BpTT mum on alleged asset sale to Perenco

The content originally appeared on: Trinidad and Tobago Newsday

bp Trinidad and Tobago (bpTT) head office in Port of Spain. – File photo

Sources at bpTT could neither confirm nor deny reports of an alleged divestment of three of its gas fields to French oil and gas company Perenco, as reported by international news sources.

Newsday called corporate communications officer Luis Araujo, who said the company could not comment on the reports at the time. However, multiple news sources in the energy sector have reported that bpTT was expected to close a deal to sell the Amherstia, Cashmia and Immortelle fields to Perenco.

A Reuters report said the two companies are in talks over the fields. According to the report, if the fields are divested, it could result in a 15 per cent reduction of bpTT’s 1.3 billion cubic feet per day (bcfd) in production in TT.

BP – the global parent company for bpTT – reported on its website US$15.2 billion in profits for the financial year ending in December 2023, compared to a US$2.5 billion loss the year before.

Murray Auchincloss, CEO of BP, expressed the international oil giant’s intention to transition from an oil company to an integrated energy company.

“Our destination remains unchanged – from IOC to IEC – focused on growing the value of BP,” he said.

“We are confident in our strategy on delivering a simpler, more focused and higher-value company, and committed to growing long-term value for our shareholders.”

A section of the company’s financial results titled 2024 Guidance said BP expected proceeds from divestments and other actions amounting to US$2-$3 billion, weighted toward the second half of the year.

It said the company realised $17.8 billion in divestment and other proceeds since the second quarter of 2020. The financial report said it plans to reach $25 billion in divestment and other proceeds by the second half of 2025.

BpTT, however, has shown interest in continuing production in TT, with the award of three deepwater exploration blocks through a consortium between itself and Shell.

Although the divestment of the blocks to Perenco has not yet been confirmed, Newsday understands that the two companies have had divestment deals before.

In 2010, BP announced plans to divest up to $30 billion in assets by 2011. The company sold assets in the UK North Sea to Perenco UK to the tune of $400 million.

Perenco, which does about 10,000 barrels of oil equivalent per day (BOEPD) in TT, affirmed on its website its intention to have a key role in the energy transition of the countries in which it operates.

“Gas will be more important in the company, in accordance with the host countries’ energy transition policies. We will do more locally to support its development and more internationally to feed it with new innovations. We know there is much more that can be done in these countries with these fields. There are unlimited resources to be found in what already exists,” the company said on its website.