Chevron sells its Trinidad & Tobago assets to Shell

Shell is buying Chevron Trinidad and Tobago Resources in a US$250 million deal. The deal covers all of Chevron's interests in Trinidad, including the East Coast Marine Area (ECMA) and the Trinidadian portion of the cross-border Loran-Manatee field. Chevron retains its stake in the Venezuelan side of Loran-Manatee. This is Shell's second acquisition in Trinidad, since acquiring BG in 2016. It is the second largest gas producer in the country (after BP), with contracts supplying the domestic and Atlantic LNG markets. It has struggled to meet its contractual gas obligations, as gas production from mature fields is depleted and technical challenges have stymied the development of new resources. Shell already owns 50% of ECMA and the deal will further consolidate its position. For Chevron, the deal allows it to exit a country that has been peripheral within its portfolio for a number of years.