BP is looking to expand its Calypso project in Trinidad and Tobago while offloading less productive assets. Credit: JuliusKielaitis/Shutterstock.

BP is close to reaching an agreement to sell a portion of is Trinidad and Tobago oil and gas assets to Anglo-French oil company Perenco, three sources close to the matter told Reuters.

Currently, BP is Trinidad and Tobago’s largest natural gas producer, with an output of more than 1.3 billion cubic feet per day (bcf/d). Around 18% of BP’s liquefied natural gas (LNG) production came from the nation in 2022, with most of it being exported to Europe and Latin America.

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Nevertheless, BP’s gas output has fallen by around 80% in the past five years, and the company is in talks to develop a deepwater natural gas field off the coast of Trinidad and Tobago in an effort to raise production. The project, known as Calypso, is supported by Trinidad’s Government as it looks to encourage offshore drillers to bring gas discoveries to market amid domestic shortages.

BP is looking to offload some of its less productive assets in the region. According to the sources, it is discussing the divestment of its Amherstia, Cashima and Immortelle fields with Perenco. Up until 2004, the fields had a combined output of close to 2bcf/d, but this has declined significantly to a combined total of just 200 million cubic feet per day.

“We are close to agreeing on a final price and signing on the dotted line. This will ensure that Perenco can continue to maintain or even increase production from those fields,” one of the sources told Reuters.

Perenco currently operates the Teak Samman Poui asset in Trinidad, which produces 10,000 barrels of oil equivalent per day. The French company has recently been expanding, buying stakes in several non-core oil permits in Congo from Eni for $300m in March. In its gas division, it started production at its C06 well within the Ravenspurn South Area of the Southern North Sea in March.

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A second person familiar with the transaction said: “We will have a deal and announcement well before the end of the summer.”