Range Resources Limited (“Range” or “the Company”) is pleased to provide an update with respect to newly proposed budget incentives for oil and gas companies introduced by the Minister of Finance and Economy of Trinidad and Tobago in the 2014 Budget Statement to Parliament on 9 September 2013. These newly proposed budget incentives, which especially reward companies with accelerated development and exploration programs, are expected to have a significant positive impact on Range’s returns from its proposed production expansion plans.
In the last few years, there has been a significant increase in exploration and production activity in the oil and gas sector in Trinidad and Tobago. This trend is expected to continue, with a key driver being the Government’s introduction of a progressive policy with regards to the fiscal regime. The reforms are aimed at incentivising companies that invest in exploration and production, thus ensuring that Trinidad and Tobago’s upstream sector becomes more competitive and that activity levels are increased in the region.
The heightened level of activity is impacting positively on the energy sector in general, and will serve to arrest the decline in oil production in the coming years. For the month of August, oil production in Trinidad was the highest it has been for the year of 2013 and averaged 83,300 barrels of oil per day.
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