Trinidad and Tobago has signed a production sharing agreement (PSA) with a BP unit for exploring and producing natural gas in a shallow water block.

This agreement is part of the Caribbean nation's strategy to enhance gas output, supporting its LNG facilities, reported Reuters.

This PSA follows an offshore bidding round launched by the country on 2 October 2023 and closed on 27 May, reported the Trinidad and Tobago Guardian.

BP has signed a contract for Block NCMA 2 in Trinidad's NCMA, at a water depth of approximately 200m.

This marks the second agreement for the country following a similar deal with Shell in September for the highly contested Modified U(c) block.

Trinidad and Tobago Minister of Energy Stuart Young said: “The Ministry of Energy and Energy Industries continues to aggressively market and execute concessions to promote exploration and investment in the upstream.

"This marks the second PSC [production sharing contract] signed in record time in 2024 and the Ministry of Energy and Energy Industries is committed to working with upstream operators to boost the supply of hydrocarbons and secure Trinidad and Tobago’s energy future.”

Block NCMA 2 marks a significant milestone for the company’s unit as this is its first venture into the North Coast region.

According to bpTT, NCMA 2, situated around 30 miles off Trinidad's north coast, will open a new exploration frontier for the energy multinational in Trinidad and Tobago. This is especially notable as all current production is sourced from the Columbus Basin off Trinidad's east coast.

In a statement issued by bpTT, the company's president, David Campbell, said: “Continued exploration activity is crucial for sustaining our industry and I am very pleased that we have secured this block. The NCMA area is new to bp in T&T and I am looking forward to maximising its potential. Although geographically new to us, we will be able to draw on our 50-plus years of exploration experience in Trinidad and Tobago.”