Global methanol prices have almost doubled over the past year, with June 2017 prices at US$455 per tonne. At first sight, this might look like good news for Trinidad and Tobago, but this increase in prices has been driven in part by declines in Trinidad production. Methanol Holdings Trinidad Ltd. has been forced to mothball some of their Trinidad production due to continued shortfalls in natural gas supply and their inability to negotiate new gas purchase contracts from The National Gas Company of Trinidad and Tobago Limited.
In December 2015, the landmark Paris climate agreement was agreed to by 195 nations around the world. The agreement signals the global resolve to reduce CO2 emissions and to curb the rate of global warming. To date, out of 197 countries that have signed onto the Paris agreement, 153 (78%) have already ratified the agreement and put it into force in their own country, committing themselves to a self-determined plan to reduce CO2 emissions. Trinidad and Tobago is among the minority (22%) of countries which have not ratified the agreement.
Speaking at The Oil & Gas Year's Second strategic round table discussions for Trinidad and Tobago's energy industry, Petrotrin’s President Fitzroy Harewood, shed some more light on Petrotrin’s operations. The event attracted senior industry leaders in the energy sector in Trinidad and Tobago.
The United States Geological Survey ranks the Guyana- Suriname Basin as the second most prospective, underexplored offshore oil basin with an estimated 13.6 billion barrels of oil and 32 trillion cubic feet of natural gas yet to be discovered. Apart from the Exxon successes in Guyana, interest has once again turned to Suriname.
The Energy Chamber extends deepest condolences to the family of energy sector stalwart and former Executive Chairman, of PETROTRIN, Mr Malcolm A. Jones.
It is with regret that the Energy Chamber informs of the passing of Mr. Neil Sinanan who was a Senior Independent Assessor with our Safe TO Work (STOW) programme over the period 2009-2015. Neil was among the first batch of Assessors with the STOW programme and made a sterling contribution as a STOW auditor as well as a technical reviewer of STOW audit reports which he did for a brief period of time.
Tullow Oil along with its partner Eco Atlantic Oil & Gas have commenced a 2,550 km2 seismic survey on the Company’s Orinduik Block offshore Guyana.
According to Petrotrin president, Fitzroy Harewood, globally there has been a push for cleaner fuels in transport. In that regard, he said “if we are to remain competitive we have to complete our ultra-low-sulphur diesel (ULSD) plant”.
Chairman of Petrotrin, Professor Andrew Jupiter, indicated that the state oil company has pre-qualified 29 firms for enhanced oil recovery (EOR). Speaking at the Enhancing Oil and Gas Recovery symposium hosted by the Energy Chamber and the University of Trinidad and Tobago, Professor Jupiter revealed the intention to boost oil production by Petrotrin in a number of areas both onshore and offshore.
Apache Kolibrie wildcat, offshore Suriname, failed to hit commercial hydrocarbons. Kolibrie is in Block 53, about 80mi off Suriname. Block 53 covers an area of some 3509 square kilometres, and 500-1800 metres water depth. The Noble Bob Douglas drillship has been released from the location, according to Upstream.
A number of smaller retail gas stations in Trinidad and Tobago have been forced out of business in recent years. Gas station owners have been especially hard hit by increases in taxation that have significantly increased their costs while, under the law, they are operating on fixed margins. The tax changes that have led to this situation have been the increases of Green Fund and Business Levy which are paid based on gross revenue not profit.
One of the key factors affecting Petrotrin is the margins under which they operate, this according to Petrotrin head, Fitzroy Harewood in May at an energy luncheon held by the Energy Chamber. Harewood provided a frank look at the company’s future given the “lower for longer” price environment. He said that the only way for the model to work is keep the cost of the raw materials down, and maximise the cost of finished products. Fundamental to ensuring the margins at the refinery health he said, is increasing local oil production. Whatever the lifting cost is to bring that crude, represents the cost of production. When we buy crude, we are exposed to market forces.
The average gas selling prices of two major upstream producers in Trinidad & Tobago declined by approximately 35% between 2015 and 2016, with BP reporting average prices of US$1.72 in 2016 and EOG Resources reporting average prices of US$1.88 per mmscf. These figures are taken from the company’s Annual Reports and SEC filings; in the case of BP, the figure quoted is for their South American region, but as Trinidad & Tobago, is their only gas producing asset in the region, the price can be assumed to be the Trinidad & Tobago price.
CEOs of locally operating energy companies signed a Memorandum of Understanding on May 5 to create the Trinidad and Tobago Upstream Operators Group (TTUOG).
It was a disappointing decision not to construct the Angelin platform in La Brea. However, this decision has been driven by the need to ensure that natural gas is available in Trinidad and Tobago by early 2019. There were clear concerns that any interruptions to project delivery, whether due to labour unrest or other factors, would have serious implications for bpTT, the National Gas Company and the downstream processors and users of natural gas. This in turn would have serious implications for the overall national economy.
The highly anticipated Angelin platform, despite its slightly controversial story here in Trinidad, appears to be moving ahead. McDermott, a US-based, provider of integrated engineering, procurement, construction and installation (EPCI) services for offshore and subsea field developments, has announced that they have delivered the pre-FEED (front-end engineering design) designs to BP for the Angelin platform.
Shell is set to ramp up investment activity in its core Trinidad and Tobago east coast natural gas assets over the coming year. The company plans major exploration drilling and seismic campaigns in the east coast acreage, which it obtained as part of the global acquisition of the BG Group last year.
BP Trinidad and Tobago (BPTT) announced that it has made two significant gas discoveries with the Savannah and Macadamia exploration wells, offshore Trinidad. The results of these wells have unlocked approximately 2 trillion cubic feet (tcf) of gas in place to underpin new developments in these areas.
A strong safety culture is vital for the continued success and competitiveness of the Trinidad & Tobago energy sector. Every individual working on any energy sector facility has a duty to stop work at any situation that will put themselves or others in harm’s way. Under Trinidad & Tobago’s Occupational Safety and Health Act (OSHA), companies need to have policies in place where workers are informed of their responsibility to stop any unsafe work and systems in place to investigate any “stop work” incidents. This is also one of the requirements that contractors need to demonstrate in order to be certified under the Safe to Work (STOW) programme. At present, there are over 500 certified companies in the country.
The most recent Petrotrin oil spill, beginning on the afternoon of 23rd April 2017, has put a very clear spotlight on the issue of asset integrity. On that afternoon, the base of tank 70 failed and there was a significant release of fuel oil into the environment. Petrotrin was unable to fully contain the fuel oil and over the next 24 to 48 hours, approximately 300 barrels of fuel oil flowed into the sea around the company’s port facilities.
