T&T signs US$1.8B natural gas development contract – CARICOM Business

The signing of the Manatee Production Sharing Contract between the Government of Trinidad and Tobago and Shell Trinidad and Tobago Limited. (Photo via OPM TT)

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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