Trinity Exploration & Production PLC - Independent exploration and production company focused on Trinidad & Tobago - Welcomes the Government of Trinidad & Tobago’s stated intention to stimulate ‘higher levels of activity and investment’ in the energy sector, as set out in its budget statement for next year, delivered on October 2. The statement included a proposal to change the Supplemental Petroleum Tax regime for shallow marine areas similar to reforms that have been made previously to onshore activities.
Trinity also says that the government’s proposed review of a capital expenditure write-off regime seems to be in favour of operators like itself. The firm expects the proposed changes to ‘meaningfully improve the economics’ of its East Coast and West Coast shallow marine licences.
Chief Executive Officer Jeremy Bridglalsingh says: ‘Trinity welcomes the government’s third consecutive year of incentives focused on stimulating activity in the energy sector, and specifically oil production. The proposed SPT changes for offshore production will positively impact our cashflow when realised oil prices are below $75 [per barrel], increasing the resilience of our business, our capacity to reinvest through the oil price cycle and will positively impact our potential projects on our East Coast and West Coast licences.’
Current stock price: 78.32 pence, down 7.9% in London on Wednesday
12-month change: down 35%
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