Energy Minister Franklin Khan (centre) with executive officials of various oil companies following the signing agreement. (GP)
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PORT OF SPAIN – The Trinidad and Tobago government on Wednesday said it had reached agreement with various stakeholders in the energy sector on a 10-year extension of licences and that its policies have also enabled the country to derive a greater share of revenue from the monetization of the hydrocarbon resources
Energy and Energy Industries Minister, Franklin Khan said that agreements were reached with BP Trinidad and Tobago LLC and co-licencees, EOG Resources Trinidad Limited, Perenco T &T Limited and its co-licencees, the National Gas Company of Trinidad and Tobago Limited and Heritage Petroleum Limited, on licence extensions.
The agreement between the parties represents the outcome of continuing negotiations on gas related issues. The first phase which was completed in December 2018, resulted in a ten-year extension of BPTT’s South East Galeota Licence and financial benefit to the State in the sum of one billion dollars (One TT doillar=US$0.16 cents) for settlement of legacy issues, according to a statement issued here by the Ministry of Energy and Energy Industries.
It said that under the terms of this agreement, 91 Teak, Samaan and Poui licences and the East Mayaro Licence have each been extended for a period of 10 years.
“Further discussions have been scheduled between the parties to bring the licences up to date with the modern exploration and production licences. The State will benefit from incremental value estimated at US$250 million relative to the period up to September 2024,” the statement said.
It said that the agreement with BP Trinidad LLC and the other stakeholders for the Teak, Samaan and Poui licences and with BP Trinidad LLC for the East Mayaro licence was signed on Wednesday.
“The affirmative action taken by the government in engaging upstream producers has been mutually beneficial. Government’s proactive approach has placed the sector on a more solid and sustainable footing.
“Government policies have also enabled the country to derive a greater share of revenue from the monetization of the country’s hydrocarbon resources. These outcomes are testimony to the effectiveness of the Government’s energy policies and the positive collaboration with upstream stakeholders,” the statement added. (CMC)