Heritage commissions new well

2024, 04/10

Heritage Petroleum Company (Heritage) hailed the commissioning of its latest offshore oil well, as a significant milestone in its field development efforts. S-938, located within the Soldado East Field, has an expected average daily rate of 500 barrels of oil per day (bopd). Heritage said it is expected to contribute significantly to the company’s revenue.

“S-938 is the third well Heritage put into production after commencing its offshore drilling programme, in line with its strategy to grow high-margin production. Drilling of S-938 began in August 2023, and after rigorous design and engineering efforts, the topsides were completed in March 2024. This was followed by the requisite inspections and statutory approvals prior to commissioning.”

CEO Erik Keskula, said, “I wish to thank all the company and contractor personnel that diligently worked to safely deliver this new production to Trinidad and Tobago. Over the next month, we will operate the well with a goal of optimising fluid production rates to maximise oil recovery and cash flow”.

He underlined the strategic importance of S-938 and stated it would play a role in developing a track record of delivering new offshore wells and facilities to increase production.

Heritage anticipates ongoing benefits from this well and three additional wells to be commissioned in the coming months, as Heritage continues to expand its Offshore Drilling programme in the third quarter of 2024. Last July, Keskula said Heritage produced about 38,000 barrels of oil per day–both onshore and offshore combined–but there is potential for more, given its acreage and assets.

He surveyed T&T’s terrain and assessed its probable potential for more oil success, before he took on the challenge to increase oil production. Production optimisation has “really unique and interesting challenges. So really trying to find a way to bring out the best of those assets, even though they’ve been worked on for many years, and in this case, decades, but that suits my experience and expertise really well having done that previously in my career.”

With Heritage it is not just growing production, but increasing the right kind of production.  “Growing production that has higher margins, and really brings in revenue for the Government and the people is something that really motivates me.”

The company faces issues of asset integrity by virtue of how long its assets have been operational. That, unfortunately, leads to leakages.   Heritage has undertaken a robust asset integrity programme.

“But it will take time to address and we’ve got the plans in place, as well as the response teams in place in the event,”

 

 

 

 

 

Start-up of offshore well boosts oil production

April 24, 2024, by Melisa Čavčić

State-owned Heritage Petroleum Company Limited has brought on stream a new oil well off the coast of Trinidad and Tobago. While confirming the commissioning of its latest offshore oil well, S-938, Heritage described the new well as “a significant milestone” in its field development efforts. This well has an expected average daily rate of 500 barrels of oil per day (bopd), thus, the company believes that it will contribute significantly to its revenue.

Erik Keskula, Heritage’s Chief Executive Officer, commented: “I wish to thank all the company and contractor personnel that diligently worked to safely deliver this new production to Trinidad and Tobago. Over the next month, we will operate the well with a goal of optimising fluid production rates to maximise oil recovery and cash flow.”

Located within the Soldado East field, S-938 is the third well to be put into production after the firm embarked on its offshore drilling program in line with its strategy to grow high-margin production.

The well was spud in August 2023. Following design and engineering efforts, the topsides were completed in March 2024. Afterward, the requisite inspections and statutory approvals were handled before commissioning started.

Heritage anticipates ongoing benefits from this well and three additional ones, expected to come online in the coming months. The company is working to maximize value, with the execution of projects and routine upstream activities within the Soldado fields, where over six hundred wells have been drilled to date, targeting the Cruse, Forest, and Morne L’Enfer formations.

Discovered between 1954 and 1965, three major Soldado fields – Main, East, and North Soldado – were some of the earliest major discoveries in the Gulf of Paria.

 

 

 

 

 

Mento platform under construction in Trinidad

April 8, 2024 – Offshore

LA BREA— Trinidad Offshore Fabricators Unlimited (TOFCO) yard is progressing fabrication of the Mento platform, according to a bpTT update .

EOG Resources operates the Mento development under a 50:50 joint venture of bpTT and EOG Resources Trinidad Ltd.

This is their fourth offshore development project, following EMZ in 2011, Sercan in 2016 and Banyan in 2017.

Mento’s manned, 12-slot platform will be installed offshore Trinidad’s southeast coast, with first gas expected in 2025. The partners continue to pursue further opportunities to develop resources in the Columbus Basin.

Observers are disappointed and perplexed by the Jamaican name and hope the choice of future project names will reflect pioneers of the industry in Trinidad and Tobago on whose shoulders the economy stands.

 

 

 

 

BP to sell Trinidad and Tobago assets

Alfie Shaw April 10, 2024

The British major plans to sell assets that have lost productivity.

BP is expanding its Calypso project in Trinidad and Tobago while offloading less productive assets. BP is close to reaching an agreement to sell a portion of Trinidad and Tobago oil and gas assets to Anglo-French oil company Perenco, three sources close to the matter told Reuters.

Currently, BP is Trinidad and Tobago’s largest natural gas producer, with an output of over 1.3 billion cubic feet per day (bcf/d). Around 18% of BP’s liquefied natural gas (LNG) production came from the nation in 2022, with most exported to Europe and Latin America.

