Home' Trinidad and Tobago Guardian : June 8th 2017 Contents BPTT has revealed that
from the end of the
year it will be able to
maintain its gas pro-
duction at two billion
cubic feet per day or,
put another way, on its own it will
supply almost half of the country's
natural gas demand.
In an interview with the Business
Guardian at its Queen's Park South
headquarters, the company's region-
al president, Norman Christie, said
the estimate was based on its ability
to bring on an additional 590 million
standard cubic feet of natural gas
with the start up of Juniper as well
as its TROC and Sercan II projects.
This will effectively mean the
country's production should be in
the vicinity of 3.5 to 3.6 bcf/d or 85
per cent of installed capacity which
stands at 4.2 bcf/d.
Christie said the rate of production
will be supported by the Angelin pro-
ject, its offshore compression project
and its recently announced discover-
ies Macadamia and Savannah.
Asked where the majority of the
2bcf/d will be going, Christie said it
will be a mixture of between the NGC
grid or Atlantic for export.
"It's going to go both places, but
there is much more clarity now about
what will happen on the NGC side
because of the completion of the
NGC negotiations. So we have an-
other important set of negotiations
to go through, starting with Train 1,
because the Train 1 contract expires
"When that negotiation is done
that will also bring more clarity, but
after Train 1 is done in a few years you
will have Trains 3 and 3 also expiring,
so after you go through these series
of contract renewals, that then gives
you more clarity about the split."
The bpTT regional president dis-
agreed with the suggestion that the
company's gas would be better used
in the downstream sector and not ex-
ported as LNG.
"Remember what you are always
doing is making a projection. So
sometimes what people do is say
here is the state of play now, make
all your decisions based on that. That
won't be wise."
Christie added, "You want to cre-
ate flexibility because these are all
cyclical products. You may be hap-
py with a product today and not to-
morrow as was the case with LNG,
well the same can happen of another
commodity, the question we need to
ask ourselves is are we building in
the right level of flexibility so that
we can actually have to product go
to the places where we get the best
return for the country."
He also did not rule out the possi-
bility of higher LNG prices return-
ing painting a scenario of natural
gas substitution for coal then in the
midst of the climate change debate
impacting demand and supply.
Christie also denied that bpTT
has been using the 100 per cent tax
write-off for exploration in the year
it is conducted saying the company
has been making massive losses due
to large reinvestment and low prices.
"I need to be very, very, clear with
this. The exploration that we have
done, we have not availed ourselves
of the 100 per cent tax write off.
"There is no reason for us to, be-
cause when you have the large tax
loss carried forward if you write it
off in one year it makes no differ-
ence because all you will be doing is
adding to that.
"Because of the amount of spend
we are doing, over the last two years
is close to US $3 billion, getting the
100 per cent write off will make no
difference over me getting it over,
say, five years."
He said bpTT will continue to look
for oil and gas including partnering
with BHP Billiton in the deepwaters.
BG8 | ENERGY
BUSINESS GUARDIAN guardian.co.tt JUNE 8 • 2017
Oil company may build platforms again in La Brea
Regional president of bpTT, Norman Christie, has said that
for his company to return to building platforms in La Brea a
number of key issues must be dealt with including the com-
petitiveness and productivity.
In an exclusive interview with the Business Guardian at the
company's Queen's Park Savannah office, Christie did not
directly identify the industrial dispute that stalled the con-
struction of the Juniper platform, but he was clear that that
kind of action would not attract bpTT to built its platform in
the south western village.
"We can't have a situation where you think you work for
this much time and then there is a long stoppage, and then
you work again. That is a consideration," said Christie.
"On the competitive front, one thing we are much clearer
on now is what it cost to build it in another location. One of
the reasons, as you would recall, is when we built the Juniper
platform, the top sides were done here but the jacket was done
somewhere else. "So you now have the basis for comparing
what was the cost per piece and you can take that kind of in-
formation and bring it back in country. Now we know what
we need to do to compete. How do we get there? You may not
be able to get there immediately but you may be able to build
a plan to get there over time."
BpTT last week announced the discovery of two trillion cubic
feet of natural gas in two wells, Macadamia and Savannah. He
said to bring those discoveries on-stream two platforms will
have to be built.
"We expect it will be two platforms, one each for Maca-
damia, South East Queen's Beach, and then the Savannah.
We will phase them in. They will be sequenced as we see the
plateau coming off, it will be sequenced to ensure we bring
our production back to a plateau," Christie said.
He noted that bpTT was working on having additional re-
sources brought on every two years to maintain its plateau.
Christie said with this in mind Juniper will be brought on
in 2017, followed by Angelin in 2019 and then the offshore
compression project in 2021 and the first of the two new dis-
coveries in 2022.
He said the expected decline from the compression project
will mean that it will need to be replaced by additional pro-
duction within one year.
"Even the offshore compression project could require fab-
rication so we are not waiting until we get to the exploration
prospects so that is why we have already started the discussions
to say what are all the elements that need to be changed to
For a platform to be built in La Brea, the fabrication yard
there, Trinidad Offshore Fabricators has to ensure it has a strong
safety and welfare system in place. While the company has an
excellent track record it cannot sit on its laurels .
He also identified the use of technology as key to the con-
struction of future platforms in La Brea.
"There are issues surrounding ensuring that the latest tech-
nology is being employed at the plant, so that might be the case
if you talk to the owners, but we want to ensure ourselves of
that because that means they can then be at a competitive rate."
Christie also insisted that a condition for the return to La Brea
is whether the community is benefiting from the company's
spend and said bpTT wanted to ensure "what's done actually
benefits La Brea in the best way possible."
bpTT to produce 2 bcf/d
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