Home' Trinidad and Tobago Guardian : February 23rd 2017 Contents BG8 | ENERGY
BUSINESS GUARDIAN guardian.co.tt FEBRUARY 23 • 2017
Petrotrin could double
output if carbon dioxide used
By 2020, Petrotrin's oil produc-
tion can increase by as much as
70,000 barrels of oil per day,
if the company implements
measures to enhance oil re-
This is the view of a team of experts in the
energy sector led by Dr Krishna Persad, who
said doubling Petrotrin's production in three
years would require---among other things---
fiscal incentives from the Government and
changes to the Supplemental Petroleum Tax
regime. It will also depend on a large measure
on state-owned Petrotrin pursuing improved
oil recovery (IOR).
In a letter emailed to Petrotrin's president
Fitzroy Harewood, Persad noted that Petro-
trin has invited expression of interest from
companies wishing to pursue IOR programmes
including using carbon dioxide. Persad added
that Petrotrin has also indicated a willingness
to offer several of its large fields, both onshore
and offshore including (Soldado Main North
and/or East offshore and Guapo. Pt Fortin,
Forest Reserve and Parrylands onshore) for
"Together these fields have a remaining
IOR potential of at least one billion barrels oil.
Our calculation is based on recoveries to date
and estimated recovery percentages to date
and estimated OOIPs. That would compute,
at say 70,000 bopd, to around 25 MMBOPD
for 40 years."
With crude oil production continuing to
decline and the government desperate to re-
verse the trend, this could be good news for
the Rowley administration and the country.
To make it happen, Persad said a long-term
secured supply of CO2 is needed at a cost
which is profitable to producing companies at
today's oil prices of $US 50.00 per barrel. He,
however, did not say what that cost would be.
"The quantities must be large enough to
enable CO2 to be used in all of the above op-
erations which may be fully operational in
one to three years. We anticipate this could
be around 200 million standard cubic feet per
day (MMCF/D) of CO2 and that this could
yield, if CO2 is used alone at an efficiency of
3-7 MCF per bbl., 30,000-70,000 bopd of
"This rate could increase if water is used in
conjunction with CO2. An industry group is
working to provide such a supply. The plan will
be via pipeline as soon as practical but liquid
CO2 and/or compressed CO2 delivered to the
fields via tankers and/or barges are shorter
term options," Persad explained.
The energy consultant wrote that the Gov-
ernment must also recognise that the current
fiscal regime has no concessions for IOR for
oils that are not heavy, and that those existing
are "woefully inadequate."
Persad also insisted there is a crucial role
for other government agencies like EMA, IM
and TTBS in facilitating IOR.
He said there are many players in industry
who also need to get involved and his group has
conceptualised the need for an association or
organisation dedicated to promoting, assisting
and fostering an increase in oil production in
T&T by means of IOR.
Persad wrote: "We also agree that the use of
carbon dioxide (CO2) is desirable not just as
an excellent recovery agent but also because
CO2 so used can be sequestered in its entirety.
We recognised further that T&T is one of the
largest emitters of CO2 per capita in the world
and that CO2 is a major contributor to global
warming. And that IOR using inter alia CO2
could significantly reduce or even eliminate
CO2 emissions in T&T."
The energy consultant said already there are
a number of companies pursuing improved
oil recovery methods in T&T. He said what is
required is a more structured approach and
a dedicated association whose mandate is to
Barkindo: OPEC's pushing for full compliance with oil cuts
Implementation of an agreement between
OPEC and other major producers to reduce
output has been "very encouraging" and the
agreement is on track to reduce the global oil
surplus, said the group's top official.
"We are going to go for much higher levels
of compliance because of the very high level of
stocks that we have brought over with us from
2016," Mohammad Barkindo, secretary-general
of the Organisation of Petroleum Exporting
Countries, said in a Bloomberg television in-
terview in London. "Anything less than 100
percent is not satisfactory" and OPEC expects
to achieve that level "in due course."
It's premature to say whether OPEC would
need to extend the agreement beyond its ini-
tial term of six months, or even to deepen the
cuts, Barkindo said. The pace of the decline
in global oil stockpiles, which OPEC wants to
see fall back in line with the five-year average,
will determine the group's next move, he said.
Oil has held above US$50 a barrel since OPEC
and 11 other nations started trimming output.
The exporters group implemented about 90
per cent of the pledged cuts last month and
Goldman Sachs Group Inc. predicts the market
will shift into supply deficit in the first half,
although US crude stockpiles have kept in-
creasing to the highest level in more than three
Iraq, the group's second-largest producer
only implemented about 40 per cent of its
pledged cuts in January, according to OPEC
data. Barkindo said the nation has pledged to
"I have got commitment from the highest
level of government in Baghdad that they will
implement their obligations fully," he said.
"What we are seeing is the efforts they are
making in achieving their targets. Each mem-
ber country has their own peculiar logistical
challenges and Iraq is not an exception."
Oil is still far from an "equilibrium price"
and inventories remained very high in January,
but OPEC's not disappointed by the market
reaction to its agreement, Barkindo said.
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