bpTT Sells Mature Gas Assets and Parang Field to Perenco T&T

bp Trinidad and Tobago (bpTT) has reached an agreement with Perenco T&T to divest its Immortelle, Flamboyant, Amherstia, and Cashima offshore gas fields, along with associated production facilities. The deal also encompasses the undeveloped resources from the Parang field. bpTT, which currently holds sole ownership and operational control of these assets, will transfer these mature fields, which have been in production since 1993 and collectively produce about 30 thousand barrels of oil equivalent per day.

As part of the transaction, bpTT will continue to purchase the gas produced from these fields to fulfill its existing contractual commitments. This strategic move allows bpTT to streamline its portfolio while ensuring ongoing compliance with its contractual obligations.

Both bp Trinidad and Tobago (bpTT) and Perenco T&T view the agreement as a mutually beneficial arrangement. For bp, it aligns with their strategy to simplify operations and focus on higher-value assets, while for Perenco, it provides an opportunity to broaden its presence in Trinidad and Tobago. Perenco plans to invest in the acquired assets to unlock additional gas reserves and enhance production capabilities, making the most of the established fields.

This divestment follows bp’s recent advancements in Trinidad, including the 2023 award of three deep water blocks in collaboration with Shell and participation in the 2024 shallow water bid round. Additionally, bp secured a license for the Cocuina field in Venezuela, which could lead to the development of the Manakin-Cocuina cross-border gas field. Furthermore, bp established a joint venture with EOG Resources to develop the Coconut field, reflecting a strategic expansion in key areas.

Armel Simondin, CEO of Perenco, expressed enthusiasm about the acquisition, highlighting it as a significant step for Perenco's expansion in Trinidad and Tobago. Since entering the market in 2016, Perenco has successfully executed projects at the mature TSP asset, becoming a major gas supplier domestically. The new fields will benefit from Perenco's expertise in managing mature assets, aiming to further develop their resources. Simondin also welcomed the bpTT employees transferring with the assets and emphasized the collaboration's role in bolstering Trinidad and Tobago's energy security, marking a key milestone in the country's gas supply history.

bpTT President David Campbell highlighted that the divestment of these mature assets aligns with the company’s strategy to refine its portfolio in Trinidad and Tobago. By focusing on the development of shallow water gas fields and exploring opportunities in deep water and cross-border resources, bpTT aims to accelerate gas production and enhance value creation. Campbell also noted that Perenco’s expertise in managing mature assets will help extend the production life of the fields and maximize resource recovery, supporting Trinidad and Tobago’s energy future.

bpTT will retain operational control of the assets during a transition period. Ownership and operatorship will be transferred to Perenco T&T upon completion of the transaction, which is anticipated by the end of 2024. This transition phase ensures continuity and a smooth handover of responsibilities between the two companies.