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BPTT
In Her Sponsor’s remarks, Claire Fitzpatrick, Regional President BPTrinidad and Tobago. said:-
“..SALUTATIONS
Dr. The Honourable, Keith Rowley, Prime Minister of the Republic of Trinidad and Tobago. Senator the Hon. Franklin Khan, Minister of Energy and Energy Industries. Other distinguished members of government and members of the diplomatic corps. Fellow members of the Energy Chamber
Industry partners. Members of the media
It’s my pleasure to be here, and to be addressing this conference for the first time. It’s been an interesting and enjoyable start and I look forward to continuing to build my knowledge of the industry here as well as playing an active role in shaping its future.
The theme of this year’s conference “Technology: Transforming the Industry” is perfectly timed. The forces shaping the energy industry at a macro level are well understood by this room;
• a growing global population with an increasing demand for energy to provide heat, light and mobility;
• evolving policies on climate change; and
• society’s growing preference for cleaner energy.
In BP we refer to this as the ‘Dual Challenge’ – that is – the world needs more energy but energy that is kinder to our planet.
At the same time, the industry here in Trinidad and Tobago has a dual challenge of its own. Our shallow water resource basins are maturing and require investment – to optimize production and – to maintain safe and efficient operations from aging infrastructure. Additionally, recent exploration over both our shallow and deepwater acreage is providing encouraging results, but any new field developments that may come from this will need to be capital efficient to ensure they are economic and competitive.
These challenges at both global and regional level make a clear case for technology to be deployed at scale, and at pace, to move our industry forward.
At BPTT we are already working diligently to be at the front of the technological changes required – and while the change is unnerving at times, it is also really exciting.
As we have deployed new technologies across our operations, we are seeing possibilities everywhere including pioneering new technologies for the BP group right here … in the land of oil and music.
Today I’ll speak about technology transforming three elements.
• transforming safety – helping the industry protect – people, the environment and investments.
• transforming performance – enabling the industry to discover and recover more resources, and improve delivery
• And – transforming the workforce and the competitiveness of our industry – the mindset that could prepare the people of Trinidad and Tobago for the energy industry of tomorrow.
TRANSFORMING SAFETY
Over the last nine months I have visited our operating sites and met with staff and contractors alike. These visits reinforced that people remain our greatest assets and our first priority must be to keep them safe.
We are evolving the way we think about safety and integrity management. We are deepening our understanding of how our people interact – with one another, equipment and processes. By focusing on how people interact with their work environment, we are better able to understand why things have gone wrong and look to prevent those things from happening again.
So where does technology fit? In BPTT we seek to keep people out of harms way. The more we limit exposure to hazardous conditions the more we reduce safety risk. Technology allows us to do that in new ways.
Through our Return-To-Scene or R2S programme, we can now perform virtual inspections on our unmanned offshore facilities, reducing the number of visits required and reduce aviation risk. This is just one example of technology “keeping people out of harms way.” Technology is a central part of our risk management to ensure our people make it home safely to their families every day.
TRANSFORMING OPERATIONS
Technological innovation is transforming our operational performance – and harnessing the power of data is key. For example, we are deploying new digital systems that enhance production from our base fields through better optimization of pressures across our infrastructure. Keeping our producing fields performing stronger, longer – enables us to maintain our production profiles to meet our contractual commitments.
We are also deploying new drilling technologies when bringing on new wells that allow us to monitor our drilling performance real-time – resulting in faster, more precise execution of our work and ultimately more gas.
Discovering more is key to extending the life of the industry here – and without technologies like advanced seismic imaging we would not have been able to target a series of exploration prospects, which started with the Savannah and Macadamia discoveries in 2017 and will continue with Ginger and others. The Angelin development, is progressing well with first gas expected this quarter, also made possible by new seismic technology.
Apart from discovering more we need to recover more from our existing resources – and find more ways to make smaller pools economic. As part of enabling the development of smaller pools, we’re embarking on the next generation of NUI’s or normally unmanned installations. This new platform concept will combine technology, improved processes and new ways of partnering with the supply chain to change the way we deliver projects – and it will be pioneered right here in Trinidad. When compared to a more traditional development, the minimal NUI design will be smaller, simpler and greener as we focus our efforts on increased reliability, reducing both safety risk and our carbon footprint.
TRANSFORMING THE WORKFORCE
However, a key ingredient in achieving all of this is people. People are the connective tissue between
• technological advances transforming the industry
• and the application to our safety systems and operations.
We will always need people but its undeniable their jobs will be different.
BP has depended on the expertise of T&T’s people for 50 years and I can hardly think of a BP location across the world where you won’t find a T&T national at work. We have had many successes across our business of the great talent developed here.
And the future will be no different. But those successes will depend on us investing in the workforce, of today and tomorrow, supporting them to have the skillsets they’ll need. But the onus is not on industry alone. Workers will also need to proactively seek opportunities to improve and develop new skillsets, so they can evolve alongside the industry.
Across our upstream business we are adopting a range of new digital tools and training our people to apply them. We are adopting more agile ways of working to help cross functional teams collaborate better and make decisions faster.
TRANSFORMING THE COMPETITIVE LANDSCAPE
In 2018, BPTT laid out a 10-year plan for 9 projects and investments required to maintain our production capacity for another decade.
But think of what could be possible – for BPTT and for other Upstream operators – could we do more?
• Faster development?
• Build projects in Trinidad?
• Develop stranded resources?
My bet is yes – if
• we leverage technology,
• work together – and
• have the right investment climate to enable it
Not just the right fiscal and commercial arrangements but
• efficient regulatory processes,
• a more supportive and productive labour environment and
• a supply chain that’s keeping pace with change.
In 2018,
• We sanctioned an innovative gas and LNG project – in partnership with the Governments of Mauritania and Senegal and alongside other energy companies.
• We formed a solar joint venture with an Egyptian utilities company offering a competitively priced alternative to established energy options in the country.
