HERITAGE WELCOMES ERIK KESKULA AS NEW CEO

SHWETA SHARMA

Heritage Petroleum chairman Michael Quamina and the board of directors have selected Erik Keskula as the new CEO of the company.

In a release, Heritage said Keskula will serve as the CEO-designate from June 1-13 and will assume full responsibility when Arlene Chow, current CEO, retires on June 13.

Heritage said Keskula’s appointment followed a rigorous recruitment process which considered candidates from TT and the international oil and gas industry.

Keskula has over 25 years of experience in the international oil and gas industry, with particular focus on exploration and production. He has functioned in several executive and senior management positions across the world with ConocoPhillips, a US-based oil and gas producer. Keskula previously served as ConocoPhillips president in Malaysia and vice-president of the North Slope operations in Alaska.

Heritage said, “Erik is an extremely well-regarded leader in the international oil and gas industry. He sees himself as fortunate to have been involved in growing production and delivering projects throughout all stages of the asset lifecycle including start-ups, mature assets, and joint ventures. With a passion to improve the business through continuous improvement and new ideas, he values and cultivates the relationships required to develop and deliver strategic plans and long-term value for the company .”

Keskula has an MSc in engineering and technology management from Oklahoma State University and a BSc in geophysical engineering with a minor in maths from Colorado School of Mines.

Heritage said Keskula is committed to the development of employees and has always worked with leadership to cultivate and promote a productive work culture. He has fostered development leadership programmes to ensure the talent pipeline is healthy and that the future is secured by having the right talent in place.

“Keskula brings the right mix of operational, technical, commercial and stakeholder management skills to be the new CEO.”

The company said it was confident his “impressive and wide-ranging” skills and experience would help take the company forward.

Heritage also thanked Chow for her service.

Chow’s career in the energy sector spans over 40 years. She previously served at Petrotrin, bpTT, BP Alaska and Atlantic LNG.

“Arlene has been instrumental to the continuing turnaround at Heritage. We have relied on her industry knowledge and expertise in managing mature fields to actualise our vision for a viable and sustainable business,” Quamina said.

He added that the company was at a juncture where it must make tough strategic choices that will be informed by sustained lower oil prices, further resource decline and a more aggressive integrity programme.

Former ConocoPhillips executive to be Heritage CEO

May 22, 2023 by Curtis Williams  (Reuters)

HOUSTON – Trinidad and Tobago state-owned oil company Heritage Petroleum hired a 25-year veteran of U.S. oil and gas producer ConocoPhillips COP.N as CEO, the company’s chairman told Reuters.

Erik Keskula was last president of Conoco’s Malaysia unit until last year and earlier worked at its North Slope oil operations in Alaska, according to his LinkedIn profile.

Arlene Chow, current Heritage CEO, will retire effective June 13,, when Keskula is expected to take over.

Heritage Chairman Michael Quamina confirmed the designation and said the company was pleased to have him.

Heritage Petroleum last year produced 13 million barrels of Molo crude from on- and offshore properties. Most of the crude was exported to refineries on the U.S. Gulf Coast.

Heritage CEO retires

After four years of service, Chief Executive Officer and veteran energy professional Arlene Chow will retire from Heritage Petroleum Company Limited (Heritage).

With over four decades of sterling contribution to the energy sector, the geologist and engineer bids farewell to Heritage and to an exceptional leadership career in the industry.
The results of her stewardship have been impressive. Between 2018-2022, production on fields operated by Heritage grew by 21%, and last year witnessed a 49% increase in revenue.

The financial performance confirms that the state enterprise can now firmly pay its own way. Today, the company has met all of its legacy debt obligations, paid all its royalties, levies and taxes and invested in production growth and asset integrity.

The first and only woman in Trinidad and Tobago to head a national energy company,  Ms. Chow’s knowledge and significant contribution to the industry is shaped by an extensive career that began in 1982 as an Operations Geologist in Exploration and Production at Petrotrin, after graduating with a B.Sc. (Hons) in Geology and Chemistry from the UWI, Jamaica and an MSc in Engineering from the University of Florida. She quickly moved up the ranks to a Development Geologist, and Technical Specialist in Mapping and then Well information Systems, before moving to energy major AMOCO Energy Company (T&T) Limited as Database Administrator, Gas Asset Management in 1998.

By 2000 she was promoted to the position of Head, Exploration & Production, Computer and information Systems after the company was acquired by BP plc. In 2001 she assumed the role of Subsurface Team Lead and Delivery Manager for Teak, Samaan Poui (TSP) to manage operations and production in a mature reservoir and ultimately sale of the asset.

During that period, she developed Reservoir Management plans and a portfolio of prospects with a team of geoscientists and engineers, to arrest mature field decline by applying new thinking and innovative technology to optimize performance. This experience proved to be good preparation for her recent work at Heritage where she has led interventions in field decline and secondary recovery methods.

In 2005, bpTT appointed her Vice President Corporate Operations with responsibility for Performance Management, HSSE, Facilities Management and Information Technology for the company.

In 2009, she moved to BP Alaska, first as North Slope Infrastructure manager, then as Head of the Project Management Office to restructure BP Alaska into a functional organization. She was appointed Area Operations Manager, with accountability for leading four of the Northernmost oil fields in safety, operations and production. Her sterling performance in Alaska led her to the role of Chief of Staff for the BP Global Production Division, as Advisor and key support to the Executive Vice President’s Office for performance delivery in the areas of Standards/Policies/Processes, Safety & Operational Risk.