Nevertheless, BP’s gas output has fallen by around 80% in the past five years and the company is in talks to develop a deepwater natural gas field off the coast of Trinidad and Tobago in an effort to raise production. The project, Calypso, is supported by Trinidad’s Government as it seeks to encourage offshore drillers to bring gas discoveries to market amid domestic shortages.

BP is aiming to offload some less productive assets in the region. According to the sources, it is discussing the divestment of its Amherstia, Cashima and Immortelle fields with Perenco. Up until 2004, the fields had a combined output of close to 2bcf/d, but this has declined significantly to a combined total of just 200 million cubic feet per day.

“We are close to agreeing on a final price and signing on the dotted line. This will ensure that Perenco can continue to maintain or even increase production from those fields,” one of the sources told Reuters.

BP sees strong upstream trading performance in Q1 2024

Perenco currently operates the Teak Samaan Poui asset in Trinidad, which produces 10,000 barrels of oil equivalent per day.

The French company has recently been expanding, buying stakes in several non-core oil permits in Congo from Eni for $300m in March. In its gas division, it started production at its C06 well within the Ravenspurn South Area of the Southern North Sea in March.

 

 

 

bpTT mum on alleged asset sale to Perenco

10 April

Sources at bpTT could neither confirm nor deny reports of an alleged divestment of three of its gas fields to French oil and gas company Perenco, as reported by international news sources. Corporate communications officer Luis Araujo said the company could not comment on the reports.  However, multiple news sources in the energy sector reported that bpTT was expected to close a deal to sell the Amherstia, Cashmia and Immortelle fields to Perenco.

A Reuters report said the two companies are in talks over the fields. According to the report, if the fields are divested, it could result in a 15 per cent reduction of bpTT’s 1.3 billion cubic feet per day (bcfd) in production in TT.

BP – the global parent company for bpTT – reported on its website US$15.2 billion in profits for the financial year ending in December 2023, compared to a US$2.5 billion loss the year before.

Murray Auchincloss, CEO of BP, expressed the international oil giant’s intention to transition from an oil company to an integrated energy company.

“Our destination remains unchanged – from IOC to IEC – focused on growing the value of BP. We are confident in our strategy on delivering a simpler, more focused and higher-value company and committed to growing long-term value for our shareholders.”

A section of the company’s financial results titled 2024 Guidance said BP expected proceeds from divestments and other actions amounting to US$2-$3 billion, weighted toward the second half of the year.

It said the company realised $17.8 billion in divestment and other proceeds since the second quarter of 2020. The financial report said it plans to reach $25 billion in divestment and other proceeds by the second half of 2025.

BpTT, however, has shown interest in continuing production in TT, with the award of three deepwater exploration blocks through a consortium between itself and Shell.

Although the divestment of the blocks to Perenco has not yet been confirmed, the two companies have had divestment deals before. In 2010, BP announced plans to divest up to $30 billion in assets by 2011. The company sold assets in the UK North Sea to Perenco UK valued at $400 million.

Perenco, which produces about 10,000 barrels of oil equivalent per day (BOEPD) in TT, affirmed on its website its intention to have a key role in the energy transition of the countries in which it operates.

“Gas will be more important in the company, in accordance with the host countries’ energy transition policies. We will do more locally to support its development and more internationally to feed it with new innovations. We know there is much more that can be done in these countries with these fields. There are unlimited resources to be found in what already exists.”

Argeo to deliver AUV survey for Woodside

April 17, 2024, by Nadja Skopljak

Norwegian marine survey contractor Argeo secured a contract with Australian major Woodside Energy to survey deepwater Calypso field

Argeo will perform the 2024 autonomous underwater vehicle (AUV) geophysical survey starting in the third quarter. The project will occupy the vessel Argeo Searcher for approximately 60 days, not including any additional work.

Calypso field is located approximately 225 kilometers off the East coast of Trinidad in ~2,100 meters water depth.

The appraisal drilling program, consisting of the Bongos-3, Bongos-3X and Bongos-4 wells, concluded on December 20, 2021, during which all wells encountered hydrocarbons.

Woodside is the operator with 70% interest, with BP holding the remaining 30%.

Argeo CEO Trond Figenschou Crantz, said, “This contract ignites our Caribbean and South American campaign to provide top-tier deep-water services within the North and South Americas (NSA) geomarket. “

“This is an important and significant award for Argeo, and we very much look forward to demonstrating our capabilities and expertise to Woodside on this project” states Argeo VP NSA, Dave Gentle.”

Argeo Searcher underwent an upgrade at the end of 2023 which included the integration of Hugin Superior AUVs, boosting operational capacity and productivity, said to be a response to clients’ requests for additional capability. The upgrade also included a work-class ROV system, 20t active heave compensated (AHC) offshore crane, 20t active heave compensated (AHC) 3,000-meter winch system, 36t A-frame, remote operations and USV force-multiplier capability and extended free deck space to 200 m2.

 

 

 

 

Energy Chamber to enhance process safety, asset integrity

The Energy Chamber is repositioning to intensify efforts for strengthening process safety measures. With a focused approach, it advocates for enhanced asset integrity measures within the energy sector, aligning its initiatives with the industry’s evolving needs and challenges.

