NGC loses SIS challenge in Privy Council

(Trinidad and Tobago Newsday, 16.Jul.2018) – State-owned National Gas Company has lost an appeal in its multi-million claim against Super Industrial Services (SIS) and another company as the Privy Council today dismissed an appeal in which it challenged a decision to strike out its lawsuit on the ground that it failed to meet strict timelines for civil cases set in the Civil Proceedings Rules (CPR).

In February last year, the Court of Appeal, in a majority ruling, agreed with SIS’ contention that the judge was not actively managing the case when NGC failed to adhere to the rules in its prosecution of its claim against SIS and RFRL to set a case management conference after the lawsuit was filed in December 2015, as required by the rules.

In its lawsuit, NGC sought an order to prevent the dissipation assets in the contract dispute over the controversial Beetham Water Treatment Plant.

NGC had also btained a freezing order up to $180 million against SIS’ assets and an injunction restraining RFRL from dealing with certain assets. The freezing order was granted pursuant to arbitration proceedings which are still ongoing.

The dispute between the parties started in 2015 after delays in the US$162,055,318.77 project, which was due to be completed on October 21, 2016.

The contract was eventually terminated on November 24, 2016, after SIS reportedly informed NGC it was unable to continue with the work.

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FDI in LAC Region Falls for Third Straight Year

(Energy Analytics Institute, Ian Silverman, 12.Jul.2018) – Foreign Direct Investment (FDI) in Latin America and the Caribbean fell for a third straight year in 2017, reported the Economic Commission for Latin America and the Caribbean or CEPAL by its Spanish acronym.

The details were revealed in CEPAL’s annual report titled “FDI in Latin America and the Caribbean 2018.”

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Trinidad Seeks Assistance In Leak Cleanup

(LoopTT, 9.Jul.2018) – Cleanup operations continue following a leak at the Couva Marine 2 Well.

Personnel with the Energy Ministry and Petrotrin’s Incident Command team have been monitoring the leaking wellhead and assessing the nature and impact of the hydrocarbon emissions.

The leak, which was initially reported last Wednesday, is a combination of gas and light oil.

The incident command team met on Sunday to manage the impacts of the incident and to safely bring the matter to a safe conclusion.

The focus of the Incident Command Team over the past few days has been on analysing available data on the wells in the area and the development of strategies to bring the well under control. In doing so, the safety of personnel has been the number one priority.

A number of possible scenarios, including the drilling of a relief well, have been developed and proposed solutions are being evaluated.

The primary considerations in evaluating the various strategies have been the health and safety of personnel and to mitigate further negative impact on the environment.

In this regard, assistance has been sought from the multinational energy companies operating here, as well as foreign entities with which Petrotrin is affiliated, who have experience with the management of oil spills and well control incidents.

As of Sunday, an orange substance, which appears to be emulsified oil, appeared on Carrat Shed and Coffee beaches.

Containment booms with skimmers are being deployed in the area of the leaking well and cleanup crews were mobilised to effect remedial work in any affected areas.

Visits were made to the Carrat Shed and Coffee beaches to determine potential impact.

The Director of Maritime Services has issued an advisory to marine craft operators that “extreme caution is advised and requesting that they maintain a distance of 5 nautical miles”.

This advisory will remain in effect until the situation is resolved. Both Petrotrin and the Coast Guard will maintain patrols in the area and aerial and marine surveillance exercises will continue.

The Ministry urges fisherfolk and other marine craft operators to observe the maritime advisory and to stay clear of the area to avoid injury and also to allow those involved in containment and control activities to do so without impediment.

The Ministry assures that all necessary measures are being taken to ensure that a solution is obtained to repair the leak, and will continue to provide updates as further information becomes available.

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Trinidad Seeks Help As Oil Well Ruptures

(Prensa Latina, 9.Jul.2018) – A fuel leak in the Couva platform, in the Gulf of Paria, Trinidad and Tobago, continues today after four days of being initiated, before which the government requests international assistance.

Since last Thursday, the well has been pouring hydrocarbons in this area, shared with Venezuela, which represents a major environmental risk for the region, local sources reported.

