Home' Trinidad and Tobago Guardian : January 25th 2018 Contents BG8 energy
Thursday, January 25, 2018
Perenco casts sight on
Petrotrin’s Trinmar assets
anaging director of Perenco
Trinidad, Baptiste Breton, says
the French oil and gas company
would be interested in Trinmar
should the government make it
Breton was quick to add, however, that as far as he
was aware there is no such offer on the table.
In a rare interview he told Business and Money,
“Of course we will be interested in the Trinmar asset
if it is on the table. We would certainly look at it. We
are a company interested in mature oil and gas assets
and we are looking for opportunities in T&T but we
have not seen any at the moment.”
The government has stated its intention to fix
Petrotrin this year and has lamented that the com-
pany’s cost of producing oil both on land and in its
Trinmar asset was too expensive and would require
a mixture of capital injection and significantly more
investment to make it profitable.
In addition, it is well known that the Trinmar asset,
which produces around 20,000 barrels of oil per
day (bo/d), has significant potential to produce a lot
The Trinmar asset has more than 100 million bar-
rels of proven reserves and significant exploration
prospects but has not been able to bring the oil to
market because of ageing infrastructure.
Perenco is known globally for purchasing aging as-
sets and turning them around.
It is also the operator and 70 per cent owner of the
Teak Samaan Poui or TSP fields off the east coast of
Mayaro that was once operated by Amoco.
Breton said Perenco is confident that by 2020 it
can increase TSP daily production to in excess of
15,000 barrels of oil per day.
This would be a 25 per cent increase in production
from its current 12,000 bo/d.
“You have to consider that we are losing 500 to
1000 bo/d in production every year and therefore
what we are doing is saying we will compensate for
that annual loss and plateau the production to more
than 15,000 bo/d and this can be done by 2020.”
According to Breton, the strategy would be a mix-
ture of drilling new wells and doing significant work
over of many of the wells that have already been
He noted that, at present, TSP has over 100 wells
drilled but only 60 per cent were producing.
He said the idea was to reopen some of the shut-in
wells and allow for growth of the asset.
This year the company intends to do six well work-
over programmes that it hopes will stabilise produc-
tion between 12000 bo/d and 13000 bo/d.
“We have not indicated how much money we are
going to spend in the next year because that is not a
public figure but it is going to result in six workover
wells being done in the next calendar year that we
expect would ensure we don’t lose any production
and that will marginally improve our overall figures,”
He added that over the last 20 years as the field de-
clined, so too did the drilling in the fields to the point
where there were only an average of three wells.
He noted there have been some workover wells
that produced as much as 3,000 bo/d when they are
first started up in the asset.
He told the Energy Chamber’s annual Energy Con-
ference at the Hyatt Regency hotel that Perenco does
not believe in allowing ageing fields to die a natural
death but adopts the approach of being able to sig-
nificantly extend the life of fields.
TSP was started in 1974 and peaked production in
1977 at 144,000 bo/d.
It has, so far, produced 30 per cent of its original
Upon purchasing the asset one year ago from the
Spanish outfit Repsol, Perenco’s CEO, Benoît de la
Fouchardiere said, “We are very pleased to be enter-
ing T&T with the acquisition of a 70 per cent inter-
est in the Teak, Samaan and Poui fields. Maintaining
production from ageing assets is a core Perenco
competence, and this transaction highlights Peren-
co’s delivery of our operator-led strategy. We look
forward to a long partnership with T&T and welcome
the former Repsol employees to Perenco.”
Big global oil projects are
starting to get off the ground
The global oil industry’s back-
log of big drilling projects is start-
ing to shrink as prices improve.
From production vessels tap-
ping Brazil’s deep-water reserves
to pipes connecting rigs to under-
water wells in China, the number
of ventures delayed since the oil
crash that finally got approval to
get off the ground totaled 18 last
year, according to a report by
consultant Rystad Energy. That
compares with only five in 2016
and two in 2015.
That’s a start, but there are still
104 delayed oil and gas projects
waiting for investment approval,
according to Rystad.
“The industry has put in a lot
of spadework to advance these
delayed projects,” Readul Islam,
a research analyst at Rystad, said
in the report.
“With over 100 projects still
in our tracker as we enter 2018,
the hard work must continue to
maintain 2017’s momentum.”
Among big oil projects that
received the go-ahead last year,
Brazil’s Petroleo Brasileiro SA,
France’s Total SA and their part-
ners approved the next phase
of development of the multibil-
lion-barrel Libra field off Rio de
The plan includes adding a
floating production, storage and
offloading ship, or FPSO, by 2021
and another by 2022.
But the slow pace of project
approvals for larger, higher-risk
projects means that discoveries
of new reserves in 2017 were the
fewest on record and replaced
just 11 per cent of what was pro-
duced, according to previous re-
port by Rystad. This could lead
to output deficits as soon as next
The 25 delayed projects ap-
proved since the 2014 crash are
expected to develop the equiva-
lent of about 16 billion barrels of
oil at an estimated cost of US$87
billion to first production, Rystad
Abu Dhabi gets bids
for offshore oil
Abu Dhabi’s government oil
producer received bids in the
fourth quarter from international
energy companies seeking stakes
in offshore fields that pump
about 25 per cent of the Persian
Gulf emirate’s crude.
Abu Dhabi National Oil Co is
reviewing commercial bids from
the companies it will choose
from to help develop the depos-
its in a new joint venture, Adnoc
said in response to questions.
Adnoc didn’t identify the bid-
ders or say when it would make
a decision. The existing venture
expires in March.
Plans to expand production
at the offshore block are part of
Abu Dhabi’s effort to raise output
capacity to 3.5 million barrels a
day later this year from about
3.15 million currently.
The new contracts will govern
operations at the deposits for sev-
eral decades. The fields currently
produce about 700,000 barrels a
day, with a target to pump 1 mil-
lion barrels a day by 2021.
Middle Eastern producers are
trying to wring more crude from
With global demand seen rising
about two per cent this year to
about 100 million barrels a day,
producers such as Abu Dhabi are
turning to international partners,
increasingly from oil-importing
countries in Asia, to help boost
their capacity to meet future de-
Abu Dhabi, capital of the
United Arab Emirates, holds
about six per cent of global crude
Under the contract for the new
venture, international compa-
nies will no longer receive a fixed
fee for each barrel of oil they pro-
duce, according to people with
knowledge of the situation.
Instead, the partners will re-
ceive shares of the oil produced
at the fields and any profit from
sales of the crude minus costs,
taxes and royalties paid to the
government, said the people,
who asked not to be identified
because the discussions are con-
Iraq: Oil market ‘heading
in the right direction’
The global oil market is sta-
bilising as crude inventories are
falling, Iraqi Oil Minister Jabar
al-Luaibi said on Monday.
The market “is heading in the
right direction ... it will continue
to stabilise until the end of the
year,” he told reporters.
Global oil producers agree that
they should continue cooperat-
ing on output after their deal on
supply cuts expires at the end of
this year, Saudi Energy Minister
Khalid al-Falih said on Sunday.
Iraq is the second-largest pro-
ducer in the Organization of the
Petroleum Exporting Countries,
after Saudi Arabia. The deal to
curb supply, which also includes
some non-OPEC exporters such
as Russia, is meant to support
crude prices. Reuters
Links Archive January 24th 2018 January 26th 2018 Navigation Previous Page Next Page