Home' Trinidad and Tobago Guardian : January 19th 2017 Contents BG8 | ENERGY
BUSINESS GUARDIAN guardian.co.tt JANUARY 19 • 2017
Mexico's IEnova to
Mexican energy infrastructure firm IEnova, a unit
of US-based Sempra Energy, will invest US$800 mil-
lion this year on eight projects, the company's chief
executive said on Monday.
Carlos Ruiz Sacristan said the most important
project is an underwater pipeline between Texas and
the Mexican Gulf port of Tuxpan. That project will
require a total investment of US$2 billion, and will
be developed with TransCanada Corp.
Speaking at an event at Mexico's stock exchange, he
said IEnova will invest US$500 million in the pipeline
OPEC sees market
stability in 2017
forecast on Monday that
stability would return to
oil markets this year while
price hawk Venezuela said
it hoped its crude basket would rise to US$70
in coming months.
The head of the Organisation of the Pe-
troleum Exporting Countries was back in
Caracas for a second meeting in two months
with President Nicolas Maduro whom he
lavishly praised for an "inspirational" role
in the producers' pact to cut output.
"We remain optimistic that with the full
and timely implementation of this historic
decision between us and non-OPEC, in 2017
the situation of our economies will improve
tremendously," Barkindo said at a news con-
ference with Maduro.
"And stability to the oil market that has
eluded us for nearly three years will be re-
stored on a sustainable basis in the inter-
est of producers, consumers and the global
Under the accord reached in late 2016,
OPEC, Russia and other non-members of
the producer group will curtail oil output
by nearly 1.8 million bpd, initially for six
Maduro, who sent officials round the
world over the last two years to lobby for
output cuts, said he hoped the pact would
help raise Venezuela's crude basket to US$60
in the first half and US$70 later in 2017.
One of the worst-affected nations by the
oil price plunge since mid-2014, Venezuela's
oil traded at $44.82 last week, versus a 2016
average of $35.15.
Barkindo added that Venezuela, and its
new Oil Minister Nelson Martinez, would
play a central role in a new OPEC, non-OPEC
ministerial committee charted with moni-
Oil prices set to
slip as US shale
gets ready to
pump: IEA director
Oil prices are set to fall later this year despite the
recent OPEC agreement to limit production, Fatih
Birol, the executive director at the International En-
ergy Agency, has told CNBC.
The oil cartel's production cut last year gave a boost
to prices as it limited supply, but Birol expects other
countries---most notably the US---will simply step in
to fill the void and depress prices, he predicted.
"As a result of the increase in prices. We are going
to see a substantial amount of oil pouring into the
market from the United States," he said at the World
Economic Forum in Davos on Tuesday, giving a "cou-
ple of months" timeline for his estimate on prices.
"At the end of the day we are definitely going to
see more oil coming from the United States," he said.
"We will see a bit of a zig zag and we will see a greater
volatility of the prices."
The dramatic fall in prices that began in mid-2014
was due to weak demand, a strong dollar and boom-
ing US oil production, according to the International
Energy Agency (IEA). However, OPEC's reluctance to
cut output---until late last year---was also been seen
as a key reason behind the fall. Rigzone
Guyana welcomes new oil discovery
The Guyana government has welcomed the latest discovery
of oil in the country's territorial waters saying that it confirms
that Guyana is Guyana is more than a "one hit wonder"
Natural Resources Minister Raphael Trotman says the coun-
try remains on target for oil production in 2020 and that the
David Granger administration was "happy" at the announced
of the discovery last Thursday.
The Payara field discovery is about 10 miles (16 km) northwest
of the 2015 Liza discovery and is the US-based ExxonMobil's
second oil discovery on the Stabroek Block estimated at 6.6
million acres located offshore Guyana and this is where the
Lizas are to be found.
Exxon said the well was drilled by ExxonMobil affiliate Esso
Exploration and Production Guyana Limited, and encoun-
tered more than 95 feet (29 meters) of high-quality, oil-bearing
sandstone reservoirs. It was safely drilled to 18,080 feet (5,512
meters) in 6,660 feet (2,030 meters) of water.
"I believe we now can confirm that the basin is an active
one that shows potential for more discoveries," Trotman said,
adding "whether they would be very large or not is a matter
that we need to wait to see but, I think we can now say that
we're heading into an oil and gas industry"
Trotman said that the new discovery together with the Liza
discovery, will change the world view on Guyana.
"I believe Liza, its size, and the fact that it is cutting edge,
going into ultra-deep waters, it is generating much interest
so this is again going to lift Guyana's image as a country that
is no longer seen as poor but we're moving from potential to
prosperity," Trotman said, adding that he was looking forward
to the added investment that the find will attract to Guyana.
"Before, if you had one well it didn't take much to have
one well developed. But, now that we have multiple wells, it
will lead to multiple explorations and hopefully, producers
of petroleum and natural gas in the future," Trotman said.
ExxonMobil moved its Stena Carron drillship to the Payara
location in November last with initial total depth reached on
December 2, 2016.
A government statement said that the Payara find will soon
be evaluated for development alongside the Liza discovery. Liza
3 has the same high-quality reservoirs as the other two Lizas.
Last year, ExxonMobil's Liza-2 offshore exploration found
high propensity sandstone reservoirs that could produce more
than 1.4 billion barrels of recoverable high quality oil.
...Venezuela aims for US$70 price
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