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Energy giant bpTT has been given a 10-year extension on 92 of its exploration and production licences in the Columbus Basin.

And as a result of this, the State is expected to reap a financial benefit of US$250 million over the next four years.

Energy Minister Franklin Khan yesterday announced the Licence Extension Agreement among the government, bpTT, and Co-Licencees, EOG Resources, Perenco and its Co-Licencees, the National Gas Company and Heritage Petroleum.

The licence extensions are for the to Teak, Samaan and Poui Exploration and Production licences and with bpTT on its East Mayaro Exploration and Production Licence.

The signing ceremony took place at the Energy Ministry’s office located at, Tower C, of the International Waterfront Centre, Wrightson Road, Port-of-Spain.

“The agreement between the parties represents the outcome of continuing negotiations on gas related issues,” a release from the Energy Ministry stated yesterday.

“The first phase which was completed in December 2018 resulted in a ten-year extension of bpTT’s South East Galeota Licence and financial benefit to the State in the sum of $1.0 billion for settlement of legacy issues. Under the terms of this agreement, 91 Teak, Samaan and Poui licences and the East Mayaro Licence have each been extended for a period of ten years,” it stated.

The Energy Ministry said that further discussions have been scheduled between the parties to bring the licences up to date with the modern exploration and production licences.

“The State will benefit from incremental value estimated at US$250 million relative to the period up to September 2024,” it stated.

“The affirmative action taken by the Government in engaging upstream producers has been mutually beneficial. Government’s proactive approach has placed the sector on a more solid and sustainable footing. Government policies have also enabled the country to derive a greater share of revenue from the monetization of the country’s hydrocarbon resources. These outcomes are testimony to the effectiveness of the Government’s energy policies and the positive collaboration with upstream stakeholders,” the Energy Ministry stated.

President of bpTT Clair Fitzpatrick said, “our ability to reach an agreement on these terms demonstrates the strength of our relationship with the Government and provides mutual advantage for all parties.”

“We maintain our confidence in the long-term future of the Columbus Basin and this agreement underpins the continued maximisation of recovery of resources in our existing acreage,” Fitzpatrick stated.