RE: Gas increase in price30 Dec 2024 15:44
Shell plc’s SHEL Trinidad affiliate, Shell Trinidad Central Block Ltd. ("STCBL"), is set to be acquired by Canadian oil and gas producer Touchstone Exploration for $23 million in cash from BG Overseas Holdings. The move aligns with Touchstone’s ongoing natural gas projects and provides it access to world LNG (liquefied natural gas) prices for natural gas. Moreover, it expands the company’s presence in the Herrera fairway.
An Insight Into SHEL’s Deal
The acquisition of STCBL will give Touchstone a 65% working interest in the Central Block exploration and production license in Trinidad and Tobago. The remaining 35% interest in the central block will be held by Heritage Petroleum Company Ltd.
The agreement includes the acquisition of four wells of STCBL located in the Carapal Ridge, Baraka and Baraka East natural gas pools, producing a combination of natural gas and natural gas liquids.
Shell plc’s SHEL Trinidad affiliate, Shell Trinidad Central Block Ltd. ("STCBL"), is set to be acquired by Canadian oil and gas producer Touchstone Exploration for $23 million in cash from BG Overseas Holdings. The move aligns with Touchstone’s ongoing natural gas projects and provides it access to world LNG (liquefied natural gas) prices for natural gas. Moreover, it expands the company’s presence in the Herrera fairway.
An Insight Into SHEL’s Deal
The acquisition of STCBL will give Touchstone a 65% working interest in the Central Block exploration and production license in Trinidad and Tobago. The remaining 35% interest in the central block will be held by Heritage Petroleum Company Ltd.
The agreement includes the acquisition of four wells of STCBL located in the Carapal Ridge, Baraka and Baraka East natural gas pools, producing a combination of natural gas and natural gas liquids.
The infrastructure to be acquired along with the assets will boost the processing capacity of natural gas in the Herrera fairway and also enable Touchstone to expand its natural gas exports while bolstering its local market supply.
The agreement also lays down the acquisition of three key gas marketing contracts held by STCBL. One of the contracts is for domestic sales and the other two are associated with the Atlantic LNG facility. This dual-market strategy ensures that Touchstone can capitalize on local and global gas prices.
Strengthening Production and Infrastructure
Current production levels of the Central Block include 18 MMcf/d (million cubic feet per day) of natural gas and 200 bbls/d (barrels per day) of natural gas liquids, translating to approximately 3,200 barrels of oil equivalent per day. The block’s assets include an 80 MMcf/d gas processing facility and a network of pipelines. Touchstone plans to optimize the capacities of these facilities, pursue infill drilling and explore further prospects to maximize output. The acquisition will increase the company’s net production by 2,080 boepd (barrels of oil equivalent per day) and imp