Latest update November 26th, 2024 1:00 AM
T&T going after relinquishment of blocks to expedite oil search
Trinidad Int’l Energy Conference…
By: Kiana Wilburg & Davina Bagot in Port of Spain
Kaieteur News –The Government of Trinidad and Tobago intends to aggressively expedite exploration activities in the current blocks, suspected to contain significant amounts of hydrocarbons. To ensure this is done, especially as the century-old sector continues to see a decline in production rates, the relinquishment of oil blocks will be pursued to allow interested partners with deep pockets to tap into the benefits.
Trinidad and Tobago Minister of Energy and Energy Industries, Stuart Young
This was signaled by the T&T Minister of Energy and Energy Industries, Stuart Young at the second day of the country’s Energy Conference, being held under the theme ‘Leveraging the Industry’s Strength for the Energy Transition’.
According to Young, “It makes no sense for Heritage (Trinidad & Tobago’s newest state-owned oil and gas company focused on exploration, development, production and marketing of crude oil, through its operations based on land and offshore ) to sit on acreage when there are companies who are willing to spend money on exploration and production. If block holders, including Heritage, are not working their acreage we will explore and pursue relinquishing the acreage so those who want to produce oil are allowed to do so.”
The minister’s statement comes on the heels of recent oil discoveries in the country, which currently produces about 60,000 barrels of oil per day. The new discoveries, the Minister said, will push production rates to about 85,000 barrels per day by 2024 and 104,000 barrels a day by 2026.
As the twin island seeks to make the most of its available resources, the Minister explained, “We intend to work with Heritage to identify more farm outs and work overs opportunities…given the global transition to a low carbon economy it is important that we expedite the monetization of our hydrocarbon resources less we remain with stranded assets.”
He was keen to point out in his presentation that the most recent hydrocarbon reserve audits have established that Trinidad and Tobago has substantial untapped resources. In fact, the Oil Audit Report by Netherland, Sewell & Associates put the contingent resources at 68 million barrels, with the major contribution being the onshore operators and un-risked prospective resources of 3.2 billion barrels, of which 90 percent were identified in deep-water. Ryder Scott, another consultancy group, has estimated the natural gas prospective resources at 55 trillion cubic feet, of which 64 percent are located in blocks held by upstream companies and 36 percent in open areas.
Meanwhile, as it pertains to open acreage, Minister Young informed conference delegates that the country currently has an open bid round, which commenced with the deep-water bid-round in December of last year. The closing ceremony for this bid round will be held today (Thursday). Presently on the table is a large selection of deep water acreage comprising 17 blocks. The deep-water bid-round is being followed by an onshore bid round which is expected to open in a few weeks.
In Guyana, Vice President Bharrat Jagdeo said that by the third quarter of 2022, the government will be looking to auction new blocks which will now require that it aggressively enforces the relinquishment provisions in the contracts it has with companies such as ExxonMobil, Tullow, and Repsol. The historic bid round is expected to be held in the third quarter of this year.
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