According to industry sources, oil and gas giant BP is nearing a deal to sell some of its assets in Trinidad and Tobago to Anglo-French company Perenco. This move comes amid declining production from BP’s mature fields in the Caribbean nation.
BP currently holds the title of Trinidad and Tobago’s largest natural gas producer, responsible for over 1.3 billion cubic feet per day (bcfd) – most of which is exported as liquefied natural gas (LNG). However, BP’s gas output has fallen significantly in recent years, dropping by nearly 1 bcfd since 2019.
Shifting Focus to Deepwater Exploration
This decline in production appears to be a key factor in BP’s decision to divest its Amherstia, Cashima, and Immortelle fields. These fields have been producing for over two decades, but their combined output has dwindled to around 200 million cubic feet per day (mmcfd). Industry insiders suggest the deal with Perenco is nearing completion, with a final price and official announcement expected before summer 2024.
Perenco, already established in Trinidad with its Teak Samman Poui asset, could potentially maintain or even increase production from the acquired fields. Experts believe Perenco’s experience in managing mature assets could breathe new life into these fields.
Potential Benefits for Trinidad and Tobago
The sale could also benefit Trinidad and Tobago’s energy sector. Perenco’s expertise in maximizing production from mature fields could lead to increased government revenue through royalties and taxes. Additionally, the potential for production increases could strengthen Trinidad and Tobago’s position as a reliable LNG supplier in the global market.
While details of the sale remain confidential, BP’s focus seems to be shifting towards Trinidad’s unexplored deepwater regions. The company boasts significant discoveries in the Columbus Basin, bordering Venezuelan waters. BP’s Trinidad President has indicated that the company’s future on the island lies in this promising deepwater frontier.
This strategic shift aligns with the global energy industry’s growing focus on deepwater exploration. Deepwater reserves offer the potential for significant hydrocarbon discoveries, and BP is likely positioning itself to capitalize on these opportunities in Trinidad and Tobago.
The Future of Trinidad’s Energy Sector
The potential sale of BP’s assets marks a turning point for Trinidad and Tobago’s energy sector. While BP is scaling back its presence in mature fields, Perenco’s arrival could lead to renewed production and investment. Additionally, BP’s focus on deepwater exploration opens a new chapter for the island nation’s energy future.
The coming months will be crucial as details of the sale are finalized and Perenco takes over operations. The success of this transition will depend on effective collaboration between Perenco, the Trinidadian government, and local communities. However, if managed effectively, this deal has the potential to benefit all stakeholders and ensure the continued development of Trinidad and Tobago’s energy sector.
Source: Reuters
