BP has announced its buyout of Woodside Energy’s 70% interest in Block TTDAA 14, the Calypso early-stage deepwater natural gas project in Trinidad and Tobago. BP now assumes operatorship of the development and captures a 100% ownership stake as Woodside fully exits the Caribbean.
Woodside operated Calypso before the buyout in partnership with BP, which held a 30% participating interest.
With estimated reserves of 3.5 Tcf, Calypso lies about 220 km off the coast of Trinidad in water depths of 2,100 m. An appraisal drilling campaign completed in 2021 encountered hydrocarbons in the Bongos-3, Bongos-3X and Bongos-4 wells across Blocks 23(a) and TTDAA 14, according to Woodside.
Pre-front end engineering and development and concept engineering conducted in the first half of 2023 led Woodside, as operator, to choose the infield host concept, which requires construction of a floating unit to collect, process and transmit gas by pipeline from the field.
Since then, the partners have continued to mature the concept under FEED and to negotiate fiscal terms with Trinidad and Tobago.
Woodside Streamlines Portfolio
In a press announcement on 6 August, Woodside CEO Liz Westcott said that by divesting itself of the Calypso Project, Woodside simplifies its portfolio and supports the company's disciplined approach to capital allocation.
“The transaction demonstrates Woodside’s clear focus on progressing the right opportunities across our global portfolio that have the best potential to deliver sustained value for Woodside shareholders,” Westcott said.
“Completion of the divestment will conclude Woodside's decades-long presence in Trinidad and Tobago that has included interests in the Ruby and Angostura offshore oil and gas field operations and associated production facilities,” she added.
BP’s Infrastructure Edge
As Trinidad’s largest domestic gas supplier, BP holds extensive oil and gas infrastructure in the region. In addition to its upstream assets, the supermajor holds a 45% stake in the Atlantic LNG facility at Point Fortin on Trinidad’s southwest coast, matching Shell’s 45% interest. Trinidad and Tobago’s state-owned National Gas Company holds the remaining 10%.
“By building on the strengths of our existing operations and infrastructure, we have the potential to unlock new production and support long-term growth in the region,” Gordon Birrell, BP executive vice president, upstream, said in BP’s announcement regarding the acquisition.
The transaction, comprising both cash consideration and contingent payments, is expected to close by the end of 2026. Completion of the transaction is subject to customary conditions precedent, including government and regulatory approvals, the companies reported.