bp and US shale producer EOG Resources are in talks to cooperate on developing a natural gas field located offshore Trinidad and Tobago, according to Reuters.

The field holds just under 1 trillion cubic feet (tcf) of natural gas, but will eventually be tied back to another BP discovery, bringing the area to be developed closer to 1.5 tcf of gas.

Anticipated to commence production by late 2026, the gas from this field is planned to supply Trinidad’s prominent liquefied natural gas (LNG) project, Atlantic LNG, where bp and Shell both hold 45% equity stakes.

Trinidad and Tobago stand as Latin America’s primary exporter of super chilled gas and ranks as the world’s second-largest exporter of methanol and ammonia.

Atlantic LNG is a substantial segment of bp’s overall LNG portfolio; however, operations have been hampered by lack of natural gas production from aging fields.

bp’s Trinidad and Tobago president, David Campbell, previously stated that the company’s strategic focus in Trinidad is on deepwater prospects, aiming for larger discoveries.

In October 2023 the Trinidad government put out 13 blocks for bids. Monday’s results mean that nine of the 13 blocks did not receive any interest and all the bids were from companies already operating on the Caribbean Island.

EOG Resources bid on three blocks, the Modified UC; the Lower Reverse L, which is west of Shell’s Manatee discovery and on the border with neighboring Venezuela; and NCMA 4, in an area operated by Shell.

Shell had one bid on Modified UC while bp, which bid on Modified UC also placed a bid for NCMA 2 which is north of Trinidad and not in the Columbus basin where the company has operated since the 1970s.

Trinidad plans to announce the winners in four months, Energy Minister Stuart Young said at the closing of the auction.