WHOLLY State-owned National Gas Company of T&T (NGC) said yesterday it has acquired Heritage Petroleum Company’s non-operated joint venture (NOJV) participating interest in Block 3(a), off Trinidad’s east coast. Heritage Petroleum is also a wholly State-owned company and is one of the successors of Petrotrin.
In a news release, NGC said that as a result of the acquisition, NGC has increased its participating interest in the block from 11.41 per cent to 31.54 per cent.
NGC will now have access to additional equity crude, which will bolster its marketing and trading portfolio the company said.
NGC did the acquisition through its wholly-owned subsidiary NGC Caribbean Investments Ltd (NCIL).
NGC previously executed a gas sales contract with BHP to purchase 100 per cent of the gas produced from Block 3(a) to add to its existing portfolio of natural gas supply. The announcement of the gas sales contract was made in July 2020.
NGC said a key point to note is that NGC’s acquisition of Heritage’s participating interest in Block 3(a) allows the Government of Trinidad and Tobago to maintain its investment stake in the acreage.
T&Ts gas aggregator said the maintenance of the States stake in the block bodes well for the country as the intent is to seek value optimisation from this ownership by deriving the maximum financial benefits which will redound to the nation.
Development of oil and gas production from the Ruby and Delaware reservoirs consists of tieback of five production wells and one gas injector well to existing operated processing infrastructure on Block 2C about 8 kilometres east. First oil production began in May 2021, with gas in commercial quantities expected imminently.
Commenting on the acquisition, NGC president Mark Loquan said: “NGC continues to demonstrate its resolve to deepen participation in the domestic energy sector, and to expand its suite of commercial investments along the energy and natural gas value chain. Our increased stake in the upstream sector signals our commitment to creating value for Trinidad and Tobago, strengthens our position in the upstream and enables us to collaborate more closely with our partners in that sector.
“Through this acquisition, we are also building a stronger commodity trading portfolio, diversifying our income stream and declaring our brand as an integrated energy player.”
NGC noted that it is already invested in both the upstream and downstream sectors and is leveraging these investments to increase the value generated for the country from its business.
“This acquisition represents another step towards the realisation of NGC’s growth strategy, which targets a greater presence for the company along the natural gas value chain. NGC will continue to evaluate the strategic fit of other acquisitions, including other offshore NOJVs,” the State gas company said.
It said the company is continuing its strategic focus to develop a world-class energy portfolio.