Home' Trinidad and Tobago Guardian : January 12th 2017 Contents JANUARY 12 • 2017 guardian.co.tt BUSINESS GUARDIAN
ENERGY | BG9
Tender for the Provision of Consultancy Services for the Development of
the Beach Area at the Magdalena Grand Beach & Golf Resort, Tobago
Evolving TecKnologies and Enterprise Development Company Limited (e TecK) hereby invites the submission of
Tenders from eligible bidders for the Provision of Consultancy Services for the Development of the Beach Area at
the Magdalena Grand Beach & Golf Resort, Tobago.
Tendering will be conducted through the Two Envelope Competitive Bidding process in accordance with
e TecK's procurement guidelines and is open to all suitably quali ed tenderers.
Interested eligible tenderers may obtain further information from the prequali cation and tender documents, at
the o ce of The Secretary, Tenders Committee at the following addresses:
Evolving TecKnologies and Enterprise Development Company Limited (e TecK)
Tamana InTech Park, Waller eld
A complete set of tender documents may be purchased by interested tenderers upon payment of a non
refundable fee of One Hundred US Dollars (USD 100.00). The method of payment will be cash or certi ed cheque.
Only bidders who have purchased the bid documents will be eligible to submit tenders.
IMPORTANT DATES TO NOTE:
Weekdays from 8:00 a.m. to 4:00 p.m. up to Wednesday 18th January, 2017-Payment & Collection of Tender Documents
Thursday 19th January, 2017 at 10:30 a.m. - Mandatory Site Visit
Thursday 16th February, 2017, 2016 at 2:00 p.m. - Deadline for Tender Submissions
The Site of the Works is located at Tobago Plantations, Lowlands within Little Rocky Bay. Lowlands is situated on
the south eastern side of Tobago. Failure to attend the site visit will render the prospective tenderer ineligible to
submit a Tender.
The preferred consultant will be required to provide a detailed design of an improved beach area that would
encourage swimming and related water activities such as kite sur ng etc. for guests of the resort.
Tenders must be submitted strictly in accordance with the Tender Documents. e TecK does not bind itself to
accept the lowest or any Tender and reserves the right to negotiate price with any Tenderer.
Evolving TecKnologies and Enterprise Development Company Ltd (e TecK)
Flagship Building, 9 - 15 e TecK Blvd. Tamana InTech Park, Waller eld, Trinidad and Tobago
OPEC andnon-OPEC mem-
bers have pledged to cut
their combined oil pro-
duction by an average of
just over 1.7 million barrels
per day (bpd) in the first
six months of 2017.
Saudi Arabia and its Gulf allies are expect-
ed to implement most of their cuts immedi-
ately, but other producers both within and
outside the Organisation of the Petroleum
Exporting Countries are likely to phase in
the reductions gradually.
The collective cut should increase pro-
gressively over the first half of 2017 and have
its biggest impact on the supply-demand
balance from the second quarter onwards.
Market tightening should be felt at the
start of summer as output cuts are fully
phased in, US refineries ramp up for the
driving season, and crude combustion in
Saudi Arabia and Iraq starts to rise.
Compounding this effect, continued un-
derlying growth in oil consumption in both
OECD and non-OECD economies during the
first six months should also help progres-
sively tighten the supply-demand balance.
OPEC and non-OPEC members also have
given themselves the option to extend the
cuts for a further six months depending on
prevailing market conditions.
If they decide on an extension, the sup-
ply-demand balance could tighten even
more quickly in the second half of 2017.
Most traders expect market rebalancing
to be backloaded, with futures prices trad-
ing in contango in the first half of 2017 but
then moving to level or backwardation in
the second half.
The structure of prices is consistent with
a gradual phase-in of cuts during the first
semester and their extension into the second.
But the different pace of production cuts
for different countries increases the risk of
non-compliance, especially towards the end
of the first half and in the second half of 2017.
If the agreement succeeds in raising prices
and drawing down excess inventories, some
countries may not deliver all the cuts they
In most cases, a new well will produce its
highest daily output in the first days, weeks
and months after completion, when the
natural pressure in the reservoir is greatest.
Daily production tends to decline progres-
sively thereafter as pressure falls.
Production rates can be described by a
Oil producers employ several methods
to offset production declines from existing
wells and maintain field output.
New wells can be drilled to replace declin-
ing production from existing holes (either
within the same reservoir or from a new one).
Surface pumps or downhole pumps can
be employed to raise more oil from old wells
by providing artificial lift to replace natural
And production from old wells can be stimulated
by injecting water, gas and chemicals into the pro-
ducing formation to sweep more of the remaining oil
towards the well bores and help it flow more easily.
Most producing countries have a mix of old and
new wells, of varying vintages and at various stages
of decline, some on artificial lift or being stimulated
by secondary and tertiary recovery techniques.
Producers therefore have a menu of options for cut-
ting output by shutting in or choking back existing
wells, discontinuing artificial lift, ceasing to drill new
holes, or scaling back secondary and tertiary recovery.
Hinting at the importance of these options, non-
OPEC countries have committed "to reduce their
respective oil production, voluntarily or through
managed decline, in accordance with an accelerated
schedule," OPEC said.
HOW TO CUT OUTPUT
Saudi Arabia and its allies are likely to cut produc-
tion by shutting in or possibly choking back output
from older wells in older fields.
Saudi Arabia shut in more than 1,000 wells during
the last round of OPEC cuts in 2008/9, according to
an analysis of well data.
Most of those were less productive (and presumably
older) because the number of wells still in production
dropped much more than the decline in actual output.
Production per active well rose sharply, indicating
older and less productive wells were shut while newer
and more productive ones continued to flow.
Much of Saudi Arabia's famed output flexibility
comes from the kingdom's ability to shut in or reopen
hundreds of older wells in older fields.
Shutting old fields and wells makes economic
sense because it can extend their lives and increase
the amount of oil ultimately recovered from them.
Conversely, Saudi Arabia can boost output by bring-
ing old wells back into production, but at the cost of
lower ultimate recovery. So this time around Saudi
Arabia is likely to meet most of its output-cutting
commitment by resting older wells and older fields,
which can be implemented fairly quickly.
Kuwait and the United Arab Emirates are likely to
employ a similar strategy that will deliver production
ARCTIC AND SUB-ARCTIC
Onshore and shallow offshore wells in Saudi Arabia
and its Gulf allies are relatively straightforward to
close, but shutting in wells in other countries will be
more difficult. Russia, in particular, has warned it can-
not close some existing wells in Arctic and sub-Arctic
regions without risking irreversible damage.
Oil comes up from deep underground at high tem-
peratures and helps prevent damage to wells and field
equipment in the frozen north.
The problem of shutting in existing wells is obvi-
ously greatest during the northern winter, when it
affects the maximum number of wells.
Russia is therefore relying on natural decline and
a reduction in new well drilling to meet its commit-
ments under the deal.
In recognition of these problems, Russia and oth-
er non-OPEC producers secured the right to phase
in cuts and average them over the entire six-month
period. Officials in Moscow have repeatedly said cuts
will be phased in gradually, meaning Russia is likely
to deliver its deepest reductions only at the end of
the six months.
Backloading creates a temptation to cheat, howev-
er, since the full extent of any non-compliance will
become evident only in the second half of 2017.
If the supply-demand balance has started to tighten
by that stage, the market may be able to absorb a level
of non-compliance without so much impact on prices.
However, if OPEC and non-OPEC deliver their
promised cuts, including backloading, and extend
them into the second half of the year, oil inventories
could shrink rapidly later in 2017.
Saudis, Russia to diverge on speed of oil cuts
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