Energy Minister silent on bpTT's alleged asset sale

Minister of Energy and Energy Industries Stuart Young said he cannot comment on reports of bpTT's alleged divestment of three of its gas fields to French oil and gas company Perenco, as reported by international news sources.

Speaking with Newsday at the natural gas audit press conference on May 7, Young said, “As of right now I cannot comment.”

According to a Reuters report on April 8, bpTT has engaged Perenco in talks over divesting their 1.3 billion cubic feet per day (bcfd) production in Trinidad and Tobago.

The report suggests a 15 per cent reduction in production if the fields are divested.

BP, the parent company of bpTT, reported a profit of US$15.2 billion for the financial year ending December 2023, a significant increase from the previous year's loss of US$2.5 billion.

In his address, Young also reminded all stakeholders that the shallow water bid deadline is soon approaching.

“On October 3, 2023, the Shallow Water Competitive Bid Round was opened and will close later this month on May 27,” Young said.

Thirteen blocks located along the western, eastern, southern and northern shallow-water coasts of Trinidad and Tobago were put up for auction.

Production-sharing agreements will regulate the blocks to guarantee that activities are conducted in accordance with international standards for the benefit of all involved.

Successful bids will be announced four months after the close of bidding.

“We are optimistic, given the interest by some of the companies to changes made in the terms and conditions of this Shallow Water Bid Round,” Young said.

In 2023, the Energy Chamber of TT issued a statement welcoming the opening of the Shallow-Water Bid submissions. The chamber said it was concerned about measures to stimulate investment in gas production in the short term.

“It is important for the future of the country that we have a consistent and active exploration programme within Trinidad and Tobago's economic zone to ensure that resources are identified and reserves are brought into production as quickly as possible,” the statement said.

The chamber said it anticipates a much more positive response to the current 13 shallow water blocks on offer, compared to the previous bid round.