On Tuesday, Trinidad and Tobago signed a production sharing agreement with a unit of British oil and gas producer BP (NYSE: BP) for exploring and producing natural gas at a shallow water block, the energy ministry said.
The agreement follows an offshore bidding round launched by the Caribbean country last year, expected to encourage an increase in gas output to feed liquefied natural gas (LNG) facilities.
“The Ministry of Energy and Energy Industries continues to aggressively market and execute concessions to promote exploration and investment in the upstream,” it said in a release.
The contract with BP (NYSE: BP) for block NCMA 2, located in Trinidad’s North Coast Marine Area in water depths of approximately 200 meters (660 ft), is the second signed after a similar agreement with Shell (NYSE: SHEL) in September for Modified U(c) block, the round’s most contested area.