These required both technology and a different mindset – one that’s based on trust, partnership and greater collaboration. If we can do these projects in west Africa and Egypt, why can’t it be done here?
This new approach to collaboration should not just be between business and government, but between energy companies and suppliers. We need to work together, challenge the status quo, bring new competitive solutions to the table. Across BP, we are successfully partnering with our suppliers to solve problems because we recognize the answers cannot be found in just one sector or indeed one industry, and that we go further when we go together.
A great example of this is our newly sanctioned Cassia Compression project. We worked together with our turbine supplier Baker Hughes G.E and explored a new model, where rather than own or lease, operate and maintain the turbines on the facility we will only pay for the hours the turbines are in operation. Although this has not been implemented on this scale before in BP, both companies understood the mutual benefits. Reaching an agreement like this could not have been done without trust and transparency.
ADDRESSING THE DUAL CHALLENGE
Such collaborative efforts will change the traditional ways we do business, so we can continue to deliver the country’s energy needs while also helping T&T do its part in reducing carbon emissions.
BP – along with the other operators in this room – are developing technological solutions, investing to improve energy efficiency, venturing into renewable sources of energy and new business models to meet the dual challenge. Trinidad is well poised to leverage the expertise and the connections that already exist in the upstream, here in T&T, to help transform the industry and deliver its own carbon and climate goals.
In conclusion
Bold transformations are happening across our industry, and quickly. Technology is changing our approach to
• safety and human performance,
• operations and efficiencies,
• workforce development and how we collaborate to enhance competitiveness.
BPTT is proud of the relationships we’ve built so far, and I am excited for more – innovation – collaboration – development – success – and a future of possibilities for our industry and country. …”
Ahmed Hashmi of BP plc
Ahmed Hashmi. is Global Head of Upstream. Technology, BP plc
With over 30 years industry experience, Ahmed Hashmi held technical, commercial and leadership positions across worldwide operations of Amoco and BP
– Upstream, Downstream and Renewable Energy – in the US, Europe, Africa, Latin America and the Arabian Gulf.
In his current role, he is accountable for the creation and delivery of BP’s Upstream technology strategy and digital transformation.
He leads the Upstream Technology organization of scientists and engineers, technology centers and laboratory facilities in USA and UK, and a global network of research and technology relationships with the world’s top universities, research institutes, start-ups and technology suppliers.
Ahmed serves on the Board of the International Centre for Advanced Materials at the University of Manchester, UK. He enjoys working on and reviewing the intersection of strategy, technology and policy, and is a frequent speaker at industry events.
Ahmed holds a BSc. degree in Mathematics and Physics, M.Sc. in Computer Sciences (Operations Research) and MBA in Finance and Economics.
He lives in Houston, USA, with his wife and son. His personal interests include reading, travelling with family, music, cycling, swimming, and volunteer work.
Advancing the transformation – new tools for new challenges
Introduction
• How many of you entered this industry in the 20th century – as I did – when Atlantic LNG initiated operations?
• It was a very different world.
• Look at how Trinidad & Tobago has changed since then.
o The economy here is three times the size it was in 1999.
o Gas production has tripled – from 1.1bcfd to 3.3bcfd.
• World in general has changed profoundly, particularly with digital technology.
o In 1999, 4% of the world’s population used the internet. Today it is over 55%.
• Terms like cloud, data lake, cognitive computing, blockchain, were not in the oil and gas industry’s vocabulary.
• Leaders who grew up in a largely analog world now have the responsibility of leading the industry in a digital era.
• Our task is to make our industry fit for a very different future.
• Over the next few minutes, I will offer some thoughts about the change we have to embrace.
o changing context – the new challenges we face;
o changing tools – that we now have at our disposal;
o change in culture and mindset – that we need.
Changing context
• One thing is not changing – growing demand for energy.
• Global energy use has grown by around 50% since 1999.
• That has helped to halve the number of people living in extreme poverty.
• We now expect demand to grow by around a third by 2040. That’s according to BP’s Energy Outlook.
• Another big change – in the last 20 years, annual carbon dioxide emissions from energy have risen by more than 40%.
• The Intergovernmental Panel on Climate Change says emissions need to fall by 45% on 2010 levels by 2030 to keep the temperature rise to 1.5 degrees on pre-industrial times.
• So, our industry’s task has changed. Not only to meet growing demand but to meet the dual challenge of providing more energy with fewer emissions.
o There are several ways to achieve this.
o Using more renewable energy will help.
o So will using energy more efficiently.
o Using gas in place of coal, because gas has only half the emissions of coal when burned to produce electricity.
o Trinidad & Tobago has an important role in helping to provide this gas.
o Meeting the dual challenge doesn’t mean an overnight switch and a race to renewables; rather a transition to lower carbon sources of energy where gas continues to complement renewables.
o If we meet the 1.5-degree goal, we estimate the world will still get around 40% of its energy from oil and gas in 2040.
• Another big change in the context. 20 years ago, the world was worrying about oil and gas running out.
o Yet look what happened. Since 1999 we’ve used roughly 600 billion barrels of oil – but reserves have actually risen by around 400 billion. Gas reserves have increased by around 40% too.
o BP’s Technology Outlook estimates that the world has something like five trillion barrels of technically recoverable oil and gas in total.
o We have moved from a fear of scarcity to the reality of abundance.
o With abundant supplies, only the most competitive resources will reach the market.
o A particular challenge you are familiar with here, as Trinidad & Tobago faces new competition from the US and other gas exporters.
• Challenges demand a transformation in our industry. Safety must remain our top priority, but it is followed by environmental responsibility, efficiency, cost and value. These have become the new vectors of transformation for our sector.
• Efficiency has historically varied with the oil price. At BP, we are determined to decouple performance from price. Our goal is sustainable, consistent efficiency improvement.
