From left: Prime Minister of Trinidad and Tobago Dr. Keith Rowley, Prime Minister Mia Amor Mottley and Minister of Energy and Water Resources Wilfred Abrahams during the signing of a framework treaty arrangement which will see the two
countries cooperating in energy at Ilaro Court yesterday.
BARBADOS and Trinidad and Tobago yesterday initialled an agreement dealing with cooperation in the area of energy.
The agreement signed by Prime Minister Mia Amor Mottley and her Trinidad and Tobago counterpart, Dr. Keith Rowley, is a framework treaty arrangement.
Mottley said that the arrangement which was signed at Ilaro Court, deals with the unitization of their hydrocarbon reservoirs extended across the borders of the two CARICOM countries.
Dr. Rowley said that it is a very significant step forward by the two countries. He said that the agreement means that as they proceed to explore for hydrocarbons in the areas where the borders of the two countries meet, the two borders will not be constrained.
He said that in approaching the search, seismic surveys will be done without the constraints of borders.
Dr. Rowley recalled that recently a company did a large seismic survey which proves to be beneficial to Trinidad and Tobago. “However, we came up against the Barbados border [so] as we explore the area we [hope to do] so without the area being constrained by a line separating the two countries,” according to Dr. Rowley.
He pointed out that once hydrocarbons are discovered in commercial quantities, it would be easier for “us to explore, exploit and to market any such products, if we do it together.”
“That’s why it is called a unitization agreement,” The Trinidad and Tobago Prime Minister explained, noting that it can take a long time. In addition, if it is found that a reservoir of hydrocarbons exists on the border of the two countries, both countries will have to come together, determine the nature of the reservoir, its resource base and then agree to exploit it together, as is currently done by Trinidad and Tobago and Venezuela.
He said that expertise in both countries will be allowed to work across the two countries and can speed up exploration.
Ms. Mottley said that this agreement represents a deepening of the integration movement. She said it makes no sense Trinidad and Tobago trying to do things on its own and likewise Barbados.
She noted that Trinidad and Tobago has amassed significant expertise in the oil business for over 100 years and against that background, the two want to cooperate.
It is a three stage step, starting with a MOU signed last year, the unitization agreement, and an agreement that will be worked out once hydrocarbons are found. (JB)