An auction of deepwater oil and gas exploration and production blocks in Trinidad and Tobago has failed to attract significant interest from foreign investors, with bids submitted for just four of the 26 areas on offer.
The bidding round closed on Wednesday with bids from China's CNOOC for three areas and a consortium of smaller energy firms for another block, Trinidad's Ministry of Energy said.
With several auctions in Latin America this year and a limited number of deepwater energy players, Trinidad is realistic about the challenges of getting significant bids, said junior energy minister Ernesto Kesar.
The twin-island Caribbean country, Latin America's largest exporter of liquefied natural gas, has been pushing producers, especially those offshore, to accelerate natural gas output so it can increase utilization of its gas processing capacity and exports.
The auction, which included blocks bordering Venezuela and Guyana, follows a key separate agreement with Exxon Mobil XOM.N that will allow the U.S. oil major to explore a large area equivalent to seven ultra-deepwater blocks and could bring as much as $21.7 billion to the country if reserves are found.
The auction was originally expected to close on July 2, but was extended to September after Trinidad's energy ministry said potential bidders needed more time to assess the data.
Trinidad does not currently have any production from its deepwater acreage. But Woodside Energy WDS.AX is considering the development of its Calypso gas discovery and BP BP.L and Shell SHEL.L have recently completed seismic work at three deepwater blocks.
Trinidad's deepwater and ultra-deepwater plays are thought to have different geological formations.
(Reuters - Reporting by Curtis Williams)