EVEN before the first cubic feet of gas is sold from the Manatee field, the Prime Minister has assured the country will benefit from the project.
Speaking at the signing of the Manatee production sharing contract between TT and Shell at Hyatt Regency, Port of Spain on Wednesday morning, Dr Rowley said there is no need to wait until 2025 to see benefits of the contract. He said monies will come from the “suite of annual charges”, the first of which will be payable within the first ten days of the contract.
“These include an administrative charge of US$300,000 increasing at four per cent per annum; training and research and development contributions of US$150,000 per annum increasing at six per cent annually until the start of production, when contributions will equal 0.25 per cent of the value of the contractor’s share of profit petroleum. There are also a one-time technical bonus of US$200,000 to the (Energy) Ministry, an annual scholarship contribution of US$100,000 per annum, increasing at six per cent annually and a signature bonus of US$15 million.”
The singing comes two years after a deal between TT and Venezuela to access the Loran/Manatee gas field, which straddles the two countries, collapsed. US sanctions against Venezuela forced TT to withdraw from the planned deal in October 2019 and TT had to renegotiate to mine this country’s part of the gas field with Shell.
“The decision to proceed independently on the development of the cross-border fields created the opportunity for both the Government as resource owner and Shell as contractor to monetise what would be one of the country’s largest natural gas fields to date” Rowley said.
He added that the contract for Manatee (sub-block 6d) is for 25 years, with gas production beginning as early as 2025. Initially it is estimated that production will begin at 350 million standard cubic feet (mmscfd) daily before increasing to 700 mmscfd.
Natural gas, according to Henry Hub on Wednesday, sold for US$5.07 per MMBtu (metric million British thermal unit). One mmscfd is equivalent to 1,040 MMBtu.
Energy Minister Stuart Young said TT is at the forefront of the global conversation regarding natural gas, which is here to stay.
“What I would like TT to understand is gas is here to stay and that was our message to the Gas Exporting Countries Forum (GECF). I told all the other ministers (at the forum) that it is time that we come to the forefront of this conversation while we are working to reduce carbon emissions. Gas is the way forward. Gas is current and it will carry us forward as the cleanest carbon fossil fuel into the future.”
Shell’s vice president and company chair for TT, Eugene Okpere thanked Rowley for his vision in allowing Shell, an independent developer, to be part of the process and Young for his “tireless commitment.” Okpere joked that he learnt what a “bouf” was having received “quite a bit” throughout the negotiations.
“Shell is in the forefront of trying to accelerate the energy transition. We call it the power in progress strategy. G
