Minister of Energy and Energy Industries Stuart Young on Tuesday said the proposed merger between Australian energy giants Woodside Petroleum and BHP "are not expected" to affect BHP's operations in Trinidad and Tobago (TT).
In a statement issued shortly before 10 am, the minister said the proposed merger and acquisition of BHP petroleum sector by the Woodside signalled the "continued evolution in the oil and gas industry."
He said he had spoken to BHP's country manager for TT Michael Stone about the latest corporate development which was announced early Tuesday.
"These types of acquisitions are not unusual. Within the past few years a similar acquisition of British Gas by Royal Dutch Shell was completed which saw the return of Shell to Trinidad and Tobago. This led to significant investments in TT."
"In the interim, BHP’s operations in Trinidad and Tobago are not expected to be affected and work continues on their significant projects Ruby and Calypso," he said.
Young said the Government will continue to communicate with BHP and looks forward to the unfolding of the merger and acquisition.
"The Ministry of Energy and Energy Industries on behalf of the Government, and people of Trinidad and Tobago, will continue to monitor these events and stay connected to BHP and Woodside to advocate for continued interest and investment in our country."
In a separate statement on Tuesday, BHP Trinidad said the proposed merger will not immediately affect the "existing operations and business plans in TT.
The company said the merger is subject to confirmatory due diligence, negotiation and execution of full form transaction documents as well as satisfaction of conditions precedent including shareholder, regulatory and other approvals. It is expected to be completed during the second quarter of the 2022 calendar year.
"Bringing the BHP and Woodside assets together will unlock synergies in how these assets are managed and allow capital to be deployed to the highest quality opportunities.
We’ve been doing business in Trinidad and Tobago for 25 years, and we’re committed to continue building our business here as part of the combined business, where we will be even better positioned to deliver the best outcomes during the energy transition," the company said.
The Energy Chamber is expected to issue a statement on the proposed merger later Tuesday.
Woodside Petroleum and the BHP Group announced the US$28 billion proposed merger early on Tuesday.
The deal is subject to stringent regulatory approvals in each country where BHP operates and is expected to be completed in the second quarter of 2022.
BHP's divestment of petroleum, which makes up just five per cent of its annual earnings, speeds up its exit from fossil fuels amid pressure from environmentally conscious investors, according to a Reuters report.
Local energy experts anticipate the local BHP assets will likely be sold.
A holding statement on BHP's website says the companies will seek to "combine their respective oil and gas portfolios by an all-s
