Heritage Petroleum has 20 per cent working interest in the block. (File photo)

Heritage Petroleum renews exploration and production licence with T&T Gov’t

Heritage Petroleum has 20 per cent working interest in the block. (File photo)

Heritage Petroleum Company Limited last week announced that it has finalised negotiations with the Trinidad and Tobago Government for a new licence to explore and produce oil and gas in its offshore acreage.

The previous licence expired in November 2019.

Both parties officiated the signing of the licence at the Ministry of Energy and Energy Industries’ (MEEI) International Waterfront Centre office in Port of Spain on January 20, with team members from Heritage Petroleum and MEEI witnessing the event.

More acreage equals more value

In his comments on the occasion, Heritage Petroleum Chairman Michael Quanima said, “The licence will further unlock the value of the company’s offshore resources through a new and more robust phase of exploratory activity. The new licence provides the security we need to continue to execute our commercial strategy in the offshore area.”

Chairman of Heritage Petroleum Company Limited Michael Quanima (Photo: Trinidad Express)

Under this new licence, Heritage will have combined access to Trinmar Licensed Area and the North Marine Licensed Area, creating a single block that covers just over 96,000 hectares of offshore acreage. As a result, the area will become the largest offshore exploration and production block on the west coast of Trinidad.

“The successful negotiation of this new license will not only allow Heritage to progress current opportunities, but also carve out new prospects in the area. This will ensure the full commercial potential of the area is achieved, maximising the economic value for the people of Trinidad and Tobago,” Heritage Petoleum’s Chief Executive Officer Arlene Chow elaborated.

A win-win for T&T’s Gov’t

Over the next six years, the lifetime of the licence, the Government of Trinidad and Tobago stands to collect TT$100 million for exploration and production activities. This pales in comparison to the taxes the company has paid out.

Minister of Energy and Energy Industries Senator Franklin Khan and Heritage Petroleum CEO Arlene Chow sign a new licence agreement for two blocks off the west coast of Trinidad on Wednesday, January 20, 2021. The exploration deal is worth $100 million.
(Photo courtesy of MEEI) 

“I would like to publicly congratulate the performance of Heritage over the last two years. They have been the flagship State enterprise. As we speak, they have made, in their first year of operation, a profit of $1.4 billion, paying the State in excess of $800 million in taxes and from all indications they will repeat that performance in 2020 when the audited financials are completed,” Senator Franklin Khan, minister of energy and energy industries, remarked at the signing ceremony.

He further reasoned that given Heritage Petroleum’s performance thus far, the Government’s decision to restructure Petrotrin was justified, and that this new license will further strengthen the company’s performance.