WHAT BHP’S DEAL MEANS FOR T&T

WORKERS could eventually lose their jobs, downstream service providers affected and tax payments reduced sometime after BHP Group sells its assets in Trinidad and Tobago. 

That is the long-term worst-case scenario, according to experts, as BHP Trinidad, which has deepwater oil and natural gas investments, announced a major business change. 

The multinational, which has been in T&T for 25 years and only in May announced first oil production from the offshore Ruby field, is moving to sell its oil and gas assets to Australian-based Woodside Petroleum Ltd. 

The assets in T&T would be owned by Woodside, another energy giant. 

The sale, which is said to be worth US $16 billion, is being called the biggest deal in the international energy sector for 2021. 

The transaction has to be ratified by international regulatory agencies. 

BHP will move into the lucrative potash industry in Canada. 

A review is currently underway on the future of BHP’s assets in T&T and other countries. 

BHP has investments in the local Calypso and Delaware offshore fields, but came up dry earlier this year at Block 3, about 150 kilometres off land. 

That well was described by the Ministry of Energy as the deepest in T&T’s history. 

BHP had earlier scored success through its Northern Licence close to Barbados. 

Energy Minister Stuart Young said that the Woodside acquisition is not likely to affect T&T, but industry experts stated that it is premature to make that declaration. 

“Woodside has not pronounced on the matter,” one senior oil veteran said. 

“There would be a thorough review of performing assets in this country. 

“The sector is in the midst of international convulsions.”   

BHP said the transaction would not immediately affect operations and business plans in T&T. 

The energy conglomerate has been strategically seeking to move away from fossil fuels in light of the global challenges of climate change. 

The reputable Wall Street Journal newspaper said resource companies are seeking to change investor perceptions that mining is problematic, especially the role commodities play in emissions that contribute to global warming. 

Former Energy Minister Kevin Ramnarine ssid: “We are in the midst of tectonic changes in the global economy, brought on by climate change and Covid-19. 

“We need to raise the level of national conversation in T&T fast and we need to act to position our economy for these changes.”