The existing contract was due to expire at the end of 2020 and is now replaced by a new Enhanced Production Sharing Contract
The ESPC gives the company with the continuing exclusive right to extract petroleum at Goudron until June 30, 2030. It replaces an existing 10-year production sharing contract which was due to expire at the end of 2020.
The company noted that the ESPC had been anticipated earlier this year but was delayed amidst the coronavirus (COVID-19) pandemic.
Bahamas Petroleum noted that the terms of the EPSC are largely consistent with the terms that previously prevailed under the existing Goudron Production Sharing Contract.
Goudron accounts for around 40% of the company’s baseline daily production in Trinidad and Tobago.
The ESPC award triggers a share issue as it satisfies a condition of a contingent deferred payment under Bahamas Petroleum’s deal to acquire Columbus Energy. A total of 35.75mln new Bahamas Petroleum shares will be issued as a result.
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Read More: Bahamas Petroleum Company PLC extends Goudron field to 2030 as new contract is inked