DeNovo – first gas from Iguana
DeNovo delivers first commercial supply of natural gas from Iguana Field after over 30 years of remaining undeveloped.
DeNovo Energy, a subsidiary of the Proman Group, has announced the first commercial supply of gas from the Iguana Field in Block 1(a), offshore Trinidad, which will deliver 80 million cubic feet of gas per day once fully operational. DeNovo, which became the operator of the field in 2016, fast-tracked the project delivery, safely executing this development using 2.6 million man-hours, with over 73% local content, in just under three years.
The project was delivered in line with Proman’s strategy for ensuring security of gas supply and sustainability in Trinidad and Tobago’s Energy Industry. Proman invested USD 250 million in DeNovo in 2015, as the first downstream group to invest in the upstream sector in Trinidad and Tobago. A global leader in petrochemicals, Proman has been operating in Trinidad and Tobago since 1984 and owns and operates 14 petrochemical plants on the Point Lisas Industrial Estate in Trinidad, amounting to more than 50% of the installed petrochemical capacity. Through this investment, Proman has been able to develop stranded pools of gas to deliver to an already matured downstream industry. The Iguana Field is DeNovo’s first stranded gas field development, and signals a significant positive evolution in the operating capabilities within the Trinidad and Tobago energy industry as the DeNovo model provides a quick and tested way of increasing natural gas production.
Proman Chief Executive David Cassidy said: ‘After 30 years of excelling in the Downstream sector, we decided to invest in a local Upstream company at a time when gas curtailments seriously impaired Trinidad and Tobago’s global competitiveness. The Iguana field development is a perfect example of global collaboration and the diverse competencies within the Proman Group, as DeNovo was supported by other Proman companies to deliver this project in record time to a world-class standard. I would like to express my thanks to the expert teams at DeNovo, Proman AG (Trinidad) Ltd, Eurotecnica Contractors and Engineers S.p.A, and Industrial Plant Services Limited (IPSL) for their outstanding work. Together we have achieved a significant first for Trinidad and Tobago, demonstrating Proman’s commitment to enhancing the competitiveness of the local petrochemical sector, increasing the security of gas supply in the country, and leading a sustainable evolution in the local Energy Industry.’
Speaking of Proman’s involvement, DeNovo CEO Joel Pemberton said: ‘Proman has proven the great potential from natural gas still exists in Trinidad and Tobago despite the challenges faced by the local Energy Industry. Proman was the first company to make a significant investment in the local upstream, and supported DeNovo in the midst of a global energy crisis, and when gas shortages threatened petrochemical operations in Trinidad and Tobago. This investment is part of Proman’s multi-billion-dollar operation in the country, supporting hundreds of skilled jobs and supporting business, and contributing significantly to Trinidad and Tobago’s economic prosperity and Energy Industry sustainability.’
Cassidy characterised Proman’s investment in the development as ‘taking the initiative’. He went on to say, ‘We continue to work with all stakeholders to ensure that Trinidad and Tobago remains a competitive and viable place to produce petrochemicals, and that the Energy Industry can be sustainable and secure in the short and long terms.’
The announcement comes at a time when Proman has significantly scaled up its global operations partly through its controlling stake in Consolidated Energy Limited and the recent start-up of the Natgasoline plant, the United States’ largest methanol production facility, in Beaumont, Texas.
Source: DeNovo Energy
NGC developing small gas deposits
Chairman of the National Gas Company hailed the success of DeNovo in bringing on a small gas field in the Gulf of Paria as proof that the concept of small pool development can work . Prof. Gerry Brooks said NGC was pursuing small and marginal fields in the short term.
“It’s happening right now as we speak. We have done a number of things. One is DeNovo in which we have a 20 per cent stake and there is very clear, cogent and compelling evidence that it can work. That is an active part of our agenda now. DeNovo is very clear testimony that that is happening in 2018 and we have identified potential pools in the near term which we are working on.” .
DeNovo is owned by Proman Group and NGC and is the operator of the Iguana field in the Gulf of Paria.
The issue of a small pool has been a thorny subject as major operators produce large discoveries and leave small pools in the ground, at a time when the country desperately needs the gas.
Consultant Tony Paul estimated there were 50 trillion cubic feet worth of small and marginal gas deposits offshore. An upstream master gas plan can review seismic studies, how much gas is in the ground, the pressure of the gas, how it is being produced and how to maximise the amount extracted.
Majors produce gas until there was insufficient pressure in the pipelines to bring it to the surface. The real cost of developing gas is in drilling wells and construction of platforms and pipelines. Varying levels of pipeline pressure are needed so that when high-pressure gas is depleted, the low-pressure pipelines can get more to the surface at minimal additional costs.
Government was not applying the law, therefore allowing companies to keep acreages they are not prepared to produce.
Asked if operators would be willing to give up acreages, Brooks said, “I think we have to find .. a win-win mechanism because if you are sitting on two to five hundred billion standard cubic feet of gas and there is nothing you can do with it from an economic perspective and there are other operators who can..work with us in order to do that.. .. it is very possible to have it done. If an operator is prepared to leave no molecule behind then the field is exhausted. If there are molecules available, one wouldn’t want to define this thing by one operator or another operator…We have looked at the totality of the acreage,… identified the available small and marginal pools and then there is a question, is there a coalition of the willing? Once there is a coalition of the willing and it makes economic sense then you begin to give priority to those and that is what we are doing.”
NGC engaged geophysicist and geologists and Dr Stephen Babb was leading the company’s team on the project. “It is a question of how do we sit with the ministry and how do we sit with the effective parties to work that process through, that ensures it is beneficial to them and in ways that are beneficial to Trinidad and Tobago,” he said.