• To do this, we have embarked on a transformation programme.
o We put safety first – it a core value.
o We have a commitment to capital discipline.
o We seek out the most advantaged oil and gas resources.
o We strive for quality execution.
o And we aspire to be the agile, digital company that talented people want to work for.
Changing tools
• Fortunately, we have changing tools to help us meet these challenges.
• Now playing their part in what some have called the fourth industrial revolution. The first three were driven by steam, electricity and automation.
o The fourth revolution is about connecting the other three, linking physical and digital technologies.
• In BP, we are transforming our business in exactly this way – connecting the physical power of platforms and pipes to the digital power of big data and artificial intelligence.
• These new tools can help with age-old challenges as well as newer ones.
• Look at safety. We can now use remotely operated devices such as drones or submarines to undertake critical inspections.
o For example, when our team at the Mad Dog platform in the Gulf of Mexico used a mini ROV to inspect its spar platform ballast tanks, it avoided a confined space entry, improved the capture of data, and averted a $15 million production deferral.
• New technologies are also helping us take on the environmental challenge, for example using infrared cameras to detect and reduce methane emissions in gas production.
• Reliability is enhanced by new digital technologies such as our Plant Operations Advisor system that monitors more than 1,200 mission-critical pieces of equipment, analyzing over 150 million data points per day.
• We have used advanced digital tools for many years in part of our business. 3D seismic, one of the earliest incarnations of big data in our industry, was pioneered by BP and others in the 1990s.
• Today seismic has entered a new era.
o More powerful computers than ever before. BP’s Center for High Performance Computing – CHPC – has more than quadrupled its power to around eleven petaflops since opening in 2013. That is 11 million billion calculations per second. It would take a person roughly 350 million years to do what the computer does in a second.
o Capacity of supercomputers is now being turbocharged by the power of artificial intelligence.
o A Full Waveform Inversion algorithm created by a young BP scientist helped us recently discover a field within a field in the Gulf of Mexico.
o It took just a fortnight to process the algorithm. With the technology of 1999, it would have taken 1,000 years.
• An integral aspect of our digital transformation is what we call The Connected Upstream.
o Connecting people and data;
o Connecting physical and digital assets;
o And connecting machine intelligence and business decisions.
• A good example of connecting people and data is a system called ARGUS.
o ARGUS is a database of our wells, with a modern visualization and analytics engine.
o It sits in the upstream Data lake which receives more than a billion data points a day .
o BP engineers anywhere in the world can access their wells’ data instantly.
o Well review meetings used to require engineers to spend hours pulling together data and analysis. Today they simply open their laptops and are ready to go.
• An example of connecting physical and digital assets is our production optimization system, APEX.
o It is a digital twin of our production systems around the world.
o Our engineers use it to simulate production operations and optimize them.
o It was scaled up from a pilot to around 30 operations within a year.
o We estimate it has added more than 30,000 thousand barrels to our production in one year.
o Here in Trinidad & Tobago, one of the early adopter of APEX, a great example of its potential came with the start-up of two major projects TROC and Juniper, which introduced an operating vulnerability in the connecting pipeline network that did not previously exist.
o During a partial system shut-down, the vulnerability could lead to an integrity risk without an intervention – choking back production by 300 mmscf/d (50 mbd) for several days appeared to be the only course of action.
o However, a 15 second system-wide simulation run using APEX demonstrated that the risk would have no lasting impact on pipeline health, resulting in a well informed decision to sustain current production levels
• Third element in the Connected Upstream is connecting machine intelligence to business decisions.
• Systems such as Return to Scene or R2S which Claire mentioned earlier. This was originally developed by the police to create detailed images of crime scenes.
o We use it here and around the world to generate high resolution images of facilities that enable us to plan maintenance onshore and cut the time needed on-site. . We have around 130,000 such images .
o In Trinidad, we can walk down four of our facilities-Cashima, Amherstia, Juniper and Mango.
• Partnering with specialist AI businesses
o Working with a NASA spin-out, Beyond Limits, we are building cognitive agents.
A cognitive agent emulates a human expert’s cognitive processes using data, physics-based models and experience-based principles
It augments human expertise, rapidly providing our engineers with options, to address issues like sand influx in a well.
o Last week, we announced an investment in another Artificial Intelligence startup, Belmont Technologies, that will speed up the interpretation and integration of subsurface data.
The AI, nicknamed ‘Sandy’, can map out scenarios and perform rapid simulations.
The technology is targeting a 90% time reduction in data collection, interpretation and simulation, from exploration through to reservoir modelling.
• Globally, we estimate a 30% improvement potential in operating cost from Digital technologies.
• Alongside our growing investments in digital, we continue to invest in technologies such as enhanced oil recovery and advanced materials, where we see strong potential for efficiency and value gains.
Changing culture
• This transformation does not only depend on technology. It is equally important to change our culture and mindset.
• Can we adjust to different types of work?
o This is a challenge we cannot escape.
o Machines can now do mechanical tasks that engineers once did.
o This is an opportunity not a threat.
o A recent report by McKinsey showed how new technologies actually add jobs. Indeed, it estimated that personal computing has created 16 million jobs in the US since 1980.
o BUT, as individuals, we have to enable ourselves to move to a higher level of problem-solving, harnessing new technologies as they arrive..
• For the, we need a fresh approach to learning.
o We will not transform this industry by simply hiring digital experts. If you read that somewhere – throw out that book!
o Rather we have to re-skill and rightly equip our existing talent.
o At BP, we have opened up online self-help programs in topics like data science, machine learning and coding, for all our employees.
o We are practicing reverse mentoring so that digitally-savvy recruits can share their skills with senior leaders. A local IT staffer here was mentor to a senior Upstream leader from the UK.
o A few of our digital heroes from Trinidad:
Larry Ghany who leads R2S in Trinidad. Digital has changed his career and enhanced his work life balance as he no longer needs to make as many site visits for routine work.
