Govt
approves TT-Venezuela unitisation pact
The Trinidad Guardian
Port
Spain
Petroleumworldtt.com
03 04 07
Cabinet
has approved the long-awaited framework agreement
for unitisation of hydrocarbon reserves between
T&T and Venezuela, Energy Minister Lenny Saith
said yesterday.
It
has the potential to be another LNG train,”
Saith added of the initiative
It
is the first such cross-border initiative in the
Americas and one of only eight worldwide, he also
said.
The
next step will be for Prime Minister Patrick Manning
and Venzuelan president Hugo Chavez to sign a treaty
to effect the agreement.
The
cross-border framework plan has been in the works
since 2003 when T&T and Venezuela began expediting
the initiative via steering committees and legal
teams.
The
first area involved in the joint project is the
Lorand Manatee field which contains 10 trillion
cubic feet of reserves–27 per cent of which
belongs to T&T, Saith said.
Saith
said the legal team established this month has examined
the situation.
The
draft treaty focuses on general provisions, exploitation
of cross-border hydrocarbon resources, committee
for implementing the treaty, the applicable law
and final provisions.
The
treaty provides for determination and allocation
of the volumes of reserves, the way in which costs
and benefits from the unitisation will be distributed
and construction, operation and use of installations
related to the project.
The
agreement also provides for construction of a cross-border
pipeline
Each
state will continue to exercise civil, administrative
and criminal jurisdiction over the various areas
that fall within the treaty.
Parties
will settle disputes by negotiation through the
respective steering teams and a ministerial committee
from each country. The ministerial teams, for instance,
will decide what the states will do with the gas
reserves.
While
the agreement will have indefinite life, it can
be terminated by any party.
Once
its provisions come into force, both states will
begin discussions on how to commercialise the reserves
of the Lorand Manatee field.
(GA)
Trinidad Guardian
Friday 2nd March, 2007
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©2007 Trinidad Guardian. All Rights Reserved.
