BP disposes of mature assets in Trinidad and Tobago to chase shallow water, deepwater, and cross-border gas opportunities

On a high-grading quest to refocus its gas business in Trinidad and Tobago, BP Trinidad and Tobago (bpTT), a subsidiary of the UK-based energy giant BP, has sealed a deal with Perenco T&T, part of the Perenco Group, for the sale of four mature gas assets and undeveloped resources from one field.

Thanks to the arrangements made with Perenco, BP, as the sole owner in each of the assets included in the deal, will divest its 1993-commissioned Immortelle, Flamboyant (brought online in 1994 but not currently in production), 2000-commissioned Amherstia, and Cashima (came on stream in 2007) offshore gas fields and associated production facilities.

These four are mature fields but the deal also encompasses the undeveloped resources from the Parang field, discovered in 1968. The assets which are in operation currently produce approximately 30,000 barrels of oil equivalent per day. The deal with Perenco stipulates that BP will purchase the gas produced from these fields to continue to meet its existing contractual obligations.

The UK oil major’s branch in Trinidad will continue to operate the assets for a transition period at the end of which ownership and operatorship of the assets will be transferred to Perenco T&T. This transaction is expected to close by the end of 2024. 

David Campbell, BPTT’s President, commented: “Divesting these mature assets will high-grade our portfolio in Trinidad and Tobago as we focus on continuing to develop our shallow water gas portfolio and pursuing growth opportunities with both deep water and cross-border gas resources.

“This is part of our mission to accelerate gas production, create value and unlock the energy future of Trinidad and Tobago. Meanwhile, Perenco will be able to apply their mature asset expertise to extend these fields’ producing life and support maximum recovery of resources.”

The two companies see this transition as a “win-win” move that supports BP’s drive to become a simpler, more focused, and higher-value company while enabling Perenco to expand its footprint in Trinidad and Tobago, investing in the assets to unlock additional gas reserves and increase the production potential of the fields.

Armel Simondin, Perenco’s CEO, underlined: “This is a welcome opportunity for Perenco to grow our Trinidad and Tobago portfolio, validating our entry into the country in 2016. Over the past eight years, Perenco T&T has completed several ambitious projects at the mature TSP asset and has become a sizeable supplier of gas for the domestic market.

“We will apply our mature field expertise to develop further the resources from these newly acquired fields. We look forward to welcoming the BPTT employees who will transfer with the assets and are delighted to work together with BPTT towards protecting Trinidad and Tobago’s energy security.  We view this as an important milestone in the history of gas supply for T&T.”

This divestment deal with Perenco follows other recent steps BP has taken to progress the optimization of its portfolio in Trinidad, such as the award of three deepwater blocks in 2023, jointly with Shell; its participation in the recent 2024 shallow water bid round; and the grant in July 2024 of a license for the Cocuina field in Venezuela.

While the latter is expected to pave the way for the potential development of the Manakin-Cocuina cross-border gas field, BP also recently established a 50/50 joint venture with EOG Resources (operator) for the development of the Coconut field.

The final investment decision (FID) to develop Coconut has been taken, thus, the first gas is expected in 2027 off the southeast coast of Trinidad in the Columbus Basin. This partnership for the Coconut development is part of the UK firm’s strategy to grow its gas business and unlock the energy future of Trinidad and Tobago.

Campbell, said: “This partnership will allow us to accelerate production from the Coconut field, while giving us the space to progress our Ginger field development and other gas growth opportunities, at a faster pace.

“We are accelerating gas growth while remaining focused on returns to achieve a higher value Trinidad business – one with clear line of sight to material high margin growth over the next several years”