Chevron to make T&T exit

Chevron is selling all of its shares in Trinidad and Tobago to Shell’s BG International Ltd. in a US$250 million deal.

Image from Chevron Facebook.

The deal, signed earlier this week on 29 May, is for Chevron Trinidad and Tobago Resources SRL (CTTR), in addition to all of Chevron’s stake in Trinling Ltd., an LNG marketing and transportation company.

Shell subsidiary BG Gas International Holding will also take CTTR’s non-operated interest in Block E, Block 5(a) and Block 6, in the East Coast Marine Area offshore Trinidad.

“Chevron Corp. confirms it will be exiting Trinidad and Tobago. This sale supports Chevron’s ongoing efforts to manage our global portfolio and captures good value for the corporation,” Chevron told OE in a statement.

CTTR holds 50% interest in the Shell-operated Block E, Block 5(a), and Block 6, which includes the Dolphin, Dolphin Deep, and Starfish natural gas fields.  

The Dolphin field consists of a 13-well platform, the Dolphin Deep Field consists of two subsea wells tied back to the Dolphin platform, and the Starfish Field consists of three subsea wells tied back to the Dolphin Platform.

In 2016, net daily production from the three fields averaged 74 MMcf natural gas. These volumes were sold under long-term sales contracts to supply the domestic market and for LNG exports, according to Chevron.

Chevron also holds 50% stake in Trinling, which ships and sells LNG worldwide; and 50% stake in its operated Manatee natural gas field.

“Chevron does not anticipate any impact on the Loran-Manatee project.  The governments of Trinidad and Tobago, Venezuela, and the partners PDVSA, Chevron and Shell remain committed to progressing the development of this important project.  Chevron will continue as operator of the Loran-Manatee unit,” says Chevron.

The Manatee discovery is a single cross-border field with Venezuela’s Loran Field in Block 2. Cross-border agreements between the governments of Trinidad and Tobago and Venezuela have been signed, and in 2016, work continued on maturing commercial development, according to Chevron.

The deal is expected to close in the end of Q2 2017.  

“TT [Trinidad and Tobago] represents a rich opportunity for us to continue building our integrated gas position in country and securing new competitive production,” says Shell T&T Vice President Derek Hudson, according to news reports. “Shell continues to actively evaluate other options to increase supply from our existing assets, as well as pursue additional opportunities such as the previously announced purchase of Centrica’s interests in the North Coast Marine Area.”