The Ministry of Energy and Energy Industries (MEEI) has announced that a negotiated Production Sharing Contract for Block Modified U (c ) has been signed between the Government of the Republic of Trinidad and Tobago and the successful bidder, BG International Limited (BGI), a subsidiary of Shell. The signing took place on 27th September 2024 at the Atlantic LNG Administrative Building, Clifton Hill, Point Fortin.
Dr. The Honourable Keith C. Rowley, Prime Minister of the Republic of Trinidad and Tobago was present to witness the signing and congratulated the MEEI and Shell teams for completing the Production Sharing Contract (PSC) negotiations for Block Modified U(c) in record time. The Ministry of Energy and Energy Industries’ 2023 Shallow Water Bid Round opened on 2nd October 2023 and closed on 27th May 2024. The preferred bidder notification went out on 23rd August 2024 and BGI accepted on 29th August 2024. Negotiations commenced on 11th September 2024 and after the successful negotiation of mutually acceptable improvements in the areas of commercial and technical terms to the Production Sharing Contract; on 26th September 2024 the Cabinet approved the award of the PSC to Shell’s subsidiary, BGI. The Prime Minister stated that this was an example of the government’s promise to deliver.
At the signing ceremony, The Honourable Stuart R. Young S.C., M.P. Minister of Energy and Energy Industries and Minister in the Office of the Prime Minister stated that the PSC agreement reflects the government’s acknowledgement of the necessity to maintain competitiveness and attract investment in a volatile global energy market and that the government continues to review and improve the fiscal regime to foster investment in the upstream. One such incentive was the provision of concessions on the Special Petroleum Tax (SPT) for operators in onshore and shallow water sectors.
The award of the Block Modified U (c) PSC was the result of a very comprehensive and transparent process, as all bid proposals from the 2023 Shallow Water Competitive Bidding Round were reviewed by a Technical Evaluation Committee and Overview Committee established by Cabinet. These committees comprised representatives from the Ministry of Energy and Energy Industries, Ministry of Finance and Office of the Attorney General.
Minister Young thanked the teams at the Ministry of Energy and Energy Industries, particularly, Mr. Terrance Ali, Chief Technical Officer (Ag.) who led the negotiations for the PSC, and Shell for displaying dedication, professionalism and commitment to ensure that mutually beneficial terms were agreed on in record time. The successful award paves the way for the acquisition of seismic data mere days after the PSC utilizing the PXGEO 2 seismic vessel which is already in Trinidad and Tobago. Minister Young stated that this signing demonstrates the commitment and goodwill of all stakeholders, highlighting their dedication to the future of Trinidad and Tobago’s energy sector, particularly in the shallow water environment.