On return to Trinidad in 2014, she was appointed Chief Operating Officer (COO) at Atlantic LNG, where she directed the organization through safe reliable and efficient operations, managing annual operating, production and capital expenditure budgets of over $300M USD annually and delivering revenues of over $1bn USD. She retired in 2018 from that position.

In 2019, then Minister of Energy , the late Franklin Khan invited her to come out of retirement to support the Heritage Board in transitioning the organization into a profitable, lean and high-performing company. She worked with the Heritage Board to execute a strategy to “Stabilize, Strengthen and Optimize” the company’s assets.

Distinguished by her low-keyed, straightforward and straight-talking management style, she is known to put the work and her people first. Throughout her career, she has maintained a deep commitment to her country, an unwavering connection to her home community of Sangre Grande, and a love for the simple life.

Speaking of her contribution, Chairman Michael Quamina said , “Arlene has been instrumental to the continuing turnaround at Heritage. We have relied on her industry knowledge and expertise in managing mature fields to actualize our vision for a viable and sustainable business. She has played a major role in shaping our plans for integrity upgrade and decommissioning of aging infrastructure, while at the same time leveraging technology and innovation to optimize production from finite resources. She has delivered immense value to the company and, in doing so, has provided sterling service to the country as we seek to maximize value from our hydrocarbon resources.

“We are now at a juncture where we must make tough strategic choices that will be informed by sustained lower oil prices, further resource decline and a more aggressive integrity programme. This phase of the journey will be led by our incoming CEO”.

Notably reticent in the limelight, she says this time, she is retiring for good.

“It has been quite a journey. Many challenges but also many rewards. Today we are scaled for efficiency, have the right talent on board and consistently turn a profit. However, moving forward considerable headwinds remain given that market changes, aging assets and legacy debt payments will impact profit margins. But even with these challenges to its future profitability, I believe that Heritage will continue to be an important contributor to GDP for a long time.

“I feel confident that I leave Heritage with a strong foundation and am proud to have played a part in this national success story. As I have always said the greatest asset in Heritage is that which is above the ground, the dedicated team of professionals that has worked so hard to build a delivery culture and achieve these results. Leaving is bittersweet as Heritage has been my passion for the last 4 years.”

Her retirement takes effect on 13 June 2023. A new CEO has been identified and is expected to be announced.

Corporate Communications 22nd May 2023

 

 

Heritage Petroleum Company profit over $1 billion

$1B in profits for 2022
63% jump from last financial year

2023 05 14

SOC Heritage Petroleum Company reported profit after tax of $1.11 billion for its financial year ended September 30, 2022, 63 per cent more than $682.68 million the company earned for the same period in 2021.

Driven by prices for its crude oil that averaged US$97 a barrel from October 1, 2021, to September 30, 2022, Heritage Petroleum reported revenue from contracts with its customers of $10.16 billion, compared with the $6.82 billion generated in its 2021 financial year. That is a 49 per cent increase, according to audited financials for 2022. In 2020, Heritage recorded a little over $1 billion in profit.

The company said in 2022 it generated $5.4 billion in cash from its operating activities before the petroleum profits tax. That was 69 per cent higher than the $3.2 billion it generated in 2021.

Cash generated in 2022 allowed Heritage to:

1. • Invest $484 million in production growth, and invest in integrity expenditure, infrastructure and an Information Technology capital programme. (2022: $498 million);
2. • Pay $4.5 billion in royalties, levies, and taxes to the Government of Trinidad and Tobago. That is up from $2.0 billion in 2021, an increase of 125 per cent;
3. • Meet the inherited debt obligations of the Trinidad Petroleum Holdings Ltd (TPHL) Group of Companies. Heritage took over Petrotrin’s debt, which was previously held by TPHL, in May 2022, when the debt was rescheduled for the second time.

Heritage raised US$975 million in the international capital market in May 2022, which “refinanced the US $850 million bullet bond from Petrotrin that was due to mature in August 2019; part of a US$750 million amortising bond, plus certain costs of the restructuring of Petrotrin into the various companies comprising the TPHL group,” according to a statement in the Senate on February 7, 2023, by Minister of Trade and Industry, Paula Gopee Scoon—answering for Minister of Energy Stuart Young.

The refinancing comprised a US$500 million senior secured bond transaction and a US$475 million senior secured term loan. It allowed Heritage to implement a comfortable lower cost and longer-term debt maturity profile, as well as remove several restrictive loan covenants that were in place since the 2019 refinancing, said Gopee-Scoon.

CEO: Heritage being run as a business, pays its way

Pleased with the profits, Heritage CEO Arlene Chow said,

“Our gross profit was $3.5 billion in 2022 and our margins have been between 32 and 25 per cent since we were set up in late 2018.”

Paying $4.5 billion to the Government as royalties, levies, and taxes, wholly owned by the State, the company is run as a business, reinvesting in the business to boost oil production.

“The capital expenditure of Heritage in 2022 was approximately $482 million.”

During the IMF Article IV Consultation with T&T in March, she told the Fund officials, “We are paying our own way, we never asked for any money from the Government, we invested in our capital expenditure and our operational expenditure, we are paying all of our legacy loans and we are paying all of our taxes.”

One IMF official repeated what she told him twice, “as though he could not believe it.”

Chow reiterated, “Heritage pays its way.”

Paying its way is less onerous for Heritage than it was for bloated Petrotrin because the successor company has fewer employees.

