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    Shell Buys Centrica's Trinidad Assets



UK utility Centrica has agreed to sell its entire upstream gas asset portfolio in Trinidad & Tobago to Shell for some US$30 million.

by: Mark Smedley

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Natural Gas & LNG News, Americas, Europe, News By Country, United Kingdom

Shell Buys Centrica's Trinidad Assets

UK utility Centrica said November 30 it has agreed to sell its entire upstream gas asset portfolio in Trinidad & Tobago to Shell for an initial cash consideration of US$30 million. It consists of a 17.3% stake in the producing NCMA-1 block and 80% and 90% operated interests respectively in the undeveloped blocks NCMA-4 and Block 22.

Centrica said the divestment is in line with its strategy to focus its E&P activity in the UK, Netherlands and Norway and to exit its positions in Canada and Trinidad & Tobago.

In addition to the initial consideration, Centrica said it will receive further payments subject to Block 22 and NCMA-4 reaching agreed project milestones. The deal is expected to close in 1H 2017.

Centrica entered Trinidad & Tobago in 2010 with the acquisition from Suncor of interests in NCMA-1 and Blocks 22, 1a and 1b. It was awarded its interest in NCMA-4 as part of a shallow water bid round in the same year. This April, it sold 80% operating interests in Blocks 1a and 1b to De Novo Energy.  

Shell acquired a major upstream portfolio and interest in the Atlantic LNG liquefaction complex in Trinidad & Tobago, through its early 2016 acquisition of BG Group for which the Caribbean nation was a core producer country.

Shell added that "in Blocks 22 and NCMA-4 our partner would be Petrotrin; in NCMA-1 where Shell already has a working interest, our partners are currently Petrotrin and ENI; if this deal reaches a successful closing, Shell would become operator of the exploratory Blocks 22 and NCMA-4, and would continue to be operator in the producing block NCMA-1."


Mark Smedley