Shell Secures Key Shallow Water Block in Trinidad and Tobago
In a significant development for Trinidad and Tobago’s energy sector, Shell has been announced as the preferred bidder for a sought-after shallow water block. The decision, reported by Reuters and confirmed by sources close to the tendering process, comes at a crucial time for the nation’s liquefied natural gas (LNG) and petrochemical industries, which have been facing challenges due to declining gas output.
Competing against industry giants bp and EOG Resources, Shell emerged victorious in the bid for the Modified U(c) block, which was the most coveted among the 13 blocks offered in the country’s shallow water auction last year. This win is particularly strategic for Shell, given its substantial stake in Trinidad’s Atlantic LNG project, a joint venture with bp, aimed at increasing gas supply for the project’s liquefaction trains.
The shallow water blocks up for auction are estimated to hold a total of 13.4 trillion cubic feet of gas, according to official figures. Negotiations are currently underway between Shell and the Trinidad Government regarding the terms and conditions of the awarded block.
Strategic Moves in Trinidad’s Energy Landscape
Shell’s victory in securing the shallow water block follows its recent decision to proceed with the development of the Manatee gas field in Trinidad and Tobago’s East Coast Marine Area. As the sole operator under the sub-Block 6D production sharing contract, Shell is set to enhance its integrated gas business through this project, which will involve the installation of a platform connected to an onshore gas processing facility via a 110km pipeline.
The Manatee field, discovered in 1983 and appraised with four wells, spans the maritime border between Trinidad and Venezuela, with the Manatee portion falling within Trinidad’s waters. Shell’s existing fields in the East Coast Marine Area, such as Dolphin, Starfish, Bounty, and Endeavour, are among the nation’s most productive, further solidifying the company’s position in the region.
Industry Impact and Future Prospects
The successful bid by Shell for the shallow water block signifies a strategic move in Trinidad and Tobago’s energy landscape, with the potential to drive growth in the LNG and petrochemical sectors. The company’s ongoing investments in the region, including the Manatee gas field development, are expected to contribute significantly to the nation’s energy production and export capabilities.
With negotiations ongoing and plans in motion for the development of the awarded block, Shell’s presence in Trinidad and Tobago’s energy sector is poised to strengthen further. The company’s partnership with bp in the Atlantic LNG project, combined with its operational expertise and technological capabilities, positions Shell as a key player in the region’s energy industry.
In conclusion, Shell’s successful bid for the shallow water block in Trinidad and Tobago underscores the company’s commitment to driving growth and innovation in the nation’s energy sector. With strategic investments and partnerships in place, Shell is well-positioned to contribute to the development and sustainability of Trinidad and Tobago’s energy resources for years to come.