Trinidad and Tobago’s Trinity Exploration signed an agreement with Centrica to acquire the British company’s 80% interests in two offshore blocks.
Valued at approximately US$23 million, blocks 1a and 1b are located offshore the west coast of Trinidad. The assets contain four gas discoveries with aggregate gross contingent resource of 268Bcf of gas.
“We are acquiring four high quality gas discoveries which can be rapidly monetized with a conventional low-cost field development plan,” Joel Pemberton, Trinity CEO, says. “Trinidad is a well-developed, world-class domestic gas market with a need for significant new volumes in the near term. It is our intention to secure a gas sales agreement and finalize a field development plan in the next 12-18 months.”
The two offshore blocks target the basin’s growing set of undeveloped discoveries and provide a significant growth in Trinity’s resource base by 42%, adding 36mmboe 2C resources.
The blocks are 25km from the Trinity’s Brighton Marine infrastructure, which includes seven methanol plants, eleven ammonia plants, one steel plant, and four power generation plants. It is also located close to Atlantic LNG’s giant LNG plant. The producer has a four-train liquefaction facility in Point Fortin.
Although undeveloped, the asset has been is fully appraised, and Trinity is targeting first production in 2017-2018 for sale to the domestic gas market.
Trinidad's domestic market requires additional natural gas supply due to excess demand, as such, market risk is minimal. Approximately US$220 million, invested by previous owners (substantially all Petro-Canada), significantly enhance the project’s economic stability.
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