2024 Energy Conference

Accelerating Action was the theme for the 2024 energy conference at the Hyatt Regency in Port-of-Spain
Exhibitors included Echo Marine Ltd, which showed its product, Jotun protective coatings at their booth
In-Corr-Tech Ltd showcased one of the company’s designs.

Quicken pace of project execution

2024,  01/21

President and chief executive officer of the T&T Energy Chamber, Dr Thackwray Driver  said while strides have been made in the industry, there still remains the need for speed.
“We had developed this theme because we have a feeling from the industry that we are sort of on the right path. We need to do what we need to do to create a sustainable future for the energy industry in T&T. Thankfully, there is a good alignment between Government and the industry on what needs to be done and how we need to change things, but we need to be doing it faster.

That really is why we came up with this idea about accelerating action.

“We need to execute quicker, to bring the new projects on faster, to move from having a bid round to give out new offshore acreage to exploration companies for them to actually be doing the exploration, to them hopefully finding oil or gas and producing it and that needs to happen faster … the changes to decarbonise our industry, we know the things we need to do but we need to get after it quicker,”

Driver explained last week in an interview.  He emphasised that it is critical that such changes take place speedily as this would also ensure that the industry, and by extension the country, would not be left behind.

“You don’t want to end up with stranded assets that you can’t utilise.”

The Energy Chamber website shared details about the event.

“We need to get to the bottom of why things take so long to be implemented and try to systematically address those bottlenecks and get things flowing. Four major things that we need to address:
• Firstly, fixing the business-as-usual mindset that protects the status quo;
• Breaking siloed decision-making in the public service;
• Ruthlessly streamlining the approvals process; and
• Finally, making sure that the key regulatory agencies can hire the brightest and best and access the skills that are required.”

On what he hopes to be achieved following conclusion of the three-day event, Driver said this entails whether the conversations and the debates have been pushed forward around the energy industry in the country and whether the way people think would be changed.

“That’s the big thing that I am always looking for and that always happens and it happens a multitude of different ways. Sometimes two companies meet who haven’t met before and they find a way of doing business together and you see that sort of business relationship coming out from the floor of the trade show.

“It could be a new concept which someone delivers from the stage that we haven’t thought about before which changes the way we approach problems. It’s really about setting up future action, which is important and for me that’s really what I like to see from the event.”

The conference further provides a solid platform for participants to learn about new and emerging trends in the energy sector and approaches towards net-zero including energy efficiency and renewable energy and others; forge new business relationships and strategic alliances through networking with sector–specific individuals and companies and highlight their strengths to the major purchasers of goods and services and a cross-section of both local and international service companies and contractors.

The conference is designed to attract a broad cross-section of participants in the energy industry from the upstream and downstream sector, policymakers, service companies and academia and people with a unique interest in the Caribbean energy mix.

It will also seek to get diverse opinions from international and regional delegates and presenters, noting that the majority of the attendees are “C” level delegates of major upstream, downstream and energy services companies in the region and senior government officials.

Scheduled to speak on day one are Prime Minister Dr Keith Rowley. , Minister of Energy Stuart Young
Mohamed Hamel, secretary general of the Gas Exporting Countries Forum (GECF), Oksana Dembitska, senior vice-president of Gas Growth bp, Paul Hexter, president of Waterfront Shipping (a Methanex subsidiary) and   Jerome Dookie, chairman of the Energy Chamber of T&T.

Other speakers or panelists are Mark Loquan, president of the National Gas Company of T&T Ltd, David Campbell, president of bpTT, Kellyanne Lochan, country manager of Woodside Energy T&T and Erik Keskula, CEO of Heritage Petroleum as well as several others.

The T&T Energy Conference is the major annual conference of the energy sector and is one of the largest and most respected in the region. In 2023, the conference had over 900 in-person delegates, 200 virtual delegates and over 1,500 visitors to the trade show.

The conference in 2024 promises to be bigger and better than ever before and the regional energy sector is changing with new discoveries in deep water off mainland South America and increasing penetration of renewable energy in other island territories.

The Energy Chamber of T&T is the representative association for the energy industry in TT, with member companies and organisations spanning the entire value chain from upstream producers of oil, gas and renewable electricity through to major downstream industrial consumers and petrochemical manufacturers and spanning the supply chain from small sub-contracting firms or individual professionals through to the major international operating companies.

Membership comprises multinational energy companies, locally-listed public companies, privately-owned companies (owned by nationals and non-nationals), State-owned enterprises, not-for-profit organisations and educational institutions and individual professionals.

 

 

AI helps staff to decide

2024,  01/24

As more advanced technology continues to be integrated into different sectors, senior officials from energy companies maintain that the judgment and decision-making should be left to human staff.

The discussion was one of several topics raised in a panel discussion during the 2024 T&T Energy Conference.

Responding to questions on data management using a mobile application, chief operations officer for Atlantic LNG Jean Andre Celestain said having humans as the main operators behind such systems was critical.

Access to data is necessary for the operation of facilities and is critical to ensuring faster, more efficient responses. Disorganised or inaccessible data could take longer.

“.. we want humans to make decisions, to leverage their experience, knowledge and capabilities. Of course, AI may one day help us in that space but the first part about it is organising the data and making the data readily available because many times our people spend hours and hours looking for the data and when they get it, it takes five minutes to make a decision. So if our data is organised, first of all we need to ask what do we have? Is it organised in an effective, consistent way and is it easily accessible?”

Having data that is easy to access would be a direct step towards achieving the theme of the conference of accelerating the responses of companies.

Also responding was CEO of Heritage Petroleum, Erik Keskula, who said while data could allow administrators to make more informed decisions, human expertise and skill made the difference.

“Just because you have data, data’s not enough. Data has to drive you to insight and it’s that balance of bringing that data in, using that human mind that we have to understand it and the tools we now have through machine learning and Artificial Intelligence to help interpret that data. But don’t get into analysis paralysis where we can’t meet the theme of this conference to accelerate capabilities.”

 

 

 

Touchstone bullish on Trinidad

2024,  01/24

At the Energy Conference, Paul Baay president and chief executive officer of Canadian energy company, Touchstone Exploration, said a bumper year is expected as the Cascadura natural gas facility in Rio Claro is up and running and many drilling projects are also scheduled.

Two wells are on at the Cascadura field and the plan is to optimise production. Touchstone started production of natural gas and associated liquids from the field in September last year. From those two wells,, about 35 million cubic feet a day is expected.

“We’re doing additional work on the one well this week, and Touchstone hopes that it will go up to 55-60 million cubic feet a day when work is done on that well. That’s the short-term plan.”

Baay indicated that drilling began earlier this month for the development of wells from Cascadura. The plan this year is to drill as many wells as possible to get the facility up to full capacity, about 90 million cubic feet a day.

Announcing the start of production from Cascadura last September , Touchstone said: “Natural gas and associated liquids production from the company’s Cascadura wells is separated at the Cascadura facility on the Cascadura A surface location. The facility operates as a self-contained system, capturing all natural gas from the separators and liquids storage tanks and recycling it back into the system to increase sales volumes.

“Additionally, the facility sustains its own power requirements through onsite solar systems and natural gas generators and is entirely independent of the Trinidad power grid. The facility has a designed gross production capacity of 200 million cubic feet per day and 5,000 bbls/d of associated liquids, with a current gross production capacity of 90 million cubic feet per day and 2,250 bbls/d of associated liquids (17,250 boe/d).”

The company plans to drive production of natural gas 200 million cubic feet a day by 2025.

“And then the rest of the plan for this year is at our Coho facility that came on in 2022. The oil and gas company has two wells planned there. And the idea is to take that plant up to a capacity of 24 million cubic feet a day. So those won’t come on until early 2025, but the wells will be drilled in 2024.”

All the permits are in place along with equipment.
“So, it’s just a matter of drilling the wells to fill the plant.”

Asked how much Touchstone is expected to spend this year on the Cascadura projects in 2024, Baay said the capital budget is set at US$32 million with revenue expected to be about US$32 million.

“Basically, we’re spending all of our money down here this year, in Trinidad and it’s all going into the drilling and a small portion, about US$5 million of that US$32 million, will go to tie the wells back into the Cascadura facility. So, you can kind of see the bulk of that is all on the drilling side.”

On the ease of doing business, there has been an improvement and it may be on both sides as Touchstone understands the system better .Building the second plant was also easier than building the first plant.

“I think that was partly because there hadn’t been a plant built in 20 years. So, there was learning on both sides of it. But for the Cascadura project and Coho for that matter, we have all the approvals in place.

“There was a little bit of pain at the beginning to get full approval from the Environmental Management Authority (EMA) and everybody. But the way the approvals work is they’re designed as project approvals. Once you’ve got one in place, then you can go ahead and lay it out. The company is kind of in that phase now where it’s really on us now to perform and the Government’s kind of doing what they need to do,” he detailed.

Last September, the wholly state-owned National Gas Company (NGC) announced that it will purchase natural gas from the Cascadura field, following a gas sales contract previously signed with the company.  This milestone was doubly important for NGC as the company was responsible for the construction of associated infrastructure that facilitated the tie-in of the Cascadura facility to the domestic network.

Baay praised NGC for being a good partner and said the relationship between the companies is strong.
“ NGC, beat us to getting the pipeline in the ground for the infrastructure, so they were waiting on us. We weren’t waiting on them, which tells you something. And then also, under the contract terms, they were great. Like on-time payments, we’re getting paid in the US which is how we fund a lot of our capital. So, it’s been really good, and we do have some plans to expand that partnership as we move forward. So yeah, I think that’s a strong relationship.“

On plans to increase wells and other projects in Trinidad, he said “yes” as Touchstone is 100 per cent entrenched in Trinidad and does not have any assets anywhere else.

