Energy and Energy Industries Minister, Stuart Young Monday said Trinidad and Tobago is committed to encouraging exploration for future reserves both onshore and offshore as the country received 16 bids on the 11 blocks offered to companies in the government’s 2022 Onshore and Nearshore Competitive Bid Round.
Young told the ceremony that the Ministry has launched a series of bid-rounds including the deep-water bid-round in December 2021, and the Onshore bid-round in 2022, with plans to launch a Shallow Water bid round in the near future.
He said in July last year, the Petroleum Regulations (Onshore and Nearshore Bidding) Order was published in the Gazette, signaling the start of the 2022 Onshore and Nearshore Competitive Bid Round.
Young said a total of 11 blocks located in the Southern Basin, an area known for its transpressional thrust system and Cretaceous-aged Naparima Hill source rock, equivalent to the prolific La Luna Formation of South America, with significant untapped potential for future discoveries, were made available for bidding.
He said interested parties were able to pay the bid fee to encourage as much access as possible to the data provided. In addition, the Ministry has actively promoted the bid round through participation in local and international conferences and events.
Stuart Young said the bid proposal will be evaluated based on the provisions outlined in the Order, including a Point System, which considers a minimum exploration work program for each block, including geophysical commitments, geological and geophysical studies, and drilling.
“Today, six months after the launch of the bid round, we are here to mark the end of the bidding process. The successful bids will be announced by the Ministry of Energy and Energy Industries in three months’ time,” Young said.
He said upon being notified of their success, the successful bidder will be required to execute an Exploration and Production (Public Petroleum Rights) License with the state within 30 days. The initial license period will be six contract years, with the possibility of renewal for an additional 25 years. The term may even be further extended for periods of five years.
“In addition to the minimum exploration work program, the successful bidder will also be required to meet key financial obligations, including a biddable signature bonus, production bonus, technical equipment bonus, environmental bonus, royalties, minimum payments, training and research and development contributions, scholarships and annual surface rental. “
Young said these payments must be satisfied at the contractor’s own expense and are intended to support the ongoing development and exploration of the energy resources of Trinidad and Tobago.
Stuart Young said, going forward, the government is planning its Shallow Water Competitive Bid Round, which is expected to be launched within the first quarter of 2023.
CMC/
