Home' Trinidad and Tobago Guardian : February 4th 2016 Contents BPTT will drill its first explo-
ration well in T&T in over a
decade when it spuds the
Savannah well later this year.
The company s vice president, Giselle
Thompson, told the annual conference of the
Energy Chamber of T&T, at the Hyatt Regency
Hotel, that the infrastructure it is putting in
its Juniper field will be used to unlock Savan-
nah s potential.
"This year, 2016, will see the spud of the
Savannah exploration well which is in close
proximity to Juniper. The progression of Juniper
will provide the infrastructure to unlock Savan-
nah s resource potential. Savannah is located
six km southeast of Juniper in water depths
of 500 feet and could potentially be a tie-in
to the Juniper subsea system."
The last time bpTT drilled a pure wildcat
well in T&T was the Deep Ibis Well in 2006.
The company will be using the Diamond Ocean
Victory semisubmersible rig to drill the well.
Ibis was a US$80 million, 19,068 feet deep
dry hole in the Columbus Basin. It found mud
stones rather than sands.
The company s Ocean Bottom Cable Seismic
survey has been crucial to bpTT s decision to
go after Savannah and, according to the com-
pany, has given it a better understanding of
the subsurface largely through improved imag-
ing that minimised the problems caused by
shallow gas. The company recently indicated
that four out of the five exploration oppor-
tunities it has identified have followed on from
interpretation of the new OBC seismic.
Thompson pointed to the Angelin project---
which BP s parent company BP PLC is now
considering---was accelerated due to enhanced
imaging brought by the OBC seismic.
"The data has allowed a better understanding
of the structure and has improved the definition
of the reservoirs and hydrocarbon contacts
that were previously impacted by shallow gas
effects in the field. Angelin is located in water
depth of 65 metres and is planned to be tied
back to the Serrette platform," Thompson
The company s vice president operations,
Andre Celestine, recently said the OBCS has
added significant proved reserves to the Angelin
He noted that Angelin s original estimates
were just shy of 1.5 tcf of natural gas and the
use of OBCS, along with technology it has
never used outside of a test environment, have
led to adjustments to the field s proved reserves.
Celestine added: "The OBCS used inde-
pendent simultaneous source (ISS) technology.
It was the first time that bpTT used ISS tech-
nology outside of a test environment. ISS uses
multiple vessels to collect data, making the
process more complex but with the potential
for improved seismic imaging."
Celestine said the data acquired through
the survey and the early fast-track processed
data have provided huge uplift in the imaging
of the Columbus basin.
"Better definition of reflectors, faults, and
imaging deep and below shallow gas have all
been part of the significant uplift. The new
data has already resulted in significant additions
to proved reserves in Angelin field and is allow-
ing bpTT to progress the field into our projects
organisation to plan a development."
The Columbus basin is a prolific oil and gas
province with more than one billion bbl of
light, sweet crude already produced from it.
BPTT is estimated to have more than 13 tcf
of proved reserves in the Columbus basin,
having already produced more than eight tcf
Celestine said the survey has attracted inter-
est throughout BP because of the technology
and the quality of the data.
BUSINESS GUARDIAN www.guardian.co.tt FEBRUARY 4 • 2016
BP s chief executive officer is
predicting that oil prices will
rebound in the medium term
as he announced a massive
loss of US$6.4 billion due to
low energy prices.
Bob Dudley made the announcement share-
holders and investors on Tuesday as he reported
on BP s financial performance for the financial
He said between September 2014 and the
end of 2015 oil prices fell by US$60 a barrel
and that the fundamentals that led to the
crash of oil prices remain in place and therefore
oil price volatility is expected to continue in
the short term. But he insisted that the rebound
in prices will come within months.
BP s CEO said: "Globally, supply is leveling
out; especially in the United States where out-
put is declining. Last year, low prices led to
a steep increase in demand of approximately
1.8 million barrels per day which is double the
average demand growth of the past ten years.
These trends suggest that supply may converge
with levels of demand sometime in the second
half of this year.
"And, as we move further out, we expect
demand may well start to exceed supply; which
is an increasingly consistent view across a
number of industry commentators and data
sources, including our own outlook."
This would be encouraging news for the
Government whose finances have been shat-
tered by the fall in revenue due to low oil prices
and lower production. In addition, if prices
were to rise, it is likely to lead to some improve-
ment in the natural gas prices since in many
markets they are indexed to crude prices.
Brian Gilvary, BP s chief financial officer,
said in the last quarter of 2015 Brent crude oil
averaged US$44 a barrel, its lowest since 2004.
He blamed this on higher output from sus-
tained OPEC production which led to the
buildup of inventories despite falling production
out of the United States.
With respect to the US Henry Hub gas price,
BP noted that it had fallen to an average of
US$2.30 per million british thermal units
(MMBTU) due to unseasonably mild weather
in the United States.
Shares in BP ended the day almost 9.0 per
cent lower after it reported the huge loss.
In fact, on Tuesday, the company was the
biggest decliner on the British Stock Exchange
FTSE 100, after announcing its biggest loss
for more than two decades.
In addition, BP s underlying fourth-quarter
profits sank to US$196m, compared with
US$2.2bn for the same period in 2014 and
far worse than analysts had expected.
BP said it was seeking to operate in a low
cost environment and part of that was an
increase in efficiency. It announced as part
of its ongoing cost cutting exercise that it will
send home a further 3,000 employees.
This move is almost sure to affect workers
in T&To. Last year, the oil and gas giant sent
home 4,000 workers and this resulted in
bpTT sending home 10 per cent of its work-
force. Further cuts globally are likely to lead
to more nationals being placed on the bread-
Two weeks ago, bpTT announced that it
will, in 2016, invest $1.5 billion in T&T. The
company s president, Norman Christie, said
bpTT was doing this inspite of falling oil prices
and declining revenue.
Speaking at the recently concluded annual
conference of the Energy Chamber of T&T,
held at the Hyatt Regency Hotel in Port-of-
Spain, Christie said bpTT would continue to
invest as long as the Caribbean island remained
welcoming to investment.
"As a testament to our confidence in the
future, we are literally putting our money
where our mouth is. We have spent close to
US$1.5 billion in capital expenditures in 2015
and, if the above-the-surface conditions are
right, we plan on spending more than that
in 2016, despite the significant negative impact
of prices on our earnings and cash flow.
"If money talks, we are speaking loud and
clear about our confidence in the future of
the oil and gas industry in T&T."
In spite of US$6.4 billion loss in 2015,
BP chief predicts
oil price rebound
in medium term
bpTT spuds Savannah
Company hits new exploration well in more than 10 years
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