What is the likely impact of the refinery shut-down on contractor and energy service companies?
What is the likely impact of the refinery shut-down on contractor and energy service companies?
The Petrotrin Point-a-Pierre refinery has been a major customer for many of the service companies and contractors who make up the membership of the Energy Chamber. A recent survey of over 400 companies who have been certified to work as contractors in the energy sector has revealed that 59% of these companies have provided goods and/or services to the refinery over the last 5 years. Thirty-nine percent of them currently provide goods and/or services.
BHP has reported that they have encountered hydrocarbons at Bongos-2. The well was spud on July 22nd 2018 and was drilled using the Deepwater Invictus.
The Energy Chamber wishes to publicly recognize and applaud the outstanding achievement of contracting companies who have demonstrated a commitment to high HSE standards in their organizations. All companies were certified during the period May 2017 – August 2018.
Despite an uptake in activity in 2018 due to new drilling programmes coming on stream, local companies are not feeling optimistic about their business prospects.
Weeks after the announcement of an eighth find in Guyana by Exxon and the addition of a third drillship to the drilling programme, SBM Offshore has announced that it has received another contract for a second floating production storage and offloading (FPSO) unit.
The much anticipated Angelin platform has arrived in Trinidad and Tobago. Angelin, which will be BPTT’s 15th offshore platform, was fabricated in Altamira, Mexico. Construction of the topside and jacket was completed at Altamira and sailed on June 30th. The platform arrived at the end of July.
With the first floating production storage and offloading (FPSO) for the Liza Phase 1 project under construction in Singapore, Exxon and its partners are not only far advanced in the approval process for a larger second FPSO for Liza Phase 2, but also actively considering a third FPSO for Guyana.
Exploration in the Caribbean continues to pick up. This week it was announced that Repsol has awarded the drilling contractor Seadrill, for an ultra-deepwater drillship to be used offshore Aruba.
In any renegotiations, the Government must be mindful of our well-deserved reputation as a jurisdiction that fully respects commercial contracts. We must ensure that this reputation is preserved or even strengthened in this process.
According to a press release by Range Resources (Range), they are very pleased with the production results from the latest well which, according to the company, is one of the best producing wells drilled by Range in recent years in Trinidad.
The Government of Guyana has made public the production sharing contract between the Government of Guyana and ExxonMobil affiliate, Esso Exploration and Production Guyana Limited. The release of the agreement came on the heels of several sections of the business community in Guyana calling for it.
In early January, Exxon Mobil Corporation announced positive results from its Ranger-1 exploration well, marking ExxonMobil’s sixth oil discovery offshore Guyana since 2015. The Ranger-1 well discovery adds to previous world-class discoveries at Liza, Payara, Snoek, Liza Deep and Turbot, which are estimated to total more than 3.2 billion recoverable oil-equivalent barrels. ExxonMobil affiliate, Esso Exploration and Production Guyana Limited, began drilling the Ranger-1 well on November 5, 2017 and encountered approximately 230 feet (70 metres) of high-quality, oilbearing carbonate reservoir. The well was safely drilled to 21,161 feet (6,450 meters) depth in 8,973 feet (2,735 meters) of water.
If the government wants to make a success of the new upstream focused Petrotrin one of the issues it will need to address is the impact of Supplemental Petroleum Tax (SPT) on investment in the oil sector. It will be difficult to attract the necessary capital investment unless this long outstanding issue is resolved.