Initially the country requested help from the Petrotrin state refinery to close the well, however, the company does not have the technology required for such action.

For this reason, the government decided to ask for international help to put an end to this spill that, according to official sources, could be caused by a recent earthquake that exploded the head of the well, which began to pour from the surface of the seabed at about 12 meters deep.

Meanwhile, Secretary of Fishermen and Friends of the Sea, Gary Aboud, has called on mariners to steer clear of the site as it is volatile and highly flammable.

It is believed that the oil spill was triggered by a recent earthquake that caused the head of the well to pop, spewing the emissions, up from the surface of the seabed, about 40 feet below.

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First T&T Jack Up Delivers Gas

Jack up. Source: Trinidad and Tobago Newsday.

(Trinidad and Tobago Newsday, Sasha Harrinanan, 4.Jul.2018) – Well Services Rig 110, owned by local drilling contractor Well Services Petroleum Co Ltd (Well Services), is the first local jack up rig to be used for a natural gas campaign in TT waters.

Well Services announced yesterday it had drilled and completed a three well campaign for the Iguana field in Block 1(a) – offshore Trinidad’s west coast. Block 1(a) is owned and operated by DeNovo Energy Ltd (DeNovo). This was TT’s first ever west coast natural gas development campaign.

DeNovo ­­­founder and CEO Joel Pemberton said, “This milestone moves us closer to the delivery of first gas from the Iguana field later this year. Gas produced by DeNovo will be sold to NGC.”

Pemberton said Well Services and Rig 110 were chosen because of their proven ability to deliver safely, and their known aptitude for collaborating to overcome operational challenges.

“Together, DeNovo and Well Services delivered this campaign with many first-time achievements, which showcases the power and resilience of both our teams. As a Trinbagonian, I am proud to see local companies operating at global standards, collaborating on competitive solutions, and delivering in the best interest of TT,” Pemberton shared.

Rig 110 delivered drilling and completions activities with zero lost time incidents, in line with DeNovo’s fast-track development plan for the Iguana field. Rig 110 was also the first rig to install a platform subsea structure in the region, securely setting the Iguana Conductor Supported Platform, driving seven conductors, and completing its first flow back well testing and flaring.

Well Services’ operations manager Neil McCartney praised his team for working quickly and clinically to ensure all drilling targets were reached, “despite numerous technical challenges due to the complicated subsurface structure of the field.”

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T&T’s Energy Issues

(Trinidad Express, David Renwick, 3.Jul.2018) – You don’t have to look very far to determine the issues facing the Trinidad and Tobago energy industry at the moment. Top of the list would be restoring crude oil production, which languishes at around 72,000 barrels a day (b/d) at the moment.

That can be accomplished by the upstream producers doing more development drilling, as well as bringing new entrants into the industry. It also means tackling new sources of oil, such as the tar (or oil) sands in southern Trinidad.

Subscription required by Trinidad Express to read complete article.

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Methanol, Ammonia Prices to Remain Flat

(Trinidad Guardian, 4.Jul.2018) – The Ministry of Energy and Energy Industries is predicting that over the next five years methanol prices will average US$375 per metric tonne, while ammonia prices will be closer to US$310 per metric tonne.

Subscription required by Trinidad Guardian to read complete article.

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Guyana Potential Game Changer for Petrotrin

Installations at Petrotrin. Source: Petrotrin

(Trinidad and Tobago Newsday, Julien Neaves, 27.Jun.2018) – Guyana and its eight oil finds can be a game changer for state-owned Petrotrin and TT, says National Gas Company (NGC) Chairman Gerry Brooks.

He was speaking during a presentation at the Chamber of Industry and Commerce’s Business Outlook breakfast meeting held on Wednesday at the Chamber’s offices, Westmoorings.

Brooks said Guyana’s eight finds equated to 500,000 barrels of oil and 120,000 by 2018.

He added the Guyanese were “shopping” in Mexico and had help from the International Monetary Fund.

“We have to go there in a very professional manner, a very engaging manner, a very thoughtful manner.”

Brooks said “everybody” was in Guyana and there was excellent specialised oilfield services including from Repsol.