“The Energy Chamber has not taken much of an active role in the issue of process safety or asset integrity. Process safety is not merely a requirement or a checkbox to be marked; it is the bedrock upon which our operations stand. The consequences of non-compliance with safety standards are high and can potentially be catastrophic.”

Jerome Dookie, chairman of the Energy Chamber of TT, made the statement on Wednesday in his opening remarks at the virtual inaugural Process Safety Forum.

Highlighting the chamber’s commitment to process safety and its increased emphasis on improving safety measures and advocating for improvements in TT’s energy sector, the forum allowed stakeholders to reflect on recent incidents and challenges, such as pipeline failures and concerns about asset maintenance practices.

This initiative, both industry-driven and regulatory-backed, seeks to foster a culture of safety within the energy sector.

Dookie emphasised the importance of maintaining high process-safety standards in the energy industry, citing its changing landscape, ageing infrastructure and increasing operational complexity.

“As our infrastructure ages and our operations become more complex, the margin for error diminishes exponentially. It is imperative that we maintain the highest standards of process safety to safeguard against potential hazards and mitigate risks effectively.”

In 2023, 20 people were evacuated and relocated from four Fyzabad households after a rupture of a 30-year-old Heritage 16-inch trunk oil pipeline, which was part of an 80,000-km cross-island network.

While the Energy Chamber has historically prioritised personnel and contractor safety, Dookie noted a shift in focus towards process safety and asset integrity, aiming to address emerging challenges and align with evolving industry needs.

Reflecting on the significance of the energy industry’s historical context in TT, Dookie emphasised the importance of maintaining mature assets safely amidst the ongoing energy transition.

Despite what he said was the industry’s commendable history in process safety, he cautioned against complacency, advocating for continuous improvement and innovation.

“We cannot be complacent when it comes to safety. This is especially the case with process safety, where an incident can have a catastrophic impact and affect many employees, fence line communities and the environment.”

Dookie highlighted the potential of incorporating technology and innovation into safety practices in revolutionising process safety management.

“In today’s rapidly evolving technological landscape, we find ourselves at a pivotal juncture where traditional approaches to process safety must be augmented by new technologies and innovations. Technology can be used to remove people from potentially dangerous situations.

Things like drones, digital twinning and satellite monitoring are already being used in the industry to ensure that safe operations can be done remotely. AI has also been used in several areas to work with data at a rapid pace to ensure better decision making when it comes to risk assessment and management.”

For instance, NGC employs CoSMIC-EYE technology to monitor its 1,000-km pipeline which spans from offshore to onshore and traverses various terrains.

Described by the 2020 edition of GASCO News as “both a valuable asset and a significant liability due to its vast geographical spread,” using radar and optical satellites to monitor energy corridors for potential grid threats ensures its security.

“Integrity issues could arise leading 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.”

Dookie concluded by calling for collective action and collaboration in the industry to prioritise safety as a shared imperative.

 

 

 

 

NGC updates energy map

The National Gas Company (NGC) Group released its first energy map of TT in seven years and its first “green map,” designed to sensitise the public about energy infrastructure, exploits and the green-energy agenda.

NGC presented a copy of the two maps to Energy Minister Stuart Young. Chairman Joseph Khan said the maps do justice to a complex and expansive energy infrastructure,

“far out into the sea, with enough pipelines in the network to line the shores of Trinidad multiple times.

“The fact that this infrastructure is largely invisible makes these maps even more striking – they are almost like X-ray images, revealing hidden structures and systems that (power) our country.”

The energy network displayed on the map, “from platforms to pipelines to plants – it is much easier for us as citizens to appreciate the reference that energy is the backbone of our economy. It is much easier to understand how a small country like TT could become a giant in global energy. It is also much easier to appreciate why so much diplomacy, research, investment, planning and development centre on this sector.”

 

The maps are important tools for public education and sensitisation to the group’s advances. Sole-sponsor NGC released the map in 2005 and updated it in 2012, 2015 and 2017. The conventional and “green” maps were produced with guidance from UK multimedia firm Petroleum Economist, with input from the Ministry of Energy and energy operators .

NGC said its portfolio of carbon reduction and sustainability activities, referred to as its Green Agenda, aims to raise awareness of the need and strategies for addressing climate change.

Like earlier versions, the 2023 map will be “utilised in applications (supporting) NGC’s brand promotions and its efforts in energy education at international and regional fora.”

The conventional energy map includes information related to TT’s LNG exports; history of gas, crude oil and condensate production; deepwater area designated for development; business and investment legislation; methanol and ammonia gas-usage trends.

The new green map displays hydrocarbon-based energy assets; solar and wind energy potential; location of CNG stations; LNG production data; regional clean energy projects and targets; location of NGC reforestation programme sites, which serve as carbon offsets in support of the energy transition and renewable energy projects.

While the NGC footprint dominates the map, it not just “a flourish of branding,” but “an authentic indication of how deeply and widely NGC is involved in the energy value chain. “You will see us in upstream as joint venture partners in offshore blocks. You will see us in downstream as a shareholder in the LNG business and an independent marketer of energy commodities…, you will see our pipelines everywhere, like arteries transporting the lifeblood of our economy to the end-users of gas.”