Anna Gobin used the Office 365 toolkit to develop an app for site visits to be recorded – instead of waiting for manual input – increasing efficiency and accuracy.
Shaun Hosein who has been using the ‘Scrum’ methodology to rapidly form bespoke teams for different projects – combining people power and technology strength to cut cycle times in well planning.
Conclusion
• The future is uncertain but preparation for it must not be so.
• The dual challenge is real and our industry is firmly in transition.
• The pace of technological change is extraordinary and is becoming faster each day.
• In fact, today is the slowest day of technology change for the rest of your life.
• The world is entering an era of hyper-connectivity, which will offer possibilities we are just beginning to imagine.
• Our job is to build an oil and gas industry that is fit for this new future.
• At BP, we are investing to maximize the potential of both human and digital systems – humans with our unique cognitive power; machines with their unparalleled processing speed.
• It is a great responsibility. And a great opportunity.
• Thank you!
Keith Bally: BPTT Activity Update
Technology – Transforming the Energy Industry
BP in T&T
It is always good to talk about our current and future activities and tie them back to the one plan that we have been executing against. -the Area Development Plan.
Our acreage is managed through what we call our Area Development Plan.
I appreciate that you are interested in BPTT’s short-term and long-term future activities and plans, however before I discuss those I will briefly talk about activities we have already delivered (including technology enablers) in the Area Development Plan. These activities underpin the future and give us confidence that we have a solid plan. So, I will simply do two things this afternoon
• Talk about a what we have delivered to date to enable the future which includes Modernising and transforming how we work and the technology required to drive BPTT forward and
• Give details about our short-term activities.
So, what are some of the key things we have delivered to date:
Let’s start with Technology: You would have heard about the need for technology and to transform the business from Claire and Ahmed yesterday. So I will dig a bit deeper to share what we have done and the impact technology is having in our operations. We continue to look for ways to become more effective and ultimately more efficient .
Our approach to Modernisation and Transformation is not only about adding new technology because some of the technology we’re using was introduced two, three years ago.
M&T is about changing the look and feel of the organization. We have introduced and continue to embed agile methods of working across the organization. It is a journey and teams really enjoy the different ways of working which make them more effective and efficient without losing the focus on safety and sacrificing technical quality.
SCRUM quotes – here is a slide showing teams working agile – doing Scrum and some of the quotes of how it feels — and this is said by all who particiapate
M&T It is about applying focus to our implementation of technology on a global scale and there is also the digital aspect and our ability to manage large streams of data and make well informed decisions quickly.
BP Chief Digital and Technology Officer, Upstream Ahmed Hashmi talked about the company’s M&T agenda, technology, tools, digital and how we are changing the culture and the way we work – here in Trinidad we are part of that M&T wave and it feels different and exciting.
I will now give more details about how we’re employing and using technology in Trinidad and Tobago.
ADP achievements
To date:
Seismic – you will remember we acquired Ocean Bottom Seismic in 2011-3013 and we continued with Ocean Bottom Nodes in 2017. These surveys have opened up the basin for us under our existing facilities, adjacent to the facilities and in areas not already developed. We continue to de-risk our current portfolio, identify new opportunities while some others in the portfolio have become smaller.
We have used DrawDown controllers on a few of our wells in a 2018 trial : Simply, Drawdown controller is software that automatically controls the drawdown rate of a well – controlling a well’s production rate based on several data points – allow for quick response to opportunities and threats. We plan to do more wells in 2019. This has been very important for wells riding on system pressure, with potential sanding tendencies or those that load up with water. How we manage those wells and bring them on is critical to overall recovery of the hydrocarbons.
Operator workbench : Operator Workbench uses mobile technology to digitise processes to improve safety and efficiency for our front line operations/operators. It involves supplying hand-held devices to the frontline to become part of the daily site routine. Mahogany B became the first team to go live with Operator Workbench (OWB) in August 2018
Return to Scene – Both Claire and Ahmed yesterday briefly talked about Return to Scene ( R2S – technology based on use in police investigtaions). R2S uses augmented reality to remotely inspect facilities. The result has been a reduction in site visits, flights and ultimately a reduction of risk to people visiting the platforms to work. So far on 4 offshore platforms, over 3000 hi res images have been captured and we are working towards a target of 30% reduction in visits to sites….allows us to essentially walkdown the facility while in the office.
Argus and APEX : Argus harnesses the power of big data to improve production management. APEX creates a digital twin of production systems. This technology allows us to simulate and optimize production by modelling physical constraints and adjusting operating parameters accordingly.
Our Apex model in TT is the largest within BP, containing almost 100 wells (active / inactive), 14 platforms, 3 production hubs and our network of pipelines. As
Ceramic Screens : Trinidad is the first region in BP to have production from both oil and gas wells using ceramic sand screens in the completions. Ceramic screens are a cost effective solution for deploying sand control in RCP wells, by providing high erosional capacity (100 to 330ft/s) and lower execution complexity when compared to conventional sand control methods. It can be implemented without a rig, making it cheaper. There have been early successes achieved in wells with failed gravel pack, high fines content, unconsolidated virgin reservoirs.
To date we have :
• As of today we installed Ceramic screens in 4 wells in 2018: three (3) wells are on “sand free” production today, one well was not POP due to GLV issues. This has been possible through collaboration with We have collaborated with Key contractors during the implementation – – 3M (manufacturer), Interwell and Tucker Energy Services.
• Future possibilities: the huge prize here and future potential of ceramic screens lies in efficiently unlocking more of our Small Pool opportunities and developments.
Moving on from Technology we have also delivered key major projects in our Area Plan
TROC and Juniper major projects were delivered in 2017 and both are performing well. Both of these were important to our ability to meet gas supply commitments. These two projects helped BPTT to increase its supply of gas to the NGC by 18% and also had a positive impact on national supply. Our next project Angelin, is on track to have first gas delivery in 1Q 2019.
