(Energy Analytics Institute, 30.Jul.2021) — Perenco’s CEO, Benoît de la Fouchardière responded to questions from Energy Analytics Institute (EAI) about its operations in Trinidad and Tobago. What follows are highlights of the exchange.
Perenco’s vision in Trinidad and Tobago
Perenco operates production of 450,000 equivalent oil barrels per day (boepd) in fourteen countries worldwide. In 2016 Perenco purchased a 70% interest in the mature Teak-Samaan-Poui (TSP) fields offshore the Eastern coast of Trinidad and Tobago, accounting for crude oil production of around 10,000 barrels per day of oil, in partnership with the State companies Heritage and NGC.
The following answers were provided from Perenco’s CEO on the company’s strategy for its operations in Trinidad and Tobago.
Editor’s Note: With Perenco’s on-going investment program in Trinidad, the company’s production forecast for 2021 is around 11,000 b/d.
ENERGY ANALYTICS INSTITUTE (EAI). Production has been stagnant over the past four years in Trinidad, what is being done to improve production?
Benoît de la Fouchardière: In a few words, the performance of the existing compressors has been the main factor holding back improving oil production. Over the years we have learnt a lot about the fields, reservoir productivity, surface production systems and well behavior. We have invested in a new tool to be able to perform rigless intervention. It will be key to adding production (we are already seeing the impact on Samaan).
Re-tooling for the next two decades of mature oil production is our present goal. We are thankful to the Government of Trinidad and Tobago for the extension of the E&P Licenses that are giving us the visibility to achieve these objectives.
Q. How are these goals to be achieved in the short term?
Fouchardière: Our first goal is to switch to electrical submersible pumping (ESP) of wells and electrical motors on the surface, to move us away from a reliance on natural gas compressors. In order to run ESPs we need electrical power offshore, so we are investing in gas turbines placed on a Mobile Offshore Production Unit on the Poui field which will be installed in 2022. It will also allow for a green footprint in our T&T operations.
The MOPU conversion is on-going at Chaguaramas Trinidad and we have started converting wells from gas lift to ESPs with good success to date.
This electrification project is estimated to cost $80mn in the initial phase, with all the work done in Trinidad.
Q. What are Perenco’s expectations in Trinidad and Tobago?
Fouchardière: During the last 4 years as Operator of TSP assets, together with our partners Heritage and NGC, Perenco has built a portfolio of projects to grow the production in the country and improve the oil recovery factor of these mature fields: in oil through sidetracks, infill drilling and appraisal of nearby structures and in gas with the development of the medium size Onyx green field.
However, most of the projects would require fiscal incentives to have a future at the current oil price. The Supplemental Petroleum Tax especially, introduced in the early 1980’s when the fields were in their initial development phase (green fields), acting as a “super royalty” above $50, strongly penalizes mature field revenues. It has not adapted to aging fields where investment economics are marginal.
In this respect we are hopeful for discussions with the T&T Government to allow incentives to re-kindle mature offshore crude oil production.
Q. What are your closing thoughts?
Fouchardière: Despite the relatively low level of production, the TSP mature fields have significant potential. Perenco is ready to further invest in these fields, but more so if the right conditions are there. We are confident in the support from the T&T Government, to the benefit of all stakeholders.
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By Aaron Simonsky and Ian Silverman. © Energy Analytics Institute (EAI). All Rights Reserved.
