Continuing its strategic focus to develop a world-class energy portfolio, The National Gas Company of Trinidad and Tobago Limited (NGC), through its wholly-owned subsidiary NGC Caribbean Investments Limited (NCIL), is pleased to announce the acquisition of Heritage Petroleum Company Limited’s Non-Operated Joint Venture (NOJV) participating interest in Block 3(a), off Trinidad’s east coast. As a result of this acquisition, NGC has increased its participating interest in the block from 11.41% to 31.54%. NGC will now have access to additional equity crude, which will bolster its marketing and trading portfolio. As announced in July 2020, NGC previously executed a Gas Sales Contract with BHP to purchase 100% of the gas produced from Block 3(a) to add to its existing portfolio of natural gas supply.
A key point to note is that NGC’s acquisition of Heritage’s participating interest in Block 3(a) allows the Government of Trinidad and Tobago to maintain its investment stake in the acreage. This bodes well for the country as the intent is to seek value optimisation from this ownership and derive the maximum financial benefits which will redound to the nation.
Development of oil and gas production from the Ruby and Delaware reservoirs consists of tieback of five production wells and one gas injector well to existing operated processing infrastructure on Block 2C about 8 km east. First oil production began in May 2021, with gas in commercial quantities expected imminently.
NGC’s President Mark Loquan commented on the acquisition: “NGC continues to demonstrate its resolve to deepen participation in the domestic energy sector, and to expand its suite of commercial investments along the energy and natural gas value chain. Our increased stake in the upstream sector signals our commitment to creating value for Trinidad and Tobago, strengthens our position in the upstream and enables us to collaborate more closely with our partners in that sector. Through this acquisition, we are also building a stronger commodity trading portfolio, diversifying our income stream and declaring our brand as an integrated energy player.”
NGC is already invested in both the upstream and downstream sectors and is leveraging these investments to increase the value generated for the country from its business. This acquisition represents another step towards the realisation of NGC’s growth strategy, which targets a greater presence for the Company along the natural gas value chain.
NGC will continue to evaluate the strategic fit of other acquisitions, including other offshore NOJVs.