Trinidad launches giant shallow-water auction

Trinidad and Tobago has launched an oil and gas bid round with 13 shallow-water blocks on offer, Reuters reported on Wednesday.

The 13 blocks are located on the continental shelf near producing concessions.

According to Reuters, bids for the round will close on April 2, 2024.

The offerings are more than double the country’s previous shallow-water oil and gas bid round in 2019.

On Monday, the Minister of Finance Colm Imbert outlined adjustments to contracts for small producers in shallow water areas.

This includes an increase in cost recovery from 50% to 60%, a reduction of windfall tax from 70% to 50%, an increase in exploration periods from six years to eight years and a reduction in bid fees from USD 40,000 to USD 30,000.

Both BP and Shell are large producers of gas within the country, with the energy giants currently producing around 1.3 bcf (36.8 mcm) per day and 750 mcf (21.2 mcm) of gas per day respectively.

Trinidad and Tobago has installed capacity to produce 15 million tonnes of LNG per year but has been operating below capacity due to lack of gas production.