PORT OF SPAIN - Trinidad & Tobago has cancelled an agreement with PDVSA for the joint development of a natural gas field because of the US sanctions on Venezuela, the announcement was made by Prime Minister Keith Rowley during the opening of the Trinidad and Tobago Energy Conference and Trade Show at Hyatt Regency, Port of Spain , 3rd to 5th February 2020.
He said: “Progress in the development of the unitized Loran-Manatee field has been impeded by the sanctions imposed by the US Government, which inhibits US companies from doing business with Venezuelan Oil Company, PDVSA , this impacts on the ability of US company Chevron, which has a 60% interest in the Loran field, to participate in the development of the Loran-Manatee Field. As a consequence, the Government of the Republic of Trinidad and Tobago and the Bolivarian Government of Venezuela have agreed to the independent development by each Government of the field within the Loran-Manatee cross-border that falls within its marine area. He also added that the decision to independently develop the fields also has implications for the development of other cross-border fields (gas reserves that are on the Venezuelan side of the border with Trinidad & Tobago) the Coquina and the Kapok-Dorado.
As a result of the development, Shell Trinidad and Tobago Limited, which holds 100 % interest in the Manatee Field, has agreed to develop the field after determining the best option to do so according to Rowley. The Loran Manatee natural gas field was discovered in 1983 and developed by PDVSA and it is located on the continental shelf of the Atlantic Ocean.
Rowley said gas production from the Manatee field could start by 2024 or 2025 at rates ranging from 7 to 11 million cubic meters (270 to 400 million standard cubic feet) per day.
To note that Quilon Enterprises LLC a Shell Oil Products US (Shell), a subsidiary of Royal Dutch Shell plc announced recently that it has formally closed on the sale of Shell’s Martinez Refinery in California to PBF Holding Company LLC (PBF), a subsidiary of PBF Energy, Inc., in exchange for $1.2 billion which includes the refinery and inventory. The deal also includes crude oil supply and product offtake agreements, and other adjustments and as part of the sale, Shell and PBF entered into crude supply and product offtake agreements to continue to supply Shell branded businesses ensuring that Shell customers will continue to have access to quality Shell branded fuels.