Petrotrin has granted approval to LGO Energy plc for a reduced overriding royalty rate for the its production at the Goudron Field in Trinidad.
The reductions went in o effect from March 16, and apply to sales made from February 1. These new royalty rates, which apply to production at oil prices below US$50 per barrel, will see the royalty rate on the majority of barrels produced cut by over 40 per cent to rates below ten per cent. This will have a net revenue benefit at current oil prices and production levels of approximately ten per cent to Goudron E&P Ltd, LGO’s wholly owned T&T subsidiary which operates the Goudron Field.
LGO’s Chief Executive Neil Ritson said in a company statement: “We are delighted that the mutual benefits of encouraging investment by reducing royalty rates at this time of lower oil prices have been recognised. LGO has responded by increasing the level of ongoing investment, as recently reported, and this will be good for the company, its investors and for Trinidad generally.”