“There is a lot of expertise. There is a lot of opportunity for Trinidad and Tobago.”

He said NGC was leading the charge and the expectation was that there would be a mutual cooperation agreement which will find a framework for the countries to work together.

“We will work closely with the State companies (in Guyana).”

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Stuart Young Leads Venezuelan Energy Talks

(LoopTT, 27.Jun.2018) – Minister in the Office of the Prime Minister, Minister in the Ministry of the Attorney General and Legal Affairs and Minister of Communications Stuart Young led a Trinidad and Tobago delegation in Venezuela on Wednesday.

The team comprised of the President of the National Gas Company of Trinidad and Tobago Limited (NGC), Mark Loquan, former PS Selwyn Lashley and other members of NGC to Caracas, Venezuela to continue negotiations with respect to the Venezuelan Dragon across the border gas field.

The Venezuelan delegation was led by Minister Manuel Quevedo, People’s Minister of Petroleum and President of PDVSA, Vice Minister Douglas Sosa and executives of PDVSA and the Venezuelan Ministry of Petroleum.

Executives of Shell were also in attendance led by Derek Hudson, Country Chair of Shell Trinidad’s operations.

The parties spent hours negotiating, bringing the possibility of the cross-border gas deal closer.

There remains a number of areas where further work is required and Minister Young agreed to return to Caracas, Venezuela in two weeks for the two Ministers to attempt to settle the terms of the agreement.

Minister Young extended an invitation for Minister Quevedo to come to Trinidad to visit the LNG and other downstream Petro-chem operations.

All parties involved remain committed to the Dragon Gas Project becoming a reality.

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Trinidad, Guyana and Suriname: Challenges

(AIPN, 27.Jun.2018) – Petroleum consultants and other energy sector experts will discuss the challenges and opportunities in Trinidad & Tobago, Guyana and Suriname during a discussion in London.

The select group will consist of Kevin Ramnarine, former Trinidad & Tobago Energy Minister (2014-15); Energy Strategic Advisor and Lecturer Carlos Bellorin, Principal Consultant, IHS Markit; Lecturer, Queen Mary University and SciencesPo Ekpen Omondude, former Senior Economic Adviser, The Commonwealth Secretariat (2008-2018); Director, Bargate Advisory Limited.

DISCUSSION BRIEF

With the discovery of Liza-1 within the Stabroek Block by ExxonMobil and its partners in 2015 – and after years of frustrating exploratory results – all eyes have been on the Southern Caribbean. After Liza-1 and the seven discoveries that followed (including Longtail-1 announced on 20 June 2018), the Guyana-Suriname Basin has all but confirmed its massive potential. On neighbouring sides of Guyana, the E&P outlook has also changed after 2015.

To the east in Trinidad & Tobago – one of the more mature producers in the region – successive governments have tried to bring the island’s hydrocarbons industry to the attention of investors with limited success. Without any significant recent discoveries, Trinidad & Tobago will need to improve its performance and hydrocarbons regime. This will be necessary to replace reserves and increase production if it is to maintain its gas-linked economy and leadership as a gas producer.

To the west lies Suriname. After recent wells have come up dry, it needs (at least) a commercial discovery to finally confirm its long-coveted potential. Venezuela also plays a pivotal role in regards these two, smaller, nations: an embattled Venezuela is currently engaged in a high-profile boundary dispute with Guyana and could enter into a strategic partnership with Trinidad & Tobago over two key gas fields.

During this session, we will touch on the most critical issues from these three countries, including comments on their legal-fiscal regimes and political risk while looking forward to their challenges and opportunities. We will offer an on-the-ground view of one the hottest new deepwater provinces in the world.

WHEN: Thursday, June 28, 2018 (5pm – 8:30pm Europe/London)
COORDINATOR: Akin Gump
VENUE: Bishops Square
WHERE: London E1 6EG United Kingdom

Registration will be from 5:00 – 5:30 p.m., followed by the presentations and Q&A until 7:00 p.m. A networking reception with drinks and canapes will follow from 7:00 – 8:30 p.m.

