Royalties deal gives Trinity extra f lexibility

trINIty, the Aberdeen-based driller focused on trinidad and tobago, has cemented its control over its key trientes field in a royalties deal with the country’s state oil company.

Petrotrin will relinquish its 35 per cent stake in the producing field in exchange for the agreed royalties, leaving trinity with a 100 per cent interest.

A back-dated agreement on oil pricing for the field has also been signed.

the company said the changes will improve drilling efficiency and therefore reduce costs.

trinity is preparing to re-start production at trientes after a pause to upgrade its rig. the restart has been delayed by severe weather off trinidad’s east coast, but operations are expected to start shortly with the drilling of a new well.

the trientes field is part of the Galeota licensing area, described as one of trinity’s key assets.

the firm’s chief executive, Monty Pemberton, said: “trinity strongly believes in the potential of the Galeota licence, which has all the necessary components to build a significant production hub – that is, infrastructure, existing production and a significant development, appraisal and exploration inventory.”

he said the new arrangements will increase trinity’s financial and operating flexibility, enabling it to make further investment in the block.

trinity recently made a further discovery in the Galeota region and is carrying out engineering studies to start developing it. yesterday’s agreements apply only to trientes.