Home' Trinidad and Tobago Guardian : May 16th 2013 Contents T&T has put up nine blocks for bids from oil and
gas companies seeking licenses for exploration and
production (E&P) onshore and offshore Trinidad,
according to the Web site of the Ministry of Ener-
gy.The ministry had announced the two competitive
bid rounds would take place this year, when the suc-
cessful bidder from the 2012 deepwater bid round
was announced on December 7, 2012.
On May 9, the ministry s Web site was updated
to say that the onshore competitive bid round 2013
opened in April and will close in August. The offshore
competitive bid round 2013, a deepwater bid round,
also opened in April, but will close in October. In
the deepwater bid round, "six blocks off Trinidad s
east coast are available for bidding," the ministry
Onshore, approximately "64,000 hectares in
Trinidad s southern basin are open for bidding," the
ministry said. They are the Rio Claro Block which
is around 74,954 acres (30,333 hectares), the Ortoire
Block, which is around 44,731 acres (18,102 hectares),
and the St Mary s Block, which is around 37,760
acres (15,280 hectares).
The technical presentation for the onshore blocks,
prepared by the Energy Ministry, and state-owned
oil company, Petrotrin, said the "area of interest (is)
surrounded by producing oil fields with field pro-
duction ranging from seven to 150 million barrels of
Over the last 100 years of commercial oil produc-
tion, T&T has produced more than four billion barrels
of oil (BBO), the presentation said, adding that there
is good existing infrastructure in T&T, as well as a
good data set for well and seismic data.
The St Mary s block straddles Siparia and Moruga.
It is a "southwesterly block lying south of Petrotrin s
Barrackpore Field and adjacent to the Rock
Dome/Catshill Inniss Field," the presentation said.
The Ortoire block straddles Ortoire and Guayagua-
yare. It is a "southeasterly block lying east and on
trend with the Rock Dome/Catshill Inniss Field,"
the presentation said.
The Rio Claro block straddles Rio Claro, Charuma
and Nariva. The Rio Claro Block is east of Petrotrin s
Barrackpore Field and south of the Central Range
Block which is under exploration via E&P licence,
the presentation said.
Deepwater bid round
"An exploration and production licence will be
issued to winning bidder(s) for each block," the min-
istry and Petrotrin said in another presentation dated
April 2013. The presentation said the "licensee under-
takes exploration, drilling and development at its
sole risk and cost" and "revenue to the host gov-
ernment is paid via rentals, taxes and royalties."
Bidders must pay a bid participation fee of
US$40,000, which entitles the bidder to access a
data package for all the blocks in the bid round. As
for the deepwater blocks, requests for nominations
have been made, but the ministry s Web site has not
yet been updated to show which blocks were nom-
inated and are now available for bidding.
Carol Telemaque, Petrotrin s senior manager for
exploration and development, had said during the
official launch of the onshore bid round during the
T&T energy conference in January this year: "Our
expectation is that the award will be done on Sep-
A date has not yet been announced for the award
of the deepwater bid round which closes in October.
Deepwater bid rounds have in the past been extend-
ed.Last year s deepwater bid round, out of which
Australia s BHP Billiton emerged the sole winner,
was hailed by the ministry as "the most successful
bid round in 14 years" in a statement.
Bids were received on five out of the six deepwater
blocks offered, and in total 12 bids were received.
BHP Billiton was awarded four of the six blocks, and
the fifth block was not awarded for want of "suitable
bids" meeting the selection committee s work pro-
Minister Ramnarine had said the BHP Billiton
award would mean an investment of at least US$565
million and at most US$1.023 billion.
New BHP Billiton CEO
On May 14, while giving an overview of the com-
pany s projects in petroleum, among other natural
resources, new BHP Billiton chief executive officer
Andrew Mackenzie made no mention of any projects
planned in T&T.
Speaking at the Bank of America Merrill Lynch
2013 Global Metals, Mining and Steel Conference in
Barcelona, Mackenzie said BHP Billiton s "projects
remain on schedule and budget."
Though the conference was on metals and mining,
Mackenzie briefed the audience on the company s
plans in petroleum and potash, iron ore, copper,
coal, aluminium, manganese and nickel. His pres-
entation covered plans from 2013 through 2016 for
less than or equal to US$500 million, as well as
greater than US$500 million.
Mackenzie s presentation also said BHP Billiton s
capital expenditure will peak in 2013 and decline
He said: "You will recognise my passion for our
productivity agenda and this extends to our devel-
opment projects. We must challenge ourselves to
increase returns from new investment, in the same
way that we need to squeeze returns from our
In this regard, capital and exploration expenditure
for the 2014 financial year will decline significantly,
to approximately US$18 billion, and the rate of spend
is expected to decline substantially thereafter.
"By reducing our annual spend and increasing
internal competition for capital, we expect to max-
imise returns from incremental investment, while
delivering a substantial increase in the group s free
MAY 2013 • WEEK THREE www.guardian.co.tt BUSINESS GUARDIAN
NEWS | BG7
T&T puts up 9 blocks in two bid rounds
Higher domestic fuel
falling crude production
drove Brazil's April
trade deficit to a record
US$994 million, accord-
ing to the latest gov-
In a televised press
conference on May 3,
Brazil's foreign com-
merce secretary Ta-
tiana Prazeres said
higher demand for oil
and liquid fuel deriva-
tives prompted a surge
in imports and drop in
She added that
higher demand was ex-
acerbated by scheduled
downs of offshore plat-
forms belonging to
state-run energy major
"If petroleum de-
rivates were excluded,
exports so far in 2013
would be higher than
they were last year,"
record April deficit was
US$910 million in 1997.
The oil and fuel deriv-
ative sector's commer-
cial deficit for April was
US$2.7 billion, up from
US$1.18 billion during
the corresponding pe-
riod last year.
According to Praz-
eres, the figure was
largely due to a 28.4
per cent jump in foreign
fuel shipments in the
first four months of
2013 to US$14.4bn.
"Imports of fuel and
lubricants led to an in-
crease in imports dur-
ing 2013," Prazeres
said. "In previous years,
it was the purchase of
foreign motor vehicles
that led this growth."
Brazil's overall export
revenue hit US$71.5 bil-
lion in the first four
months of the year,
down 4.1 per cent on
the same period in
2012. (Business News
Links Archive May 15th 2013 May 17th 2013 Navigation Previous Page Next Page