Home' Trinidad and Tobago Guardian : January 2nd 2014 Contents Part IIn 2013, the energy sector witnessed
an unprecedented period of coor-
dinated maintenance work with
the major upstream, midstream
and downstream companies scaling
back on production to implement
maintenance on their plant and equipment.
This involved significant deployments
of manpower and equipment, stretching
the human resource capacity of both the
energy services companies and operators.
The co-ordinated turnaround period was
prompted by gas supply reductions as
scheduled upstream maintenance work by
bpTT and BG T&T meant that gas supplies
were significantly reduced. This period of
successful co-ordinated activity seemed
to go unnoticed outside of the energy sec-
tor.Upstream exploration and development
activity remained high in 2013, with total
rig days matching the buoyant 2012 levels.
To stimulate exploration and development
in the sector, there was an onshore bid
round and the Government provided several
fiscal incentives in the national budget.
The positive response to these measures
from upstream investors demonstrated a
renewed level of investor confidence in
T&T s upstream oil and gas sector.
However, even as there was continued
investor confidence in the upstream sector,
there was no construction started on a
major downstream project though the Mit-
subishi/Neal and Massy methanol to DME
project progressed well through its planning
Crude and condensate production
T&T entered 2013 with crude and conden-
sate production continuing the downward
trend of recent years. There are indications,
however, that from the middle of 2013 the
decline has stopped and production has sta-
bilised. After having reached its lowest point
of just 76,612 bpd in June, the decline in total
production was reversed in July.
The welcome increase in production of
approximately ten per cent between June and
August 2013 came as a result of heightened
levels of crude production over the period by
most of the major producers which include
bpTT, BG T&T, Repsol, Trinmar and Petrotrin.
Increased levels of condensate production by
BGTT in ECMA & CB and bpTT also con-
tributed to the improvement in the production
Most importantly, the last production figures
(as at December 19) from the Ministry of Ener-
gy and Energy Affairs shows that the industry
was able to arrest the decline in crude pro-
duction. Average crude production now stands
at 81,356 bopd. This is, in fact, a great achieve-
ment for our energy sector.
Furthermore, Trinity s high quality crude
find of 50 to 115 million barrels in its Jubilee
field shows the potential that still exists for
new exploration and production in the tradi-
tional oil plays.
In fact, Trinity has mentioned that first oil
can be produced from this field as soon as
mid-2015. However, the field must first be
appraised and development work must be
undertaken before any production occurs. Still,
this bodes well for production and further
activity in the coming years.
The good responses to the 2013 onshore bid
round also demonstrated investor confidence
in the traditional oil sector, with positive impli-
cations for the oil production outlook for T&T
in the medium-term.
Meanwhile, the very positive statements
from BHPB and bp about the potential of their
new deepwater blocks and the existence of
some large and promising geological features
bodes well for the possibility of major deep-
water developments in the longer term.
Natural gas and petrochemical production
Natural gas production continued to fluc-
tuate in 2013 as a result of turnarounds by
T&T s major upstream companies. Production
dropped significantly in September as our
country s largest natural gas supplier, bpTT,
undertook maintenance work on its Cassia
platform and the second largest, BG T&T,
undertook work on its Dolphin platform.
Based on the latest provisional data from
the Ministry of Energy and Energy Affairs,
natural gas production fell by as much as 19.4
per cent from 4197 mmscf/d in August to
3380 mmscf/d in September.
This was the lowest production figure
recorded since October 2005 when it stood
at 3225 mmscf/d.
Continued on Page 17
BG16 | COMMENTARY
BUSINESS GUARDIAN www.guardian.co.tt JANUARY 2014 • WEEK ONE
THE YEAR IN ENERGY
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