“Unlike bpTT or Shell or Woodside, who compete around the world for capital, all of our capital is here. And the company’s board made it very clear that we want to be bigger here. We think we have a competitive advantage. We’re small, we’re onshore, we’ve got these gas plants. So that’s a simple plan right now.”

Baay is confident that Touchstone’s financials will see a turnaround as a result of the drilling activities.

“What we saw is for a period when we were building these gas plants, there wasn’t a lot going on. We weren’t drilling any wells. Touchstone was spending a tonne of money. So you know, that never works well on the financial side and what you’ll see is, especially in the last quarter of last year, with Cascadura being on stream, and that’ll get announced in March.

“We built the market change, which we call a year of transition for us. We went from being an exploration company to being a production company. Cascadura came on, and those numbers are starting to show up through 2024. Financials this year would be very different to last year.”

As crime continues to thwart progress, Baay said fortunately the company had no direct incidents yet.

“We tend to carpool and have several people in vehicles just to lower our carbon footprint as well. The other side to safety is we do have security on each one of the sites. That’s a combination of what we do. We also do a lot of driver education and that also helps to make people aware.”.

 

 

 

Proman ambassadors gain international experience

2024,  01/24

Proman Safiyyah Ali, senior maintenance engineer, Leanna Hosein, and Danielle Patrick attended the TT Energy Chamber Conference

Three talented young women continue to fly the flags of Proman and T&T high, applying knowledge and expertise to advance the company and the energy industry. Senior maintenance engineers, Safiyyah Ali and Leanna Hosein and process engineer Danielle Patrick discussed their journey during the energy conference themed “Accelerating Action” hosted by the T&T Energy Chamber. They are among nine of the Proman Ambassadors who continue to be recognised for their hard work and dedication, leading the next generation of international methanol and ammonia projects.

Ali joined the Proman family of companies in Trinidad in 2012 as a plant maintenance engineer. For the past two years, Ali has worked at the Proman Ammonia Urea Melamine (AUM) downstream complex as a Condition Monitoring and Inspection Engineer for the Electrical and Instrumentation (E&I) department. Ali manages the reliability and preventative maintenance activities across all AUM plants and equipment, a role which has driven her development as she engages with cross-divisional teams to establish greater maintenance process alignment and standardisation throughout the AUM downstream complex.

In 2023, in recognition of her expertise, Ali was selected to support the Front-End Engineering Design (FEED) phase of the TA’ZIZ Methanol Project in Abu Dhabi. This project, developed jointly by Proman and the Abu Dhabi National Oil Company (ADNOC), will be the United Arab Emirates’ (UAE) first world-scale methanol production facility. With an expected annual capacity of up to 1.8 million tonnes per annum, the plant is designed to be one of the most technologically advanced and low-emission natural gas-to-methanol facilities in the world.

While the FEED team comprises petrochemical industry experts from around the world, Ali’s knowledge from her extensive oversight of reliability and preventative maintenance activities in T&T meant that she has played a key role in developing this phase of a world-scale project.

Ali said being a Proman Ambassador is fulfilling as she is part of something that is environmentally-friendly while incorporating cutting-edge technology.

Hosein joined Proman Trinidad 13 years ago, as a trainee in the graduate internship programme, with a Bachelor of Science (BSc) in Mechanical Engineering from the University of the West Indies (UWI), St Augustine. Currently a senior maintenance engineer at the Proman Trinidad’s AUM downstream complex, Hosein is poised to take on a new global challenge in January 2024.

In this new role, she will support the FEED (Front End Engineering Design) study for the Ultra Low-Carbon Ammonia Facility at Lake Charles, Louisiana, USA, a project undertaken by Proman and Mitsubishi Corporation.

As she shared her excitement about this venture, Hosein said, “This is the first time I will actually be part of reviewing the design of a plant. We have three ammonia plants in Trinidad…I would look at the issues we encounter here on the ammonia plants and ensure that we correct them upfront so we could improve the design and also to document the processes,because it is new technology.”

The Lake Charles ammonia plant, currently under development, would produce approximately 1.2 million tonnes per year of clean ammonia using carbon capture technologies.

The facility will utilise the state-of-the-art Haldor Topsoe Syncor process to produce ammonia from natural gas. The process integrates post-combustion carbon capture, thereby minimising greenhouse gas emissions (GHGs) and allowing recovery of the carbon dioxide for other industries. Integration of ammonia production with carbon capture and sequestration (CCS) technologies represents a major advancement towards more sustainable industry practices.

As a senior member of Proman’s engineering team, Hosein was involved in plant construction and commissioning at Proman Trinidad and Proman USA assets. This new project will provide her first opportunity to be involved in reviewing and assessing a plant’s proposed design. Hosein’s work on this project will also have long-term benefits, as she will be responsible for documenting all operational learnings and best practices around CCS utilisation for future reference.

She gained all her skills in T&T, Hosein praised engineering graduates of f The University of the West Indies St Augustine.  “Just recently, we took on a batch of graduates and as we move on we are making room for all the new graduates who will take our place.”

As she continues to hone her skills, Hosein gained a lot of experience just working on plants but moreso, she is proud to be a part of the Proman family.

“They have given me so many opportunities just from coming out of university. I never expected to go to the US and represent Proman and as a female also in the industry and commission plants. …I am excited to help Proman meet the growing demand for ammonia as a clean energy source, while tangibly demonstrating our commitment to reducing our carbon footprint and accelerating the global energy transition.”

At university, Patrick heeded the words of wisdom that a career should be a source of enjoyment and fulfil one’s passions. She therefore made the switch from computer engineering to chemical engineering, a move that she has never regretted. On graduation in 2011, she joined Proman’s Graduate-in-Training programme in process engineering, where she gained valuable experience across Point Lisas ammonia plants. In 2017, Patrick accepted the role of commissioning process engineer on the Natgasoline Methanol Plant under construction in Beaumont, Texas, USA, an opportunity which is one of the highlights of her career so far.

Commissioned in 2018, this facility produces over 1.7 million tonnes of methanol per annum and is the largest methanol production facility on the USA’s Gulf Coast.
Returning to Trinidad, Patrick resumed her role as a process engineer at the CNC ammonia plant.

She was pleased to have had the opportunity to learn from and share industry best practices, particularly in optimising the efficiency of petrochemical production.
“Proman’s investment in sustainable technologies was a highlight of my work on the Natgasoline Methanol plant . I felt a strong sense of responsibility to represent my country, approaching each task with the highest level of competency and sharing my learnings upon my return home.”

Patrick is undeterred about being in a field which was seemingly male dominated. More women have moved into the energy space which is motivation in itself. On being a Proman Ambassador,

“This makes me very proud especially as Proman is a global leader in the energy industry.”

According to a company spokesman, the ambassadors for this year’s T&T Energy Conference (TTEC) are individuals from across its HR, operations, supply chain and HSEQ teams who embody Proman values and represent the breadth of skills and expertise in the business.

The conference brings together important stakeholders from across the national and regional energy sector and business landscape to address the most pressing challenges and opportunities facing the industry and is an important development opportunity for Proman teams.

“Each year, a new group of Proman TTEC booth ambassadors are nominated by their respective team leads and by Proman Trinidad’s managing director of operations Aleeya Ali, to give them the opportunity to attend the conference, engage with industry stakeholders and showcase their roles and the value they bring to the business.

“This year our focus was the role of our products and our people in the global energy transition. We shone a spotlight on the Proman Trinidad team members who are leading next-generation methanol and ammonia projects around the world and bringing those skills and best practices back to T&T.”

 

Young Leaders Forum
TT Energy Chamber three-day energy conference hosted a Young Leaders Forum, featuring Julian Brathwaite, chemical engineer, supply and transmission group, Energy and Energy Industries Ministry, Amanda Hunte-Balgobin, manager, production technology, Atlantic; Teresa White, panel moderator; Amrit Ramnanan, maintenance manager, Methanex; Rachael Abraham, planning superintendent, operations, Phoenix Park Gas Processors and Zareef Khan, area development plan lead, bpTT.

Creating a task force, advocacy, increased speed of action and collaboration were key points highlighted by upcoming voices in the energy sector.

Julian Brathwaite, chemical engineer at the LNG group and downstream petroleum management division at the Ministry of Energy began by acknowledging the collaborative discussions around technological partnerships.

“There is a lot of opportunity for partnerships – we need more.”

The impact of artificial intelligence (AI) and its potential were being explored in many sectors, including energy.

“Whether it can be applied effectively will depend on the availability of large training datasets as well as assessing and mitigating the risks of implementing these systems.”

He was encouraged by companies and stakeholders exploring and integrating AI into their businesses, saying it offered the opportunity to improve innovation.

“The energy sector has always benefited from access to higher-quality data to improve decision-making. There are many new technologies being developed and utilised that will improve the level of detail and speed of access to data at lower costs. This gives the sector a lever to improve the efficiency of operations.”

Brathwaite says it is important all stakeholders remain on the same page on its overall goals, while taking into context the changing international landscape.

“Working in silos will not lead to the progress we desire. Having open forums such as the energy conference to share and discuss various perspectives is necessary. I am grateful for the opportunity to add my voice and hopeful that we continue to include more diverse voices in the conversation.”

Production technology manager at Atlantic Amanda Hunte-Balgobin said she was optimistic about the future of the energy industry, despite recent uncertainties.

“Atlantic was born in the 1990s, in a time with similar sentiments: apprehension, uncertainty, recession. Amidst all the scepticism , we were able to successfully construct Train 1, the first greenfield LNG plant in the Western Hemisphere, and up until last quarter, we celebrated the shipment of its 4,700th cargo.”