Online registration has been closed. On-site registration will be on a space available basis and is complimentary for all members and non-members. If you have any questions, please contact Carlos Bellorin at Carlos.Bellorin@ihsmarkit.com

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A Visit to Weatherford Laboratories, Trinidad

(Energy Analytics Institute, Ian Silverman, 14.Jun.2018) – Have you ever wanted to visit Weatherford’s facilities in Trinidad?

The AAPG Young Professionals of Trinidad and Tobago (AAPGYPTT) have announced an open invite for a tour of Weatherford on the island. Details follow:

Date: Thursday June 14, 2018
Time: 8am- 2pm
Venue: Weatherford Laboratories, Trinidad

PPE will be required for this trip: 1. Hard hats 2. Steel toed shoes 3. Safety glasses. Additionally, lunch will be provided!

To secure your spot on this tour please click here: https://lnkd.in/etpXVxS
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Critchlow Labour College Working with T&T Cos

(Stabroek News, 8.Jun.2018) – Having long established itself as a significant contributor to tertiary education in Guyana, the Critchlow Labour College is seeking to embrace the demand for training in the various disciplines associated with the country’s emerging oil and gas industry to rebuild its reputation as a major contributor to education delivery in Guyana.

Principal of the College, Ivor English told Stabroek Business on Monday that the two-day preliminary Oil and Gas Course Seminar delivered late in May in collaboration with two Trinidad and Tobago companies Apollo Global Vision Ltd and Kaizen Environmental Services was intended to serve as an introduction to a wider ambition of creating a high-level Centre for Oil and Gas that will seek to offer courses that will equip graduates for rewarding jobs in the sector.

Towards this end the College has already signed a Memorandum of Understanding with Kaizen and Apollo under which the two specialist companies will be intimately involved in both the design and delivery of courses run by the local Centre for Oil and Gas.

English told Stabroek Business that the decision by the College to move in the direction of establishing an institution specializing in the training of Guyanese in oil and gas-related fields had to be seen within the context of the importance which the institution places on remaining relevant. Reminding of the period some years ago when the Critchlow Labour College’s certification in Industrial Relations was recognized as a vehicle for University of Guyana admission, English said that the MOU with the two Trinidad and Tobago companies was aimed at a “long-term relationship that would see the Centre for Oil and Gas transform into and Oil and Gas Academy located off the Critchlow campus. At that stage we will be taking our training in the various oil and gas-related disciplines to diploma and degree levels,” English told Stabroek Business.

At the same time English disclosed that the College intended to engage ExxonMobil and its various oil exploitation partners to discuss a role for the Academy in meeting some of the specialized needs associated with the oil and gas recovery programme. “We are in the process of opening communication with these entities with a view to assuring them that we have the skills to deliver their requirements,” English said.

Conceding that the decision to create an off-campus facility was informed by the reality of a lack of space on the Woolford Avenue campus to accommodate all of the materiel associated with the delivery of oil and gas programmes English said that in the short term the CLC will create the faculty space and administer the programmes for which it will receive a facilities fee.

Asserting that the growth of the College’s curriculum will have to take place against the backdrop of the modernization of the institution, English said that as funds are garnered from courses which are expected to become operational over time, “revenue will be set aside for physical upgrading, computerizing etc. Our focus is to create job readiness for oil and gas. In a way we are uniquely positioned to provide these services since we are already accommodating the operations of the MATPAL Marine Institute.

English told the Stabroek Business, meanwhile, that the need to garner funding to develop the infrastructure for delivery of an oil and gas curriculum depended on significant funding. He said that much of the momentum of the institution had been reduced on account of the previous  administration’s decision to put an end to the granting of an annual subvention amounting to more than $30 million annually. Two years ago the current administration restored a $15 million subvention which the College said was inadequate to meet its needs. A lack of resources has meant that sections of the Critchlow campus had fallen into disrepair and English told Stabroek Business  that the institution was determined to create a modern complex.

Secretary to the Board of the College and General Secretary of the Guyana Trades Union Congress (GTUC), Lincoln Lewis told the Stabroek Business that over the years the institution had “more than justified benefitting from a state subvention and that the current state of affairs as far as the subvention was concerned was reflective of “an insensitivity to the contribution which the Critchlow Labour College has made over the years to improving the skills and enhancing the formal qualifications of the workers of Guyana”.

