Centrica signs agreement on Trinidadian exploration gas Block 2(ab)

Centrica plc, the parent company of British Gas, yesterday signed an agreement with the Ministry of Energy and Energy Industries (MEEI) in Trinidad under which it will initially take ownership of a 65 per cent interest in gas exploration Block 2(ab), located off the east coast of Trinidad.  The Petroleum Company of Trinidad and Tobago Limited (Petrotrin) holds 35 percent.

The block was the most widely bid for of any block in the 2006 exploration round, when Centrica were initially awarded it with Tullow Oil.  Tullow have subsequently exited Trinidad and Tobago and consequently Centrica have run a competitive farm-down process to select a suitable partner. Centrica today confirmed it has now signed an agreement to farm-down equity to new partners NIKO Resources (NKO:TSX) and Voyager Energy and will subsequently hold a 29.25% equity stake in the block, subject to approval from the government of Trinidad and Tobago.   

Block 2(ab) is a shallow water offshore block located in a highly prospective region. It lies between the onshore producing Balata East field and the offshore producing Angostura Field which borders the block's eastern boundary.