Young: More money for TT from natural gas
KEY deals will see TT earn more money from the sale of its natural gas, Communications Minister Stuart Young told a post-Cabinet news conference at the Diplomatic Centre in St Ann’s.
He promised five more years of operation of Atlantic LNG Train One which exports liquefied natural gas (LNG). TT will be paid more for its gas sold and TT can sell its own LNG.
Proffering “excellent news,” Young said talks begun by the Prime Minister in the UK last April with BP and Shell had just concluded by respective high-powered teams.
“I’m happy to say that after months of intense and very progressive negotiations and discussions… the Government has reached agreement with BP and with Shell.”
While the life and contractual arrangements for Atlantic LNG Train One had been due to end next April, successful talks had agreed for it to continue five more years. “We have agreed a new pricing formula, going forward,” he added, promising details in the coming weeks.
“But what we are happy to announce is that the Government of TT and that empowered negotiating team, has been able to reach agreement with BP and Shell that significantly enhances the revenue for the people of TT, and the continuation of Train One for the next five year period.”
TT will itself be able to sell ALNG’s cargoes. “Included in that we have been able to secure, for the first time as part of the Train One arrangement, the ability through NGC (National Gas Company) to sell LNG cargoes on behalf of … TT. That’s a major achievement that we did not have before.”
He thanked BP and Shell officials for their very mature attitudes and demeanour over recent months. “There were some very intense moments along the way. There were the holding of certain positions and we held a position on behalf of the people of TT that if we could not come to an agreement we would be prepared to walk away from it.”
Government and BP reached a major agreement, that BP will soon announce. “We were able to agree the first phase of negotiations with BP that will result in significant further investments in TT and the extension of a major licence for them. We will move into the second phase of negotiations with BP.”
Government will engage Shell on its terms and conditions. “We have augured well. Over the past few months we have achieved what a lot of nay-sayers said we could not do.” He had disproved critics who had feared any ruin of TT’s relationships with BP and Shell and any loss of foreign investment.
Chet Morrison successfully completes EPCIC project offshore Trinidad and Tobago
11/27/2018
HOUSTON — Chet Morrison Contractors LLC, (Morrison), a leading energy service company for the oil, gas and renewables industries, has successfully completed the fabrication, installation and mechanical completion of:
- A Conductor Supported Platform (CSP)
- Offshore subsea pipeline and platform tie-in
- Pipeline shore crossing and onshore connection for gas processing
- Final pre-commissioning and commissioning of integrated systems
Morrison was awarded the Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) contract from Trinidad and Tobago’s newest upstream operator, DeNovo Energy Limited (DeNovo). Work scope for the Iguana field development included facilities for three development wells installed through a Conductor Supported Platform (CSP) and a 45-km, 14-inch diameter subsea natural gas export pipeline connecting the Iguana CSP to a newly constructed onshore gas processing unit on the Port Lisas Industrial Estate, with commissioning for first gas delivery.
The Iguana field remained undeveloped for over 34 years until DeNovo became the operator in 2016, and is the first gas development campaign in the Gulf of Paria. The water depth at the Iguana platform is 88.6 ft. Morrison safely and innovatively managed the unique offshore and shore crossing conditions to complete this development in record time, and successfully installed and commissioned the pipeline and offshore facility in October 2018.
Morrison was able to achieve 80% local content and safely delivered the project with more than 370,000 combined man-hours while achieving zero recordable incidents (0-TRIR). Morrison worked closely with its joint venture partner, Trinidad Offshore Fabricators Unlimited (TOFCO), in the support of many aspects of this project including the hook up through mechanical completion.
Chet Morrison, CEO, commented, “Tailoring the equipment to the specific demands of this milestone project, we provided an optimized solution. Our team also applied rigorous problem-solving techniques to complete a complex and challenging shore approach. Working with a compressed schedule, our flexibility and adaptability enabled us to design and secure Trinidad’s first gas-to-market in an accelerated fashion.”
Joel M. C. Pemberton, DeNovo founder and CEO, said, “Partnering with Morrison enabled DeNovo to successfully deliver this first fast-track development in Trinidad and Tobago with technical excellence. The high-risk shore crossing through an environmentally sensitive area was safely managed, exceeding the expectation of the regulatory agencies. Utilizing the TOFCO base in La Brea ensured strong global collaboration while maximizing the local capacity for project execution. Throughout the process, Morrison was versatile and creative in providing a range of solutions to unexpected challenges. The focus on constructability by the Morrison team supported a streamlined, practical approach to project delivery which ultimately maximized overall project efficiency.”
Energy Ministry launches first shallow water bid round since 2010
For the first time since 2010, the Ministry of Energy has opened a competitive bid round for shallow water (near coast) hydrocarbon blocks. The bid round officially started on November 8. Interested parties have until 12 noon on May 8, 2019 to submit their bids, and six months later, on November 8, 2019, the winners will be announced.
Prospective bidders must pay US$40,000 pre-bid to receive access to the ministry’s data and US$50,000 per bid per block. When bids are awarded, the ministry will earn a non-refundable signing bonus.
The government, through one of its state enterprises (yet to be determined) will also be the carrying partner, receiving 15 per cent of the profits if any of the blocks produce marketable commodities of hydrocaarbons, including oil and gas. Six blocks are up for bid:
- NCMA 2 and NCMA 3 in the North Coast of Trinidad
- Block 1 (b) off the West Coast of Trinidad
- Block U(c), Block 4(c) and the Lower Reverse “L” Block off the East Coast of Trinidad.
The ministry began planning for this bid round in 2017, including modifications to the legal and fiscal framework. “Companies cannot expect in 2018 to get the same incentives that were in place in the 1970s,” the Energy Minister said at the official launch. It is incumbent on the state that it collects at minimum, fair economic rent for the country’s resources.