T&T and Venezuela cancel gas exploitation deal

T&T and Venezuela cancel gas exploitation deal

Trinidad and Tobago and Venezuela have agreed to independently develop the field within the Loran-Manatee cross-border that falls within its marine area. As such, both countries have agreed to rescind the Unitization Agreement for the exploitation and development of hydrocarbon reservoirs of the Loran- Manatee Field.

Speaking at the opening of the 2020 Energy Conference this morning, Prime Minister Dr. Keith Rowley said progress in the development of the unitised Loran- Manatee field has been impeded by the sanctions imposed by the US Government, which inhibits US companies from doing business with Venezuelan Oil Company, PDVSA. This impacts on the ability of US company Chevron, which has a 60% interest in the Loran field, to participate in the development of the Loran-Manatee Field.

Dr. Rowley said that the Loran-Manatee has an estimated resource of 10.04 tcf, with 2.712 tcf within the Manatee field. Shell Trinidad and Tobago Limited holds 100% interest in the Manatee field and has projected that gas production could start in the 2024/2025 period at rates ranging from 270 to 400 million standard cubic feet per day.

He confirmed that Shell is in conversation with the Government and is working on various development scenarios to determine the best option.

This major policy shift which frees up investment and development of Manatee gas also provides easy access to market for all gas from these fields if the circumstances permit
and the owners so desire.

Loran-Manatee Field is a landmark decision in the countries’ cross-border relationship. This has implications for development for other cross-border fields such as the Manakin- Cocuina and the Kapok-Dorado which collectively have an estimated 850 billion cubic feet of natural gas within the Trinidad and Tobago maritime area.

The Field extends across the delimitation line between the countries and was signed and executed on August 16, 2010, for the independent development of the cross-border field, Loran-Manatee.