Joint Development Discussions for Trinidad Gas Field Underway

Oil major BP and U.S. shale producer EOG Resources are reportedly in talks to collaborate on the development of a natural gas field located off the coast of Trinidad and Tobago, according to a statement by the British company.

The field is said to contain just under 1 trillion cubic feet (tcf) of natural gas, with plans to link it to another BP discovery, increasing the total developable area to around 1.5 tcf of gas. The anticipated timeline for the first gas production is late 2026, with the intention of supplying Trinidad’s prominent liquefied natural gas (LNG) project, Atlantic LNG, where both BP and Shell have stakes.

Trinidad and Tobago is recognized as Latin America’s largest exporter of LNG, as well as the second-largest exporter of methanol and ammonia globally. The output from Atlantic LNG forms a significant portion of BP’s overall LNG portfolio, although challenges have arisen due to decreasing natural gas production from older fields.

A representative from BP’s Trinidad and Tobago unit disclosed that the company is actively engaging in discussions with EOG Resources Trinidad to establish a joint venture for the development of BP’s Coconut field. EOG would potentially serve as the operator for the project, mirroring a similar arrangement they have with BP for the Mento project.

While EOG chose not to comment on the proposed partnership, BP’s Trinidad and Tobago president, David Campbell, expressed optimism in the potential of deepwater exploration for larger discoveries, highlighting ongoing efforts with Woodside Energy to develop the Calypso gas discovery.

BP emphasized their collaboration with EOG to navigate regulatory requirements and finalize commercial agreements for the Coconut joint venture. Stay tuned for further developments in this burgeoning partnership.