Launch of an onshore call for tenders | Local company

The Department of Energy’s 2022 onshore and nearshore tender was launched yesterday at the T&T Geological Society’s Seventh Geological Conference, taking place at the Hyatt Regency Hotel in downtown Port of Spain .

The auction is for 11 blocks, located in the Central Range, South Basin and South Range.

In a presentation at the conference, Department of Energy senior geologist Kimberlee London said a key feature of the tender is that a public company will be awarded a stake. in each allocated block and deferred participation for certain works, payments and obligations.

The last round of onshore bidding at T&T dates back to 2013, when three blocks were successfully awarded: Ortoire, Rio Claro and St. Mary’s.

The tender closes on January 9, 2023, and the Department of Energy said it expects to award the blocks in April 2023.

Deep Water Deals

In speech to the conference, Energy Minister Stuart Young said bids for the deepwater tender, which was launched June 2 at the T&T Energy Conference , are currently under evaluation.

The Department of Energy has received bids on four deepwater blocks from a consortium comprising BP Exploration Operating Company and BG International Limited, a subsidiary of the Shell group of companies.

“All blocks have been subject to previous exploration activities which have indicated the presence of hydrocarbons. We hope that the application of new technologies will realize the potential of these blocks,” Young said.

He said that given the global competition for capital within companies, the offers demonstrate the continued commitment of upstream companies to invest in Trinidad and Tobago.

“The offers are currently being evaluated and an announcement of the results will be made within three months, no later than September 2, 2022,” Young said at yesterday’s conference call.

He said the shallow water tender, which will follow, is being finalized and the ministry intends to launch the tender before the end of 2022.

Negotiations continue

Young said the National Gas Company (NGC) is currently in negotiations with upstream companies for new gas supply contracts to maintain its supply to its downstream customers.

The government is also actively engaged in negotiations with Atlantic shareholders on a long-term agreement and liquefaction license to operate a restructured Atlantic Unified LNG Facility.

“We have devoted a great deal of time, energy and effort to the sector and in particular to negotiations over the past six and a half years. Natural gas production, which was on the rise until 2019, was negatively impacted by the coronavirus (Covid-19) pandemic in 2020.

“While upstream operations have continued relatively unaffected, plans to set up new and replacement production have been delayed. The pandemic has also sharply reduced global demand in a number of industries and in particularly for energy-related products.Petrochemicals have been hit hard.Ammonia and methanol prices, which are Trinidad and Tobago’s main exports, have fallen to low levels in 2020 and 2021. »

Young said this resulted in the temporary reduction of operations at a number of petrochemical plants, and the combination of project delays and lower demand resulted in reduced natural gas production.

“At the time, opponents, including, unfortunately, some of them being paid by those with selfish agendas that were not in the best interests of the citizens of Trinidad and Tobago, were painting a negative narrative. of collapse and disaster at Pt Lisas.

“However, the government and NGC have maintained their positions to protect citizens and secure fair and equitable returns for the people. Fortunately, as difficult as it was then, we remained true to principle and steadfast in our negotiations and today citizens are reaping the monetary benefits of those positions we took with increased revenue for NGC and the treasure.