Looking out further, and as part of our M&T agenda, we are exploring a new concept for delivering platforms. What we refer to as “minimal NUI” ( normally unmanned installation) concept focuses on delivering installations that are simpler, safer, greener and more competitive. Some of the highlights are:
• Reduced complexity
• Repeatable design for future developments which shortens project cycle time
• Using Power supplied remotely from existing facility which will limit both maintenance requirements and our carbon foot print
• Remote sensors which provide predictive campaign-based maintenance and
• Use of CCTV which will limit the need to visit platform while digital twinning allows for detailed campaign planning from shore
On the Commercial side we have delivered an extension to our NGC contract and are currently in negotiations regarding Train 1 contract extension.
Finally Exploration in our ADP –
In 2018 we announced success at Macadamia (now Cyre) and Savannah (now Matapal) I will talk more later about the status of these discoveries and what more is to come in exploration. As we fully explore and develop resources in the basin we will continue to test new plays/cocepts and interpretations and we do recognize the increased associated risk. We had a couple wells in our Cannonball drilling program fail late 2018 and early 2019. We knew these were riskier opportunities with significant upsides and will now take the learnings forward into our future exploration and in field development programs.
Moving in to our 2019 activities : Short term activities
Operations
On the operations side it is very important that we continue to keep the integrity of our infrastructure in good shape especially with the future in mind. In 2019 we have
• Turnarounds planned at Amherstia and Cassia:
o Amherstia TAR – which will be executed in Q4
Involves Significant Isolation Valves replacement
o Cassia TAR – is planned for Q3
Cassia Offline only, Immortelle, NUIs on bypass for the duration
Integrity Management work will be carried out as well as tie in scope of work for the up coming cassia compression facility ( aka Cassia C).
o Other major operation work includes 40-inch valve replacement at Mahogany B in Q2 . This valve replacement will allow 40 inch pipeline pigging without having to take a full Mahogany hub outage and thereby reducing any planned deferrals. (significant to note that Mahogany Hub is currently doing over 1 bscfd)
o
• We will plan to shelter all our TAR and other shutdown activities as far as we can – for example under the large Train 1 TAR.
Drilling:
We have a fairly significant well intervention and wellwork program in 2019.
We continue to do infill drilling in our existing fields and in our new field developments
• We will continue with our 2-rig programme.
• In addition to drilling at Angelin, our 2019 development drilling programme includes:
• 1 well on Cannonball (actually finished in 2018), and
• A 4-well programme on Cashima
• And we continue to do significant Well intervention and wellwork in our fields. ( we will do over 17 jobs including 9 wellwork , 1 rig recomplete, 1 workover)
Major projects:
Angelin
• Angelin is BPTT’s 15th offshore platform. The facility is located 60 kilometres off the south east coast of Trinidad in water-depth of approximately 65 metres. Angelin was originally discovered by the El Diablo well in 1995 and appraised by La Novia in 2006. The OBC seismic unlocked and derisked Angelin and this was the first project to be positively impacted by the OBS. The development includes four wells and gas from Angelin will flow to the Serrette platform via a new 21 kilometre pipeline.
• The Angelin facility has been successfully installed and first gas is on track for Q1.
• Drilling is ongoing and to date we have drilled 2 wells already – results largely on plan, not on production yet).
Our next major projects Cassia C and Matapal were both sanctioned in December. Let me take this opportunity to clarify 2 things : As we have moved the discoveries we made last year into projects we have renamed them after trees ( as we normally do with all our all our fields). So the Savannah discovery is now known as Matapal and the Macademia discovery as Cypre.
• Cassia C will be located 57 kilometres off the south-east coast of Trinidad. The platform will have a throughput capacity of 1.2 billion standard cubic feet of gas a day (bscfd).
• The jacket will be fabricated in La Brea, Trinidad and the topside structure in Altamira, Mexico. First gas from the facility is expected in 3Q 2021.
• The Matapal project (formerly Savannah) will develop the gas resources discovered by BPTT in 2017 with the Savannah exploration well. The project will be a three-well subsea tie-back to the existing Juniper platform. Proposed first gas from Matapal is expected in 2022.
The Cypre development – based on the successful Macadamia exploration well – is moving through the project sanction process and is currently in the optimize stage evaluating a concept for development.We will share more on tshi project next year.
We are currently executing a significant project in Galeota – The Galeota Expansion Project – know as GEP
Our terminal facility receives all of the water and condensate from our offshore fields and process these liquids into market quality crude/condensate and environmentally compliant produced water.
Activity at the project site began in 4Q 2016.
The GEP project comprises a new Produced Water Treatment plant, new Condensate Processing facilities, a new Control Room, and a new Compressor and Flare system.
We see this project as a vital part of our long-term sustainability and will provide significant benefits for the company and country.
Completion of the project is scheduled for 4Q 2019
• Facilities progress to date – 73%
– Concrete installation – 96%
– Structural Steel installation – 80%
– Piping installation – 72%
Exploration:
And, now for exploration.
As you remember, our infrastructure-led exploration programme (ILX) started off in 2017 with good success
The remaining wells in our proposed drill out schedule are the Ginger, Jasmine/Frangipani ( new) and Coconut Deep wells in the 2019+ time frame. We have added another well to fully evaluate the Jasmine play/structure. This well is called Frangipani. We are actively carrying out subsurface and well planning for the exploration program and look forward to the showing results from these at a future date.
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We also continue to work with our partners in two further non-operated areas of exploration where wells will be drilled in 2019 : results from the Phase 2 OBN programme in the northern area of our shelf acreage with EOG and the deepwater Barbados Trough area with BHP.
Conclusion
In conclusion, my intention this afternoon was to give an “energy outlook” of our current and future plans. Although I am sure that many of you would have been interested in our activity set for 2019, it was essential to place our activities within the context of BP Trinidad and Tobago’s Area development Plan and how we use technology to help modernize and transform the business.
That plan as I have discussed is robust and is the result of focused, cross-functional work that has integrated inputs from many disciplines and functions across our business.
