Big returns for TT from US$M contracts

After the signing of a US$44 million PSC between the Government and Canadian Superior Energy Inc at the Hilton Trinidad on Wednesday night, Williams said July would stand out as a milestone in Government’s development plan for the local energy sector.

"Over the last two weeks, the Government has entered into production sharing contracts with three separate consortia for the exploration and development of five offshore blocks arising out of the 2003/2004 competitive bid round," he said.

Petro-Canada, Petrotrin, EOG Resources, Kerr McGee and Primera Oil and Gas were the other companies which signed PSCs with the Government this month to undertake EP offshore activities.

Given the record number of PSCs signed this month, Williams said he was confident Government would soon establish "a local energy industry that will encourage sustainable growth in related and peripheral industries, toward the creation of a national economy that can and will generate sustainable wealth and employment into the future."

Williams had previously said TT would gain significant benefits from PSCs with energy companies and hinted these could be increased once the new oil and gas taxation regimes take effect.

Williams also said Canadian Superior would drill in excess of three wells off Trinidad’s East coast within the next year and the available data showed there was promise within the area where the company’s EP activities would be focused.

Canadian superior vice-president (east coast operations) Michael Coolen said the company had identified TT as a "world class growth basin" for its operations in 2002 and it held firm to that view today. Company CEO Greg Noval expressed Canadian Superior’s commitment "to work very hard to see that our activities benefit the local people and communities alongside our shareholders."

After the signing ceremony, Williams said Government has not decided if it would exercise its option to purchase 15 percent equity holding in the Teak, Samaan and Poui (TSP) marine acreages by the August 15 deadline.