Primera, NGC sign exploration licence

The TT National Gas Co (NGC) and Primera Oil and Gas Ltd, a subsidiary of Touchstone Exploration, were granted an exploration and production licence for the Rio Claro block, one of the open blocks for oil and gas exploration located southern TT.

A release from the Ministry of Energy said the official signing was done on Monday, at the ministry’s office at the International Waterfront Complex head office in Port of Spain.

“The agreement to execute this licence represents the culmination of direct negotiations among the Ministry of Energy and Energy Industries, NGC E&P Investments Limited and Primera Oil and Gas Ltd,” the ministry said in the release.

Minister of Energy Stuart Young said the issuance of the licence reflects the government’s acknowledgement to maintain competitiveness to bring in foreign direct investment.

“As we engage in ongoing exploration of onshore, shallow and deep-water regions, it is imperative that we sustain our partnerships with our upstream operators to advance the development of our hydrocarbon resources and foster a competitive fiscal landscape that encourages investment.”

The Rio Claro block, the release said, neighbours the Cascadura gas development in the Ortoire block in the south east, which is also operated by Primera and expected to yield a significant amount of gas. In June, Primera and NGC were granted the exploration and production licences for the Charuma and Cipero blocks, just north of the Rio Claro block, coming out of the 2022 onshore and nearshore bid round.

The release said the key provisions of the licence are the financial obligations to the state, which include bonuses, minimum payments and annual surface rent, as well as the work programme to be undertaken by the licensee.