May 29 (Reuters) – The government of Trinidad and Tobago accepted bid recommendations for six of its eight onshore oil and gas exploration blocks, people close to the matter said on Sunday.
The Caribbean country has pushed for expansion of exploration to counter the drop in oil and gas production. Gas and petrochemicals account for a large part of export earnings.
A decision to award licenses for six of the eight blocks offered was taken by the country’s cabinet on Thursday on the recommendation of Trinidad and Tobago’s energy minister Stuart Young, the people said. Young will address an international energy conference in Miami on Tuesday.
A&V Oil and Gas Ltd of Trinidad and Tobago was recommended for the St. Mary’s block, which had received four bids, the most of all bids. A&V beat Canadian energy company Touchstone Exploration Inc (TXP.TO), bidding as Primera Oil and Gas Limited, the people said.
Touchstone was recommended for the Cipero Block, Eco Oil and Gas Solutions for the Tulsa Block and Challenger Energy for the Guayaguayare Block, the people said.
Touchstone, Challenger and Trinity did not immediately respond to requests for comment.
The Aripero Block will go to Nabi Construction (Trinidad and Tobago) Ltd, while the Buenos Aires Block will be awarded to Trinity Exploration & Production Plc.
The winning bids were selected based on their willingness to conduct seismic studies and the number of wells they wished to drill. Some winners also agreed to pay signing bonuses, the people said.
The Department of Energy expects to continue negotiations with companies bidding for the two unassigned blocks to gauge whether they could improve their offers, cabinet sources told Reuters.
Reporting by Curtis Williams in Houston; edited by Diane Craft