Home' Trinidad and Tobago Guardian : June 18th 2015 Contents BHP Billiton, the operator of all
of the deepwater blocks given
out in T&T, has said it will decide
how many wells it will drill based
on its ongoing interpretation of
the 20,000 square kilometres of
seismic data it has collected.
In an email response to several questions from
the Business Guardian, the Anglo-Australian
multinational mining, metals and petroleum
company, said the structures in the deepwater
are "complex" and in-depth analysis is required.
It added that the drilling campaign will begin
next year but did not say in which quarter.
It said: "The number and location of wells to
be drilled depends on our assessment of the seis-
mic data. The geological structures are complex
and in-depth analysis of the seismic data is cur-
rently being undertaken. Over 20,000 square
kilometres of seismic data were obtained in water
depths of between 2,500 and 8,500 feet."
The company was asked which rig it will be
using to drill the deepwater well but did not
respond to that question. However, investigations
have revealed that it will be using the Deepwater
Invictus which is a drill ship owned by Transocean,
which has a long history of deepwater projects.
The Deepwater Invictus drill ship can operate in
water depths of up to 12,000 feet and drill as
deep as 40,000 below the surface.
BHP Billiton reportedly told a meeting of the
Geological Society earlier this year that it was
excited about the prospects from its deepwater
blocks after seeing the initial seismic results. The
company reported that it had seen massive struc-
tures and that it also conducted a piston core
sample which revealed that there is an active
hydrocarbon system at work.
Both Dr Krishna Persad and Helena Innis say
they are confident that BHP will find large oil
in the deepwater blocks. Dr Persad said BHP s
presentation only reconfirmed what he had been
saying for some time.
Innis told BG that it was her conviction that
there was oil in the deepwater that drove her to
call for a reprocessing of data which showed that
there is real potential in the deepwater while she
was director of resource management at the
Ministry of Energy and Energy Affairs.
She said BHP s revelation is welcome news.
"All piston core data acquired to date points
to the fact that there is a source rock generating
hydrocarbons and the conditions exist for these
hydrocarbons to be reservoired in sheet sands in
large structures. Studies commissioned by the
Ministry of Energy supported these conclusions
and the fact that BHP Billiton is moving ahead
after acquiring the seismic allows one to be opti-
mistic about the results."
Energy Minister Kevin Ramnarine, in a speech
to the Caribbean Geological Conference, said
BHP is working on the theory that the deepwater
depositional environment in T&T is a product
of the Orinoco river system.
"What we know is that we have some key
geological ingredients. Firstly we have the depo-
sitional environment. Secondly we have the
source rock in the form of the Cretaceous. Thirdly,
the 2D seismic that was acquired in 2002, and
re-processed in 2011, shows the existence of big
reservoir systems and large traps. These two fea-
tures would be easier to see and understand using
the recently acquired 3D seismic which was of
high quality and that has allowed for faster pro-
cessing. Finally we have the "Atlantic Mirror
Theory" and this says that there are similarities
between the deepwater Tano Basin in Ghana and
the deepwater off French Guiana/
He added that in the northern deepwater
blocks in which BHP is the operator with BP as
its partner these are expected to be on the same
Oligocene trends as Angostura.
Angostura is BHP s current field which it oper-
ated and in which it discovered significant oil
and gas but which has been difficult to produce
because of significant faulting.
The northern blocks which were initially award-
ed to BP Exploration Operating Company had
the same trend as BHP s Angostura field. Blocks
23(a) and TTDAA 14 are offshore the east coast
of Trinidad and BHP believes that they are a
continuation of Angostura.
Greater Angostura field lies in 36-46 metres
of water on the continental shelf, 37 kilometres
east of Trinidad and in the eastern Trinidadian
sector of the Eastern Venezuela basin.
The shallow-water integrated oil and gas field
development is part of Trinidad Offshore Block
2c. It is operated by BHP Billiton (45 per cent)
on behalf of joint venture partners. BHP first
signed a production-sharing contract on April
22, 1996, and acquired a 3D seismic survey in
1997. BHP and its partners licence to operate
the field continues until 2021 under a PSC with
the Ministry of Energy and Energy Affairs.
The Greater Angostura field has a production
life expectancy of 19 to 24 years.
The discovery well, Angostura-1, was drilled
in 1999. This intersected 950 ft (gross) of gas
pay. The hydrocarbon potential of the structure
was confirmed by the drilling of Aripo-1, Kairi-
1, Canteen-1, Kairi-2, Angostura-2, and Can-
teen-2 wells. Each of these exploration and
appraisal wells also intersected sands. The Kairi
and Canteen fault blocks contain most of the oil
while Aripo has a thin oil rim overlain by a sig-
nificant gas cap.
During the six-year exploration phase of the
PSC a total of four exploration and three appraisal
wells were drilled, discovering significant oil and
gas resources within a large faulted structure
known as the Greater Angostura structure.
It first produced gas in May 2011 with a new
gas export platform with a design capacity of
280 MMcfd of gas and is alongside the company s
existing facilities within Greater Angostura field.
However, since then its gas production has
been above 400 MMscfd because of greater
demand from NGC.
JUNE 2015 • WEEK THREE www.guardian.co.tt BUSINESS GUARDIAN
ENERGY | B9
US regulators have given the green light for
Royal Dutch Shell s proposed US$70 billion
acquisition of British rival BG Group , the first
clearance for the biggest deal in the energy
sector in over a decade.
The two companies said on Tuesday the
United States Federal Trade Commission (FTC)
had cleared the deal.
The deal, which the companies aim to com-
plete by early 2016, will require further reg-
ulatory clearances from all the countries BG
operates in, including the European Union,
China, Australia and Brazil.
"We re well underway with the anti-trust
and regulatory filing processes in relevant juris-
dictions around the world and we re confident
that, following the usual thorough and pro-
fessional review by the relevant authorities,
the deal will receive the necessary approvals,"
Shell chief executive officer Ben van Beurden
said in a statement.
"We remain on track for completion in early
2016," he added.
Van Beurden has visited in recent weeks
Trinidad, Brazil, Kazakhstan and China to dis-
cuss the deal.
The deal, which followed the near halving
of oil prices since last June, was expected to
spark a flurry of mergers and acquisitions in
the energy industry, but so far few deals have
The third-biggest oil and gas deal ever by
enterprise value will bring Shell assets in Brazil,
East Africa, Australia, Kazakhstan and Egypt.
BG has some of the world s most ambitious
projects in liquefied natural gas (LNG), where
demand is growing as consumers turn away
from more polluting fuels such as coal. (Reuters)
BHP Billiton: Wells, location
awaiting seismic data
US clears Shell-BG deal
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