The reforms offer incentives to firms that invest in exploration and production, ensuring the oil and gas upstream sector becomes more competitive with higher activity levels in the region.
As per the proposed incentives, companies will be able to recover 100% of their exploration costs in the first year from 2014 to 2017.
Companies will be able to recover 50% of their exploration costs in the first year from 2018, 30% in the second and 20% in the third.
Oil & gas exploration firm Range Resources has welcomed the incentives, proposed by the Minister of Finance and Economy of Trinidad and Tobago in the 2014 Budget Statement to Parliament.
Range Resources executive director Peter Landau said the incentives will encourage increased development and exploration activities for the upstream companies operating in Trinidad, and in turn further speed up the production growth.
"Range will be poised to take full advantage of these incentives, as it looks to accelerate both its development and production activities on the existing reserves, along with its exciting intensive exploration programme both internally and in partnership with Niko Resources," Landau said.
According to Range Resources, for the month of August 2013, oil production in Trinidad averaged 83,300 barrels of oil per day, which is the highest it has been for the year.