“When Petrotrin ran the E&P (Exploration and Production) arm, it had 2,500 people. We have 500 employees. We run a tight, tight ship because we know that it is important for us to look at our spending,” said the CEO.

Attorney Michael Quamina, SC, in his chairman’s report, said crude production for its financial year averaged 39,028 barrels of oil per day (bop/d), a decline of 4.5 per cent from its 2021 financial year when it produced 41,239 bopd.

“The reserve-replacement ratio has been over 100 per cent for the last three years and was 124 per cent in 2022, the industry’s first quartile. The reserves to production ratio increased from 7.3 years in 2019 to 9.2 years in 2022.”

The reserve-replacement ratio is the amount of oil added to a company’s reserves divided by the amount extracted for production.

Chow said that the Heritage strategy is simple .

“There is Peak Oil coming when the price of the commodity is going to drop … The strategy that the Government has approved is to get the oil out of the ground as swiftly and safely as possible. That is what we are trying to do because we do not want Peak Oil to hit us”

That means going after the proved crude oil reserves, estimated to total 143 million barrels of oil. The company projects that total reserves—in terms of proved, possible and probable—now amount to 375 million barrels.

Trinidad is a mature oil province, Chow maintained, stating, “That is not an opinion, that is a fact. I checked to find out how many 100-year-old fields are still functioning around the world. I could not find many, perhaps a dozen maybe. And when I looked at the average decline of those fields, it is 10 to 13 per cent. We have been able to stabilise our decline to between 5 and 7 per cent.”

13,000 wells have been drilled onshore in Trinidad and 900 offshore. Of the onshore wells, less than half are in production “because when Petrotrin was running the business, they did not do much integrity management, so we cannot even approach those wells, or get a rig on them until we fix the platforms. …if you do not maintain for one year, you take five years to catch up.”

Heritage Petroleum Company was incorporated on October 5, 2018 and commenced operations on December 1, 2018. It is a subsidiary of Trinidad Petroleum Holdings Ltd (TPHL), holding company of Heritage Petroleum, Paria Fuel Trading Company, Guaracara Refining Company and legacy Petrotrin.

TPHL is the successor of Petrotrin, which operated as an integrated oil company, combining exploration and production (E&P) of crude oil with the refining of crude into various fuels, at the refinery in Pointe-a-Pierre, which were then sold on the local and regional markets.

The company aims to focus on exploration, development, production, and marketing of crude oil with a mandate to provide maximum financial returns for the country’s energy reserves. Operations are primarily located within southern Trinidad and Tobago with non-operated assets off Trinidad’s north and east coast.

CEO Arlene Chow will retire when her successor is in place. After close to four years leading the transformation of Heritage Petroleum Company Ltd (HPCL), Chow would like to retire and hold on until the Board found a suitable replacement. Chow, who spent 41 years in the energy industry, leaves Heritage in a good place.

In its 2022 financial year, Heritage paid the Government $4.5 billion in royalties, levies and taxes, an increase from $2 billion it generated in 2021.

Heritage reported an after-tax profit of $1.11 billion for the financial year ended September 30, 2022, an increase of 63 per cent compared to the profit the company declared for the 2021 financial year.

Under her stewardship, the oil company launched a “robust” forward-drilling programme up to 2025, which envisages 18 wells offshore wells and 20 wells on land.

“The forward-drilling programme is the basis of any oil company. Oil companies increase their production by drilling,” she said, adding that Heritage plans to drill five wells this year.   Chow led the reorganisation of Heritage from a company structured around its assets to one based on its functions.

“An asset organisation, for example, would have employees who are focused on land, which means there would be health and safety employees or IT professionals for that division. In a functional organisation, all the engineers, geologists, and other professionals would be grouped together under one lead and their expertise would be shared across the company.”

Early in her tenure as the Heritage CEO, she decided to slow down drilling, while the company reprocessed seismic results for both sea and land, some of which dated back to 1990. That process of taking another look at previous seismic studies resulted in Heritage land fields at Barrackpore being deemed “a bright spot.”

“We reprocessed in Barrackpore and we are seeing it so much more clearly now. It looks hopeful that there could be prospectivity in the Penal/Barrackpore area. And our next phase of drilling, next year, is going to be partly in that area.”

She led the management team at Heritage through the trauma of April 2020, when global oil prices plunged into negative territory, for the first time ever, as oil producers and traders decided to offload crude oil into a market that oversupplied as a result of the COVID-19 pandemic.

“… That was the whole, strong local leadership team working in tandem to resolve an immediate issue, which resulted in Heritage taking the decision to store crude rather than sell the oil in the weak market.”

On integrity of the assets of Heritage, she advised that of 13,000 wells drilled on land in Trinidad, she estimated that 3,500 wells are active. Previous state oil companies did little integrity management

“so we cannot even approach those wells or get a rig on them until we fix the platforms. .. the saying in the sector is that if you do not maintain one year, you take five years to catch back up. So we are catching back up and it has to take a while.”

Between 2018 and 2022, Heritage-produced crude production–as opposed to the farm out/lease out operations–rose by 17 per cent. The lease and farm-out operators increased production by 5 per cent. That means, overall, output is up by 11 per cent.

Chow gained her first degree in geology and chemistry at the University of the West Indies Jamaica and a Masters in Engineering at the University of Florida. The energy veteran, who began her career as a geologist at SOC Petrotrin in 1982, is the first female CEO of a national oil company in T&T.

