BP Acquires Woodside's 70% Stake in Trinidad Calypso Gas Project

• BP has agreed to acquire Woodside Energy's 70% interest in the Calypso natural gas project, increasing its stake in Block TTDAA 14 to 100% and assuming operatorship.
• The acquisition marks Woodside Energy's complete exit from Trinidad and Tobago, a strategic move to simplify its portfolio and focus on higher-potential global assets.
• BP shares rose 1.2% in European trading following the announcement, while Woodside shares gained 2.2% in premarket trading, reflecting positive market reception to the deal.
• The transaction, valued at undisclosed financial terms, is expected to close by the end of 2026 pending government and regulatory approvals.

The deal significantly alters the upstream landscape in Trinidad and Tobago by consolidating control of a major deep-water asset under a single operator. BP, already the largest supplier of gas to the domestic market, will leverage its extensive regional infrastructure to unlock new production from the early-stage discovery.

For Woodside, the divestment concludes a decades-long presence in the region, aligning with its disciplined capital allocation strategy to prioritize sustained shareholder value.

How Does This Acquisition Change BP's Position in Trinidad and Tobago?

BP's acquisition of the Calypso project represents a strategic consolidation of its upstream operations in the Caribbean. By increasing its stake from 30% to 100%, BP assumes full operatorship of Block TTDAA 14, allowing it to streamline decision-making and operational execution.

This move builds on BP's established footprint in the region, where it holds a 45% stake in Atlantic LNG facility off the southwest coast.

The Calypso discovery is estimated to contain 3.5 trillion cubic feet (Tcf) of natural gas, offering a significant opportunity to secure additional supply for Trinidad and Tobago . BP's Upstream Executive Vice President Gordon Birrell emphasized that the deal allows the company to build on existing operational strengths to support long-term regional growth . By integrating Calypso with its current assets, BP aims to enhance production efficiency and maximize the value of the region's natural resources.

Why Is Woodside Energy Exiting the Trinidad Market?

Woodside Energy's decision to sell its 70% interest in Calypso marks a deliberate exit from the Trinidad and Tobago market, following the divestment of other offshore assets in the area last year . CEO Liz Westcott described the move as part of a disciplined approach to capital allocation, aimed at simplifying the company's portfolio. The transaction allows Woodside to redirect capital toward global opportunities with the best potential for sustained shareholder value .

Woodside's exit ends its involvement in the Ruby and Angostura offshore oil and gas fields, which it previously held interests in . The divestment reflects a broader trend among energy companies to streamline operations and focus on core assets with higher growth potential. By exiting Trinidad, Woodside can concentrate on projects that offer greater scale and strategic alignment with its long-term objectives.

What Are the Key Risks and Timeline for the Deal?

The transaction is subject to customary conditions, including government and regulatory approvals, with a projected closing by the end of 2026 . While specific financial terms were not disclosed, the deal structure includes both cash consideration and contingent future payments . The early-stage nature of the Calypso project introduces exploration and development risks that could impact future production timelines .

Regulatory scrutiny in Trinidad and Tobago will be critical to the deal's success, as the government oversees energy resources and foreign investments . Any delays in approvals could extend the timeline for BP to assume full control and begin development activities . Despite these uncertainties, the acquisition is viewed positively by investors, as evidenced by the share price gains for both BP and Woodside following the announcement .