Trinidad and Tobago auctions 26 deepwater oil and natural gas blocks at the largest ever auction

Official notices state that Trinidad and Tobago offered 26 offshore oil and natural gas blocks on Tuesday in its largest ever auction of deepwater exploration and production areas.

In order to fully utilize its gas processing capability, the twin-island Caribbean nation, Latin America's biggest exporter of LNG, is pressing producers, particularly those offshore, to increase natural gas production.

Trinidad and Tobago is trying to secure sufficient gas supplies for its LNG and Petrochemical sectors by offering new blocks bordering Venezuela and Guyana.

In a notice published in the local newspaper, it was stated that the auction would close on July 2 and awards were expected three months after.

According to the terms of the auction, the government's share in any discovered oil or gas will be a key metric used for awarding contracts. The companies will have up to 10 year to finish the exploration.

Woodside Energy, which owns Trinidad's deepwater acreage but does not produce oil or gas yet, is looking at developing its Calypso find.

Shell and BP, two of the world's largest energy companies, operate three deepwater blocks in which they have recently completed seismic work.

(source: Reuters)