Heritage Petroleum Company has announced the completion of negotiations with the Government for a new exploration and production licence, which will combine the acreage of two major blocks on the west coast of the Trinidad.
The deal was sealed on Wednesday at the Ministry of Energy and Energy Industries (MEEI), Port of Spain and would see Government benefit from a $100 million payment from Heritage over a six-year period.
In a release sent to the media, Heritage said the new deal would combine the total acreage of the two areas into a 96,000-acre block for exploration – the single largest block on the west coast.
The two blocks belonged to Trinmar and North Marine until their licences expired in 2019.
Heritage Petroleum chairman Michael Quamina said in the release that the licence would further unlock the value of the company’s offshore resources.
“The new licence provides the security we need to continue to execute our commercial strategy in the offshore area,” Quamina said.
Energy Minister Franklin Khan congratulated Heritage for their performance over the last two years and lauded them as a flagship state enterprise.
“They have made, in their first year of operation, a profit of $1.4 billion, paying the State in excess of $800 million in taxes and from all indications they will repeat that performance in 2020 when the audited financials are completed,” Khan said.