(Energy Analytics Institute, Aaron Simonsky, 7.Jun.2018) –That’s according to comments by former Trinidad and Tobago Energy Minister Kevin Ramnarine.
“On average, deep-water projects need an oil price of US$42 per barrel to break even at an NPV10. Assuming a 15% internal rate of return hurdle (NPV15), 5 billion barrels of pre-sanction deep-water reserves now breakeven at US$50/boe or lower. This triples to 15 billion boe at US$60/boe,” said Ramnarine, speaking in Trinidad during a technical talk on the emerging regional deep-water province of Suriname, Trinidad and Tobago and Guyana, which was hosted by the Geological Society of Trinidad and Tobago and streamed live.
Ramnarine — a strategy energy advisor — also highlighted that during the period of 2012-2014, there were 510 deep-water exploration wells drilled in 55 countries, while during 2015-2017, there were 231 deep-water exploration wells drilled in 37 countries.
“We have four drill ships simultaneously working in this part of the world [Guyana and Suriname]. Five years ago that was probably something we couldn’t conceive of,” he said.
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