The government of Trinidad and Tobago and Woodside Energy have reached an initial agreement on the commercial terms for developing the Calypso deepwater natural gas discoveries, Reuters reported on Tuesday.
The agreement allows Woodside to unitise two deepwater blocks and keep only the acreage where gas discoveries have been made, reducing Woodside’s tax liabilities and upfront payments for development.
Woodside had been seeking improved commercial terms since early 2024, arguing that the production-sharing contract for the Calypso field was designed for a more lucrative oil discovery rather than natural gas. Calypso is estimated to hold 90.6 bcm (3.2 tcf) of natural gas and is licensed to Woodside, with a 70% participating interest, and partner BP, which holds 30%.
Along with other producers in Trinidad, Woodside and BP have been under pressure from the government to expand production and address gas shortages that have been hampering the country’s LNG and petrochemicals production.
Kellyanne Lochan, Woodside’s country manager in Trinidad, confirmed the initial agreement. “We are focused on working with the government and our joint venture partner to move the project forward,” Lochan told Reuters, without offering further details.
The Calypso project is currently in pre-engineering and design phases and agreement will ease the way towards a FID on the project, which the partners have been intending for late 2025.
Source: theenergyyear.com