Trinidad and Tobago recently concluded its 2023 shallow water auction with a total of six bids from industry giants BP, Shell, and US shale producer EOG Resources. The Energy Minister, Stuart Young, revealed that the winners will be announced in four months, adding to the suspense and anticipation of the results.
One of the most contested blocks was the Modified UC, located near the Teak, Sammaan, and Poui producing fields, with all three companies vying for the opportunity to explore for oil and gas in this lucrative area. The lack of other bidders for this particular block highlighted the keen interest and competition among the industry players.
Trinidad, known as Latin America’s largest LNG producer, has been facing challenges in recent years due to a shortage of gas, impacting the operations of its methanol and ammonia plants. The government’s decision to put up 13 blocks for bids aimed to attract new investments and boost the country’s energy sector.
EOG Resources placed bids on three blocks, including the Lower Reverse L and NCMA 4, while Shell and BP focused on the Modified UC block and other adjacent areas for potential exploration opportunities. The changes in fiscal terms, such as reduced tax liabilities and increased cost recovery, were implemented to encourage more participation after the disappointments of the previous bid round in 2019.
With the results now under review, the future of Trinidad’s energy industry hangs in the balance as stakeholders await the announcement of the winning bids and the potential impact on the country’s energy landscape.
