Andrea Perez-Sobers
Senior Reporter
andrea.perez-sobers
@guardian.co.tt
BP is taking full control of one of Trinidad and Tobago’s largest, undeveloped offshore gas discoveries, a move energy experts say could accelerate development of a project expected to strengthen the country’s long-term gas supply and export capacity.
The London-headquartered, multinational energy giant yesterday agreed to acquire Woodside Energy’s 70 per cent interest in Block TTDAA 14, giving BP 100 per cent ownership of the Calypso gas project and operatorship once the transaction receives regulatory and Government approval. The deal is expected to close by the end of 2026.
Calypso is an early-stage deepwater natural gas project located offshore north-east of Tobago. BP already has an extensive presence in T&T as the country’s largest supplier of natural gas and holds a 45 per cent stake in Atlantic LNG.
BP executive vice president for Upstream, Gordon Birrell, said the acquisition builds on the company’s existing operations and infrastructure and has the potential to unlock new production while supporting long-term growth in the region.
Energy sector expert Dr Thackwray Driver described the acquisition as a major boost for the country’s natural gas industry, saying it signals BP’s intention to move the long-delayed project towards development.
He estimated Calypso contains about 3.5 trillion cubic feet of natural gas and noted that exploration drilling began more than a decade ago. Additional appraisal wells followed in 2021 as engineers worked through the technical challenges associated with developing a deepwater field.
Driver explained that the block was originally awarded to BHP, whose petroleum assets later became part of Woodside Energy following the merger of those companies. BP previously held a 30 per cent stake in the project.
He said BP is expected to connect Calypso’s gas production into Trinidad and Tobago’s existing gas network, with much of the output likely destined for Atlantic LNG and international export markets.
While stressing that the acquisition does not represent a final investment decision, Driver said purchasing Woodside’s stake demonstrates BP’s commitment to advancing the project.
He cautioned that production remains several years away because of the technical complexity of deepwater development. However, once a final investment decision is made, engineering, construction and drilling activities would generate economic activity, although much of the specialised spending would flow to international contractors supplying drilling rigs and subsea equipment.
He added that once production begins, the country would benefit from higher gas volumes, increased LNG exports and additional upstream tax revenues.
Former energy minister Carolyn Seepersad-Bachan also welcomed the acquisition, calling it an important step towards bringing another significant offshore gas resource into production.
She said consolidating ownership under BP should simplify commercial decision-making, improve project governance and increase the prospects of reaching a final investment decision more quickly.
Seepersad-Bachan said Calypso’s history also highlights the need to modernise T&T’s petroleum legislation, production-sharing contracts, unitisation framework and regulatory approval process to reduce the lengthy period between licence awards, discoveries and first gas.
She argued that accelerating future developments such as Calypso, Manatee and Dragon will be critical to restoring upstream production, sustaining the downstream energy sector, strengthening foreign exchange earnings and maintaining T&T’s position as the Caribbean’s leading natural gas producer and LNG exporter.
