BPTT oilfields sold for US$229M

In a statement, the company said the sale of the TSP fields to these companies is conditional on whether its shareholder Repsol YPF exercises its pre-emption right in the next 30 days to purchase these assets.

BpTT will retain its deep exploration and production rights across the TSP acreage. Government has 60 days in which to exercise its option to purchase up to 15 percent equity holding in the TSP assets.

Under the agreement, Penco will operate the TSP and the company has a track record "of investing in and extending the life of mature hydrocarbon assets."

Neal and Massy Energy is the energy business unit of Neal and Massy Holdings Ltd, a publicly traded conglomerate on the Trinidad and Tobago and Barbados stock exchanges with more than 80 years experience in operating in TT and throughout the Caribbean.

The TSP fields currently produce approximately 20,500 barrels of oil equivalent per day (five percent of bpTT’s current production of oil and gas).

The assets comprise bpTT’s three longest producing fields (in operation since 1974 with peak production of 144,000 barrels of oil per day and 834 million barrels of oil produced at the end of 2004), its associated infrastructure (14 platforms) and exploration and production licences.

The bpTT-owned Galeota terminal is not part of this transaction and the TSP’s new owners will pay the company a fee for the processing and handling of TSP liquids.

BpTT chairman Robert Riley hailed yesterday’s agreement and said it was a win-win situation for all parties involved. Riley also praised members of the TSP team for keeping the fields operating safely and efficiently during this transition period.