English told Stabroek Business, meanwhile, the Oil and Gas Academy would be seeking to provide support to both the public and private sectors as the country seeks to build capacity in the oil and gas field.

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Regional Deepwater Industry in Southern Caribbean

(Energy Analytics Institute, Aaron Simonsky, 7.Jun.2018) – Kevin Ramnarine discusses the regional deep-water industry in the southern Caribbean during a technical speech in Trinidad 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.

Trinidad and Tobago Clean Energy Conference 2018

(Energy Chamber of Trinidad and Tobago, 7.Jun.2018) — The Energy Chamber of Trinidad and Tobago invites you to our Clean Energy Conference 2018, now in its 2nd year and themed “Towards Implementation”. This is the only conference in Trinidad and Tobago dedicated to renewable energy and energy efficiency. In 2017, the conference was very well attended, and with many local and foreign experts representative of the private sector, academia, and NGOs scheduled to present this year, we are expecting to host another very informative session.

You may get more event information at http://energynow.tt/clean-energy-conference/#speakers

To register please use the form attached above and note that media are kindly asked to arrive at least 30 minutes before the event begins.

Trinidad and Tobago Clean Energy Conference 2018

Kindly note some important details below:

Date: Thursday June 07th – Friday June 08th, 2018

Venue: Yara Auditorium, Arthur Lok Jack Global School of Business

Time: 9:00am – 5:00pm

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Cuba’s Fuel Supply and Exports Pressure Currency

(Energy Analytics Institute, Piero Stewart, 7.Jun.2018) – Cuba’s foreign currency will be under pressure this year.

“Difficulties with fuel supply and a drop in exports have continued to put pressure on the availability of foreign currency,” wrote Caribbean Economist Marla Dukharan in a recent Caribbean Economic Report, which is available monthly on her website.

Additionally, Venezuela’s state oil company PDVSA reportedly acquired $440 million in foreign crude this year to send to Cuba on favourable credit terms, however, recent U.S. sanctions against Caracas-based PDVSA could impact such deals in the future, she said.

As a result, low growth in Cuba of less than 2% is likely to persist as a result of Venezuela’s crisis and shifts in U.S. policy, while availability of currency will remain a challenge, said Dukharan, also Chief Economist at Barbados-based fintech company, Bitt Inc.

“The transition of power underway [in Cuba] is not expected to drive large sways in policy with the new President Miguel Diez-Canel Bermúdez committing to the same economic model and reforms being implemented by the Castros,” Dukharan concluded.

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Deepwater Projects Breakeven at $42/bbl, Ramnarine Says

(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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Ramnarine Talks About Southern Caribbean Deepwater Industry

(Energy Analytics Institute, Ian Silverman, 31.May.2018) – Former Trinidad and Tobago Energy Minister Kevin Ramnarine will speak in Port of Spain about the regional deepwater industry in the Southern Caribbean.

An abstract from his technical talk about the regional deepwater industry in the Southern Caribbean, and the case of Guyana, Suriname & Trinidad and Tobago, follows:

“The 2015 discovery by ExxonMobil of oil in Guyana’s Stabroek Block, the discovery of natural gas by BHP Billiton in Trinidad and Tobago’s Block TTDAA 5 in 2017 and ongoing exploration in both countries and in Suriname have set the stage for a major deepwater oil industry in the Southern Caribbean which could potentially extend to Barbados. Such an industry will have a transformative effect on the practice of geoscience and all aspects of petroleum engineering. In addition, deepwater oil and natural gas commercialization require different skills and technologies different to what obtains on the shallow and average depth waters of continental shelf.”

For more details contact The Geological Society of Trinidad & Tobago at thegstt@gmail.com
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Moody’s Projects T&T Energy Sector Rebound

(LoopTT, 24.May.2018) – Moody’s Investors Service is projecting an Energy Sector-led rebound in growth to support the fiscal trajectory.

