TOUCHSTONE Exploration (Trinidad) has agreed to acquire Shell Trinidad Central Block Ltd (STCBL) from BG Overseas Holdings for US$23 million in cash, pending regulatory approval.
In a release published on its website on December 13, Touchstone said the acquisition involves purchasing all of STCBL’s share capital, giving Touchstone a 65 per cent working interest in the Central Block exploration and production licence in Trinidad and Tobago.
Paul Baay, president and CEO of Touchstone, described the acquisition as "a strategic fit" that aligns with the company’s ongoing natural gas projects.
He said the assets fit with Touchstone's current land base "and provide us access to world LNG prices for natural gas.
"The infrastructure associated with the assets provides processing and takeaway capacity for natural gas in the Herrera fairway."
The Central Block currently produces approximately 18 million cubic feet per day (MMcf/d) of natural gas and 200 barrels per day (bbls/d) of natural gas liquids, translating to about 3,200 barrels of oil equivalent per day (boe/d). Heritage Petroleum Company Ltd holds the remaining 35 per cent interest in the Central Block.
The acquisition includes STCBL's four wells in the Carapal Ridge, Baraka and Baraka East natural gas pools, which produce a mix of natural gas and natural gas liquids.
Touchstone said it plans to optimise existing facilities, pursue infill development drilling and explore a deeper cretaceous prospect to boost production and liquefied natural gas (LNG) sales.
The Central Block's assets include an 80 MMcf/d gas processing facility, the Evergreen facility and a network of pipelines connecting to the domestic market and the Atlantic LNG plant.
"The infrastructure will enable Touchstone to expand its natural gas exports while increasing local market supply. The acquisition also strengthens Touchstone’s presence in the Herrera fairway, where its Ortoire block is already active," the release said.
STCBL holds three key gas marketing contracts: one for domestic sales and two linked to the Atlantic LNG facility. This dual-market access ensures that Touchstone can benefit from local and international gas prices.
The acquisition, effective January 1, 2025, has a four-month-long stop date and is expected to close in the second quarter of 2025, pending approval from the Energy Ministry and other regulatory bodies. Touchstone is in discussions with Republic Bank to secure financing for the deal.
While the agreement outlines a clear path forward, Touchstone said completion is contingent on several conditions, including securing the necessary funding.
The company said it would provide further updates only upon closing or terminating the transaction, owing to confidentiality agreements.
The post Touchstone to acquire Shell’s Central Block assets appeared first on Trinidad and Tobago Newsday.
