Trinidad and Tobago has named Shell as the preferred bidder for a coveted shallow water block, reported Reuters, citing sources.

The decision comes as the nation seeks to revitalise its liquefied natural gas (LNG) and petrochemical sectors amidst declining gas output.

Shell emerged victorious over competing bids from industry giants bp and EOG Resources, sources close to the tendering process told the publication.

This victory is particularly strategic for Shell as it holds a substantial stake in Trinidad's 15.3 million tonnes per annum Atlantic LNG project alongside bp, with both companies actively seeking to increase gas supply for the project's liquefaction trains.

Negotiations are ongoing between Shell and the Trinidad Government regarding the Modified U(c) block, which was the most sought-after of the 13 blocks offered in the country's shallow water auction last year.

These blocks are estimated to contain a total of 13.4 trillion cubic feet of gas, as per official figures.

Neither Shell nor bp have provided comments on the matter, and responses from Trinidad's Government and EOG Resources were not immediately available.

The shallow water auction, which concluded in May, saw EOG Resources bid exclusively for the Lower Reverse L block and NCMA 4(a), while bp was the only bidder for NCMA (2).

In July, Shell took the final investment decision on the Manatee gas field in Trinidad and Tobago's East Coast Marine Area.

As the sole operator under the sub-Block 6D production sharing contract, Shell is set to bolster its integrated gas business with this project.

The Loran-Manatee field, discovered in 1983 and appraised with four wells, straddles the maritime border, with Manatee in Trinidad's waters and Loran in Venezuelan territory.

Shell's existing East Coast Marine Area fields including Dolphin, Starfish, Bounty and Endeavour, rank among the nation's most productive.

The Manatee development plan entails a normally unattended installation platform, linked by a 110km, 32in pipeline to the Beachfield onshore gas processing facility.

"Shell selected as preferred bidder for Trinidad and Tobago’s shallow water block " was originally created and published by Offshore Technology, a GlobalData owned brand.

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