Home' Trinidad and Tobago Guardian : August 4th 2016 Contents AUGUST 4 • 2016 www.guardian.co.tt BUSINESS GUARDIAN
NEWS | BG5
State-owned Petrotrin has
decided on a major change
in its exploration and pro-
duction strategy by attempt-
ing to reverse the decline in
its crude production by
enhanced oil recovery (EOR) rather than
going after new oil by wild-cat drilling.
In his first interview on efforts to turn
around the fortunes of the company,
Petrotrin chairman Andrew Jupiter told the
Business Guardian that the strategy was
simple: "Where oil has already been pro-
duced, there is more oil to be found."
Professor Jupiter told the Business
Guardian: "Most experts will agree that we
have only produced somewhere between 15
and 20 per cent of our oil in place. So, in
the past we have found oil and we have
only been able to bring to market less than
one fifth of the oil in the ground. We believe
that using enhanced oil recovery we will be
able to produce another 10 to 15 per cent
of oil in place."
He revealed that Petrotrin was in discus-
sions with two companies that are interested
in working with it to bring on additional
crude oil using EOR. He also revealed that
Petrotrin has approved Range Resources
using EOR on two farm-out fields that it
operates on behalf of Petrotrin as it tries
to get more oil out of the ground.
Energy consultant Dr Krishna Persad has
for years argued that Petrotrin should pursue
EOR as a means of increasing its production,
even predicting that the state-owned com-
pany can in five years increase its crude
production by 100,000 barrels of oil per
day (bo/d) if it implements the use carbon
dioxide as a means of enhancing oil recov-
Dr Persad said it can be done for a fee
that is significantly lower than international
prices and can be done profitable at US$40
to US$45 a barrel of oil.
He recently told Business Guardian: "We
have made recent approaches to Petrotrin
trying to encourage them to go into CO2
(carbon dioxide) and we are prepared to
provide not just CO2 that is commercially
viable at today s oil price, but we have also
offered to provide them with expertise in
CO2 enhanced recovery," said Dr Persad.
Dr Persad added: "We are also prepared
to provide them with the expertise which
would enable the company to choose the
projects they should do and help manage
those projects until their people are able
to take them over."
He pointed out that with the exception
of steam injection the state-owned com-
pany has not been involved in EOR. He
said Petrotrin can triple its crude produc-
tion without drilling another well.
The energy consultant said: "Other than
the steam injection, EOR is a small part
of Petrotrin s total oil production. We know
that from the oil discovered and developed
in their fields, Petrotrin has left 80 per
cent of the oil in the ground. By the use
of EOR they can at least double the oil
they have already produced, which is 2.5
billion onshore and in the Gulf of Paria."
The decision to go after EOR is different
from that of the last board which instead
relied on going after never before discovered
oil by using the company s newly acquired
3D seismic as the basis to find more black
However, that has proven costly with a
failed exploration well and a cash-strapped
company unable to put out more money in
a low-price environment on exploratory
wells with no guarantee of success.
Jupiter---who is a retired Permanent Sec-
retary at the Ministry of Energy, the former
chief technical officer in the ministry, the
former president of the National Energy
Corporation and a Professor of Petroleum
Studies at the University of the West
Indies---described his job as chairman of
Petrotrin as the hardest in his life.
He explained that the company s challenge
has been made worse by the 15 to 20 per
cent annual decline in its production which
requires constant workovers of wells and
the drilling of developmental wells, all of
which cost money.
Jupiter also revealed that Petrotrin will
be making its 3D seismic survey data avail-
able to companies who may have an interest
in drilling in the company s acreage.
He said: "Part of Petrotrin s strength is
the acreage that we control. We have spent
a lot of money acquiring data via a 3D seis-
mic programme. We believe that we should
make the data available to our partners who
have been working with us as lease oper-
ators, or farmouts, but also to other com-
panies that may have an interest. This is
necessary because we believe that fresh
eyes, fresh interpretation may help unlock
more and more oil."
"We have a lot of bright young people,
local entrepreneurs who have all kinds of
ideas and potential to unlock the hydrocar-
bons and we must give them support. We
must give them an opportunity to do this.
But it will require funding and they must
be supported," Jupiter added.
He lamented that Petrotrin also had to
improve its technical capacity saying if the
company and its personnel have done the
same thing over and over without achieving
good results, then there need to be changes.
This may mean some employees having to
be moved into areas where they will improve
their performance or new talent will have
to be found.
In an interview on Tuesday, Jupiter told
Business Guardian that he was grateful for
the support of the unions and the board
and promised that the company will produce
a new strategic plan by the end of his first
year as chairman that will guide the com-
pany into the future.
...new exploration strategy, says chairman
Petrotrin changes course
Links Archive August 3rd 2016 August 5th 2016 Navigation Previous Page Next Page