She said in the midst of transitioning to reduce the global impacts of climate change, through innovation and young people, the sector will navigate successfully.

“TT has already started seeing the negative effects of climate change. There is an urgent need for industry-wide decarbonisation efforts through the use of cleaner-burning fuels and alternative energy sources. The challenge posed is, how do we safely and efficiently deliver competitive, low-carbon energy? We have some of the most talented professionals tackling this challenge.”

Development and implementation of a strategic pathway for decarbonisation is important, as the sector focuses on securing and retaining talent as a key to building the skills and institutional capacity needed for the energy transition. While most of the planned long-term reduction options will depend on advanced technological innovation, in day-to-day operations, there are many opportunities to leverage technology to increase efficiency.

“Atlantic has already begun upskilling its workforce to meet the technological demand (data scientists, cybersecurity specialists). A new skill set and approach are needed to change, attract and retain the right talent. The younger generation is eager to be part of the transition, but opportunities for innovation using technology need to be created, as young minds are recommending out-of-the-box solutions. The industry has come a long way with respect to inclusion and diversity in what was once a male-dominated field. The voices of female energy professionals are heard and were clearly articulated throughout the conference. I am honoured to be able to represent the thoughts and concerns of the younger generation, which I also believe were welcomed and well received.”

Rachael Abraham, planning superintendent of operations at Phoenix Park Gas Processors, said technology is the way to improve the sector.

“The sector can only be successful by having a faster response strategy when problems are encountered. There is a lot of value in utilising technology in planning and project management.“

Taking the initiative is important and will determine the success of the industry, while identifying collaboration and partnerships as key components. Iinvesting in people is crucial to a successful and profitable industry. amid concerns over timely responsiveness.

“Setting dates, planning projects and time management, along with implementing the right technology platform, will increase the efficiency of an operational outset that already exists.”

Amrit Ramnanan, maintenance manager at Methanex, described new ways the country can leverage methanol as he revisited past challenges in accelerating action in diversifying the energy economy. The next question the industry should ask is about shipping methodology.

“When you look at the value chain, we have products already here, and we are looking to expand the market. So why not add another link to that value chain by doing something that is clean? It’s a clear pathway.”

Proximity to the Panama Canal makes TT a major hub.

“Sixty per cent of ships travel through the canal. We are in a geographic position to leverage the methanol ships that come to our ports.”

Ramnanan questioned the sector’s lack of investment in a profitable spin-off untapped market.

“Shipbuilding and ship repair services are a whole new avenue, but the question is: are we ready to take action to make that happen?”

 

 

 

Green projects can win regional FDI

2024, 01/25

The Caribbean has great potential to become a world power in renewable energy, ANSA McAL group CEO, Anthony N Sabga III said at the T&T Energy Conference 2024 in Port-of-Spain. ANSA McAL has been focused on finding commercially viable renewable energy projects that will contribute to energy security.

At the company’s workshop, “Realising a Sustainable Energy Future for Trinidad & Tobago and the Caribbean: 2030 and Beyond”, Sabga gave insight into his dream to have cruise ship tours starting from the Port of Port-of-Spain heading north, using vessels fuelled by hydrogen thereby promoting greener energy while also creating greater employment opportunities.

“In addition to wind and hydrocarbons, these vessels will be powered by hydrogen and electricity produced via a Caribbean-wide connected grid. Fully baselined by wind, solar, hydro, and geothermal energy from our vast and present renewable resources. The mass employment coming from all of this would powerfully impact crime and other impediments to social developments, in our country and across the region.”

Guyana President Irfaan Ali advised the conference that renewable projects required major capital but Sabga said implementation of these plans could attract international investment.

“The excess supply of hydrogen from the Caribbean would also be a highly sought-after and traded commodity in the global markets. So, combine this with the cruise ship industry for the earnings, the foreign earnings of the cruise ship industry and we become economically sustainable. I heard His Excellency mention what it cost. I also have a dream that we would need not do any of this on our own.”

Plans can only become reality if acted upon and ANSA McAL has taken steps to create some level of energy sustainability following its investment in a solar farm in Costa Rica in 2021. It made further strides following an agreement with Kenesjay Green Ltd, during COP 28 in a bid to accelerate green energy projects in the region.

“What struck me at COP 28, was the sense of urgency amongst the business, government, and NGOs . Impressively, I also saw how the Caribbean was deeply engaged in being heard in the conversation, highlighting our regional vulnerability and the adverse effects of climate change and the leadership opportunity to be an active part of the green economy.”

Speed has particular relevance when one considers hydrogen production.

“The scale-up of hydrogen technology is the subject of significant research, however, the main challenge is not the process. Existing hydrogen technology has a proven track record and can form the basis for new plants. At our subsidiary ANSA Chemicals, we have been in the practice of electrolysing water for decades, to make chlorine and bleach. We are now aiming to use emergent fuel cell technology and the hydrogen currently produced by that plant during the electrolysis process, to create a closed loop energy feedstock system for the plant. The project is very much in line with our business sustainability thrust as a group,” Sabga said.

 

 

 

DeNovo – Cut energy approval times

2024, 01/23

Bryan Ramsumair, co-founder and managing director of DeNovo Energy Ltd, says it is important that proper legislation be put in place to advance the energy sector, following assurances made by Prime Minister Dr Keith Rowley that T&T still remains a very viable energy economy with a bright future. Ramsumair said part of this is ensuring there are proper tools in place the right physical incentives as to attract investors.

“Investors will come to Trinidad but we need to demonstrate that we have the right legislative framework … we need to have enabling legislation to be able to say look, ‘We are promoting green hydrogen, we are promoting carbon sequestration and legislation needs to exist around that.”

In an interview with Energy Chamber CEO, Dax Driver, on the opening day of the Conference , the Prime Minister assured that measures continue to be put in place to ensure that action is accelerated to push T&T’s energy future. On how confident he is , Ramsumair citied the initiatives regarding Venezuela and developments regarding deepwater, stating that the

“momentum was beginning to build. And I hope that is a tipping point for new and additional things to come down the pipeline and certainly we are encouraged by this to see that happen.”

DeNovo Energy is majority owned by Proman, the Switzerland energy giant and currently produces natural gas from the Iguana and Zandolie fields in the Gulf of Paria, offshore Trinidad.

Paul Baay, president and chief executive officer of Touchstone Exploration of Canada agreed that more timely action is needed in the local energy sector, noting that getting paper work done on time was one such measure.

When things are delayed, this makes processes frustrating.

“I think he (Rowley) had a more practical approach in how we take the industry forward. There is short term and long term and I think he was realistic about those different things. So I was happy about those things, but I would like to see more activity and more timely activity on things like the licences, the onshore bid round that we were successful at and putting in place some of the paperwork so we can get into the field. But overall it’s pretty clear he (Rowley) understands some of the short term and long term challenges and the collaboration idea is great, but for us we also need to get things done,”

He, however, said Touchstone will remain in T&T for the long haul.

“We think we have competitive advantage here because we have been here and we have a very big land base and we understand the system. Right now 100 per cent of our focus is in Trinidad and I don’t see that changing,” Baay said.

Touchstone Exploration is a Canadian-owned oil company, whose focus is in developing oil and natural blocks onshore in south Trinidad.

 

 

 

Heritage focus on asset integrity

2024, 01/24

An Energy panel discussion sought to strike a balance, driving productivity without sacrificing the structural integrity of equipment.Panellists included senior officials from Heritage Petroleum, bpTT and Atlantic LNG as they combined their experiences, to tackle issues relating to efficiencies in the modern energy industry.

Heritage Petroleum CEO Erik Keskula said navigating operational challenges was critical to success, noting the different industries and segments of society dependent on the energy industry. He reminded officials present that they had a responsibility to ensure future prosperity through meaningful collaboration.

Keskula noted that while the maintenance and upgrade of energy infrastructure was an important part of daily operations, the inclusion of technology in identifying possible system deficiencies was critical in saving time and money. While Heritage Petroleum has been challenged with maintaining aged assets, a robust asset integrity management programme which includes various technologies has helped in meeting operational demands.

“Over the past five years, Heritage has developed and implemented this asset integrity programme including corrosion studies, among many other things, to make sure we understand the root causes that are damaging the equipment and pipelines and enabling us to tailor our inspection programmes more precisely.

“We also conduct engineering and fit-for-service assessments like many of us do, to make sure we have an accurate assessment by using our failure data to identify transit strategies so we know which areas to target proactively and rectify that vulnerable equipment before another occurrence.

“We now haveour accelerated agenda through Artificial Intelligence for analysing geological data sets, interpreting seismic imaging, optimising drilling processes and enhancing asset integrity.” an interconnected network that allows us to get real time information from our wells without the traditional ‘hard-wired’ and extensive requirements so technology will play a pivotal role in supporting 

Skills training for staff was also critical in maintaining efficiencies in the energy industry while remaining abreast of the latest technological developments to remain competitive.

Chief operating officer of Atlantic LNG, Jean Andre Celestain, agreed that the continuous monitoring and maintenance of equipment can save companies from long-term expenses through repairs. Referring to challenges with the coatings for pipes and pipe systems, Celestain said ensuring that such infrastructure remained fresh and “evergreen” could prevent major plant shutdowns, but noted that proactive monitoring was critical in recognising shortfalls before they could escalate to severe problems.

“Recognising that fabric integrity is going to need space and resources, it will need money, it will need a shutdown, people. So if you’re just chasing the football and responding, I don’t think you will be as effective, but if you take a step back and understand what’s needed it then this find itself in the activity plan as it competes for other priorities and the longer you have that planning taking place ahead of the activity gives you a better chance of success from doing it safely, doing it most cost-effectively and of course doing it with quality.”