Importantly, we have delivered key milestones on the plan and I’ve outlined today the activities and approaches that will enable us to continue delivering.
As I noted, in 2019 we will have first gas from Angelin and we will continue our exploration efforts. Hopefully we will have good news on these in our 2020 presentation at this conference.
Further out in time, we’re beginning to look at what we will be doing in Trinidad to advance the transition to a lower carbon future.
As our CEO Bob Dudley has said: “To deliver significantly lower emissions, every type of energy needs to be cleaner and better. A race to renewables will not be enough. That’s why we are making bold changes across our entire business.”
BP is approaching the lower carbon transition this through the framework of reduce, improve and create opportunities.
In T&T we are currently reviewing options for activities that will reduce the carbon footprint of our business. These include changes to operations activities, modifications to existing infrastructure and options for design of new facilities.
If you haven’t already, please visit our booth which highlights how BPTT is utilizing technology to deliver on our plan. You would have found the technology theme very significant in our messages yesterday by Claire and Ahmed . We clearly believe that technology is an essential enabler for the future development of all our basins in Trinidad.
To further emphasize what the Honourable Prime Minister said yesterday, there is an opportunity here for more collaboration on technology issues that are common for all of us– between oil/gas producers and service providers, organizations like SPE and GSTT, and the Ministry of Energy and Energy industries – all while respecting and preserving any proprietary data and technology of individual companies. An example of good common collaboration was last year’s workshop organized by the GSTT on thin bedded reservoirs/pay : we all shared cores and our current and future challenges and work – a common issue that is very important for us all to further unlock smaller pools of gas in Trinidad and Tobago – it was a start that should continue with urgency. These are quick wins for all of us including the country and maybe we can use the SPE and GSTT to lead through addressing some of these challenges.
I think this is a hugely exciting time for all of us – especially the new generations of industry people. We need to keep pace with transformations occurring globally as we quickly move through the “ongoing digital revolution”. The key sits with our people and the new generations need to keep pushing and driving the change required, again quite exciting and challenging.
KEYNOTE ADDRESS: The Hon. Franklin Khan, Minister of Energy and Energy Industries Trinidad and Tobago:-
“…..It is my pleasure to deliver this keynote address at this most renowned Conference that has grown from strength to strength, it is Premier in the Caribbean. I look forward to this as it presents an opportunity to showcase the state of the domestic energy sector and to outline plans for the year ahead. Trinidad and Tobago (T&T) is a small but influential energy producing country. Natural gas production currently stands at 3.6 Bcf per day and oil production at a low of 66,000bopd. Investment in the industry which had reached a low has picked up as upstream companies have committed to spend up to US$10Bn over the next five (5) years.
In 2019, the upstream companies plan to drill fourteen (14) exploration wells compared with five (5) exploration wells in 2018. Shell proposes to drill one (1) well in Block 5d, BPTT one (1) each in Jasmine, Ginger and Coconut development areas, EOG two (2) wells in the Mentos and BHP, two (2) wells in Block 23 (a) and one (1) well in TTDAA14, with the other explorations well being drilled by Touchstone and some of the Lease Operators and Farm-outs. An estimated sixty-six (66) development wells are projected for 2019 with approximately two-thirds being undertaken by Trinity, Lease Operators, Farm-outs and Incremental Production Sharing Contracts. The impact of the planned development activity will result in increased oil and gas production.
Natural gas production is projected to increase to 3.9Bcf per day in 2019, as new developments such as the BPTT Angelin Field comes on stream and production from Shell’s Field in the East Coast Marine Area (ECMA), Starfish and Dolphin and De Novo’s Iguana Field are optimized. Near term developments include Shell’s Colibri project on the North Coast comprising Block 22 and NCMA 4, and on the East Coast Block 5c. Discussions on a Gas Sales Contract for the Dragon Gas Field are in train as well as the development plans for cross-border fields with Venezuela, the LoranManatee and the Manakin-Cocuina.
Oil production has been declining steadily, but is projected to stabilize and increase in 2019. The Lease Operators, Farm-outs and Incremental Production Sharing Contracts have projected that their oil production will be maintained at 2018 level at approximately 8,000bopd. The new state-owned company Heritage Petroleum Company Limited which acquired the Petrotrin petroleum assets has also projected that oil production from its land and marine acreage would average of 30,000 bopd based on increased work-overs and a new drilling programme. The total production including equity production is projected at 40,000 bopd. In the near term, the company will be pursuing the development of the resources in its South-West Soldado acreage. In this regard, Heritage Petroleum has been reviewing 3D seismic on the block in order identify potential exploration prospects. Trinity Exploration and Production Limited is also gearing up to bring oil production on stream from its TGAL Field in the Galeota Block by first quarter 2020. It is estimated that production from this development could reach 5,800 bopd by 2024. In December 2018, BHP declared commerciality for its Ruby Field in Block 3a. Preliminary estimates indicate that production could reach as high as 10,000 bopd. The outlook for oil production in T&T is now therefore very promising and the South West Soldado Field and Ruby Field offers the best opportunity at this time to revitalize oil production in this country. Indeed, based on current information it is not an exaggeration that the future of the oil industry in T&T hinges largely on the future of the Heritage Petroleum Company.
Energy has and continues to be the main driver for the development of our economy, notwithstanding initiatives being undertaken with diversification. In that context, T&T and other energy producers as so aptly demonstrated by the Honourable Prime Minister in his presentation to the nation, is subject to the volatility of the global oil and gas markets.
Energy prices have been extremely volatile over the last three (3) years. Oil prices (WTI) which has been relatively stable over the period 2010 to 2014 dropped to US$48 per barrel by 2015. This represented a decline of 49% from the average price for the period 2010 to 2014. The situation continued to deteriorate and in 2016, the WTI oil price fell to as low as US$26 per barrel. There was an improvement in 2017, in which the WTI price averaged US$50 per barrel and this continued with an average price of US$65 per barrel in 2018, notwithstanding the collapse at the end of the year. Henry Hub gas prices also fluctuated with highs and lows. However, following a steep fall in 2016, prices have exceeded US$3.00 per MMBtu annually.