For Chow, this will be her second retirement. Before Heritage, she worked as the chief operating officer of Atlantic LNG, the Point Fortin-based natural gas liquefaction company, on secondment from BP. She was at Atlantic from January 2013 to June 2018 and retired from BP in December 2018. She spent over 20 years at energy major BP in both local and international assignments. She was the chief of staff of the Executive Office in the Production Division of BP PLC at their head office in London between 2012 and 2014. She held top positions at BP Alaska and at bpTT, she was the VP corporate operations.

Chow responded to the call of national service when she joined the SOC Heritage Petroleum as its interim CEO in September 2019. That followed the departure of the first Heritage CEO, Mike Wylie, who returned to the US to seek cancer treatment.

 

 

Oil leak

2023 05 16

Minister Colm Imbert told the Senate he is encouraging authorities at Heritage Petroleum Company Limited to take decisive action to bar the public from any construction near its pipelines.

The acting Energy minister noted that a recent oil leak which displaced 20 people in Fyzabad occurred after repeated calls from the SOC for a home owner to desist from building near the infrastructure.

“I would urge heritage in the future to do their best to stop any person who is building a property or a structure on top of a pipeline in an unlawful manner.”

Minister Imbert confirmed that a full pipeline inspection is ongoing.

 

 

NGC

By LNG Prime Staff
May 10, 2023

Trinidad’s NGC in small-scale LNG move

State-owned gas company NGC signed a memorandum of understanding with a consortium comprising Globus Energy, Corban Energy, and Chester LNG to identify and screen technologies for micro and small-scale LNG development projects in the Caribbean.

“This MOU signing signals the commitment of all the companies involved to explore viable solutions to effectively manage energy security and low-carbon energy transition, and potentially expand the use of LNG across the region,” NGC said in a statement on Tuesday.

NGC said that micro and small-scale LNG projects can “positively contribute to creating a cleaner energy mix for the region, as well as support climate change action within the Caribbean.”

According to the firm, the memorandum provides an opportunity to explore the feasibility of small-scale LNG projects, as well as the possibility of sourcing the LNG supply from gas reserves locally and across the region, to deepen and expand the value chain.

Beyond a focus on small-scale LNG projects, the memorandum will also look at any new opportunities and initiatives where NGC and the consortium may deepen their collaboration, it said.

NGC is a shareholder in Trinidad and Tobago’s LNG producer Atlantic LNG, the owner of the Point Fortin plant.

US-based Corban Energy builds bulk storage tanks and ISO tanks, while Chester LNG manufactures small-scale modular plants and fueling stations, according to their websites.

 

 

NGC AIMs high with asset integrity management

26 APRIL 2023

NGC president  Mark Loquan, Energy and Energy Industries Minister Stuart Young, NGC assistant manager, sustainability, Mario Singh, and DNV TT Ltd president and country manager Graeme Pirie discussed NGC’s Asset Integrity Report

Asset integrity management (AIM) is a factor that could affect the entire value chain of TT’s oil and gas industry. Proper or improper management of a company’s assets could mean the difference between sustainable and reliable performance of our systems and networks, and complete shutdowns, loss of valuable gas and even loss of life. The majority of undesirable events and issues, if investigated usually leads to a gap in the management of a company’s assets.

The National Gas Company of TT (NGC) since 2015 has been developing it AIM systems, after recognising through an audit by Det Norske Veritas (DNV) – independent assurance and risk management auditors – that much more needed to be done to optimise how it manages its assets.

After officials of the NGC group of companies, including NGC, Phoenix Park Gas Processors Ltd, National Energy, La Brea Industrial Development Co and NGC CNG, gathered for insight on the latest audit, done in 2022, auditors applauded the group on its steady improvement and encouraged it to aim for even better results as it continues to add value to the group.

Graeme Pirie, president and country manager of DNV TT Ltd, lauded the company’s progress, saying the latest report showed strides in improving its management systems.

Pirie explained that the 2015 audit of more than 30 local companies’ systems, equipment and practices at a rate of zero to four; zero being described as learning and four described as optimising. DNV gave NGC a score of 1.79 out of an average of 2.02, prompting the auditors to conclude that the company was in the implementing phase of asset management.

He lauded the group’s success in evolving from 2015 in his remarks.

“Overall the audit scores improved with respect to the prior audit and the scores were close to the average of the 2016 national facilities integrity audit, with the systems rating being slightly above and equipment being slightly below,” he said.

Although the official report has not been released as yet, Pirie shared tidbits of the report which highlighted NGC’s progress.

“The 2022 AIM audit has shown that NGC has, in a relatively short period of time, created the building blocks to become a world-class organisation where process safety management guides the organisation to a sustainable future,” the report said. “In the longer term (three-five years) with continued effort to improve the AIM practices can become effectively implemented. Then after several years of implementation the activities and practices will become more effective and efficient and NGC can move toward the managing stage. Through cycles of updates and revisions NGC will be able to show its continuous improvement.”

Pirie said the improvement demonstrated that, when taken seriously with commitment from all levels of an organisation, asset integrity management is a journey for all.

“(It is) not for the faint of heart. But rather for a team of individuals working together, moving forward in the same direction with the courage to face difficulty and challenging or dangerous tasks while safely and proficiently continuing to improve on its asset management systems.”

Vice president of operations at NGC Ramesh Harrylal explained the importance of asset management on the overall oil and gas industry, saying that the NGC’s assets were integrated and interconnected therefore when something affects one part of the value chain, the entire chain is impacted.