The move to produce a map focused on hydrocarbon and a separate green energy map aligned with the company’s focus on clean energy and energy efficiency. Pressure is mounting for climate action to be accelerated, as the deadlines based on planetary limits loom large on the horizon.

“Adjusting our energy diets to include more renewables is an integral part of the global climate action plan, and (is something) that we in TT certainly need to support.”

NGC subsidiary, the NGC Green Company, launched in January, is headed by president Toni Sirju-Ramnarine. She will manage the low-carbon projects and investments, including compressed natural gas (CNG) marketing and operations.

“.. gas has an anchoring role…in the energy transition, as a low-carbon fuel that is already widely available and can be easily integrated into existing energy systems.”

By updating the previous map and creating a new one focused on clean energy data, NGC has declared that both have value and are relevant.

“Indeed, if you look at the Green Energy Map, you’ll see we have included data on NGC’s infrastructure. This is a strong visual cue that gas must work alongside green.” Acting president Verlier Quan-Vie said NGC uses the energy maps to “demystify” the energy sector, as “comprehensive cartographical illustrations of the key elements and interconnectivity of our domestic and regional resources and statistics.”

These maps allowed stakeholders to gain a clearer understanding of how energy resources are distributed and utilised locally and internationally.

 

 

Government banks $2.1b from NGC

Responding to Opposition Senator Wade Mark on April 22, Finance Minister Colm Imbert told the Senate the National Gas Company (NGC) paid $2,126,789,101 in dividends to the Government from 2018 to 2023. This figure comprised dividends of $664,619,327, $192,940,990, $109,930,015, $109,705,282, $529,749,625 and $519,843, 862 for 2018, 2019, 2020, 2021,2022 and 2023 respectively.

Imbert said to place the data into perspective, it was noteworthy that between 2010 and 2015, under the UNC-led coalition government, “the NGC paid the government a total of $13,785, 709, 500 in dividends.”

His breakdown showed dividend payments of $350 million, $350 million, $965 million, $1.4 billion, $4.85 billion and $5.77 billion for 2010, 2011, 2012, 2013, 2014 and 2015 respectively.

Atlantic LNG

Responding in the Senate on April 16 to Opposition Senator Wade Mark, Energy Minister Stuart Young said restructuring Atlantic LNG (ALNG) continues to prove a wise decision to help strengthen the economy. He rejected claims from the Opposition UNC that the restructured company was a sell-out of domestic natural resources by the Government. He reminded senators that the agreement to restructure ALNG was concluded last December.

“I hasten to add that it has never been done anywhere else in this world, but this government achieved it.”

Young said the commercial terms of the agreements for ALNG trains two, three and four and “corresponding off-take contracts are subject to non-disclosure agreements, as is customary in the energy sector, and cannot be disclosed.”

He told senators if these details were made public, it would make ALNG “uncompetitive in the world, because LNG is a global energy sector where there is constant competition for pricing and to secure contracts for supply.”

Young said the merger of trains one, two and three, as outlined in the agreement, comes into effect in October. The initial shareholding of the National Gas Company (NGC) in ALNG has improved with the restructuring. Previously NGC had shareholding of 10 and 11.2 per cent in trains one and four respectively, but no shares in trains two and three.The restructuring gave NGC ten per cent shareholding in each of the four trains. This was achieved “at no cost to the people of TT.”

Mark claimed this was a sell-out of the country’s resources.

Young replied, “It may surprise those on the other side, including Senator Mark, to know that this Government (engaged) in absolutely no sell-out.”

Government’s efforts over the last five years to restructure ALNG had been well publicised.

“We then embarked on five very difficult and complex years of commercial negotiation where we achieved not only better pricing, not singularly linked to Henry Hub (gas prices) which today is at US$1.71(per mmbtu), whereas we are getting over US$3 (per mmbtu), an increase of 40 per cent (with the new pricing arrangements which are linked to multiple gas indices).”

“We also got third-party access to gas and an additional shareholding for the people of TT – not for as much as a dinner mint.”

He angered opposition senators when he hinted that such negotiating skills were alien to the UNC.

“Unlike what happened in NGC (in) the 2010-2015 period, where the UNC specifically chose constituencies to use (contractor) SIS (Super Industrial Services) to build recreational grounds, to build the Beetham wastewater plant, to take $6-8 billion of cash for the people of TT out (from NGC) to fulfil their fantasies and their political ambitions, which led to a (general election) loss in 2015.”

Young said the intention behind the restructuring of ALNG was to extend the company’s life.

“Train one’s liquefaction licence expired in 2018. So that brings to an end train one, unless it is extended. Additionally, trains two and three, the original licence expires in October of this year. Is it that the UNC’s energy policy is to let two trains, two and three, just wither away or not continue when there is a lot of life left in it? We have granted extensions (to the LNG trains) but with additional revenue terms, additional shareholding, additional access to third-party gas and a better structure for the people of TT for ALNG.”

This will allow the company “to continue to provide for the future generations of TT well into the future and not expire in October of this year.”

That was the confidence and the competence “of a PNM government in the energy sector doing what is right to ensure for the future generations.”

 

 

 

 

Touchstone progress at Cascadura

2024, 04/17

Location of Touchstone Exploration’s Cascadura oil and gas development

Canadian energy company, Touchstone Exploration, in an operational update, said the Cascadura-3ST1 well in central Trinidad has been cased and production testing is scheduled to commence in the third quarter of 2024, directly into the Cascadura natural gas facility.

