BP, Shell and EOG compete for land in Trinidad oil and gas auction – 05/27/2024 at 9:36 p.m.

BP, Shell and EOG compete for land in Trinidad oil and gas auction – 05/27/2024 at 9:36 p.m.
BP, Shell and EOG compete for land in Trinidad oil and gas auction – 05/27/2024 at 9:36 p.m.

((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto)) by Curtis Williams

Trinidad and Tobago has received six offers from BP BP.L , Shell SHEL.L and US shale producer EOG Resources EOG.N for four blocks to explore for oil and gas as its auction closes 2023 in shallow water Monday.

Trinidad plans to announce the winners in four months, Energy Minister Stuart Young said as the auction closed.

The three companies bid for the Modified UC block, which is close to the Teak, Sammaan and Poui production fields. There were no other bidders.

Trinidad is Latin America’s largest producer of liquefied natural gas (LNG), with an installed capacity of 15 million tonnes per year of super-cooled gas. It is also one of the world’s leading exporters of methanol and ammonia, but its plants have operated below maximum capacity in recent years due to a lack of gas.

In October 2023, the Trinidadian government issued a tender for 13 blocks. Monday’s site results mean that nine of the thirteen blocks attracted no interest and all bids came from companies already present on the Caribbean island.

EOG Resources has bid for three blocks, Modified UC, Lower Reverse L, which lies west of Shell’s Manatee discovery and on the border with neighboring Venezuela, and NCMA 4, in an area operated by Shell .

Shell bid for Modified UC, while BP, which bid for Modified UC, also bid for NCMA 2, which is north of Trinidad and not in the Columbus Basin, where the company operates. since the 1970s.

Trinidad has made several changes to tax conditions to attract more bids after its 2019 tender failed, including reducing the tax liability for shallow water producers, increasing cost recovery from 50% to 60%, reducing the windfall profits tax from 70% to 50%, increasing the exploration period from six years to eight years, and lowering the offering fee from $40,000 to $30 000 dollars.

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