“NGC assets make upstream, mid stream and downstream assets, so an unplanned event that disrupts the gas flow has an immediate impact on the value chain leading to a loss in the sector at a time when every molecule counts.”

NGC’s 1,000 km pipeline is one of its most valuable assets and one of its greatest liabilities because its expanse, geographical spread – going from offshore to onshore and travelling through various types of terrain – presents multiple degrees of risk.

“Integrity issues could arise that could lead to release incidents, service disruption or even endanger communities,” the report said. “Management of this network, a function of the operations group, is therefore crucial from both a safety and value-preservation perspective.”

Harrylal said NGC set out to establish an asset integrity management framework that was aligned with ISO 55,000 and other best practices. The framework was adopted in 2019 and was built on four pillars which included leadership and governance; administrative management systems; technical management systems and functional execution and performance. The framework also collaborated with other business areas such as human resource, governance, technical document management and supply chain management.

“It is a framework enabled by people, culture and fit-for-purpose technologies that form around key areas,” he said.

The AIM framework developed by the group included maintenance automation through a computerised maintenance management system that assisted with planning and scheduling preventative maintenance works. It also conducted risk-based inspections of its assets.

“This best practice approach focuses on reducing risk by channeling resources and priorities towards inspecting assets in areas that are high risk and prone to failure,” the 2020 report said.

Dealing with process safety management, Harrylal played a major role in the publication of the new US not-for-profit organisation Center for Chemical Process Safety guidelines which guide companies in the management of operational risks. Process safety management (PSM) was also adopted by the group with a focus on risk-based management.

Emergency response and keeping an eye on personal behaviours were also looked at.

NGC implemented emergency response mechanisms such as the virtual emergency operations centre which enables faster mobilisation and enhanced communication whenever disaster strikes. The 2020 report also indicated that it had looked at working closer with the TT Emergency Mutual Aid Scheme, to treat with emergencies such as damages occurring because of hurricanes and earthquakes.

NGC also introduced mandatory training modules on process safety and life-saving rules as part of annual performance plans which would help streamline personal behaviour.

“Mechanisms such as ‘Lets Connect’ conversations and workplace inspections are also utilised to keep safety top of mind,” the report said.

Harrylal thanked NGC president Mark Loquan and other leaders in the group for their continued support in enhancing AIM systems. He added that support from the supply chain was critical in maintaining the systems in place, especially during covid19 when supply chain issues affected all businesses.

“Without them none of this would have happened,” Harrylal said. “We have yet to hit optimization but that requires institutionalising all the practices across all the companies and ensuring that all employees understand all the elements that go into maintaining those practices.”

In applauding NGC on its turnaround from the 2015 audit Energy Minister Stuart Young said the NGC group should be an example to other state entities on being self-aware and proactive in its development.

“You can see this applying to WASA and TTEC. We have had our challenges in the electricity sector as well, with power generation. Are you properly maintaining your assets? Are you doing what needs to be done? Do you have a maintenance schedule? Are you being proactive and predicting that you should change this piece of equipment or pipeline before something happens? Let that sink in. We have a problem with proper maintenance and that is something that needs to be addressed,” he added.

After his speech he said that not only other companies, but the entire nation could benefit from following NGC’s example.

“We all have to maintain the assets we have. At your home you are not waiting for everything to break down at home before we address a situation. If we see a water leak at home, you address it or keep checking to make sure there isn’t a complete breakdown. It is a culture that we have to get more into as a nation. Let us maintain the things we have. Let’s put in preventative measures. Let’s have routine maintenance across all our assets, and the customer will get a much better result for their money.”

 

 

 

EOG Resources Trinidad

Energy Minister Stuart Young and permanent secretary Penelope Bradshaw-Niles met vice president and general manager J. Pat Woods and his EOG team at the ministry offices at Tower C of the Port of Spain International Waterfront Centre.

The company provided a detailed update on its ongoing and planned drilling projects and production forecasts. Under a robust two year drilling plan, 20 wells are projected to be drilled by EOG in 2023-2025.

To facilitate this, the Valaris 249-Gorilla VII platform being shipped from New Zealand, is expected to arrive on June 9.

EOG thanked the ministry fors innovation and initiatives in facilitating and negotiating terms for the development of smaller fields that would bring higher volumes of natural gas to the energy market.

The company praised the regulator for willingness to have commercial discussions on the monetization of marginal fields and highlighted that TT remains an attractive territory for hydrocarbon investments.

Young provided feedback on EOG’s production portfolio. He positively recognized the company’s efforts on the use of local content and of new technology for improved seismic images.

The ministry and EOG agreed to maintain dialogue while working together in a way that is fair and mutually beneficial, against the background of present global trends and market factors.

Young returned to TT from Washington DC where he joined the Prime Minister in discussions with USofficials and members of Congress about energy security for TT, Caricom and the Americas.

 

 

Trinity Spuds Jacobin

by Paul AndersonRigzone , May 18, 2023

Trinidad and Tobago-focused E&P company Trinity Exploration & Production started drilling the deep Jacobin prospect in its Palo Seco Lease Operatorship area. The Jacobin well is designed to test an extensive and lightly drilled Miocene deeper turbidite play mapped across the prolific southern onshore basin. It will provide the company with critical new data on this extensive play and the wider Palo Seco acreage.

Trinity has 100 percent interest in the Palo Seco area sub-licenses where nine deeper prospects have been mapped.

The well is targeting a structural prospect defined on 3D seismic, with reservoirs in the petroliferous Lower Cruse formation. A total depth of 9,800 feet will make Jacobin the deepest onshore oil well drilled in the Palo Seco area in over a decade.

