MEEI Grants PSC for Block Modified U (C) to BG

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(MEEI, 30.Sep.2024) — The Ministry of Energy and Energy Industries (MEEI) said a negotiated Production Sharing Contract (PSC) for Block Modified U (c ) has been signed between the Trinidad and Tobago government and the successful bidder, BG International Limited (BGI), a subsidiary of Shell

The signing took place on 27 Sep. 2024 at the Atlantic LNG Administrative Building, Clifton Hill, Point Fortin.

Dr. The Honourable Keith C. Rowley, Prime Minister 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 MEEI’ 2023 Shallow Water Bid Round opened on 2 Oct. 2023 and closed on 27 May 2024. The preferred bidder notification went out on 23 Aug. 2024 and BGI accepted on 29 August 2024. Negotiations commenced on 11 Sep. 2024 and after the successful negotiation of mutually acceptable improvements in the areas of commercial and technical terms to the Production Sharing Contract; on 26 Sep. 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, 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 MEEI, 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.

PHOTO CAPTION: The MEEI and Shell’s negotiation teams, from left to right: Ms. Jeneece Isaac, Petroleum Engineer, Ministry of Energy and Energy Industries; Mrs. Indira Ramkissoon, Senior State Counsel, Ministry of Energy and Energy Industries; Mr. Terrance Ali, Chief Techinical Officer (Ag.) Ministry of Energy and Energy Industries; Mr.Ronnie Ameerali, Business Opportunity Manager, T&T Exploration, Shell; and Mr. Marc Quesnel, General Manager Exploration & Development, Shell. Source: MEEI

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MAIN PHOTO CAPTION: The Honourable Stuart R. Young S.C., M.P Minister of Energy and Energy Industries and Minister in the Office of the Prime Minister and Mr. Adam Lowmass, Senior Vice President and Country Chair Shell with the signed Production Sharing Contracts for Block Modified U(c).

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