Energy Minister Franklin Khan.

“The game is changing and therefore Trinidad will have to change with it.”

This was the comment made the Energy Minister Franklin Khan yesterday as he responded to recent developments taking place in BP the parent company of bpTT.

BP has said it is not going to explore for hydrocarbons in any new jurisdictions.

The company in a significant statement of intent also indicated that it plans, by 2030, to reduce its output of oil and gas by a whopping 40 per cent and that it will reduce its Capital Expenditure to between US $9 and $11 billion annually.

The major announcement was made on Tuesday as the company also revealed a loss of US $16.8 billion for the second quarter of 2020 and slashed its dividend payment by 50 per cent for the first since the Deep Horizon disaster in the Gulf of Mexico.

The company had recorded a US $1.8 billion profit for the same period last year.

Khan said he believes that T&T will remain “largely untouched” in the short-term.

“We have always had to compete for capital among the BPs and the Shell. The reason why we attracted capital is because we had good investments and we are fortunate today that we have such an advanced infrastructure of oil and gas networks and pipelines and platforms that to develop smaller fields on the periphery of the existing production is not as expensive as if you are going into greenfield areas,” he said.

“So I think based on the scenarios in which we are operating we will continue to win capital injection into BP and Shell in particular asset base in Trinidad and Tobago there is a risk there that we will have to continue to manage,” he said.

Khan said he believes in the next two to five years T&T will be sitting relatively comfortable.