The target volume of resources to be exploited is significant and highly material for Trinity, with a mean oil-in-place volume of 5.7 million barrels and an upside (P10) case of over 10 million barrels-in-place.

The well was spudded on May 15 and is currently drilling ahead. The company anticipates the well should reach the primary target zones within thirty-five days before an extensive program of data collection will be initiated.

The data collected during the drilling of Jacobin will be invaluable in the further evaluation of Trinity’s portfolio of eight other Miocene ‘Hummingbird’ prospects mapped within its existing acreage, including Emerald and Woodstar and other prospects mapped on the Buenos Ayres Block.

Jeremy Bridglalsingh, CEO of Trinity, said.

“Jacobin is a significant well and potential growth catalyst for Trinity. Jacobin is targeting virgin-pressured reservoirs with higher initial production rates than conventional wells and offers Trinity the potential for reduced payback cycle times and a meaningful production increase. The focus on this new Miocene play, with Jacobin being the first well, demonstrates our real intent to rapidly exploit our competitive edge onshore Trinidad where we can immediately progress from the drilling phase to production. More importantly, we plan to acquire geological data from the well which will enable us to calibrate the prospectivity across the area following our 2020 purchase and subsequent interpretation and mapping of the Palo Seco NWD 3D seismic dataset. A successful well would unlock both the development of the Jacobin prospect itself and follow-on drill-ready prospects and mapped leads across our core onshore acreage including Emerald and Woodstar.”

email andreson.n.paul@gmail.com

 

 

TOUCHSTONE ANNOUNCES FIRST QUARTER 2023 FINANCIAL AND OPERATING RESULTS

CALGARY, ALBERTA (May 12, 2023)

Touchstone Exploration Inc. (“Touchstone”, “we”, “our”, “us” or the “Company”) (TSX, LSE: TXP) reports its operating and financial results for the three months ended March 31, 2023. Selected information is outlined below and should be read in conjunction with our March 31, 2023 unaudited interim condensed consolidated financial statements and related Management’s discussion and analysis, both of which will be available under our profile on SEDAR (www.sedar.com) and on our website (www.touchstoneexploration.com). Unless otherwise stated, all financial amounts herein are rounded to thousands of United States dollars.

First Quarter 2023 Financial and Operational Highlights

• • Produced quarterly average volumes of 2,139 boe/d, representing a 53 percent increase relative to the 1,396 boe/d produced in the prior year ,  equivalent quarter and a 4 percent decrease compared to the fourth quarter of 2022.
  • Natural gas production from our Coho-1 well averaged net volumes of 5.1 MMcf/d (854 boe/d) in the quarter and contributed $976,000 of net natural gas sales at an average realized price of $2.12/Mcf.
  • Realized petroleum and natural gas sales of $8,476,000 compared to $10,496,000 in the 2022 comparative quarter, as the incremental $976,000 in net natural gas sales were offset by decreased crude oil sales of $2,996,000, reflecting a 22 percent decline in realized crude oil pricing and an 8 percent decrease in crude oil production.
  • Generated an operating netback of $3,652,000, representing a 23 percent decrease from the 2022 equivalent quarter primarily attributed to a 19 percent decline in petroleum and natural gas sales.
  • Reported funds flow from operations of $803,000 in the quarter compared to $691,000 in the preceding quarter and $1,443,000 in the prior year equivalent quarter.
  • Recognized a net loss of $279,000 ($0.00 per basic share) in the quarter compared to a net loss of $236,000 ($0.00 per basic share) reported in the same period of 2022.
  • $9,019,000 in quarterly capital investments primarily focused on expenditures directed to the drilling of the Royston-1X sidetrack well and progressing construction of the Cascadura natural gas and liquids facility.
  • Exited the quarter with a cash balance of $10,859,000, a working capital deficit of $4,383,000 and a principal balance of $25,500,000 remaining on our term credit facility, resulting in a net debt position of $23,883,000.
  • Natural gas and liquids facility construction operations on the Cascadura A surface location have progressed and we continue to target completion and commissioning for first production at Cascadura on or about June 30, 2023.
  • Construction of the Cascadura C surface location is complete, which will be the location of our first Cascadura development well.
  • The second production test of the Royston-1X well is expected to commence in late May 2023 once the service rig has moved onto the lease following the drilling rig being moved to the Cascadura C location.

Annual and Special Meeting of Shareholders

Touchstone’s virtual-only Annual and Special Meeting of Shareholders (the “Meeting”) will be held on Thursday, June 29, 2023 at 10:30 a.m. (Mountain time).

The Meeting materials are expected to be mailed to shareholders on or around May 30, 2023, after which they will also be available on our website (www.touchstoneexploration.com/investors/shareholder-meetings) and under our profile on SEDAR (www.sedar.com).

Touchstone Exploration Inc.

Touchstone Exploration Inc. is a Calgary, Alberta based company engaged in the business of acquiring interests in petroleum and natural gas rights and the exploration, development, production and sale of petroleum and natural gas. Touchstone is currently active in onshore properties located in the Republic of Trinidad and Tobago. The Company’s common shares are traded on the Toronto Stock Exchange and the AIM market of the London Stock Exchange under the symbol “TXP”.

