Trinidad Reduces Goudron Field Royalty Rate

LGO Energy plc has been notified by the Petroleum Company of Trinidad and Tobago Limited that overriding royalty rate reductions for the company's production at the Goudron Field in Trinidad have been approved.

The reductions will come in to effect from March 16, and will apply to sales made from February 1. These new royalty rates, which apply to production at oil prices below $50 per barrel, will see the royalty rate on the majority of barrels produced cut by over 40 percent to rates below 10 percent. This will have a net revenue benefit at current oil prices and production levels of approximately 10 percent to Goudron E&P Limited, LGO's wholly owned Trinidadian subsidiary which operates the Goudron Field.

LGO's Chief Executive Neil Ritson commented in a company statement:

"We are delighted that the mutual benefits of encouraging investment by reducing royalty rates at this time of lower oil prices have been recognized. LGO has responded by increasing the level of ongoing investment, as recently reported, and this will be good for the company, its investors and for Trinidad generally."



Have a news tip? Share it with Rigzone!
Email news@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
john weaver | Mar. 24, 2016
Trinidad is real smart . Protect the goose that lays the golden eggs.


Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Rigzone Staff
e-mail us at news@rigzone.com
 -  Farstad Shipping Sells AHTS Lady Sandr... (Sep 27)
 -  Real Energy Prepares for Tamarama-1 We... (Sep 27)
 -  Trelleborg Appoints Unique Group as it... (Sep 27)
 -  Neptune Marine Services Bags Quadrant'... (Sep 27)
 -  Richad Dyson Appointed New CEO of IO O... (Sep 27)


Most Popular Articles

From the Career Center
Jobs that may interest you
Contracts Administrator
Expertise: Contracts Administration
Location: Houston
 
Operator Qualification Specialist
Expertise: Environmental, Safety & Training|Operations Management|Regulatory Compliance
Location: Cushing, OK
 
Contract Administrator
Expertise: Contracts Administration
Location: Houston, TX
 
search for more jobs

Brent Crude Oil : $47.35/BBL 3.18%
Light Crude Oil : $45.93/BBL 3.25%
Natural Gas : $2.99/MMBtu 1.01%
Updated in last 24 hours