 

 

Oil, gas will continue to drive Trinidad and Tobago

Minister of Energy Stuart Young told the annual Energy Conference that, despite growth in renewables in 2023, fossil fuels continue to be the driver of economic growth in developing countries. In an update on government policies and initiatives in the domestic energy sector, he said the conference pushes boundaries by addressing major developments in the global energy sector and providing networking opportunities. He acknowledged the abatement of the energy crisis, as the world grapples with the aftermath of the invasion of Ukraine and fossil-fuel prices decline from their 2022 peak.

Despite challenges of persistent volatility in energy markets, geopolitics and the global economy, oil and gas investments were projected to increase by 11 per cent to US$528 billion by the fourth quarter of 2023 – the highest level since 2015. The global energy sector maintains an 82 per cent share of fossil fuels as primary energy consumption globally. Expansion of renewables in 2023 did not diminish the pivotal role of fossil fuels in driving economic growth. Young highlighted the theme of the conference, Accelerating Action and its timeliness in addressing the choices and challenges faced by energy-exporting countries like TT.

“The global population is set to increase from 7.9 billion in 2022 to approximately 9.6 billion in 2050, adding to rising energy demand.”

To meet demand, global energy consumption is projected to surge by nearly 50 per cent over the next 30 years, according to the US Energy Information Administration. The Gas Exporting Countries Forum (GECF) projects fossil fuels will maintain a leading role in the global energy mix, accounting for 71 per cent in 2050, with natural gas surpassing coal as the largest energy source by 2047.

While advanced countries explore low-carbon solutions and energy efficiency, the region seeks energy security amid abundant indigenous renewable and non-renewable energy resources and oil and gas remain the dominant primary energy resources.

Regional energy cooperation initiatives, such as PetroCaribe oil-procurement agreement between Venezuela and Caricom member states, along with the heads of government of Caricom, urged the removal of sanctions on Venezuela to benefit from PetroCaribe and further progress on cross-border natural-gas fields between TT and Venezuela.

TT’s hydrocarbon resources are instrumental in economic development and have led to strategic initiatives, including the 30-year exploration and production licence for the Dragon field in Venezuelan territorial waters, outlining the ongoing Dragon Project and its potential to enhance regional energy security through access to natural gas reserves.

Restructuring of Atlantic LNG, signed in December 2023, marked a milestone for achieving an agreement on the facility’s future configuration, consolidation, licence term, tariff structure and third-party access. He was optimistic about reaping the benefits of a new market-related pricing structure after the restructuring, providing opportunities for new entrants to the LNG business. He acknowledged suboptimal financial returns from the monetisation of natural gas citing Poten and Partners’ 2015 Gas Master Plan Report. Government efforts will improve natural gas supply through new acreage offerings and cross-border initiatives with Venezuela.

He provided updates on upstream projects, including the Angelin Field, the Cypre Plan of Development, and the Mento Field’s joint venture with EOG, which are contributing to natural-gas production and engagement in deep-water projects, such as the Calypso Project with Woodside. As the government focuses on sustaining production through investment, Young discussed fiscal incentives introduced in the 2024 budget, targeting small shallow-water producers and mature marine oil fields. He projected an increase in crude oil and condensate output from 54,600 barrels per day in fiscal 2023 to 69,487 barrels per day by fiscal 2028 and announced NGC’s commitment to green agenda initiatives.

 

 

 

Unsung heroes

2024,  01/24

While much is made of the limits of T&T’s oil, gas and petrochemical exports, another asset of the local energy industry may be flying under the radar: Expertise.

Addressing the panel, Securing a Service Industry to Support the Sector through the Transition, at the T&T Energy Conference, chief executive officer of Ramps Logistics Shaun Rampersad noted that work of local company Tofco’s (Trinidad Offshore Fabrication Company) largely went unheralded.

“We look at joint ventures, and you’re looking at local markets and you’re looking at a company. And I don’t feel like we sometimes talk about the success stories that happen in the country enough. , Tofco is a world-class organisation. They are working on a world-class project for world-class clients, and the company has grown into Trinidad and Tobago, and it’s easy to see how successful they are.”

Tofco was formed 20 years ago as part of a joint venture between Chet Morrison Contractors, LLC, a Louisiana-based company, and Weldfab Ltd of Trinidad. Since then, general manager Javed Mohammed said the company has amassed an impressive track record.

At Tofco’s booth at the Energy Conference Trade show Mohammed said “Our first major project was in 2004 for BP, which was the Cannonball project, Our company is entering 20 years. This year we are celebrating 20 years with a phenomenal HSC record of 11,500,000 man hours without a lost-time incident which is a tremendous achievement for us based on the risk profile that we operate in. And we are based in La Brea Labidco Industrial estate.”

The company had been hoping to showcase that T&T contributed to the international energy sector while also finding new roles for citizens.

“This is now our fourth year as an exhibitor. We are certainly happy and proud to be able to demonstrate the capabilities that lie within because we very much are a supporter of local content, and I think it’s important to showcase the skill set that lies within and also educate people a little bit more as to what we do. Not just understanding we are an offshore fabricator, but we are the only offshore fabricator in Trinidad that can build top sides and jackets for the offshore arena.”

Tofco’s ties to La Brea remained important, as the community had been a major driver of that success.
Continued development of human resources would be crucial as the country attempts to find various lanes to economic stability.

“I think it’s very important. One of the key drivers has always been sustainability and continuity. So we’ve had our challenges not because of our performance but because of the economic downturn in 2010. We did have a drop but we are very grateful to still be a surviving entity then. I think it’s important for the community, I think it is important for the country, not just the company obviously because we continue to excel.”

“But we create the opportunities for (local) skill sets to enhance themselves. One of the important things that drive the economic impact to the country, that direct economic impact and indirect economic impact. Which if you go to measure, it goes all over, not just in Trinidad. People can even take their earnings and spend it all over the world when they travel. So it just shows you what opportunities are there and how much we can actually do.”

Rampersad notes that often there was impatience with local companies, and he feels that with a change in approach to local contractors, there could be more success stories like Tofco from Trinidad and Tobago.

“I want to repeat that for a second. Because sometimes, what happens is that when local companies don’t necessarily deliver at the service level that you need to deliver on day number one, or day number two, well, what does that mean? Do we give up on it? But there must be a commitment to our long-term vision of where we expect our service companies to get to and you don’t become a net exporter of services after year one or year two, or year three,” said Rampersad during the panel.

“Sometimes there’s a lack of that vision. And there’s also a lack of commitment, sometimes in order to get to where it needs to be. But we must meet here with our local service companies. We must give them the opportunity. If you know, one of the things that you look at is the investment that some of the operators have made into (their) company, and it’s fantastic that they have really built capacity and capability. How do we identify where there are more opportunities? Where’s the next Tofco coming from?”

Mohammed noted that Tofco itself had hit a bit of a lull, but through consistent work had built up a strong reputation which has seen them attached to promising upcoming projects.

“We do have some forecasting of high probable projects but right now we are doing a major offshore oil and gas platform topside and jacket. Our last major project was 2010. So this means a lot to us,” said Mohammed. “You would have seen the Juniper topside we did. Then we did the Cassia C jacket. But now we’re doing an entire new project for one of the offshore assets in Trinidad and we have some upcoming opportunities with the Shell Manatee field. And we also continue to work very, very diligently in the region, for Saipem and Exxon in Guyana. And we also have our eyes focussed on transforming and segmenting into Suriname which is post 2025/26 onwards.”

He added, “I think the company continues to grow on I think we have a really, really strong, dedicated team. At the end of the day, I represent all the people and all my workers from the management team, all the way down to the shop-floor persons. I think their dedication is what has us where we are today. Commitment, and we want to continue to create that opportunity for people to continue to improve themselves whether they stay with us or they are able to move on and work elsewhere.”

Topsides of the Juniper platform, which weighs 5,000 tonnes include safety systems, the helideck and the subsea controls. Mohammed said the company would continue to push for further development of local talent within the sector as it embarked on these new challenges.

 

 

 

Energy collaboration

January 26 marks five years since the founding of the International Renewable Energy Agency, of which TT is a party. IRENA works to assist countries in energy transitions, providing state-of-the-art data and analyses on technology, innovation, policy, finance and investment.

At the TT Energy Conference the Prime Minister appeared to be on a victory lap after restructuring of Atlantic LNG and the cinching of the Dragon gas field deal with Venezuela, in buoyant mood asking energy stakeholders for collaboration. It could take four years before gas arrives from Venezuela. Survival dictates a deepening of diversification.

In the week of the International Day of Clean Energy, the PM again resorted to rhetoric which paints the hydrocarbon sector as being under global attack. revealing and out of step. If the sector is under attack, it is showing little evidence of being substantially damaged.

Last year was the planet’s warmest on record, according to the US National Centres for Environmental Information. There were significant climate anomalies and events with the hottest December on record. Scientists agree that the situation is alarming and are clear on what needs to be done. And yet, in that month, COP28 rejected the notion of an immediate phase-out of fossil fuels in favour of a “transition away.” Meanwhile, polar ice caps recede as the earth approaches the end of an Ice Age.

COP29, later this year, is unlikely to result in a different outcome as it is to be hosted by yet another fossil-fuel producer, Azerbaijan, that reportedly plans to scale up production in the coming years.

If the gas sector is under attack, that has not affected demand. Many projections suggest world demand for gas will grow, even considering the sobering climate-change realities that seek change.

The combative PM should adopt a more pragmatic approach which does not risk alienating potential partners in green energy. TT should deepen its collaboration with IRENA and other international bodies to shape a robust green-energy policy. TT needs to re-examine the role and functioning of the Environmental Management Authority (EMA) and the laws governing it. Since the EMA was launched in 1995, the world has changed drastically and environmental issues have become more fraught.