For further information about Touchstone, please visit our website at www.touchstoneexploration.com

 

Touchstone discovery

Trinidad discovery’s initial production test fails to shine-
presence of light crude confirmed at Royston area but well did not flow oil to surface

April 2023
By Fabio Palmigiani in Rio de Janeiro

Canadian independent Touchstone Exploration has completed the first of five potential production tests at site of its Royston discovery in Trinidad & Tobago, but results were underwhelming for the onshore light oil find.

The company in late 2021 successfully encountered hydrocarbons at the Royston-1 exploration well in the Ortoire block, unlocking 1000 feet of a significant turbidite formation called Herrera. A couple of months ago, the company drilled a side-track well, Royston-1X, with the Star Valley Rig 25. Even though the first production test at Royston-1X confirmed the presence of light crude, it was deemed as non-commercial.

 

 

TOUCHSTONE ANNOUNCES ADDITIONAL US$7 MILLION REVOLVING LOAN FACILITY

CALGARY, ALBERTA (May 26, 2023)

Touchstone Exploration Inc. (“Touchstone”, “we”, “our” or the “Company”) (TSX, LSE: TXP) announces that Touchstone Exploration (Trinidad) Ltd., our wholly owned Trinidadian subsidiary, has entered into a second amended and restated loan agreement with our Trinidad based lender providing for an additional US$7 million revolving loan (the “Amended Loan Agreement”).

The Amended Loan Agreement provides for a US$7 million revolving loan facility in addition to the existing term facility. The existing term facility component of the Amended Loan Agreement currently has a principal balance of US$25.5 million, with seventeen equal and consecutive quarterly principal payments of US$1.5 million outstanding and a maturity date of June 15, 2027. Republic Bank Limited is continuing to act as the sole lender, arranger and facility agent of the Amended Loan Agreement.

Touchstone intends to use the revolving loan proceeds to maintain financial flexibility while we proceed with Royston-1X production testing operations and Cascadura facility construction where we continue to target for first production on or around June 30, 2023.

Aside from adding the revolving loan component, the Amended Loan Agreement did not alter any material terms of the Company’s first amended and restated loan agreement effective December 20, 2021. The revolving component of the Amended Loan Agreement has the following terms and conditions, with no additional financial or affirmative and negative covenants other than as provided under the first amended and restated loan agreement between the parties.

Borrower:    Touchstone Exploration Inc. 

Additional facility type:     Revolving loan
Amount:                               US$7,000,000
Term:   One year, with the option to extend annually   by additional periods of up to one year  

Interest rate:       Fixed on drawdown date, based on the one year term Secured Overnight  Financing Rate (SOFR) plus an applicable margin per annum, reset annually  

Interest payments:  Payable monthly in arrears

Repayment:      Principal may be repaid at any time, on or before the maturity date without  penalty and any amounts repaid may be redrawn at any time

Collateral:     Touchstone Exploration (Trinidad) Ltd.  Increase of existing senior mortgage debenture over  the fixed and floating assets of the Borrower and its subsidiaries

Touchstone Exploration Inc. is a Calgary, Alberta based company engaged in the business of acquiring interests in petroleum and natural gas rights and the exploration, development, production and sale of petroleum and natural gas. Touchstone is currently active in onshore properties located in the Republic of Trinidad and Tobago. The Company’s common shares are traded on the Toronto Stock Exchange and the AIM market of the London Stock Exchange under the symbol “TXP”.

For further information about Touchstone, please visit our website at www.touchstoneexploration.com 

 

 

 

Proman

Proman Stena Bulk has named its new methanol tanker, Stena Promise.

Proman Stena Bulk has officially named its third methanol-fuelled tanker, Stena Promise in Rotterdam, The Netherlands on Wednesday.

Stena Promise was described as a state-of-the-art methanol-fuelled 49,900 dead weight tonnage tankers and was said to be delivered last November in a release by Proman.

Proman Stena Bulk is a joint venture between the Stena Bulk, one of the leading tanker shipping companies and methanol producer, Proman. Stena Bulk was founded in 1982 and the company controls a combined fleet of around 110 vessels. Stena Bulk is part of the Stena Sphere, which has more than 20,000 employees and sales of Swedish krona $60 billion.

The name ceremony was held near Rotterdam’s famous Erasmusbrug or Erasmus Bridge where dignitaries and guests of Proman and Stena Bulk converged to celebrate the joint venture fleet. This was also the first naming ceremony for a methanol-fuelled vessel held in the port of Rotterdam. It was held there in recognition of the port’s unique contribution to the maritime decarbonisation agenda.

Present at the ceremony were David Cassidy CEO of Proman, Erik Hanell president and CEO of Stena Bulk, and Gary Ge Xiujiang deputy managing director of sales department of Guangzhou Shipyard International – the shipyard that built Proman Stena Bulk’s tankers.

The port is the largest methanol hub in north-western Europe, and ship-to-ship bunkering has taken place at the port successfully several times, including for the first joint venture vessel Stena Pro Patria in August 2022.

Dr Hilary Cassidy “the vessel’s godmother,” ended the ceremony with a traditional champagne christening before all guests were welcomes on board the Stena Promise for a short visit.

Speaking about the naming ceremony, David Cassidy said, “She (Stena Promise) is a very special vessel for us, and it is fantastic to be able to use her naming ceremony as a driver to convene with partners, friends and industry leaders in Rotterdam at a pivotal time for the shipping industry’s low-carbon transition. We need to ensure that regulatory incentives and market-based measures continue to drive capital to projects which can deliver real, meaningful and immediate emissions reductions. And to do that we need to work with partners across the entire industry and shipping value chain to make green shipping a reality.”

