In his first formal presentation to the annual Trinidad & Tobago Energy Conference, newly appointed Minister of Energy, the Honourable Stuart Young, told the energy industry that his focus was on bringing oil and gas resources to market as quickly as possible. Earlier in the day Prime Minister Keith Rowley said that the Government recognised given the energy transition was firmly underway, oil would probably have a shorter shelflife than natural gas. In line with this observation, Minister Young indicated that the Government was working with a horizon of 2028 to maximise oil production.
Minister Young said that his immediate focus would be to engage with all of the upstream companies to get all unsanctioned upstream projects possible, approved within the shortest time frame. He reported that he was working closely with Shell on the terms and conditions of the Production Sharing Contract for the Manatee field, which holds significant reserves estimated at 1.8 trillion cubic feet of natural gas, and that he hoped he would be able to make an announcement soon. Later in the conference, Touchstone CEO, Paul Baay provided confirmation of Minister Young’s approach, when he thanked him for clearing some of the barriers that were holding back the small, but fast-to-deliver, onshore Coho gas field.
With respect to oil production, the Minister told delegates that the Ministry had initiated dialogue with Heritage Petroleum and that the company has mapped out an action plan aimed at optimising exploration and development of its acreage on both on and offshore.
Minister Young reaffirmed that he “will personally continue to work with and drive Heritage and other oil producers to ensure that we maximise oil production with a horizon of 2028”. He clearly signaled the Government’s support for a strategy that emphasised partnership to bring capital for investment to Heritage’s acreage and stated that the government will welcome any expressions of interest from other operators interested in exploration and production. He explained that approaches from small and nimble operators would be especially welcomed.
This was a message reiterated by Heritage CEO, Arlene Chow, speaking on a panel later in the day, on encouraging investment upstream.
In addition to removing barriers to get unsanctioned projects over the approval hurdle, Minister Young recognised that the country also needed to stimulate exploration and the development of prospective resources on both unlicensed and licensed acreage. He promised that the Ministry would be embarking on a deepwater, onshore and shallow water bid round within the next year. At the same time, the Minister clarified that the government’s clear expectation is that acreage not scheduled for exploration or development, with a definitive workplan, must be returned to the State for reallocation.
Minister Young acknowledged that he needed to review fiscal terms before embarking on the next bid rounds and asked that the Energy Chamber provide the Ministry with their views on the issues.
The Energy Chamber has already established a Fiscal Reform Task Force that has been meeting and reviewing the fiscal terms and during the Conference, Chair of the Task Force, Peter Inglefield outlined the major issues that the industry has identified and their major recommendations.