Energy exploration boom in TT

ENERGY MINISTER Eric Williams predicted that Trinidad and Tobago will see unprecedented levels of onshore and offshore energy exploration over the next two years. Williams made the forecast following the signing of a production-sharing contract be-tween his ministry, EOG Resources Trinidad and Primera Oil Company at the Hilton Trinidad on Wednesday. On Tuesday at the same venue, the Energy ministry signed production-sharing contracts worth US$80 million with Petrotrin and Petro-Canada for offshore acreages in the Gulf of Paria.

“There is going to be a significant amount of exploration activity in the next 24 months. It’s importance is linked to the increase in our reserve base,” Williams said. Apart from the significant socio-economic advantages to be gained from this enhanced level of activity in the coming months, the minister said Government is determined to include provisions to enhance local content and local capability as a fundamental criterion in all future production-sharing  contracts. The acreages to be explored by EOG and Primera are located off Trinidad’s east coast and the cost of drilling two exploratory wells there is said to be US$19 million.

Through negotiations, an agreement of a bonus of US$3 million was made in addition to the usual contributions for administrative fees, training, research and development. The last month has seen significant local content thrusts in the energy sector such as establishment of a state-of-the-art energy sector safety centre by Humming-bird Helicopter Services Ltd; new offshore diving company, Offshore Technologies Solutions Ltd and the signing of a $2.5 billion, 17-year-agreement between Atlantic LNG and Italian company Nuovo Pignone to establish a world class turbine and compressor maintenance and training centre in Point Fortin.