The Cascadura-3ST1 delineation well was spud on March 4 from its Cascadura C surface location and reached a total depth of 8,252 feet on March 29.

While drilling, a high-pressure gas kick was encountered at a depth of approximately 7,500 feet which resulted in wellbore instability issues, and as a result, a portion of the wellbore was redrilled via a sidetrack.

Touchstone is currently progressing with the 1.6-kilometer road and flowline project, spanning from its Cascadura C surface location to the Cascadura natural gas facility.
The flowline right-of-way has been fully cleared and graded, road construction is approximately 65 per cent complete, and the watercourse culvert crossings are approximately 50 per cent complete.

“Additionally, the procurement of the flowline has been finalised and the company has issued a tender to local contractors for the installation of the flowline and bridge construction. Progress has also been made on the Cascadura facility expansion project. The engineering designs and Hazard and Operability analysis (HAZOP) have been completed and a new natural gas separator has been procured,” the release outlined.

Progress has been made on the Cascadura facility expansion project and the engineering designs and HAZOP have been completed and a new natural gas separator has been procured.

As it pertains to The CO-374 development well, Touchstone said the well which is located at its CO-1 block, was spud on March 1 and reached a total depth of 5,684 feet on March 22.   The targeted lower Forest formation was encountered at a depth of 3,491 feet and the upper Cruse formation at a depth of 4,578 feet.

President and chief executive officer Paul Baay, said “We are pleased with the successful results from the two delineation wells at Cascadura, with both wells demonstrating the quality and scale of the structure. In addition, the Cascadura-3ST1 well is the first to cross the C-fault to the east side of the structure, an area where reserves have not been previously assigned. The CO-374 development well is also noteworthy, as it has the highest net pay we have observed to date on our crude oil legacy blocks.”

The company has an 80 per cent operating working interest in the Cascadura field, located on the Ortoire block onshore. Heritage Petroleum Company Limited (“Heritage”) holds the remaining 20 per cent working interest. Touchstone has a 100 percent working interest in the CO-1 block via a sublicense agreement with Heritage.

 

 

Touchstone Exploration operational update

10 Apr 2024

Touchstone Exploration provided an operational update, highlighted by drilling results at the Cascadura-3ST1 delineation well and the CO-374 development well.

Highlights

• The Cascadura-3ST1 delineation well was drilled to a total depth of 8,252 feet, and openhole logs and drilling data indicated a total sand thickness of approximately 900 feet in the targeted Herrera Formation.
• The Cascadura-3ST1 well has been cased and production testing is scheduled to commence in the third quarter of 2024 directly into the Cascadura natural gas facility.
• The construction for the flowline from the Cascadura C surface location to the Cascadura natural gas processing facility is progressing, with anticipated completion in the third quarter of 2024.
• The hazard and operability analysis (“HAZOP”) and engineering designs for the expansion of the Cascadura facility have been approved, and procurement for the expansion has commenced.
• The CO-374 development well on our CO-1 block was drilled to a total depth of 5,684 feet, with openhole logs and drilling data indicating a sand thickness of approximately 400 feet in the Forest Formation and approximately 300 feet in the Cruse Formation.
• The CO-374 well has been cased for crude oil production and will be completed once the CO-375 development well has been drilled and the rig is moved from the location.
• The CO-375 development well was spud on April 3, 2024 and is targeting to be drilled to a total depth of 6,500 feet.
• Achieved average net sales volumes of 7,015 boe/d in the first quarter of 2024.

Paul Baay, President and Chief Executive Officer, commented:

‘We are pleased with the successful results from the two delineation wells at Cascadura, with both wells demonstrating the quality and scale of the structure. In addition, the Cascadura-3ST1 well is the first to cross the C-fault to the east side of the structure, an area where reserves have not been previously assigned. The CO-374 development well is also noteworthy, as it has the highest net pay we have observed to date on our crude oil legacy blocks.’

Cascadura-3ST1 Drilling Results

The Cascadura-3ST1 delineation well was spud on March 4, 2024 from our Cascadura C surface location and reached a total depth of 8,252 feet on March 29, 2024. While drilling the well, a high-pressure gas kick was encountered at a depth of approximately 7,500 feet which resulted in wellbore instability issues. As a result, a portion of the wellbore was redrilled via a sidetrack.

Drilling samples and openhole wireline logs indicated over 900 feet of sand in the targeted Herrera Formation, with over 230 feet of net hydrocarbon pay. The top of the key Herrera Formation was detected at a measured depth of 6,852 feet, with sand and shows observed throughout the section to the total depth of the well. Based on these encouraging results, the well has been cased for future production.

We continue to expect to test the recently drilled Cascadura wells directly into the Cascadura natural gas facility in the third quarter of 2024.

Cascadura Infrastructure

We are currently progressing with the 1.6-kilometer road and flowline project, spanning from our Cascadura C surface location to the Cascadura natural gas facility. Presently, the flowline right-of-way has been fully cleared and graded, road construction is approximately 65 percent complete, and the watercourse culvert crossings are approximately 50 percent complete. Additionally, the procurement of the flowline has been finalized and the Company has issued a tender to local contractors for the installation of the flowline and bridge construction.

