Above: Port of Spain Harbour (CJ Photo)

By the Caribbean Journal staff

Trinidad and Tobago and BHO Billiton have signed production-sharing contracts for four deepwater blocks.

The PSCs for the four blocks were awarded after what Trinidad called the “most successful deepwater bid round in 14 years.” Each PSC has an initial phased exploration period of up to nine years. Where a commercial discovery is made, the contract term is automatically extended to 30 years.

Trinidad’s Ministry of Energy said activity related to the PSCs was expected to generate a “minimum investment of approximately $565 million for the mandatory exploration phases and a further $459 million over the optional exploration phases.”

The signing “has the potential to radically reshape the economic landscape of this country in coming years,” said Energy Minister Kevin Ramnarine.

“It is a significant achievement for the government and the nation as we seek to increase oil and gas revenues, the main contributor to our economic development,” he said. “We look forward to partnering with BHP Billiton to enhance the energy security of this country for this generation and the ones to come.”

Australia-based BHP has operated in Trinidad for 15 years.

“Trinidad and Tobago remains an important part of BHP Billiton’s portfolio,” said Vincent Pereira, country manager for BHP in Trinidad. “This new exploration acreage is evidence of our continuing commitment to Trinidad and Tobago.”