On Wednesday, Moody’s upgraded Trinidad and Tobago’s Trinidad Drilling Ltd.’s (Trinidad) Corporate Family Rating (CFR) to B2 from B3.

The country’s rating outlook remains stable at this time.

Moody’s also noted a narrowing fiscal deficit which it attributed to Government’s restraint and an increase in energy and non-energy tax revenue.

Among the Government’s strategies noted in the report are plans for the liquidation of CL Financial.

Moody’s projects that excluding revenue from asset sales, revenue collection will improve due to higher oil prices and increased gas production, as well as increased non-energy tax collection.
Additionally, the ratings agency stated that the upward revision of energy sector revenue from seven percent of GDP in the original budget to eight percent reflects higher oil prices and increased gas production.
With a full year of production at Juniper in 2018, and prospects for gas production at Shell’s Starfish field to start in the second half of the year, natural gas production could reach 3.8 billion standard cubic feet per day (mmscf/d) by the end of 2018.

Moody’s also identified an increase in corporate tax revenue of more than $500 million in the first half of fiscal 2018 compared to the same period a year ago.

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Energy, Education, and Learning Through NRG ED

(Energy Analytics Institute, Aaron Simonsky, 24.May.2018) – Energy Analytics Institute, formerly LatinPetroleum Inc., continues to promote its “Energy Education Initiative” in the Americas, also known as “NRG ED.”

NRG ED is structured to work with K-12 schools, community colleges, four-year colleges and universities, workforce training programs, communities and businesses, and aims to promote reduction of non-renewable energy usage in favor of renewable energies. However, the core of the initiative is education, without which the NRG ED initiative would not be.

“At its core the initiative is really focused on education,” said Chad Archey, Editor-in-Chief at Energy Analytics Institute from Atlanta, Georgia.

EAI views basic education as most important in the overall learning process and also promotes educational initiatives and research from grade school to the professional level related to the energy sector. EAI aims to foment constructive dialogue regarding energy usage as well as ways to reduce the carbon footprint left by non-renewable energy resources through the following: 1) educational consultancy, 2) development and distribution of educational and training materials, and 3) promotion of debate and discussion regarding renewable energy alternatives.

Energy Analytics Institute (EAI), formerly LatinPetroleum Inc. (dba LatinPetroleum.com), is a Houston-based independent company focused on producing non-biased news, updates and special reports for investors interested in the Latin America and Caribbean petroleum sectors.
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BP Projects Higher Future Cash from T&T

(By Trinidad Express, Aleem Khan, 22.May.2018) — BPTT’s standardized measure of discounted future net cash flows for 2017 was updated to US$3.3 billion in the company’s annual report released earlier this month.

Up from US$909 million in 2016, and US$1.8 billion in 2015, BP cautioned: “Future net cash flows have been prepared on the basis of certain assumptions which may or may not be realized. These include the timing of future production, the estimation of crude oil and natural gas reserves and the application of average crude oil and natural gas prices and exchange rates from the previous 12 months.

Full story access requires subscription to Trinidad Express.

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Shell’s T&T boss: Diversify Quickly

(By Trinidad Express, Aleem Khan, 18.May.2018) — Royal Dutch Shell’s Derek Hudson, local country chair of the world’s second largest oil and gas company, said Trinidad and Tobago has ‘only scratched the surface’ with regard to its offshore oil and gas exploration and production. However, speaking at the Institute of Marine Affairs (IMA) first public lecture to mark its 40th anniversary, he urged diversification of the economy. As one possible direction in which to diversify, he mentioned the ‘blue economy’, which refers to production and consumption of goods and services from, in, of and back to the sea.

Hudson said: “When we speak for a long time about the economic diversification of T&T and the progress that we have made in our coastal waters and marine areas, it’s something that we really, seriously need to look at, as we advance this economy going forward, and even from somebody who is in the energy sector today, (I say) Trinidad needs to diversify its economy and do so quite rapidly.”

Full story access requires subscription to Trinidad Express.
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T&T No Longer Attractive for New Gas Projects

(By Trinidad Express, 17.May.2018) — The CEO of ammonia producer Caribbean Nitrogen Company (CNC), Jerome Dookie, said yesterday that problems with natural gas supplies have made T&T a less attractive location for new petrochemical projects, given issues of gas curtailment and the current price of natural gas.