The oil and gas industry is cyclical, with boom and bust cycles of high and low prices. The downside is that the industry pulls back on investment during the low price periods. It has been suggested that investment is at an all-time low in the global industry and this will have implications for future supply.
On the positive side, innovation doesn’t stop during low price periods. Indeed it appears to be the order of the day, companies focus their efforts on efficiency in bringing oil and gas to market at lower cost. Some of these efforts focus on improving current processes, such as drilling longer laterals, and fracking more efficiently as in shale and tight oil and gas wells. While the US may have taken the lead in the advancement of such techniques other countries such Saudi Arabia and Russia are all testing and using horizontal drilling and fracturing as the technology of the future.
The oil and gas industry has also seen a trend in the use of digital technologies including sensors, data analytics and automated systems to lower costs and improve efficiency. Digital technology has been around for some time and its adoption has only been accelerated due to downturns in the industry. It has been predicted that digital technologies have the potential by 2050, to increase production by four (4) per cent and reduce costs by thirteen (13) per cent.
The industry has also seen the development of new technology solutions that improve its capabilities in deep and ultra-deep waters. There have been advances in technologies for deep-water drilling, floating production, subsea wells tie-ins and tiebacks and hub design among others.
However, geophysical and geological data are the foundation information on which successful projects are built. They provide critical insights into structure, rock properties and in situ reservoir characteristics, which guide well placement,completion and production optimization strategies.
Seismic technologies have advanced from the reflective seismography which first revolutionized petroleum exploration in the 1920s to the todays’ advanced seismic technologies like Ocean Bottom Seismic and (Independent Simultaneous Source) technology, and processing technologies, like Full Waveform Inversion and Finite Difference Modelling. The development of these improved technologies have resulted in quantum leap in the quality of the reservoir image produced and in a process which is efficient and cost effective.
T&T oil and gas industry stands to benefit from the application of technology. We have already seen the positive impact of the introduction of advanced seismic technology.
In 2013, BPTT conducted a Columbus basin seismic survey which was designed to progress resources and to discover new prospects in existing and future major gas fields. The 1,000-sq km (386-sq mi) high-density, 3D, ocean-bottom sensor programme was the first commercial use of the Independent Simultaneous Source (ISS) technology with seabed acquisition. The application of the advanced technology was instrumental in adding significant proved reserves to its Angelin Gas Field beyond its original estimate of 1.5Tcf.
From March 2014, until mid-February 2015, BHP conducted a staggering 20,000- square-kilometre 3D-seismic survey in the deep-water blocks for which they had successfully signed production sharing contracts in 2012, and 2013. The survey was the largest undertaken by an international oil company globally, covering an area nearly four (4) times the size of T&T’s land mass, and utilized the ultra-capacity vessels Ramform Titan and Ramform Atlas. The results of the survey were instrumental in identifying gas prospects and ultimately discoveries in Block TTDAA5 and more recently in TTDA14. The application of seismic technologies was also utilized by BHP in isolating hydrocarbon deposits in Block 3a to the extent that the company is now in a position to develop these resources.
The use of advanced seismic technology is now widespread throughout the industry and has given a new lease on life in the domestic oil and gas industry particularly the so called mature fields. All of the energy companies have been re-appraising their portfolios with some degree of success. In fiscal 2018, upstream companies drilled in excess of fifty (50) wells with a fair degree of success. This augurs well for the industry and the future.
Armed with the new geological data, the Ministry of Energy and Energy Industries (MEEI) has been re-evaluating marginal gas fields with the objective of producing hydrocarbons in these fields. A study undertaken by the MEEI estimates reserves of these fields in the region of three (3) to five (5) Tcf. One of the challenges faced in developing these fields is the cost of the infrastructure associated with their development. However, the problem is not unsurmountable. Hub design has come a long way and solutions can be found. In the case of facilities that are underutilized, tiebacks can cause the reserves in marginal fields to be economically produced. However, if such facilities are not available the operator or operators can establish acommon hub from which such fields can be produced.
There is an extensive infrastructure network in our domestic energy sector. As Minister, I strongly advocate among upstream companies the collaborative development/operation of hub infrastructure either through joint ventures or accommodation of multiple operators by a third party. Such arrangements will allow for the economic development of marginal gas fields.
The majority of these fields are in acreage held by upstream companies under licence or contract. Accordingly, the MEEI will be engaging the companies on a strategy for the development of these resources.
In 2019, the Ministry hopes to issue new acreage arising from our shallow water bid round for blocks in the marine areas of the north, east and west coast of Trinidad, namely: NCMA 2, NCMA 3, Block U (c), Block 4(c), Lower Reverse L and Block 1(b) in the Gulf of Paria. There has been a strong interest by the major upstream companies and we look forward to a positive outcome. The contract arrangements for these blocks will be based on the new model Production Sharing Contract in which royalty will now be paid by the contractor. This is keeping with Government’s philosophy that the state must be assured a steady stream of revenue which this modification ensures.
Thereafter, the MEEI will be considering the launch of a new deep-water bid- round. The Ministry proposes to re-invite nominations on the available open deep-water blocks, which in 2017 had engendered interest in nine (9) blocks. The bid-round will be informed by advanced seismic data currently in the Ministry’s possession and the results of a multi-client survey commissioned by the Ministry.
