Royal Dutch Shell PLC said it has signed an agreement to acquire the interests of Chevron Corp.’s subsidiary in Trinidad and Tobago. The deal, worth $250 million, includes Chevron’s holdings in East Coast Marine Area Blocks 6, 5a, and E.
The deal includes Chevron’s Trinidad and Tobago’s interest in the massive 10-tcf Loran Manatee cross-border gas field shared between the Caribbean twin-island nation and neighboring Venezuela. Chevron however retains its interest in the block but on the Venezuela side of the border.
The deal is expected to close around midyear.
Shell has been expanding its holdings in Trinidad and Tobago since its purchase of BG Group. It has not become the largest shareholder in Atlantic LNG and is seeking to rival BP as the biggest player in Trinidad and Tobago.
Shell also has interest in the deepwater blocks being explored by BHP Billiton Ltd. and has shares in the Le Clerc gas discovery in the deep water.
“Trinidad and Tobago represents a rich opportunity for us to continue building our integrated gas position in country and securing new competitive production,” said Derek Hudson, vice-president, Shell Trinidad & Tobago. “Shell continues to actively evaluate other options to increase supply from our existing assets, as well as pursue additional opportunities such as the previously announced purchase of Centrica’s interests in the North Coast Marine Area.”