“Capital will always follow where it gets the best return. And in terms of new projects being built, Trinidad and Tobago is no longer an attractive destination because the feedstock availability is questionable and the pricing is higher,” Dookie said, adding: “Certainly, the US now, driven by shale gas, is a preferred destination for capital. So that new construction projects—and not only Proman but other players globally, will tend to be attracted to those jurisdictions.”

Asked whether he was saying that the petrochemical sector in T&T is mature or in decline, the Point Lisas executive said there was no enough gas supply now to meet the overall demand on the industrial estate and at the Point Fortin liquefaction facility of Atlantic LNG.

Full story access requires subscription to Trinidad Express.

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TT’s Energy Landscape

(Trinidad and Tobago’s Newsday, Richardson Dhalai, 10.May.2018) — Trinidad and Tobago has been involved in the petroleum sector for over 100 years and is the largest oil and natural gas producer in the Caribbean.

However, by the early 1990s its hydrocarbon sector moved from being primarily an oil-based economy to a mostly natural gas-based sector with the construction of the LNG trains at Point Fortin.
The energy sector accounts for around 32 per cent of the country’s gross domestic product (GDP).

In Finance Minister Colm Imbert’s October 2, 2017 budget he said, “Despite the challenges posed by the low price environment, the energy sector faces a very positive outlook based on a number of new gas projects which are scheduled to start production over the next two to three years.”

He said a new tax regime would also be introduced to provide incentives for increased exploration and production that should set the stage for increased oil and gas output.

Oil production for the first five months of 2017 had levelled off at 73,500 barrels per day (bpd), the minister had said, as compared with 73,800 bpd for the corresponding period of 2016, although this amount was well below the rate of 100,851 bpd in May 2010.

The 2018 budget was pegged on an oil price of US$52 and a gas price of US$2.75 per mmbtu.

On May 8, Bloomberg was reporting that Brent crude, the main international benchmark, was trading at US$73.44 while WTI crude, TT’s benchmark, was trading at US$68.29. Natural gas was down slightly to US$2.72 mmbtu.

Five months into the 2018 fiscal year, Energy Minister Franklin Khan presented the first public account of the energy sector at the Hyatt Regency, Port of Spain on March 14. His presentation was themed Our Oil, Our Gas, Our Future.

He said TT continued to be an important oil and gas producing hub and cited the major multinational energy giants which continued to maintain a presence in the country, such as bpTT, Shell, BHP, EOG Resources and Perenco.

He said the upstream companies had committed to spend over US$10 billion in exploration and development activities over the next five years, with the effects already being felt as of December 2017. Natural gas production, which had fallen to 3.2 bcf/d per day had reached a daily production of 3.8 bcf/d.

The US$10 billion is expected to be spent on capital goods such as rigs, sub-sea equipment, seismic equipment, platforms, turbines and pipes with the exception of platforms.

The investments include the BP Angelin project, which is due to come on-stream in 2019 and is expected to provide in excess of 550 mmscf/d.

The other projects include De Novo energy exploration of Block 1 (a) off Trinidad’s west coast; the East Coast and North East Coast development projects of Shell, such are Starfish, Dolphin, Dolphin Deep, Endeavour and Bounty fields, and the Cassra and Orchid on the North East Coast.

BHP has also announced a deep-water natural gas discovery in Block 5 on the East Coast, with preliminary assessments indicating between five to ten tcf of gas with a high probability of oil.
Approximately nine exploration wells are expected to be drilled, including three deep-water wells.

Khan said TT’s gas reserves, based on the last Scott Reserves audit, were 22.7 tcf and gas resources were estimated at 43.7 tcf.

He said the audit information did not include the gas finds of the BHP discovery in Block 5 or the BP Savannah and Macadamia fields of 2 tcf.

“Our gas reserves are consumed at the rate currently estimated at 3.5bcf/d or 1.2 to 1.4 tcf per annum,” he said, adding this was divided between LNG production (60 per cent) and the downstream industries including power generation, which consumed 40 per cent of the gas supply.