Progress has also been made on the Cascadura facility expansion project. The engineering designs and HAZOP have been completed and a new natural gas separator has been procured. This separator is expected to increase the facility’s gross natural gas production capacity from approximately 90 MMcf/d to 140 MMcf/d.

The Cascadura flowline and infrastructure upgrades remain on track for completion in the third quarter of 2024.

Cascadura Optimization

Since the facility commenced operations in September 2023, choke adjustments have been made to the Cascadura-1ST1 and Cascadura Deep-1 wells, resulting in moderate success in increasing natural gas production rates. Further, additional perforations were added to the Cascadura Deep-1 well with limited success. The Company continues to monitor production rates from the wells and will optimize production where possible.

CO-1 Drilling Operations

The CO-374 development well, located on our CO-1 block, was spud on March 1, 2024 and reached a total depth of 5,684 feet on March 22, 2024. The targeted Lower Forest Formation was encountered at a depth of 3,491 feet and the Upper Cruse Formation at a depth of 4,578 feet.

Drilling samples and openhole wireline logs indicated the presence of sands in both the Forest and Cruse Formations. The Forest Formation indicated 400 feet of sand, with approximately 250 feet of net hydrocarbon pay. Similarly, the Cruse Formation indicated 300 feet of sand, with 150 feet of net hydrocarbon pay. The well has been cased in preparation for oil production and will be perforated when the CO-375 well is drilled and the rig is relocated.

The CO-375 development well, located on the same surface location as the CO-374 well, was spud on April 3, 2024 and is targeting oil sands in the Forest and Cruse Formations with a planned total depth of 6,500 feet. Operations are underway with surface casing set and cemented at a depth of 1,495 feet.

First Quarter 2024 Sales Volumes

In the first quarter of 2024, we achieved average net sales volumes of 7,015 boe/d as follows:

Cascadura contributed average net sales volumes of 5,389 boe/d consisting of:

1. 1. 1. net natural gas sales volumes of 30.8 MMcf/d or 5,127 boe/d with an average realized price of $2.49 per Mcf; and
      2. net natural gas liquids volumes of 262 bbls/d with an average realized price of $69.60 per barrel;
      3. Coho field net average natural gas sales volumes were 2.8 MMcf/d or 460 boe/d at an average realized price of $2.28 per Mcf (excluding third party processing fees); and
      4. average net daily crude oil sales volumes were 1,166 bbls/d with an average realized price of $69.97 per barrel.

Source: Touchstone

Wood

April 10, 2024, by Dragana Nikše

Liquefied natural gas producer Atlantic LNG hand-picked Massy Wood, a joint venture of UK engineering and consulting company Wood, to provide project management and engineering services for its liquefaction facility in Point Fortin. The three-year contract will enable the two players to cooperate on improving the operational efficiency and reliability of critical gas supply in the region. The contract will be delivered by Massy Wood’s team in Trinidad, receiving support from Wood LNG experts in Houston and its global decarbonization and new energy teams.

Mala Baliraj, Massy Wood’s Chief Executive Officer, remarked: “We are delighted to grow our relationship with Atlantic, building on the scope of services we already provide to this important natural gas facility. Massy Wood has been a trusted partner of choice for over 20 years in Trinidad. We are particularly proud of our delivery teams, who recently achieved over 43 million man-hours without a lost time incident, further demonstrating our unwavering commitment to safety and performance excellence.”

Following up on the existing construction management services delivered over the last decade and focusing on reducing risk and improving performance at the Atlantic facility, Massy Wood’s new award is meant to provide complete end-to-end engineering, procurement, and construction (EPC) solutions.

This comes after Massy Wood signed a five-year framework agreement with Shell to deliver engineering projects and provide asset support, also in Trinidad, and was chosen by Japan’s Inpex Corporation to work on its global decarbonization projects. Earlier this year, the firm secured a contract with BP to deliver topside modifications for its production hub in the central North Sea.

 

 

 

 

 

 

Green hydrogen projects

2024, 04/23

Energy Minister Stuart Young confirmed the Cabinet approved plans to introduce green energy sources into the power grid. At the unveiling of the Trinidad and Tobago Energy Map & NGC Green Energy Map, he confirmed that NGC’s mandate involves the expansion of clean energy sources.

“.. two weeks ago I went to Cabinet for the approval and the confirmation for us to pursue full speed ahead. the use of wind energy to bring wind energy into the electricity grid. Cabinet approved the restructuring of our green hydrogen project and we’re looking at other green hydrogen projects. So we’re not looking to only do one green hydrogen project, but hopefully we will be able to bring on stream two.”

The appointment of Toni Sirju-Ramnarine as NGC Green President, was strategic in terms of these goals.

“Don’t underestimate that leadership decision as well because anyone operating in the space of energy has to be aware of what is going on, how we’re cleaning energy. NGC took the decision to rebrand CNG which is only one pillar of cleaner energy and expand that portfolio. And that is your challenge. How do you expand that portfolio not only for the NGC but for Trinidad and Tobago. You have a head start with a 30 per cent shareholding in Project Lara. But there are other projects taking place in the green space.”

