The Energy Minister of Trinidad and Tobago told Reuters that the government plans to reopen three existing contracts with Atlantic LNG, the country’s main liquefied natural gas (LNG) exporter, because it has not seen any financial gain from the diversion of several LNG cargoes to the higher priced market in the United States from markets in Spain. Energy Minister Eric Williams said the government plans to reopen but not renegotiate contracts for Trains 1, 2 and 3. Williams told Parliament on Monday that reopening the contracts would give the country an opportunity to increase its economic return from LNG. He said that although cargoes have been diverted to the more lucrative U.S. markets, the revenue that has been sent back to Trinidad is the same as if the shipments had gone to Spain. “We are about to seek to close that loophole, a substantial loophole, that is why we wish to reopen contracts,” he said, according to Reuters. The three LNG processing trains have a total capacity of nearly 10 million tonnes per year. A fourth train is under construction and set to come on line next year. It will increase the production capacity to more than 15 million tonnes a year. Atlantic LNG is owned by BP, BG Group, Repsol, Tractebel and the National Gas Co. of Trinidad and Tobago.

Murphy Oil Corp. said Tuesday that production has resumed at the Medusa field, which has been shut in since Hurricane Ivan damaged the spar in early September. Current production is 30,000 bbl/d of oil and 30 MMcf/d of gas. Production is expected to continue ramping up to pre-Ivan levels of 34,000 bbl/d and 34 MMcf/d. Medusa is located in 2,200 feet of water in Mississippi Canyon Blocks 538 and 582. Murphy is the operator and holds a 60% interest with partners Eni Petroleum (25%) and Callon Petroleum (15%).

Williams said 33.1 million of its Income PACS, or about 75% of the 44 million issued and outstanding, had been tendered and accepted by the company in an exchange offer. The exchange will reduce Williams’ overall debt by $827 million. In accordance with the terms of the offer, Williams plans to exchange an aggregate of 33.1 million shares of its common stock and $48.6 million of cash for the accepted Income PACS.

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