Trinidad and Tobago Awards Licenses for Five Hydrocarbon Blocks

The Government of Trinidad and Tobago has awarded licenses for five blocks in the country’s 2022 onshore and nearshore competitive bidding round.

Grant of Licenses

Energy and Energy Industries Related Minister Stuart Young told the signing ceremony that the blocks are located in the central and southern onshore areas of Trinidad and have significant untapped potential for future discoveries.

“The grant of these licenses will allow our country to progress current opportunities within these acreages and identify new prospects. This exercise is a part of the government’s ongoing program to maximize the exploration and development of the country’s hydrocarbon resource,” Young said.

Fiscal Environment

Young said that the government has taken into account the industry’s concerns and created a fiscal environment that supports investment in the upstream and provides a just return to the state as the resource owner.

Oil and Gas Sector

Young said that the oil and gas sector continues to significantly contribute to the socioeconomic development of the Twin Island Republic, noting that “it is a major revenue earner, a major foreign exchange source, and also a key contributor to domestic downstream activity.

Licensees’ Award

Young said that the licensees’ award results from a very “comprehensive and transparent process” and that the 2022 onshore and nearshore competitive bid rounds opened on July 8, 2022, and remained open for six months.

Financial Obligations

Young said that the key provisions of the approved licenses are the financial obligations to the state and the work program to be undertaken by the licensee.

Young said that the financial obligations include a signature bonus, production bonus, technical equipment bonus, environmental bonus, royalties, minimum payments, and annual surface rent.

Conclusion

The government’s commitment to maximizing the exploration and development of Trinidad and Tobago’s hydrocarbon resources is evident in the award of licenses for five blocks. The fiscal environment created by the government will support investment in the upstream and provide a just return to the state as the resource owner. The oil and gas sector continues to play a crucial role in the country’s socioeconomic development.

FAQs

Q: What is the purpose of the 2022 onshore and nearshore competitive bidding round?
A: The purpose is to maximize the exploration and development of Trinidad and Tobago’s hydrocarbon resources.

Q: How many blocks were awarded licenses?
A: Five blocks were awarded licenses in the 2022 onshore and nearshore competitive bidding round.

Q: What are the key provisions of the approved licenses?
A: The key provisions include financial obligations to the state and the work program to be undertaken by the licensee.

Q: What is the fiscal environment created by the government?
A: The fiscal environment created by the government supports investment in the upstream and provides a just return to the state as the resource owner.

Q: What is the role of the oil and gas sector in Trinidad and Tobago’s socioeconomic development?
A: The oil and gas sector is a major revenue earner, a major foreign exchange source, and a key contributor to domestic downstream activity.