In January NGC CNG was rebranded to NGC Green with a greater mandate for renewable energy expansion.

 

 

 

 

 

 

TPHL has strong cyber security measures

Company chairman Michael Quamina, SC, told a meeting with the Parliament’s Public Accounts Enterprises Committee (PAEC) on April 17,  that Trinidad Petroleum Holdings Ltd (TPHL) has the ability to protect itself against cyber attacks.

Referring to documents the committee had received from TPHL, PAEC chairman Wade Mark expressed concern about a phishing attack on the company in 2019-2020. Phishing is a digital form of social engineering that uses authentic-looking but bogus e-mails to request information from users or direct them to a fake website that requests information.   Mark said this resulted in the TPHL’s losing approximately US$200,000. He asked if any of that money was ever recovered.

Quamina said he would provide information in writing. He was briefed six months ago on this and related matters by the company’s information technology department.

“We have very vigorous (cyber security) measures.”

Last year, the Telecommunications Services of Trinidad and Tobago (TSTT), Ministry of the Attorney General and Legal Affairs, Judiciary, Courts, PriceSmart and Massy Stores were the victims of cyber attacks.

 

 

 

 

Paria tragedy

Labour Minister Stephen McClashie told the Senate on April 22, that the Occupational Health and Safety Agency (OSHA) initiated legal proceedings in the San Fernando Magistrates Court with respect to safety and health offences which may have been committed in the February 25, 2022 diving tragedy at Paria Fuel Trading Company Ltd’s facilities at Pointe-a-Pierre.

Christopher Boodram, Kazim Ali Jnr, Fyzal Kurban, Yusuf Henry and Rishi Nagassar were repairing a 30-inch pipeline when they were sucked in. Only Boodram was rescuedt. The others remained trapped inside. Their bodies were removed from the pipeline days later.

McClashie said the proceedings started in the San Fernando Magistrates Court on April 2.

The Occupational Safety and Health Act, at section 83 (1), empowers OSHA to initiate proceedings against industrial establishments for safety and health offences before the Industrial Court.

“Where a person contravenes a provision of this act or any Regulations made thereunder or fails to comply with any duty, prohibition, restriction, instruction or directive issued under this act or any such Regulations, he commits a safety and health offence and is subject to the jurisdiction of the Industrial Court unless otherwise specified.”

Against this background, McClashie said after an in-depth investigation into the tragedy, OSHA “initiated legal proceedings for safety and health offences at the Industrial Court on December 13, 2023. These proceedings were initiated prior to publication of the report of the CoE on the Paria tragedy which was laid in Parliament on January 19, 2024 and are independent of the findings of that report.”

Section 91 of the act, outlines the procedure for prosecution for such safety and health offences, with respect to commissions of enquiry (CoEs) Section 91 (2) states, “Where, with respect to or in consequence of any accident in an industrial establishment, a report is made by a CoE or a coroner’s inquest is held, and it appears from the report or from the proceedings at the inquest that this act was not complied with at or before the time of the accident, summary proceedings against the person liable to be proceeded against in respect of such non-compliance may be commenced at any time within six months after the making of the report or the conclusion of the inquest.”

Based on this, “proceedings have commenced in the San Fernando Magistrates Court as of April 2.”

 

 

Gas output

2024,  04/20

Energy Minister Stuart Young met bpTT for a discussion on increased natural gas production and the company’s continued commitment .At the meeting were, Gordon Birrell, BP executive vice president (EVP) of production and operations; David Campbell, president of bpTT; and Giselle Thompson, vice president of corporate operations bpTT.

Birrell said that he led a team from bp, comprising geoscientists and other experts to look at the Columbus Basin and T&T’s deepwater acreage, for opportunities to increase natural gas production. Birrell is tasked with managing the London-headquartered company’s hydrocarbon production and exploration and its gas production assets.

Birrell congratulated the minister on successful restructuring of Atlantic LNG, as the restructuring opened new opportunities for bpTT to invest in and collaborate with T&T, in the pursuit of natural gas production.  Birrell confirmed bp’s commitment to this country.

Young reiterated the importance of the partnership between bp and T&T and his satisfaction with the continued open channels of communication between the company and the government.   He reaffirmed the government’s commitment to the relationship with bp as the company continues the management of projects to bring natural gas discoveries and production to market, for the mutual benefit of bp and citizens

 

 

 

 

 

Venezuela gas more difficult now

2024,  04/19

Former energy minister Kevin Ramnarine disputes statements by Energy Minister Stuart Young that the decision by the US government to reimpose sanctions on Venezuela’s oil and gas sector does not affect the special amended licence that was issued to the Government of T&T on October 17, 2023.

This follows a release by the Ministry of Energy after an announcement from Washington DC that the Biden administration reimposed energy sanctions on Venezuela. The Ministry noted that the specific, amended OFAC licence issued to T&T last October is valid until October 31, 2025, and it permits Shell, NGC and contractors to continue the works being undertaken to explore, produce and export natural gas from the Dragon gas field.

