Home' Trinidad and Tobago Guardian : November 30th 2014 Contents SBG6 NEWS
SUNDAY BUSINESS GUARDIAN www.guardian.co.tt NOVEMBER 30 • 2014
London-listed Trinity Exploration
& Production plc disclosed its
strategy and business model to
investors in the English capital
on November 5, a webcast
released Monday (November 17)
Trinity CEO Joel "Monty" Pemberton said
in a presentation organised by Oil Barrel (an
events company) in London, that the company
is seeking partnerships with "the majors" to
explore for oil and gas within the majors
acreage for stranded pools that are not be
commercially viable for them. Guided by which
companies Morgan Stanley analysts call "oil
majors," operating in T&T are: BP, the BG
Group, Repsol and BHP Billiton.
In Trinity s strategic landscape, Pemberton
said in the presentation that he sees the com-
pany "partnering with major upstream players
to monetise stranded reserves." To put it into
perspective, he said: "BP produces 2.2 billion
cubic feet (bcf) of gas per day. It s one of the
largest assets in their portfolio. They will not
go after any reserve pool that s less than 1 tril-
lion cubic feet (tcf). It s just not material for
He elaborated on how high BP s production
volumes are, citing the world s highest pro-
ducing gas well (bpTT Savonette) to demon-
strate the scale on which BP operates in T&T.
He mentioned the BP-announced approval
"to bring on another 600,000 bcf of gas into
production" from the Juniper field and then
added, "That is their focus. They have a big
acreage. As you know, if you have that type
of production in one area, you re will have a
lot of 250, 300, 450, 500 bcf fields. Just lying
around because the basin is quite prolific; that
they re not interested in. As such partnering
with major upstream players, not just BP, is
one of our key strategies."
The company has a "mature basin acqui-
sition and development business model" focus-
ing on "acquiring and developing proved but
stranded resources," he said. He said this would
mean "lower risk, and faster project cycle
times than wildcat frontier exploration, leading
to better risked returns."
Pemberton said: "T&T is a mature but highly
attractive basin with opportunities to swiftly
build a business of scale."
He added, "sustained growth in oil and gas
production is a strategic national interest" and
that the country has a "mature network of
infrastructure and access to downstream mar-
kets; availability of equipment and services;
progressive fiscal regime; favourable regulatory
regime; skilled labour force; fallow discoveries
offering near term development projects."
He told the investors "infrastructure-led
in-fill exploration and appraisal" is part of the
company s strategy, and that "Trinidad remains
a prolific basin, but significant investment is
required in both oil and gas production to
Pemberton also gave investors new details
about its July acquisition from Centrica, the
80 per cent stakes in Blocks 1A and 1B (1A/1B).
"The blocks are estimated to contain gross
resources of 268 bcf" of gas, he said. "The
gas is undeveloped with first production cur-
rently expected in 2017-2018."
He said Trinity s base case scenario envisages
production of 80 million cubic feet of gas per
day (mmcf/d) as a plateau rate. Among the
1A/1B highlights, he said it sustains Trinity s
growth strategy, targetting the basin s growing
set of stranded assets while diversifying the
portfolio into gas production.
At present, Trinity produces only oil.
He said 1A/1B is located 25 kilometres from
Trinity-operated Brighton infrastructure and
close to local gas market.
He said for the company, it means a sig-
nificant growth in resource base, adding 36
million barrels of oil equivalent (mmboe) of
2C resources; 2C denotes the best estimate
of contingent resources. He said 1A/1B is a
fully appraised asset for which high quality
three-dimensional (3D) seismic is available.
Pemberton said approximately US$220 million
(was) invested by previous owners, significantly
enhancing project economics.
Sharing what s next for Trinity, Pemberton
said on the TGAL discovery (Galeota) approval
of the field development plan (FDP) is expected
in the first quarter of 2015. He said Trinity
has already initiated discussions with potential
High grade development drilling prospects
exist across the company s portfolio, Pemberton
said. He said the company is going to finalise
its drilling rig strategy, re-commence drilling
activity in 2015, and "pursue various indus-
try-based funding options." As at June 30,
Trinity had undrawn debt of US$20 million.
Trinity has 48 million barrels of proven plus
probable (2P) reserves and at the end of the
third quarter of 2014, its production was 3,691
barrels of oil equivalent per day.
Trinity eyes partnership with BP
for stranded pools of oil & gas
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