With carbon capture and storage an emerging aspect of the landscape, there is need for regulatory oversight for the implementation of government policy. Ostensibly, the State is committed to making green energy service 30 per cent of energy needs by 2030. Organisations like the EMA could play a role in making that objective more than just a pipe dream.

 

Trinidad and Tobago gas hub

Trinidad and Tobago can create a bright future as a hub for natural gas, drawn from nearby countries, the Prime Minister told the Trinidad and Tobago Energy Conference of the Energy Chamber. In a forum titled, Accelerating Action, with chamber CEO Dr. Thackwray Driver, he hailed the chamber’s attitude of “We are all in this together.” Successes were rooted in collaboration and relationships, in a hydrocarbon sector under global attack and the natural gas industry was not going to die.

“We have to collaborate to survive.”

Driver asked about collaboration in the restructuring of Atlantic LNG. Rowley said he asked energy companies to be more reasonable and had visited their global headquarters. Success in restructuring Atlantic LNG has sent a message to other investors in energy that there was a market for any gas they find.

“As soon as you find it (gas), call us!”

Driver hailed the Trinidad and Tobago/Venezuela Dragon gas deal, which he never thought would happen so quickly, with Shell and NGC getting licences, making Trinidad and Tobago a gas processor rather than producer. Rowley said Trinidad and Tobago geographically lay within a hydrocarbon basin, which will be important for fuels for many years. Depletion after decades of extraction of onshore and near offshore hydrocarbons pushed Trinidad and Tobago into deep water maritime exploration.

“But around us, the basin is still alive and well, and full of potential.”

Logic dictated that despite circumstances, economically Trinidad and Tobago has infrastructure and needs the raw material (natural gas) available across its border.

“Get the diplomacy going, get success in the diplomacy and then the commerce will follow. I think we have done that. It means now that all the raw material that is available outside our border – as long as the relationships, the collaboration and the diplomacy is in place – there could be a significant flow of that raw material into Trinidad and Tobago. That then necessarily gives us a long term future, and growth and sustainability.”

This state of affairs will attract investment into Trinidad and Tobago.

“We were at the verge of losing plants. I spoke to one of our major participants in Canada and the excitement was that there may be possibilities, in the not too distant future, of adding plants. Once the supply of the raw material is seen to be available and sustainable, the sky is the limit for us, as long as the industry survives.”

The Venezuela boundary dispute with Guyana casts a long shadow over the diplomatic success. Was the Dragon licence a reward for TT to support Venezuela in the controversy?

Was the Argyle summit another incentive to keep Caricom onside with Petrocaribe oil?

Venezuelan violations raise questions about the US sanctions relief deal on petroleum and mining sectors. On January 29 the US Treasury Department ended a waiver that authorized transactions with the Venezuelan state-owned gold mining company, effective two weeks from now. The waiver for Venezuela’s petroleum sectors will end in April unless the Maduro regime gets back on track to allow presidential candidates the opportunity to stand, entitled to a level electoral playing field, free movement, and assurances for their safety.

The U.S. government and nearly 30 conservative world leaders condemned the decision of Venezuela’s highest court, the Supreme Tribunal of Justice to uphold the ban to block the presidential candidacy of opposition leader María Corina Machado. The court ruling is a flagrant breach of the Barbados accord to hold elections in 2024, invite international observers, and create a process for aspiring presidential candidates to appeal their bans.

 

 

 

 

Dragon Gas a critical achievement

2024,  01/14

US Ambassador HE Candace Bond affirmed the strong ties between the two countries and promised that good relations will continue in 2024, at AmChamTT’s annual ambassador’s reception attended by AmChamTT CEO Nirad Tewarie and AmChamTT president Stuart Franco, the embassy residence in Port-of-Spain.

“I was in Washington last month and can confirm that congressional support for a strong bilateral relationship is a top concern for many of our legislators. I had the opportunity to speak with the EximBank, interagency partners, and the vice-president. Without going into details yet, I do know that 2024 should propel our engagement on shared priorities such as citizen security, the climate crisis, and economic partnership further than ever.”

She said other plans for T&T include further advancing key Biden-Harris administration regional and global goals such as supporting the rule of law, increasing trade and economic engagement and through the US-Caribbean partnership, addressing the climate crisis 2030 and accelerating regional efforts at mitigating and building resilience to the effects of climate change.

“We know so many of our shared objectives are interrelated or reflect cross-cutting themes. One of those themes is rule of law, since it not only has an impact on safe communities and controlling borders, but also sets the conditions for easier yet secure trade and a more competitive investment climate. Those conditions benefit foreign companies and investors, but also ensure that local companies thrive and local innovators and entrepreneurs are able to make economic contributions.”

She described the Dragon Gas licence as one the most critical economic achievements for the US and T&T in 2023.

“I have to tell you all, I put in an amount of work that you wouldn’t believe to get that over the finish line and that was in January. I thought we were over that hill and we could ride off into the sunset but I was wrong. Instead, the issue again cropped up, requiring strong partnership between our governments and another big lift by so many and we did it.

We know the fruits of that work are still years away and additional challenges might crop up here and there but I also know that our shared visions of energy security and regional stability provide a strong foundation to face any new hurdles that might materialise.”

In sharing her experience, Bond revealed that the work is never done and with issues as diverse as trade, ensuring protection and humane treatment for migrants, and improving citizen security, progress has been achieved but there is more work ahead.

Red Dragon

The methanol industry in Trinidad has come a long way since it began in 1984, when state-owned Trinidad and Tobago Methanol Company (TTMC) started up its first plant at Point Lisas.

There is an art to ensuring that a major energy deal involving multiple moving parts, is struck in a way that all parties can benefit. Stakeholders must ensure their interests are met and they do not find themselves making promises they cannot keep.Recent negotiations for the restructuring of Atlantic LNG and negotiations surrounding the Dragon and Loran-Manatee gas fields are no different. Each has its own intricacies, which have to be navigated by the government to ensure the nation receives the best benefits.

Cecil Camacho, consultant and former senior partner of Johnson, Camacho and Singh, said these deals required careful negotiations. Everyone at the negotiating table had to work around several complications to complete them. He praised the government and its advisers for their ability to close three significant deals.

With expert advice from top firms, the government was able to enter uncharted territory, renegotiate terms and get exemptions to access resources that would have otherwise been untapped. These deals would only serve to benefit the nation in future.

At his office in Port of Spain, Camacho said, “All these three things are monumental. The Atlantic reorganisation may not provide gas for the country but it does improve our share of the pie. Dragon gas and Loran-Manatee are designed to solve the gas-shortage problem, which has had a debilitating effect on our production. Each of these deals is very unique.”

TT entered the LNG game in 1995 with the formation of Atlantic LNG (ALNG). The first train began construction in 1996 with American-based engineering, construction and project management company Bechtel winning the engineering, procurement and construction (EPC) contract to build the plant at Point Fortin. Train one first produced gas in 1999.

Approximately, three million tonnes per annum and about 6,000 barrels per day (bpd) in natural gas liquids (NGLs) were produced yearly. The government, through ALNG, went to the negotiation table with four others – British Gas (Shell), Repsol, Amoco ( bp) and Cabot. They negotiated the project and shareholder agreements, both critical for building the Point Fortin plant.

The project agreement dealt with all permissions, support from government, land and everything needed to complete the project. The shareholder agreement dealt with the rights of all the investors and the stakes that they had in the project and its profits.

Camacho sat at BG’s side of the table. Five different companies coming together on a single project had its own complexities. Even more complicated, each company had its own interests. Cabot and Repsol were off-takers who wanted to buy but not produce gas. BG’s interest in train one was as a buyer but all shareholders had agreements to sell LNG.

“BG had become a producer in Trinidad when train one was being established. They were on the cusp of producing on the east coast. When you produce gas as an upstream producer, you have to have a marketing plan to present to the (energy) ministry based on what you are going to do with the gas. LNG was definitely an option BG was looking at as an energy company. BG’s interest was to sell gas and to have access to LNG cargo.”

TT was trying to get into the LNG game. Before train one, there was no LNG production. TT built the Point Lisas Industrial Estate in the process of building infrastructure for the production of NGLs. The National Gas Company (NGC), up until that point, was an aggregator of gas. This was an opportunity for the company to actually be part of the production. The plant went on to be the largest facility in the world at the time and the first of its kind in the Caribbean and South America. It made TT the tenth LNG producer in the world at the time. Atlantic held the record for fastest LNG project establishment, being completed in six years. The shareholder agreement started with TT having a five per cent stake in train one, an important move for the country.

“It meant that TT had an interest in the energy business. Once you have a stake, that means you are in the game. The country wanted to have an energy facility and NGC’s participation was important, in that it would have a stake in the energy production.”

At that time, NGC had a ten per cent stake in train one, with expansion to trains two, three and four. The government, through NGC, held an 11.1 per cent stake in train four. TT had no stake in the other two trains.

According to Central Bank data online, production of natural gas and LNG peaked in 2010, producing 4,329.5 million cubic feet per day (mmcf/d). But production experienced a gradual decline over the following 12 years. In 2022, it was producing around half of what it did at its peak – 2,683 mmcf/d.

TT’s stake in LNG improved with the restructuring of ALNG, completed in December 2023. The Prime Minister said instead of only two trains, NGC will have a ten per cent stake in all four trains, with bp and Shell holding 45 per cent each.

The government also expected stabilisation in gas production in 2023 with projects such as Shell’s Colibri project, which started production in March 2022 and bpTT’s Cassia compression project, which produced its first gas in November 2022.

