ENERGY Caribbean Yearbook (2013-14)
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independents<br />
Small and medium-sized<br />
petroleum enterprises in<br />
Trinidad and Tobago, the<br />
“independents”, are expected<br />
to play a key role in the revival<br />
of oil production.<br />
There is no formal definition of an<br />
“independent” in terms of assets or<br />
reserves, though when companies<br />
producing up to 3,500 b/d were<br />
exempted from petroleum production<br />
levy payment nine years ago, this<br />
was generally taken as an indication<br />
of independent status. It’s only a<br />
rough guide, however, because some<br />
“independent” upstreamers are already<br />
close to that level or beyond it.<br />
A more reliable definition of an<br />
independent in the Trinidad and Tobago<br />
context might be an operator which is<br />
not state-owned, and does not belong<br />
to a major international group like BHP<br />
Billiton or Repsol (oil), bpTT, BG T&T or<br />
EOG Resources (condensate).<br />
On that basis, independents were<br />
responsible for about 10,241 b/d of<br />
crude output on average in 2012, out of<br />
69,062 b/d from all companies (another<br />
12,673 b/d was condensate, taking the<br />
liquids total up to 81,735 b/d). Petrotrin’s<br />
contribution was 34,818 b/d (oil) from<br />
its onshore and offshore fields.<br />
Nobody is likely to challenge Petrotrin<br />
in the future, unless some major<br />
discovery of crude is made in deeper<br />
geological horizons or in the deep water.<br />
Petrotrin’s dominance is secure, given<br />
the extent of its acreage compared with<br />
that of the independents.<br />
But 10,241 b/d out of 69,062 b/d<br />
(almost 15%) is a good performance,<br />
when you consider that most of those<br />
companies are lifting crude from wells<br />
Petrotrin itself abandoned or from very<br />
small tracts of farmed-out land.<br />
18<br />
Energy<br />
issues<br />
A key contribution to<br />
oil revival<br />
Independents could be<br />
pioneers in the application<br />
of carbon dioxide<br />
(co2) injection for enhanced<br />
oil recovery<br />
There are about 17 independents<br />
active in the local petroleum sector<br />
today, occupying different niches. Some<br />
are lease operatorships (in 1989 Trintopec<br />
Companie<br />
independent of all, straddles the whole<br />
Countries<br />
handed over idle and low-producing<br />
wells to smaller independent operators<br />
who might do a better job with them).<br />
Others are farm-out operators, who have<br />
obtained larger areas on which to sink<br />
new wells if they want.<br />
Joint venture arrangements involve<br />
whole blocks, where the independent<br />
company is obliged to undertake seismic<br />
surveying and exploration. Incremental<br />
production service contractors are a new<br />
breed invented by Petrotrin in 2009 to<br />
help generate more production from<br />
its southeastern onshore fields, which<br />
had found themselves neglected over<br />
the years. There is also one standalone<br />
independent, Mora Oil Ventures<br />
(Moraven), which only operates<br />
offshore, not on land at all, unlike the<br />
rest of the independent sector.<br />
Trinity, shaping up to be the biggest<br />
spectrum, being simultaneously a lease<br />
operator, farm-out operator and joint<br />
venturer.<br />
All knowledgeable observers of the<br />
Trinidad and Tobago energy scene<br />
expect the independents to enlarge<br />
their contribution to crude production<br />
in the years ahead. Energy minister<br />
Kevin Ramnarine has begun regular<br />
meetings with the sector to hear and try<br />
to resolve its problems.<br />
David Borde, managing director of<br />
PetroCom Technologies, the company<br />
promoting a “smart pumping” system<br />
that could help independents improve<br />
well productivity, sees their role<br />
in oil revival as “absolutely critical”.<br />
Geologist Dr Krishna Persad, a farmout<br />
operator through his company<br />
KPA and Associates, has just acquired<br />
Trinidad Exploration and Development<br />
in southwest Trinidad, and strongly<br />
believes the independents could be<br />
pioneers in the application of carbon<br />
dioxide (CO 2 ) injection for enhanced oil<br />
recovery.<br />
Minister Ramnarine has mandated<br />
the National Gas Company to examine<br />
the feasibility of a CO 2 pipeline from<br />
the Point Lisas industrial estate to the<br />
oilfields of the southern basin.<br />
Trinity Exploration and Production<br />
is aiming for production of 5,000 b/d<br />
by the end of <strong>2013</strong>. Range Resources<br />
is targeting 4,000 b/d, and Touchstone<br />
Exploration 3,300 b/d.<br />
Independents were responsible for about 10,241<br />
b/d of crude output on average in 2012, out of<br />
69,062 b/d from all companies