Shell is taking a 40% equity interest in two BHP exploration licenses in Barbados.

This information was included in BHP’s most recent operational review, which stated that on 2 March, 2022, the company signed a farm-out agreement with a subsidiary of Shell plc. to assign 40 per cent equity in each of the two Barbados offshore Exploration Licences – the Bimshire and Carlisle Bay Blocks.

The agreement is subject to customary regulatory approvals and third-party consents. Completion of the deal is expected by the end of the June 2022 quarter. 

BHP has been continuing appraisal drilling and exploring possible development concepts for the Calypso deepwater gas project on the Trinidad & Tobago side of the maritime boundary with Barbados.   BHP’s global petroleum division is itself being acquired by its fellow Australian player, Woodside, with the deal expected to close in the coming weeks.

Back in 2020 Prime Minister of the Republic of Trinidad and Tobago, Dr the Hon. Keith Rowley and Prime Minister of Barbados, the Hon. Mia Mottley signed a unitization agreement in Bridgetown, Barbados that provides a framework for any resources that staddle the maritime boundary. 

At the time of the signing of the Dr Rowley said, “If we do find hydrocarbons … most likely gas, we have now agreed to operate on a unitized basis. The two countries will work together, designate the operators for such a resource and very quickly we can move towards its exploitation as long as what we have found is commercially viable.”

While the Carlisle Bay and Bimshire blocks do not touch the Barbados-Trinidad and Tobago maritime border, the expectation would be that any exploration and development activity on the blocks would be staged out of Trinidad, with its well-developed energy services sector. 

Speaking at the 2020 T&T Energy Conference Prime Minister Mia Mottley made it clear that Barbados would work together with Trinidad & Tobago on the development of any petroleum resources and looked to Trinidad for its long experience and expertise in the industry. 

Both Shell and BHP are sponsors of the upcoming T&T Energy Conference 2022
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May 31st - June 2nd 2022