Trinidad and Tobago nears awards for onshore oil and gas exploration (updated)

Challenger Energy

29/05/2023 22:13

(Adds comments from Trinity and Touchstone)
    By Curtis Williams
       May 29 (Reuters) - The Trinidad and Tobago government
accepted bid recommendations for six of eight onshore oil and
gas exploration blocks, people close to the matter said on
Sunday, setting the stage for awards to be disclosed as soon as
this week. 
    The Caribbean nation has pushed to expand exploration to
counter declines in its oil and gas production. Gas and
petrochemicals provide a large part of its export revenue.
    A decision to award licenses was taken by the country's
cabinet on Thursday on the recommendation of Trinidad and Tobago
Energy Minister Stuart Young, the people said. Young is
scheduled to address an international energy conference in Miami
on Tuesday.     
        Young did not immediately reply to a request for
comment. 
  
    Trinidad and Tobago's A&V Oil and Gas Ltd was recommended
for the St. Mary’s block. 
    Touchstone Exploration Inc  TXP.TO  was recommended for the
Cipero block, Eco Oil and Gas Solutions for the Tulsa block, and
Challenger Energy received for the Guayaguayare block, the
people said.
    Challenger did not reply to a request for comment.      
        "If what is reported is true, Touchstone is happy that
we got the Cipero block because that was our number one," said
Paul Baay, Touchstone's chief executive. 
  
    The Aripero Block will go to Nabi Construction (Trinidad and
Tobago) Ltd, while the Buenos Aires block is to be awarded to
Trinity Exploration & Production Plc, the people said.     
        "We are not in a position to comment until any of the
bid round awards are confirmed and announced by the Ministry,”
Trinity finance chief Julian Kennedy said. Nabi and Eco could
not be reached for comment.
  
    The winning bids were selected based on their willingness to
conduct seismic studies and the proposed number of wells. Some
winners also agreed to pay signing bonuses, the people said.
    The energy ministry expects to pursue negotiations with
companies that bid on the two unawarded blocks to gauge whether
they might improve their offers, cabinet sources told Reuters.

 (Reporting by Curtis Williams in Houston; editing by Diane
Craft and Nick Zieminski)
 ((Curtis.Williams@thomsonreuters.com; +1 346 324 7560;))