However, Ramnarine said these sanctions “certainly makes it a lot more difficult. It does not derail the Dragon deal but it makes it a lot more difficult for Shell to implement this project because while the Ministry of Energy and the Government may argue what happened has no impact, one cannot escape the fact that Shell would have to implement this project in a heavily-sanctioned Venezuela. Doing business in Venezuela in that heavily sanctioned environment is going to be very difficult even if one considers the fact that we have the specific amended licence.”

These circumstances therefore, make getting the Dragon project to achieve final investment decision (FID) “all that more difficult,” as it may or may not be certain whether Shell may get to FID by next year. Such a venture could run into the hundreds of millions of dollars, possibly up to $1 billion, as wells have to be drilled as well as other infrastructure which takes time.

“The Dragon deal continues to be subject to a high degree of uncertainty generated by the geopolitical environment,”

Further, the way the US foreign policy works is that having imposed the sanctions in the first place means it is highly unlikely the US would make any moves to relax these sanctions in the near future.

Then, with the election looming in the US in November, there is always the potential for change in the White House.

Young insisted that T&T secured a 30-year exploration and production licence from the Venezuela government for the Dragon gas field on December 21, 2023. Work to explore, produce and export the natural gas from Dragon to T&T is continuing.

 

 

 

LNG links with Hungary

On April 17, the Ministry of Energy and Energy Industries hosted a high-level delegation from Hungary, led by Minister of Foreign Affairs and Trade Péter Szijjártó, in a step towards improving trade relations.

The meeting to foster collaboration in the energy sector focused on LNG partnerships that could reshape Europe’s gas market dynamics. It marked the first visit by a Hungarian foreign minister. Szijjártó underscored the importance of deepening trade ties, particularly in Europe’s gas diversification efforts.

He expressed Hungary’s interest in establishing a partnership in liquefied natural gas (LNG) with Trinidad and Tobago, recognising its strategic position in the global LNG market.

“Trinidad and Tobago can play a key role through an LNG partnership.”

The discussion touched on gas agreements with Venezuela, such as Dragon, Manakin, and Cocuina, with Szijjártó expressing Hungary’s interest in these developments and potential ventures. Young highlighted the infrastructure and capacity of Atlantic LNG, emphasising readiness to meet global LNG demands.

“Our country is strategically positioned for global LNG exports.”

Hungary, which is set to preside over the European Union from July 2024, emphasised the importance of global energy security, natural gas in the global energy mix and sustainable extraction and utilisation practices.

The discussions concluded with a mutual understanding of the shared interests in energy security and the commitment to exploring avenues for co-operation in the realm of LNG production and distribution

 

 

 

 

WASA, Lake Asphalt to restore roads

Chairman of WASA Ravindra Nanga and chairman of LATT Neil Mohammed, signed a memorandum of agreement between WASA and LATT at WASA headquarters, St Joseph on April 16.

The Water and Sewerage Authority (WASA) pledges to revamp its leak repair programme without causing road damage, as it collaborates with Lake Asphalt (LATT).

A memorandum of agreement (MOA) signed on April 16 at WASA’s headquarters was hailed as a groundbreaking step towards alleviating past shortcomings of WASA’s leak repair programme, eliminates the outdated use of excavated material and includes a sizable road repair initiative, initially targeting 9,000 projects.

It also includes a training programme for employees and contractors to ensure high work standards.

Chairmen, Ravindra Nanga of WASA and Neil Mohammed of LATT, expressed optimism over the collaboration.

“I believe WASA is specialised in bringing water to the nation and Lake Asphalt is specialised, not only in road building but also in road repair. This is an opportunity where both could come together and we can bring relief together,” Mohammed said.

“Once we embark on our road restoration programme, we are hopeful we will bring much needed relief to the public,” Nanga added.

Under the agreement, LATT will supply the materials for the repairs. Mohammed said,

“Our material from Lake Asphalt is applied on major runways and bridges all over the world, from JFK (airport), New York to the longest bridge in the world in China, and we are happy here today to bring those resources to provide relief to WASA and by extension the population of Trinidad and Tobago,”

Nanga acknowledged the organisation’s past shortcomings.

“I know the members of the public say WASA means ‘Workers Against Smooth Asphalt,’ but that is certainly not our intention.”

Asked why an initiative such as this comes this late, Nanga explained the issue was two-fold: a cyclical issue he dubbed a “chicken-and-egg situation”‘ and material shortages.

“When the Ministry of Works and Transport (MOWT) paves the road, WASA kills it. Due to the aging infrastructure of WASA, the paving process can damage pipelines, requiring additional repairs and compromising the newly laid road surface. On the flip side, WASA’s outdated methods, such as using excavated material, lead to inadequate compaction during pipe repairs, resulting in uneven roads.”

WASA is working closely with MOWT to streamline efforts and minimise disruptions to road infrastructure. However, material shortages have historically slowed progress, owing to the high cost of running batching plants, and competing with MOWT for asphalt resources.

“We are not the only entity involved in road-paving; our projects are on a smaller scale. Larger pavers handle larger-scale construction and resurfacing projects, resulting in an imbalance in demand. As a result, we frequently find ourselves at a disadvantage, especially when shortages occur, reducing our efficiency.”

Nanga said WASA was committed to a consumer-centric approach, asking for patience during the transition period.