Trinidad and Tobago make term changes to 2010 bid round

Curtis Williams
OGJ Correspondent

PORT OF SPAIN, Jan. 27 -- Trinidad and Tobago has announced major changes to its fiscal terms for energy companies operating in the country and those seeking new blocks in its 2010 bid round.

The government made the announcement at an energy conference hosted by the South Trinidad Chamber of Industry and Commerce at which it announced that it will continue to use production-sharing contracts but will eliminate taxes on the PSCs. Instead, Trinidad and Tobago will collect its revenues via profit oil.

Energy Minister Conrad Enill told the conference: “Our new PSC will be similar to the 1995-96 models in which companies were allowed to evaluate their risks and offer an adequate share of profit petroleum. This is intended to reduce some of the inherent risks and encourage potential investment.”

Enill admitted that the world outlook for oil and gas was not as attractive as it was 18 months ago and in the circumstances the twin-island nation had to be more competitive.

Enill said concessionary arrangements will be put in place in areas and activities where incentives for revitalization and sustainability are required, such as in the mature offshore oil acreages and on land where enhanced oil recovery projects are undertaken.

He said, “Specifically, the incentives will directly impact on the supplemental petroleum tax rates that will be payable by companies. In so doing, it will provide companies with additional financial flows to reinvest in the upstream sector. This new regime will address small, mature fields and tailend production and will allow for a situation intended to encourage new investment while allowing current production levels to be sustained.” Trinidad and Tobago produces 115,000 bo/d and 4 bcfd of gas.

Under the new fiscal terms, there is a distinction between ‘shallow’ and what is referred to as ‘average’ water depths. In the shallow fields, the government has maintained its windfall taxes but it kicks in whenever crude prices are above $70/bbl and gas prices are $6/MMbtu. In average water depts., the windfall taxes kick in at $80/bbl for crude and $7/MMbtu for gas.

Director of Resource Management Helena Inniss-King revealed that there will be additional benefits for companies operating in both the shallow and average-water depths with an increase in the percentage of cost recovery companies can claim.
Inniss-King said, “We had some comments on the cost recovery, that it was too low, and we have increased the cost recovery for the shallow water to 50% and for the average water depth 55%.” Average water depth are blocks in more than 400 m of water.

Trinidad and Tobago says the new fiscal regime was arrived at after consultation with the major oil and gas companies operating in the country.

BP PLC Chief Executive Officer Tony Hayward called for a new fiscal regime in Trinidad and Tobago. During a recent visit, Hayward said he was confident that BP Trinidad & Tobago (BPTT) and the Patrick Manning administration will reach agreement on the new terms.

BPTT produces 450,000 boe/d from its Trinidad and Tobago operations.

Trinidad and Tobago will offer seven blocks in shallow and average water in this year’s first quarter and has announced that later this year will offer blocks in its deepwater areas—in water 1,000-3,500 m deep.

Related Articles

Frac ban exemption made in Broomfield

12/12/2014 A Colorado District Court judge has ruled that a hydraulic fracturing ban in Broomfield, Colo., does not apply to an operator that entered into an ...

COGA calls frac fluid study "sound science"

12/12/2014 Chemicals used in fracturing fluid appear to be no more toxic than chemicals commonly found in homes, said an analysis by University of Colorado Bo...

Study links methane contamination in water wells to poor well construction-not fracing-in Marcellus

12/12/2014 A new study found that fugitive gas contamination at eight clusters of water wells in the Marcellus and Barnett shale regions might be linked to we...

WoodMac: US unconventional enters new stage

12/12/2014 The unconventional oil and gas revolution is entering into a new stage with drilling and completion techniques pioneered in unconventional plays no...

Santos makes gas discovery in Cooper basin

12/12/2014

Santos Ltd. has made a wet natural gas discovery in its South Australian Cooper basin permit PEL 513.

Senex moves to commercialize Cooper basin gas field

12/11/2014 Senex Energy Ltd., Brisbane, has successfully tested a sidetrack of the 2007 Vanessa-1 gas discovery in South Australia’s Cooper basin as part of i...

Crown Point reports on two Argentine exploration wells

12/11/2014 Crown Point Energy Inc., Calgary, has released test results for the first of two exploration wells at its Tierra del Fuego concessions in Argentina.

Stone drills successful Utica exploration well

12/10/2014 Stone Energy Corp., Lafayette, La., reported that its Pribble 6HU well in Wetzel County, W.Va., flowed from a 3,605-ft lateral at 30 MMcfd during t...

White Papers

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...

6 ways for Energy, Chemical and Oil and Gas Companies to Avert the Impending Workforce Crisis

As many as half of the skilled workers in energy, chemical and oil & gas industries are quickly he...
Sponsored by

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Available Webcasts



The Future of US Refining

When Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Oil & Gas Journal’s Forecast & Review/Worldwide Pipeline Construction 2015

When Fri, Jan 30, 2015

The  Forecast & Review/Worldwide Pipeline Construction 2015 Webcast will address Oil & Gas Journal’s outlooks for the oil market and pipeline construction in a year of turbulence. Based on two annual special reports, the webcast will be presented by OGJ Editor Bob Tippee and OGJ Managing Editor-Technology Chris Smith.
The Forecast & Review portion of the webcast will identify forces underlying the collapse in crude oil prices and assess prospects for changes essential to recovery—all in the context of geopolitical pressures buffeting the market.

register:WEBCAST



On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected