad.

Eleven blocks are up for grabs.

These are Aripero, Buenos Ayres, Charuma, Cipero, Cory D, Cory F, Guaraguayare Onshore, Southwest Peninsula Onshore, Southwest Peninsula Offshore, St Mary's, and Tulsa. London read a brief background to each block, such as the names of past occupiers and their reversion to the government for non-exploitation by occupier.

Acreages were typically 10,000-13,0000 hectares. Each bid must be accompanied by a US$30,000 application fee or its equivalent in TT dollars, London said. Bids will be evaluated by using both a model licence and a point system.

London said E&P licences were awarded for six years initially, with an optional extension for 25 years, and then five more years. For each year of holding an E&P licence, a company must supply the minister a work programme for that acreage.

She said the bid rounds were conducted under the legal authority given by the Petroleum Act, Petroleum Production Levy and Subsidy Act and the Petroleum Taxes Act. The Petroleum Act lets the line minister grant the E&P licences, subject to competitive bidding.

Also due soon are the shallow water bid rounds. Last month the 2021/2022 deep-water bid round for 17 blocks attracted just four bids by a consortium of bpTT and Royal Dutch Shell.