Strategic signals emerge from Touchstone’s Trinidad engagement

Touchstone Exploration

The backdrop in Port of Spain on 11 June hinted at a growing race beneath the surface. As industry and government converged, subtle but decisive signals emerged: Touchstone is no longer just an eager upstart, it’s staking some ground as a key player in Trinidad’s domestic gas strategy.

Behind this muted display lies a narrative of progressive trust. The exchange between Minister Moonilal, Minister Kesar and Touchstone leadership, including CEO Paul Baay and CFO Scott Budau, was more than diplomatic courtesy. It was an affirmation that the company’s local partnerships and early production milestones are gaining official backing to scale further.

Touchstone’s journey from its 2013 Ortoire licence win to delivering first gas from Coho‑1 in 2022 and Cascadura in 2023 speaks to an operational rhythm that blends patience with initiative. Their strategy of forging on‑site processing through local joint ventures appears to be paying dividends, not just in output, but in credibility. The ministers framed this output as a springboard. The government is leaning into an efficiency‑driven policy thrust: upgrading legacy infrastructure, nudging the country back to regional energy gravitas, and navigating wells through the tension between energy needs and social licence.

Subtle policy shifts were the subtext. Moonilal’s message was not merely one of support, but of accessibility, the sense that the ministry is now open for structured, scale‑oriented engagement. Kesar’s nod to corporate governance and localised responsibility reinforced the evolving expectations of a national champion. These meetings are rarely symbolic; they lay implicit groundwork for smoother licensing, infrastructure access, and perhaps even fiscal ease.

For investors, the stakes are in the mix of on‑shore yield and government confidence. Trinidad’s conventional basins may be ageing, but they remain cost‑effective and strategically valuable in a region marked by deep‑water capital intensity. Touchstone is navigating both asset risk and political frameworks with deliberate care. Their local content model, processing gas through domestic partnerships, effectively aligns incentives, building tangible stakeholder ties that could accelerate project gestation.

This current meeting dovetails with recent developments like Touchstone’s acquisition of Shell’s interest in the Central Block for US $28.4 million. That move signals a concerted effort to consolidate acreage and control upside, plugging into international LNG markets while maintaining on‑island relevance. In turn, that supports what appears to be a wider strategic objective: curating a diversified portfolio across proven territory.

The broader backdrop is shifting, too. Upstream fed into by declining Venezuelan licences has underscored domestic supply fragility in the Caribbean. Touchstone’s increasing berth in Trinidad serves both market and state. It is simultaneously filling a production gap and softening supply-side risks for LNG buyers, NGC, and local industry. From an investment-point-of-view, that is structural alignment.

For asset‑level supporters, the takeaways lie in the coherence of execution. First‑gas from Cascadura and Coho, improved processing capacity, strengthened government relations and selective asset acquisitions all hint at a carefully orchestrated strategy. One that aims to shore up existing operations while building ballast for further upstream positioning.

Even spin‑off benefits, capacity building, community funding, governance infrastructure, play into a broader risk‑mitigation strategy. It seems Touchstone is aiming for a model that weaves operations into the social and regulatory weave: less flash, more fabric.

This latest chapter suggests that Touchstone is well‑positioned to hold regional ground. They are unlikely to be the headline grabber, but for investors eyeing mid‑tier onshore energy value, they represent a steadily advancing proposition.

Touchstone Exploration Inc (LON:TXP) is a Canadian-based, international upstream oil and gas company currently active in the Republic of Trinidad and Tobago. Primera Oil and Gas is the Trinidadian subsidiary of Touchstone.

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