EOG Inks Exploration Deal with Trinidad

EOG Resources has signed a production sharing agreement on Monday with the government of Trinidad and Tobago to explore offshore the eastern coast of Trinidad & Tobago, government officials said.

EOG plans to invest US $15 million to conduct 3D seismic studies and on two exploration wells in the block, which is in an average water depth of about 330 feet. The area, known as the Lower Reverse "L" block, was one of seven offered in a competitive bid round that resulted in a single bid offer, from EOG.

Energy Minister Eric Williams said negotiations were initiated with EOG in February and were concluded in early April. EOG has been active in Trinidad since 1992 when it went into partnership with the state-oil company Petrotrin and the state-owned National Gas Company on the South East Coast Consortium Block under an exploration and production license. Williams said over the past six years, production sharing contracts resulted in the acquisition of more than 3,861 square miles of 3D seismic data. "The result of this activity is that approximately US $1 billion has been committed to the exploration and development of resources and additionally, there has been a more informed insight into the geology and hydrocarbon prospect of the region," Williams said.