The survey which is named the Caribbean Atlantic Deep Margin Deep Imaging Seismic Survey is for the acquisition of 2D seismic data over the Tobago basin, offshore T&T. The shooting of prime lines (full fold) started on January 8, 2019 and is 50% completed. The survey comprises two components, one local and the other regional. The local component of the survey will be conducted in the deep-water blocks on the North West Marine Area off Tobago and covers 2,059 kilometres. The regional component encompasses the marine areas of Trinidad and Tobago, Grenada, St Vincent and Barbados and will cover 11,500 kilometres. The conduct of the regional survey is a testimony to the interest shown by major oil and gas companies in the Caribbean in the search for new hydrocarbon resources.
In the longer term, the Ministry is excited about prospect of acquiring new marine acreage. T&T, as a coastal state, is a signatory to the UN Convention for Law of the Sea, and we are currently seeking to delineate the outer limits of our continental shelf, beyond two (200) hundred nautical miles in accordance with Article 76 of the Convention. The delineation of T&T’s continental shelf beyond its EEZ would put this country in a position to exploit the natural resources to be found on that extended portion of its continental shelf. We submitted our claims to the Commission in April 2009 and are currently preparing to defend our claim to the UN Sub-Commissionwhen called upon to do so, which we expect could be later this year.
Our claims to the United Nations Commission on the Limits of the Continental Shelf, if successful, would extend our maritime jurisdiction seawards to the outer edge of our continental margin. This would be major development as it would extend our boundaries to areas in close proximity to the Guyana-Suriname Basin in which major hydrocarbon discoveries have already been made.
While the UN Commission approves the claim submitted by each country it does not determine ownership. T&T will therefore have to engage in negotiations with Barbados, Guyana, Suriname and French Guiana to apportion ownership. This country therefore has an opportunity to increase its access to potential oil and gas resources. However, opportunities are like sunrises, if you wait too long you miss them. You can therefore be assured that we will pursue this matter aggressively.
The global focus on clean energy has given rise to the view that oil and gas are endangered commodities. But the history of the oil and gas industry has been one of continuous challenges, matched by adaptation and innovation. The oil and gas sector has, from its outset, always been wide open to innovation and every kind of modern technology. Technological advances have constantly shaped and re-shaped every stage of our industry, from exploration right through to final usage.
The modern collection and analysis of seismic data, for instance, is far removed from the rudimentary methodology employed in early oil and gas exploration. Floating production storage and offloading (FPSO) and floating liquefied natural gas (FLNG) vessels are just a few of new developments that demonstrate the advancement by the
industry.
Other technological improvements such as the development of horizontal drilling and hydraulic fracturing (or fracking) techniques has allowed the commercial exploitation of the massive unconventional oil and gas resources. As a consequence, the US to whom T&T once supplied up to 75% of its imported LNG is now a major exporter of LNG.
In a world, where energy consumption is set to increase by around a third or so by 2040, according to BP 2018 Energy Outlook, there has to be an accommodation between fossil fuels and renewables. What is required is the application of research and development to meet the growing global energy needs in a cost effective and efficient manner whether in unconventional oil and gas, or in renewables like wind and solar energy.
It has been reported that the oil and gas industry does see not competition from other sources of energy as a threat, but as a driver for competition. In this regard, technology is being pursued and applied primarily to enhance the industry’s efficiency and competitiveness, which translates into higher returns.
Therefore, there should be no reason why the oil and gas sector should be on a collision course with renewables, with world emissions restraint, or major changes in energy use or the pattern of energy demand. Indeed, many energy companies have been diversifying their portfolios to support the global energy push to a cleaner and greener future. Technology is evolving at an extremely rapid rate. Artificial intelligence applications and the new possibilities of digital technology represents the new frontier of technology. As these technologies become established and systems such as carbon capture, storage hydrogen utilization, and electricity storage become commercially viable, these will not provide setbacks, but rather exciting new opportunities in combination with the hydrocarbon sector.
The Government of the Republic of Trinidad and Tobago (GORTT) views renewables as complementary energy sources to oil and gas. In this regard, we have set a target of 10% renewable power generation by 2021. Pursuant to this objective we have embarked on a Waste to Energy Project and a Utility Scale Renewable Energy Power Generation Project. We have issued RFPs in respect of both projects and have had positive responses to date. The deadlines for submission are February 26, 2019 for the Utility Scale Renewable Energy Power Generation Project and May 31, 2019 for the Waste to Energy Project.
The production of electricity from renewables has seen a dramatic fall in costs. The International Renewable Energy Agency (IRENA) has reported that over the last decade the cost of generating power from onshore wind has fallen 23% and 73% from photovoltaics. Technological advances have made power generation from renewables competitive with that generated by fossils fuels. IRENA has reported that the cost of generating power from onshore wind is US$0.06 per kilowatt hour and US$0.10 per kilowatt hour from solar photovoltaics. This compares with the average cost of US$0.047 charged by T&TEC. As a result of new technological developments the cost of generating power from renewables is predicted to continue to fall.
In face of the competition from renewables and movement to clean energy, oil and gas companies will need to increase their investment in research and development. Historically, oil and gas spend approximately one per cent of net revenue on research and development. However, this is changing, and oil and gas companies are increasing their investment in new technologies.
These new technologies are shaping the industry’s operations, unlocking resources previously considered unattainable, and resulting in improvements in efficiency and productivity, while reducing the impact of operations and products on the environment.
The sheer scale of the portfolio and investments of oil and gas companies in new technologies is a major indicator of their commitment. It is a testimony to the industry’s continuous efforts to overcome contemporary threats, armed with technology and taking a long-term view rather than short-term.
As a Government, we share the same view with the industry and sees innovation as a means of ensuring the relevance of this industry. We do have operating in T&T upstream companies that have the same outlook and are committed to ensuring the industry is competitive. Therefore, we are of the view that the domestic energy sector is on solid footing. In confronting the future, it is those companies that innovate and invest that will remain competitive and so meet the challenges of the ever changing energy landscape.
In closing, I wish to congratulate the Energy Chamber for staging yet another successful Conference, and I wish all participants an enriching experience not only from the Conference’s deliberation but also the from the sight and sounds of our lovely twin island Republic.
I thank you….”