Bahamas Petroleum (BPC) has advised that the Goudron Enhanced Production Sharing Contract ('ESPC') has been signed. As a consequence, the Company will proceed to issue 35,759,140 new ordinary shares in BPC, the issue of which was conditional on signing of the Goudron EPSC.
The Company has entered into an EPSC in respect of the Goudron Block in Trinidad and Tobago, with Heritage Petroleum Company. The EPSC provides the Company with the continuing exclusive right to extract petroleum on Goudron until 30 June 2030. The EPSC was entered into after consent of the Trinidad and Tobago Ministry of Energy and Energy Industries was duly obtained.
The EPSC replaces the existing 10-year Production Sharing Contract (as amended and extended) in respect of Goudron that was otherwise due to expire at the end of 2020. Signing of the new Goudron EPSC had been anticipated earlier in 2020 but had been delayed as a result of delays to obtaining the necessary consents arising from the Covid-19 pandemic.
The terms of the EPSC are largely consistent with the terms that previously prevailed under the existing Goudron Production Sharing Contract.
Production from Goudron currently accounts for approx. 40% of BPC's baseline daily production in Trinidad and Tobago.