T&T signs US$1.8B natural gas development contract – CARICOM Business
Trinidad and Tobago recently signed a 25-year agreement with Shell valued at US$1.8 billion for the development of a large natural gas field.
The Manatee Production Sharing Contract with Shell Trinidad and Tobago Ltd and Shell Trinidad and Tobago Resources SRL is in respect to the shallow-water field that straddles the maritime boundary of T&T and Venezuela. The Manatee field has a surface area of 48.35 sq.km with reserves of 2.712 trillion cubic feet of gas. The Manatee investment is expected to begin producing gas by 2025.
However, T&T will begin earning fees and other financial benefits immediately from a range of charges that begin 10 days from the contract date and are due annually. This includes among others an administrative charge of US$300,000, which will increase at 4% per annum & training and R&D contributions of US$150,000 that will increase by 6% annually.
Extract from CARICOM BUSINESS Vol 4 No. 46
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