Gas production was expected to be further boosted last year by bpTT’s infill programme in the Mango, Savonette and Angelin fields; EOG Resources’ Osprey west and east developments and Touchstone’s Cascadura development onshore. Nearshore and deepwater bid rounds for more exploration resulted in 16 bids for nearshore exploration and four for deepwater exploration. However, some of the most promising solutions to TT’s production decline come from outside its borders, with the Loran-Manatee and Dragon gas fields giving access to a significant amount of natural gas.

The government negotiated a commercial term sheet with Venezuela in 2017 to develop the Dragon gas field with 4.2 trillion cubic feet of estimated reserves, about a third of TT’s total gas reserves. Gas would be piped through a 17-kilometre pipeline to offshore facilities. However, sanctions imposed on Venezuela halted the arrangement in its tracks.

The government then negotiated with the US government in 2023 for a development licence for the Dragon gas field through the US Office of Foreign Assets Control (OFAC), which waived sanctions. In December, Dr Rowley,announced that TT was the holder of the official licence for exploration, production and export of natural gas from the Dragon field.

Again, negotiations had come with a meeting of interests. TT, with a shortage, needed natural gas content to meet its production demands. Venezuela, with significant content but no nearby processing facilities , would benefit from being able to produce LNG.

“Venezuela has no LNG plant, their petrochemical industry is not located close to these fields, this makes sense for Venezuela as well, commercial sense.”

The Loran-Manatee arrangement was also a significant move to secure natural-gas resources, beginning with negotiations for a unitisation development agreement for the gas resource on the border of TT and Venezuela.

In 2019, it was later arranged for TT through Shell to commence development and production of Manatee resources located southeast of Mayaro Bay,straddling the Venezuela/TT border. That deal gave access to about 2.7 trillion cubic feet (tcf) of gas.

NGC signed an amended gas sales contract to incorporate part of the gas volumes from Manatee. Finance Minister Colm Imbert, in budget 2024, said the first gas production is expected in the first quarter of 2028.

The devil is in the details, one of which concerns the political risk of dealing with Venezuela, stymied by years of uncertainty due to heavy sanctions and civil unrest. After Hugo Chavez died in 2013, Maduro assumed the presidency and was later elected to office. Years of hyperinflation reduced the value of its currency and made the US dollar the de facto dominant currency.

Venezuelans showed their distaste for the president by voting in the first opposition-controlled national assembly, resulting in a standoff with the Maduro regime.

Maduro was voted back into office in 2018 amid boycotts and accusations of fraud. The National Assembly declared the election illegitimate and opposition leader Juan Guaido declared himself interim president until a “free and fair” election is called.

The US recognised Guaido and imposed heavy sanctions on the Maduro regime and on PDVSA, the state-owned energy company.US sanctions against the government included oil shipments to Cuba and threats of sanctions on third parties linked to Venezuela’s oil sector.

This presented complications for the Trinidad government having to negotiate with the US to secure licences for exploration and production. Because of the uncertainty of the political landscape in Venezuela, things could change rapidly. TT, in its negotiations, would need measures to ensure that the deals they had would stay in place despite political change.

In the case of Loran-Manatee, Camacho said that deal was one-of-a-kind. The common practice is the original unitisation agreement but for one country to exploit its half of the field is rare.

“It may have happened in other parts of the world, but it may have been isolated.”

Despite the option of accessing gas from other resources, such as Barbados and Grenada, Venezuela has been considered for a long time but the political risk there makes deals all the more complicated.

“That’s what creates the novelty of the whole thing. We know we can try to deal with Grenada with no problems and similarly with Barbados. But can you do that with Venezuela successfully given the political uncertainty?”

While there has been concern over the political risk in Venezuela, it is not uncommon for companies in the energy industry to deal with countries experiencing political conflict.

“It happens all the time. Countries that have political turmoil sign on to agreements all the time, especially in the energy sector. There are places where the energy sector is virtually insulated from the turmoil in the country, where there is a huge energy industry and people live in enclaves.”

Iraq, Nigeria and Syria all have energy industries amid ancient conflicts. When negotiating with a sovereign country, one has to ensure that all the protection possible is put in place, and that in the event of a dispute, it could be resolved in a manner previously agreed.

TT is represented by one of the top legal firms in the US.

“They have the best legal advice on how they are going to insulate themselves from the political risk of dealing with Venezuela.”

For the oil companies, the Dragon and Loran-Manatee are stranded resources. These negotiations are an opportunity to use these resources and gain a return.

“Without this, it just sits there. So the interest of PDVSA and Shell is to maximise the resources that they have.”

While these deals and the gas produced may not address TT’s shortage immediately, whenever output manifests itself, it would provide benefits.

“Everyone tries to break this down to a political discussion without recognising the basic facts. TT needs gas, Venezuela needs a market. Once we get it there will be an improvement for the country.”

Camacho said despite challenges, the ALNG restructuring, Dragon and Loran-Manatee agreements would eventually manifest itself in future budgets.

“From the government’s perspective, the first priority is to have access to gas. Those are negotiated, obviously, for the benefit of the country. Without the gas, we have no monetary benefits, with the gas we have monetary benefits. So it is a win for the country.”

 

 

 

 

Dragon survives with new energy strategy

2024, 01/07

Despite the threat of the US Government reimposing sanctions on Venezuela, Francisco Monaldi, Director of the Latin America Energy Program at the Center for Energy Studies at Rice University, is optimistic that the gas agreement signed between T&T and Venezuela will succeed.

In December, a licence granted by Venezuela to Shell and the National Gas Company (NGC) of T&T will allow the companies to produce natural gas off the Venezuelan coast for 30 years.

The agreement follows last October’s decision by the US Department of the Treasury’s Office of Foreign Assets Control to ease sanctions on Venezuela, including those relating to Venezuela’s oil, gas, and gold sectors, by issuing several new general licences.

The Dragon natural gas field in the northeast of Venezuela lies on the Venezuelan side of its maritime border with Trinidad. It has the prospect of pumping up to 350 million cubic metres of gas and is located , near the maritime border with T&T. Dragon is adjacent to fields in this country operated by Shell.

TT Prime Minister Dr Keith Rowley stressed the importance of this agreement for T&T’s economy and future after it was signed.     “To have entered into this agreement in 2023, to open this door to allow us with the infrastructure on the ground in Trinidad, to access and process the raw material from below the ground in Venezuela, puts the two nations in a position to play a bigger and beneficial role in the world’s economy and for the benefit of the people of Venezuela and T&T.”

For Venezuela, it is a major milestone as it would be the first time that it is exporting gas.
Critics argued that the agreement is precarious as it all depends on US sanctions relief, as the US Government has made clear it can resume sanctions depending on if democratic elections are held.

Venezuela’s state-owned energy company PDVSA discovered the Dragon field over a decade ago and built some infrastructure before US sanctions on Venezuela’s energy sector halted development. Though no US entities are involved in the project, companies and governments request a green light from Washington to avoid secondary sanctions.

Monaldi claimed many variables could impact on how successful the project is.
“I think the agreement has a relatively high probability of success meaning that it will stay and the project will go on. I tend to think that, for the Americans, even if the political liberalisation fails as is likely to happen, and President Maduro stays in power with elections that are not very competitive, the Americans will not go back to the policy of sanctioning everything. I think that the general licences that they gave in October, that might go away and they might change it. That’s a likely eventuality.”

In its first phase, the project is expected to yield output of 185 million cubic feet per day of natural gas. It involves building a 17-kilometer pipeline from Venezuela’s Dragon field to Shell’s Hibiscus field in Trinidad waters for the production of liquefied natural gas (LNG) and petrochemicals. Part of the output will be earmarked for export to international markets.

This agreement is likely to succeed as other major powers are involved such as the Europeans and they will benefit.
“They feel that it is important for geo-political reasons to provide additional sources of gas. On the other hand, it is not a major source of revenue for Maduro. I tend to think that this is one of the more likely licences to survive in a scenario if the US decides to reimpose some sanctions. However, there is always a scenario where Maduro goes to an extreme like Nicaragua where opposition candidates are imprisoned and so the agreement may be in jeopardy. Not only because of the sanctions but the companies involved might slow down given the uncertainties it may introduce.”

Monaldi said if he were in the shoes of companies like Shell, he would be “carefully monitoring” the volatile situation but optimistically added once all parties survive 2024, they should enter a period of stability with no new elections on the horizon and the initial test phase will be over.

“The more problematic year is 2024. After that whatever happens is likely to stay for a relatively longer time. This the year of uncertainty , of not only Venezuelan elections but American elections. That is the other big question to ask. If Mr Trump wins the elections in the US, that introduces another layer of uncertainty because it is not clear at all what type of policies he will implement in Venezuela. Mr Trump tends to be very dismissive of the policies of his opponents so he may go against certain policies of President Biden. However, I would think Mr Trump would establish some level of relationship with Venezuela. But this is all very hard to know and unpredictable.”

If a Biden administration continues then the licences will most likely survive, which will keep the gas project alive well into the future.

 

 

Cuba

Melbana Energy Quarterly Summary

23 Jan 2024

Melbana Energy provided a summary of its activities during the quarter ended 31 December 2023. The summary includes the Block 9 PSC onshore Cuba and operations in Australia, including the Hudson Prospect in NT/P87 and WA-544-P and relinquishment of AC/P51.

HIGHLIGHTS

Block 9 PSC (Melbana 30% participating interest and Operator)

Twenty tanker loads of oil delivered to storage from early production testing from Unit 1B of Alameda-2. Production was run for a total of 10 days to acquire data on reservoir and logistics performance. The well was then shut in to monitor pressure build up to complete data acquisition for reservoir modelling and field development planning. Analysis of results indicate potential significant increase in recoverable volumes.