Hanell added, “The naming ceremony for Stena Promise is another step on our cooperation between Stena Bulk and Proman to prove the viability of methanol as a marine fuel. By gathering in Rotterdam – one of the industry’s most important bunkering hubs – we are once again underlining that methanol operation is technically feasible today.“

During its commercial operations, Stena Promise has already been operating full time on conventional methanol from natural gas. The vessel will use around 11,500 tonnes of methanol as fuel per year, significantly reducing greenhouse gas emissions compared to regular marine fuels.

Proman said: “Consolidated Energy Ltd is surprised by the Minister’s remarks, but does not wish to provide any further comments.”

Switzerland-based Proman–the largest investor on the Point Lisas Industrial Estate–is the owner of Consolidated Energy Ltd, which holds Proman’s shares in MHIL, an investment holding company for shares owned by Clico and Proman in the methanol producer, which is based in the Middle East in Oman.

 

 

Clico sale of MHIL shares

2023 04 28

Responding to a statement on the sale of the MHIL shares by Minister in the Ministry of Finance, Brian Manning, in the Senate, Executive chair of Clico, Claire Gomez-Miller, said the insurance company’s sale of 36.63 per cent of Methanol Holdings International Ltd (MHIL) to the T&T Government is not complete because the share register has not been updated.

In response to a motion on the adjournment by Opposition Senator Wade Mark, Manning told the Senate that the Government accepted an offer to purchase 19.63 per cent of Clico’s shareholding in MHIL on January 9, 2023. On February 21, wholly state-owned National Investment Fund Holding Company Ltd (NIF) accepted an offer from Clico to purchase 17 per cent of Clico’s shares in MHIL. Clico currently holds 56.53 per cent of MHIL, but is in the process of selling 36.63 per cent of the methanol producer, in order to become compliant with the Insurance Act 2018. That act stipulates that insurance companies in T&T cannot hold more than 20 per cent of any entity.

Manning said: “To date, Clico has signed share acquisition agreements and share transfer forms with the Government of the Republic of T&T and NIF. But the share register of MHIL has not yet been amended to reflect the transfers.”

Asked whether the sale transaction could be completed if the share register is not updated, Gomez-Miller said: “All Government and NIF agreements and documents have been signed and sent to MHIL for execution. The transaction can only be completed when the MHIL share register shows the title has been legally changed from Clico to Government of the Republic of T&T and NIF. NIF cannot recognise the acquisition in its financials until they have title to the shares.”

Gomez-Miller said NIF is unable to recognise the acquisition of 17 per cent of MHIL in its financials because NIF made no mention of the acquisition of the MHIL shares in its 2022 annual report published on Tuesday.

In the annual report’s statement of events after the reporting date, NIF said: “The company evaluated all events that occurred from January 1, 2023, through February 28, 2023, the date the financial statements were available to be issued. During the period, the company did not have any subsequent events requiring recognition or disclosure in the financial statements.”

If the purchase of 17 per cent of the shares in MHIL by NIF had been completed on February 21, 2023, the local investment holding company for the Government would have announced the transaction in the subsequent events section of its 2022 annual report.

Clico’s statement on subsequent events noted: “To ensure compliance with regulatory requirements Clico has embarked on the process to sell the portion of its MHIL shares outside regulations.”

Clico would have been obliged to announce the sale of the MHIL shares in its statement of events after reporting period if the transactions had been completed.

The sale of the 36.63 per cent stake in MHIL to the Government and to 100 per cent state-owned NIF would be “more than enough” to pay off Clico’s debt to the Government.  Asked whether NIF can be defined as a non-competing THIRD PARTY, given the fact that it is 100 per cent owned by the State, Gomez-Miller agreed, NIF can be defined as a non-competing THIRD PARTY.

 

 

 

Clico agrees to sell MHIL shares …but share register not updated,

2023 04 27

Clico entered into agreements to sell its 36.63 per cent shareholding in Methanol Holdings International Ltd (MHIL) to the Government and the wholly state-owned National Investment Fund Holding Company (NIF), Minister in the Ministry of Finance, Brian Manning told the Senate.

Manning said on January 9, 2023, the Government accepted an offer to purchase 19.63 per cent of the 36.63 per cent of MHIL that Clico offered for sale. On February 21, 2023, NIF accepted an offer from Clico to acquire the remaining 17 per cent shareholding that Clico offered for sale.

Both the Government and NIF paid the valuation price .

 

bpTT lifts gas output from Mango field

2023 05 29

bpTT successfully completed the first phase of its _small pools_ drilling campaign which includes three wells in the Mango field, one well in the Savonette field and three wells in the Angelin field. The campaign began in October last year and the wells are producing approximately 180 million standard cubic feet a day (mmscfd) with the third well still ramping up.

The _small pools_ drilling program includes sidetracks of existing wells, in addition to access to new exploration segments that have not produced previously. It targets smaller accumulations of gas resources that are near to bpTT_s existing infrastructure and allows these resources to be accessed more efficiently and brought into production faster using existing infrastructure. bpTT president David Campbell said,

“The successful completion of the wells in our Mango field is great news for bpTT and for Trinidad and Tobago. It demonstrates our continued commitment to developing resources in our existing shallow water acreage in the Columbus Basin.

“Our goal is to find and recover as much of the gas resources as we can, small or large and particularly those that can be quickly brought into existing infrastructure. Each successful well helps to stem the declines in these more mature gas fields and contributes to our ability to meet our gas supply commitments to the NGC and Atlantic.”