Home' Trinidad and Tobago Guardian : May 25th 2017 Contents State-owned Petrotrin is ex-
pected to increase its crude
production by a further 21,000
barrels of oil per day (bo/d)
over the next three years at
an estimated cost of $5 billion,
according to Energy Minister Franklyn Khan.
Speaking on Monday at the sixth confer-
ence of the Geological Society of T&T, Khan
said that Petrotrin offers the best hope to
increase crude production in the short term.
With this in mind, he announced a planned
jump in the company's production by 21,000
bo/d or a 30 per cent increase from its cur-
In an interview with the Business Guardi-
an at the same conference, Petrotrin's pres-
ident Fitzroy Harewood said the company
has been gradually increasing production
to the point where it is up to 46,000 bo/d
from 41,000 bo/d in December, a jump of
12 per cent.
Asked where the 21,000 bo/d output in-
crease was going to come from, Harewood
said, "So the combination of drilling on land,
which we want to push up to two rigs if we
can next year, and then the resumption of
drilling in Trinmar next year as well as the
EOR (enhanced oil recovery) activities will
give us some fillip."
Harewood said the company would also be
returning to exploration drilling, or search-
ing for new crude. He pointed out that under
a production sharing contract with the gov-
ernment, the company is expected to drill
three wells in the North Marine Block in 2017,
but while it will start two of the three in 2017,
all will be completed in 2018.
"We are working towards starting that
work in the fourth quarter this year and the
next well in 2018. The licences acreage is
North Marine and we have an obligation to
do exploratory wells. Actually it was sup-
pose to be the end of 2017 but when we took
some time to review our prospect generation
and do some more work on the data set, the
ministry allowed us to go to 2018," Harewood
told the Business Guardian.
Mobile production facility
to be commissioned
Harewood said the wells in North Ma-
rine are being drilled based on the recently
acquired 3D seismic which gave Petrotrin
improved sub-surface vision and he was
quietly confident that it will generate good
"They are exploration wells based on the
3d seismic data we have done, and we have
looked at the prospects and leads and the
expectation is that we should have some
good prospects. We are doing some de-risk-
ing of the prospects right now and doing
peer reviews and it should give us some good
co-ordinates to go after and it will see what
it brings us," he said.
Khan revealed that the state-owned com-
pany will spend over $5 billion in the next
three years on exploration and production
as it tries to get additional equity crude for
One such project is the South West (SW)
Soldado project in which crude has stayed
in the ground for years because of a lack of
infrastructure to produce it.
Harewood said Petrotrin was making
progress in its attempts to get production
out of the block.
"SW Soldado is a huge project and we have
the first phase which has been delayed with
the mobile production facility. Our expec-
tation is to have that commissioned and
operational next year and therefore the oil
that is behind pipe should come onstream,"
Asked how much oil can be expected from
SW Soldado, Harewood explained, "There
have been various estimates. When we ac-
tually produce it we will know of the flow.
We have had estimates of between 3,000
bo/d to as high as 6,000 bo/d. I think it's
something between those two numbers. We
plan to bring the mobile production unit into
place, complete the piping, then bring on
stream the production that we can get from
the wells already drilled. After that we plan
to drill additional wells."
BG8 | ENERGY
BUSINESS GUARDIAN guardian.co.tt MAY 25 • 2017
Borrowing by regional governments
have led to them requiring cleaner
diesel fuel than Petrotrin presently
provides and this is the reason that
the company has to complete its ul-
tra-low sulphur diesel plant (ULSD)
within the next three years.
According to the company's president Fitzroy Hare-
wood---who recently told a meeting of leaders at the
Energy Chamber---that some of the company's main
customers in the Eastern Caribbean have indicated
that due to loans and the covenants that come with
those loans, they are required to have cleaner fuels
as part of a deeper commitment to the environment.
Petrotrin's vice president, refining and marketing,
Astor Harris, recently told the Business Guardian that
the ULSD plant forms part of Petrotrin's Clean Fuels
Once commissioned, the plant is expected to meet
stringent new diesel quality specifications for lower
sulphur levels, thereby increasing Petrotrin's poten-
tial for competing on the regional and international
markets. This would give the company access to new
and increased business.
Harris noted that this plant continues to be critical
in the company's continuing efforts to improve the
profitability of the Pointe-a-Pierre refinery.
He even discussed increasing shares of the Car-
ibbean fuels market from its current 50 per cent to
60 per cent by 2021; even as it is likely to face more
competition from the proposed expansion of the
Petrojam refinery in Jamaica.
"We have approximately 50 per cent of the market
share and we would like between 2017 and 2018 to
gain a further five per cent. There is a 10 per cent
out there that because of the specifications of the
products we cannot acquire. This is where the ULSD
will help us in gaining access to that 10 per cent and
that is because of the low sulphur diesel," he said.
Harris added that Petrotrin was seeking to improve
its competitiveness as it moves forward.
"At Petrotrin we are looking to improve our com-
petitive advantage and to do that we have been looking
at key areas to improve our business. One of the areas
we have looked at and where the ULSD will assist us
is that we are looking to increase our market share in
terms of what we have in the Caribbean right now."
He said the company is looking at cost manage-
ment, capital efficiency and is seeking to drive down
controllable overtime. As an example he pointed out
that in 2016 overtime was $128 million and $70 million
was in the controllable arena.
"So there is a huge benefit to be gained by targeting
and prudent cost management and ensuring our work
is planned and that we are resourced adequately to do
that work so we don't have to incur overtime because
we do not have enough manpower."
Harewood said this is why the company was quickly
moving to complete its ULSD plant.
In a wide ranging address on the company's future,
Harewood pointed to the company's overall clean fuel
programme and said it was already paying dividends
with greater margins as a result of the gasoline opti-
Petrotrin plans 30% boost
in production over 3 years
We have approximately 50 per
cent of the market share and we
would like between 2017 and 2018
to gain a further five per cent.
Links Archive May 24th 2017 May 26th 2017 Navigation Previous Page Next Page