Drilling of the Alameda-3 appraisal well commenced at 6:00 AM, 15 December 2023 (Cuba time).
Primary objectives are the appraisal of the two deeper and geologically independent Alameda and Marti reservoirs discovered by Melbana’s Alameda-1 exploration well in 2022.  These two deeper reservoirs were independently estimated to contain a combined 179 million barrels of Prospective (recoverable) Resource (Unrisked Gross Best Estimate).

Secondary objective is to conduct a flow test of the oil in Amistad Unit-3.
Hudson Prospect in NT/P87 and WA-544-P (Melbana 100%)

During the quarter the Melbana continued with a process to farmout some of its 100% interest in the permit areas to fund the acquisition of a 3D seismic survey to further de-risk the prospect  AC/P51

During the quarter an application was submitted to NOPTA for the surrender of petroleum exploration permit AC/P51.

Corporate

$20.1 million cash available at the end of the quarter.

Source: Melbana Energy

 

 

 

Colombia

Höegh LNG

January 5, 2024, by Aida Čučuk

Norwegian owner and operator of LNG carriers and FSRUs Höegh LNG extended and expanded its services to LNG import terminal Sociedad Portuaria el Cayao (SPEC LNG) in Cartagena.

Höegh LNG said the agreement with SPEC enables continuity and increase of energy supply through at least 2031, with both companies remaining committed to sustainable operations and reduced emissions.

With a significant shift in its power requirements and a decline in domestic gas supply, LNG is positioned to continue supporting electricity generation and offsetting the projected natural gas deficit for industrial/residential demand.

Erik Nyheim, CEO of Höegh LNG, stated: “The renewal of our longstanding cooperation with SPEC LNG demonstrates how valuable floating terminals can be, as reliable, sustainable and scalable infrastructure solutions. We are pleased to help Colombia secure access to international LNG markets and ensure the reliability of its energy system.”

Jose Maria Castro, Managing Director of SPEC LNG, commented: “This positive news arrives at a crucial moment for Colombia. The extension of the FSRU services and the possibility of utilizing the regasification capacity of SPEC LNG up to 533 MMscfd will contribute to the long-term supply of natural gas and strengthen energy reliability in the country.”

Höegh LNG’s FSRU Höegh Grace has been delivering LNG storage and regasification services to the SPEC LNG import terminal for the past seven years,

 

 

 

BP appoints Murray Auchincloss as CEO

BP turns to the continuity candidate .

Kamran Jebreili/AP Myles McCormick in Houston

and Jamie Smyth in New York,    JANUARY 17 2024

Murray Auchincloss had been running BP on an interim basis since the sudden exit of Bernard Looney in September. As a former chief of staff to ex-BP head Bob Dudley, Auchincloss is familiar with the pressures of running a company that over the past 15 years has rarely been out of the spotlight.

The stint as a top lieutenant to Dudley is one of many Auchincloss has had in a more than two-decade career at BP, which the 53-year-old joined when the UK oil major merged with US-based Amoco in 1998. The Canadian had been running BP on an interim basis since the sudden exit of Bernard Looney for failing to disclose past relationships with company colleagues.

The decision by BP chair Helge Lund and the board to hand Auchincloss the job on a permanent basis maintains the company’s tradition of never picking an outsider for the top job.

It also signals that BP will persist with a strategy, conceived and executed by Looney, of shifting into greener energy even as oil prices remain high.

In one of his few public appearances as interim chief, Auchincloss declared to shareholders at an investor day in Denver in October:  “Strategy, financial frame and net zero ambition are unchanged.”

Paul Cheng, an analyst at Scotiabank, said the elevation of Auchincloss, who was BP’s chief financial officer from July 2020 to September 2023, was an “obvious move. Any outside appointment would have taken six to nine months to get to know people in the company and get their feet wet.”

The fourth generation of his family to work in the energy industry, Auchincloss began his career at Amoco in 1992 after graduating with a finance degree from the University of Calgary.

He qualified as a chartered financial analyst at West Virginia University and worked his way up the Amoco ranks as a tax analyst before relocating to London following the BP merger. Stints in Texas and Scotland as finance chief for the company’s North America gas and North Sea operations, respectively, followed. He was promoted to chief financial officer of BP’s upstream operations in 2015 before becoming CFO of the whole group in 2020. Auchincloss is generally well regarded by investors and analysts. Since September, his message has been one of stability and continuity.

At the Adipec oil conference in Abu Dhabi in October, Auchincloss said he was “pretty optimistic” about the company’s direction. “For the first time in the past four to five years, I can feel the alignment between shareholders, between countries in which we operate and our company,” he told delegates.

With BP’s share price performance lagging behind that of rival Shell over the past 12 months and the speed of its push into green energy being questioned, the appointment of an insider may disappoint some.

“Murray is popular — he’s well regarded on Wall Street. But he’s obviously part of the overall BP construct, which has not been a success story,” said Paul Sankey, oil analyst at Sankey Research. “It’s not necessarily the right decision because BP needs root-and-branch transformation in my view. Ideally you would get in some fresh blood the way Exxon did with Kathy Mikells as CFO,” he added, referring to the executive the US oil major plucked from drinks group Diageo in 2021.

While he lacks the operational experience of his predecessors, Auchincloss emphasised the need for BP to generate returns for investors.

“Now, more than ever, our focus must remain on delivery, operating safely and efficiently, executing with discipline and always focusing on returns.”

 

 

BP puts its faith in the moneyman

The appointment of Murray Auchincloss to chief executive signals continuity — with one significant exception

18 January 2024
By Russell McCulley in London

OPINION: BP’s decision to name Murray Auchincloss, interim chief executive since September last year, Bernard Looney’s official successor has been praised as a measure of stability and continuity.

Certainly, it continues the UK supermajor’s history of choosing its chief executives from within the ranks. Depending on one’s perspective, that could be a good thing — Auchincloss knows the corporate culture and its people, making the transition smoother than it might be with an outsider who arrives determined to shake things up.

Having secured his place as BP’s chief executive, Murray Auchincloss now has a chance to make his mark during a pivotal point in the supermajor’s evolution.

 

 

Murray Auchincloss appointed bp chief executive officer

bp announced today that the bp board has appointed Murray Auchincloss as bp chief executive officer with immediate effect. Murray, who has been interim CEO since September 2023, will continue as a member of the bp board.

His appointment has been made following a robust and competitive search process, conducted by the board over the past four months with support from international search advisers. This included detailed consideration of a range of candidates, including external to bp.

Helge Lund, chair of bp said: “Since September, bp’s board has undertaken a thorough and highly competitive process to identify bp’s next CEO, considering a number of high-calibre candidates in detail. The board is in complete agreement that Murray was the outstanding candidate and is the right leader for bp.

“Many already know Murray well, and few know bp better than he does. His assured leadership, focus on performance and delivery and deep understanding of the opportunities and challenges in the energy transition will serve bp well as we continue our disciplined transformation to an integrated energy company.”

 

Murray Auchincloss said: “It’s an honour to lead bp – this is a great company with great people. Our strategy – from international oil company to integrated energy company, or IOC to IEC – does not change. I’m convinced about the significant value we can create.

“Now, more than ever, our focus must remain on delivery – operating safely and efficiently, executing with discipline, and always focusing on returns. This is how we will deliver real benefits for our customers and other stakeholders and continue to grow long-term value for bp’s shareholders.”

The search process for the new CEO was led by a committee of the bp board, headed by Helge Lund together with three other non-executive directors. The appointment decision was approved by the full bp board, excepting Murray Auchincloss.

Before becoming interim chief executive officer in September 2023, Murray had been bp’s chief financial officer since July 2020, at which time he also joined bp’s board. He had previously served as CFO, deputy CFO and head of business development for bp’s Upstream segment. From 2010-2013 Murray was head of bp’s group chief executive’s office, working directly with Bob Dudley.

Murray, 53, joined Amoco Canada in 1992. Following financial and planning roles in Canada and the US, his career included periods as commercial director for bp’s Onshore North America business and CFO for bp’s North Sea business. He has a degree in finance from the University of Calgary and is a Chartered Financial Analyst and is also a member of the Aker BP board.

Murray Auchincloss’s remuneration arrangements will include:

1. Annual salary of £1.45 million.
2. Provisions relating to bonus opportunity, bonus deferral and performance shares are all in accordance with BP’s 2023 remuneration policy as approved by shareholders.
3. A cash allowance in lieu of pension equal to 20 per cent of base salary, in accordance with BP’s remuneration policy and aligned with the majority of the wider UK workforce.

[This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 of 16 April 2014 (MAR) as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018.]

 

 

 

Shell sells Nigerian onshore unit

By   LNG Prime Staff January 16, 2024

Simplifying portfolio

LNG giant Shell s agreed to sell its Nigerian onshore subsidiary SPDC to Renaissance for up to $2.4 billion.

Renaissance is a consortium of five companies comprising four exploration and production companies based in Nigeria and an international energy group. The companies are ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin.

UK-based Shell said that it will receive $1.3 billion as part of the transaction, while Renaissance will make additional cash payments to Shell of up to $1.1 billion, primarily relating to prior receivables and cash balances in the business.

The majority of the amount is expected to be paid at completion of the transaction, which remains subject to approvals by the government of Nigeria and other conditions. The transaction has been designed to preserve the full range of SPDC’s operating capabilities following the change of ownership.

This includes the technical expertise, management systems, and processes that SPDC implements on behalf of all the companies in the SPDC joint venture, while SPDC’s staff will continue to be employed by the company as it transitions to new ownership.

The SPDC JV is an unincorporated joint venture comprising SPDC (30 percent), the government-owned Nigerian National Petroleum Corporation (55 percent), Total Exploration and Production Nigeria (10 percent) and Nigeria Agip Oil Company (5 percent).

