Trinidad and Tobago to award Block 2 PSC soon
Trinidad and Tobago's Ministry of Energy and Energy Resources reported it will reach an agreement within the next 6 weeks with Tullow Oil PLC and Centrica Resources, enabling them to explore Block 2 (ab).
PORT OF SPAIN, Nov. 19 -- Trinidad and Tobago's Ministry of Energy and Energy Resources reported it will reach an agreement within the next 6 weeks with Tullow Oil PLC and Centrica Resources, enabling them to explore Block 2 (ab) off the eastern coast of Trinidad and Tobago.
The Caribbean island's Director of Resource Management Helena Innis-King said she also expects a production-sharing contract (PSC) to be signed with Tullow Oil for the Guayaguayare shallow and Guayaguayare deep Blocks.
The three blocks are near BP PLC's 163,000 b/d oil fields, which were discovered in the early 1970s, and not far from most of the country's gas reserves.
Innis-King said failure to sign the PSCs more than 2 years after the blocks were first put out for bids was due to several factors, including the creation of new terms for PSCs and the fact that some bids did not meet the ministry's expectations.
She explained, "I know it has taken longer than it should have, but the reality is that we were kept back because we were dealing with many issues, including local content, but I expect we will agree to production-sharing contracts by the end of the year."
Innis-King also revealed that the merger of Statoil and Norsk Hydro ASA delayed negotiations with then-Statoil for a PSC in Trinidad's ultradeep water.