It holds 15 oil mining leases for petroleum operations onshore and 3 for petroleum operations in shallow water in Nigeria. Following completion, Shell will retain a role in supporting the management of SPDC JV facilities that supply a major portion of the feed gas to Nigeria LNG, to help Nigeria achieve maximum value from NLNG. The operator of the six-train 22 mtpa LNG terminal, NLNG is owned by NNPC (49 percent), Shell (25.6 percent), TotalEnergies (15 percent), and Eni (10.4 percent).

Besides the six existing trains, Nigeria LNG is also adding the seventh production unit at the Bonny Island plant.

Shell’s interest in NLNG is outside the scope of this transaction, as well as SNEPCo, which produces oil and gas in the deepwater Gulf of Guinea and SNG, which provides gas to domestic industrial and commercial customers. Shell said the net book value of the entity subject to this transaction is about $2.8 billion as at December 31, 2023.

Under the agreed deal structure, economic performance accrues to the buyer with effect from December 31, 2021. However, Shell will continue to consolidate SPDC until control transfers at completion.

At closing, Shell will provide secured term loans of up to $1.2 billion, to cover a variety of funding requirements.   Also, Shell is providing additional financing of up to $1.3 billion over future years to fund SPDC’s share of the development of the SPDC JV’s gas resources to supply feedgas to NLNG, and its share of specific decommissioning and restoration costs.  This additional financing will only be drawn down when these costs are approved and incurred by the SPDC JV,   Shell said.

“This agreement marks an important milestone for Shell in Nigeria, aligning with our previously announced intent to exit onshore oil production in the Niger Delta, simplifying our portfolio and focusing future disciplined investment in Nigeria on our deepwater and integrated gas positions” said Zoë Yujnovich, Shell’s integrated gas and upstream director.

 

 

Council on Foreign Relations

Mercosur: South America’s Fractious Trade Bloc

Three decades after its founding, Latin America’s largest trade bloc continues to deal with internal divisions, including over a stalled deal with the EU.

Mercosur is an economic and political bloc formed by Argentina, Brazil, Paraguay, and Uruguay. Venezuela was suspended indefinitely in 2016, while Bolivia was approved for full membership in 2023.

Founded in 1991 to create a common market, spur development, and bolster democracy, Mercosur saw early successes, including a tenfold increase in trade within the bloc in its first decade.

While Mercosur has signed free trade agreements (FTAs) with several countries, bigger deals, including with the United States, China, and the European Union, remain elusive.

Mercosur, or the Southern Common Market, originally comprised Argentina, Brazil, Paraguay, and Uruguay. Bolivia gained full membership in 2023. Initially created when longtime rivals Argentina and Brazil were seeking to improve relations, the bloc saw some early successes, including a fivefold increase in trade within the group during the 1990s.

In recent years, Mercosur has struggled to overcome internal divisions and open to other markets. The implementation of a landmark draft trade deal it signed with the European Union (EU) in 2019 remains stalled over environmental concerns and European opposition.   The deal’s future has become increasingly unclear following the election of Argentina’s President Javier Milei, who threatened to leave the bloc.

Other challenges continue to mount, including divisions over China’s controversial influence in Latin America, concerns over the commitment to democracy and persistent economic inequality. Argentina, Brazil, Paraguay, and Uruguay—Mercosur’s founding countries—are full members. Bolivia, previously an associate member, became a permanent member after Brazil’s Congress approved admission in 2023.

In 2022, the four founding countries had a combined gross domestic product (GDP) of over $2.6 trillion, according to World Bank data, making Mercosur one of the world’s largest economic blocs.

In comparison, Latin America’s second-largest trade group, the Pacific Alliance, had a slightly lower combined GDP of about $2.3 trillion. While the onset of the COVID-19 pandemic inflicted considerable economic damage on  members, the group’s collective economic growth bounced back to nearly 6 percent in 2021 before slowing to slightly more than 1 percent in 2022.

Chile, Colombia, Ecuador, Guyana, Peru, and Suriname are associate members of Mercosur. They receive tariff reductions when trading with the full members but do not enjoy full voting rights or free access to members’ markets.

Venezuela joined as a full member in 2012, but was suspended indefinitely in late 2016 for failing to comply with the bloc’s democratic principles. Brazil argued that including the oil-rich country would make Mercosur a “global energy power.” But falling oil prices, economic mismanagement, and an increasingly authoritarian government pushed Venezuela into an economic, political, and humanitarian crisis.

Nearly 8 million Venezuelans fled to neighboring countries and beyond since 2014. Mercosur suspended Venezuela , citing violations of human rights and the bloc’s trade rules by President Nicolás Maduro’s government. In August 2017, the group made Venezuela’s suspension indefinite (there are no provisions for permanent expulsion). In 2019, Argentina, Brazil, and Paraguay urged Maduro to cede power to the Venezuelan opposition.

“A reformist desire to deepen trade within the bloc, as well as genuine horror at Venezuela’s descent into an economically dysfunctional dictatorship, has helped galvanize the four original members’ willingness to slowly inch Venezuela out of the bloc,” says American University’s Matthew M. Taylor, an expert on Latin America’s political economy.

 

 

Venezuela orders oil drilling in Guyana territory

(Financial Times link)

Epiphany map
Jan 07, 2024

In the season of peace and goodwill, 2024 dawned over a Western Hemisphere, alarmed by impudent intentions of the government in Venezuela with contentious communiques and provocative public statements and action to seize the Essequibo region of Guyana. A summit of the two presidents , on December 14, 2023, in St Vincent, under the auspices of its Prime Minister , Dr. Ralph Gonsalves, issued “The Joint Declaration of Argyle for Dialogue and Peace between Guyana and Venezuela.” which eased fears of an imminent copycat Venezuelan invasion but a sense of deep disquiet persists in Guyana about a paper invasion with maps, flags and passports, as in Ukraine.

On January 3, as Christians prepared for Three Kings Day when Oriental nobles brought gold incense and myrrh for Jesus , amid anxiety and aggression, Venezuelans posted on social media an image of Prime Minister Gonsalves and his Foreign Minister, with Venezuelans holding a map of Venezuela incorporating Essequibo, near a statue of Simon Bolivar.

The photograph prompted swift condemnation of Gonsalves from Guyana.

Venezuelan posters gloated “Very emblematic image of the PM of Saint Vincent and the Grenadines, paying homage to the liberator Simon Bolivar with a map of Venezuela that includes our Essequibo.”

As those commenting ignored the date and the event which the photograph recorded,  the assumption was that the photograph was taken at the St Vincent summit of December 14 2023.. Comments on social media accused Gonsalves of support for Venezuela in the company of Venezuelans with a map of Essequibo in Venezuela.

Antigua and Barbuda’ envoy, to USA and Organization of American States,, Sir Ronald Sanders never believed that the post and the image of Gonsalves seeming to endorse Essequibo as a part of Venezuela.

He called Dr. Gonsalves to hear his side of the story. “He told me what he subsequently included in a letter to Presidents Ali and Maduro, concerning this incident.

He was not aware of the photograph but confirmed that it was taken at a ceremony commemorating Bolivar in St Vincent on the grounds of the Venezuelan Embassy in December 2022.

He went on to say in his letter,: “While the photographs were being taken, I am advised that someone attached to the Venezuelan Embassy placed the “papier-mâché” depiction of the said map in front of us.. I assumed that it was about Simon Bolivar.”

As all leaders know, persons take photographs in which they appear but have little knowledge of anything or anyone that is not within their vision. Gonsalves was behind the map, and photographs are taken within seconds. That situation could have happened to anyone. …hopefully it has been laid to rest, where it ought properly to reside among ghosts from the past, which ought never to rule us from the grave.

In 2020 Gonsalves stood in solidarity with the people of Guyana, as the defeated PNC clung to power jeopardising their free will, urging peace, stability and democratic rights. Gonsalves, who cares deeply about  Caricom, which values friendship with Maduro, seeks to promote acceptance of a lasting solution to the boundary controversy.

That is his nature but he is no enemy of Guyana and the matter should be laid to rest. Of the greatest importance now is that Guyana and CARICOM partners must move forward, focusing on the legal and diplomatic efforts to end the controversy.

The Royal Navy intercepts pirates and drug traffickers and provides security and disaster relief in the region. Two weeks after Argyle, patrol vessel HMS Trent, arrived to conduct training exercises with forces in Guyana .

Venezuela demanded its immediate withdrawal, deeming its presence “a provocation affecting the resolution of the Essequibo controversy.”

It denounced Britain, charging that synchronisation with the US Southern Command was a direct threat to peace and stability in the region. Urging Guyana “to refrain from continuing to involve military powers in the territorial controversy,”

Venezuela warned Caricom and the Community of Latin American and Caribbean States (CELAC) that the UK/Guyana action ran counter to the spirit of peace and understanding which Venezuela observed at the Argyle summit.

“The Bolivarian Republic of Venezuela reserves to itself all actions, within the framework of the Constitution and international law, to defend the maritime and territorial integrity of the homeland.”

President Maduro announced that nearly 6,000 troops would conduct operations off Venezuela’s eastern coast near the border with Guyana.

Brazil, with its role in SVG, appealed to the protagonists to return to the Argyle Declaration which now appears dead in the water. Prime Minister Dr Ralph Gonsalves and interim chairman of CELAC facilitated the SVG summit.

His role and that of the Caricom chairman, Roosevelt Skerrit of Dominica will continue with Brazilian president, Lula da Silva as “interlocutors.”

Venezuela’s allies, PRC, Russia, Iran, Turkey Cuba and Nicaragua, did not publicly support its aggression. Its creditor PRC, through SOC China National Offshore Oil Corporation (CNOOC), is a partner with US companies Chevron and ExxonMobil producing oil offshore Guyana.