Currently 99.8 per cent of power generation is fuelled by natural gas and 0.2 per cent by diesel.

He said data from the Ministry of Energy and Energy Industries and the Ministry of Finance reveal that taxes and royalties collected from the sector have been on a downward trend.

He said energy sector revenue, which peaked at $28 billion in 2008, fell to $1 billion in 2017 and cited falling energy prices as playing a part for the reduced revenue.

According to the Ministry of Energy, TT’s 2017 crude oil production stood at 71,824 bpd while its refinery output at Pointe-a-Pierre is 135,000 bpd.

The country’s proven oil reserves is 199.54 million barrels, while probable reserves are 85.46 million barrels and possible reserves are 124.77 million barrels.

Natural gas production is currently 3.4 bcf/d with proven reserves standing at 43.45 million barrels; probable reserves at 24.39 million barrels and possible reserves at 30.83 million barrels.

Meanwhile, State-owned oil company Petrotrin has identified the South West Soldado Field Development as one of the most immediate opportunities for increasing indigenous crude oil production.

The project, which is divided into three phases, is currently in its first phase of execution, which includes the installation of a temporary compression and production facility, drilling of eight new wells and the reactivation and workover of inactive wells.

The first phase also includes the installation of a new gas sales pipeline; installation of additional infrastructure and submarine pipelines to accommodate the increased production of fluids (inclusive of gas lifting capability for the reactivated wells) and the installation of replacement main oil bulk line from RP10 to RP1.
***

ECLAC Ssays Venezuela’s Economic Activity to Fall 8.5% in 2018

(Energy Analytics Institute, Aaron Simonsky, 1.May.2018) – The United Nations Economic Commission for Latin America and the Caribbean, also known as ECLAC or CEPAL by its Spanish acronym, projects economic activity in troubled Venezuela will contract 8.5% in 2018.

Gross domestic product or (GDP) estimates for other important countries and regions follows:

TABLE 1: ECLAC GDP ESTIMATES FOR 2018

Country/Region —————————- GDP (Est.)

Argentina ———————————— 2.5%
Bolivia ————————————— 4.0%
Brazil —————————————- 2.2%
Chile —————————————– 3.3%
Colombia ———————————— 2.6%
Ecuador ————————————– 2.0%
Paraguay ————————————- 4.0%
Uruguay ————————————– 3.0%
Venezuela ———————————– (8.5%)

Latin America and Caribbean (LAC) —- 2.2%
South America —————————— 2.0%
Central America and Mexico ————- 2.6%
Central America —————————- 3.6%
Latin America ——————————- 2.2%
Caribbean ———————————— 1.4%

Source: ECLAC, April 2018
***

Venezuela Never Closed Its Doors on T&T Nationals: Lawmaker Says

(Energy Analytics Institute, Ian Silverman, 30.Apr.2018) – Venezuelan lawmaker José Brito wrote in a Twitter post that the OPEC country never closed its doors to the hundreds of Trinidadian nationals that left their twin-island nation to seek opportunities in Venezuela.

When Trinidad’s Prime Minister Keith Rowley says in regards to Venezuela immigration that Trinidad “will not convert itself into a refugee camp,” he needs to remember Venezuela never closed its door on Trinidadian immigrants, wrote Brito.
***

Ghana Trade Mission Breakfast: Claxton Bay, Trinidad

(The Energy Chamber of Trinidad and Tobago, 19.Apr.2018) – The Sekondi Takoradi Chamber of Industry and Commerce and the Ghana National Petroleum Corporation (GNPC) will be part of an incoming Trade Mission to Trinidad from April 23rd – 28th, 2018.

The Energy Chamber of Trinidad and Tobago is organising a breakfast meeting at which the visiting delegation will present on ‘GNPC’s future plans and business opportunities in Ghana’s Oil & Gas Industry’. The session will take place on Tuesday April 24, 2018 and the details are as follows:

Date: Tuesday 24 April 2018
Venue: Cara Suites Hotel and Conference Centre, Claxton Bay
Time: 9-11am (registration and breakfast begin at 8:30am)
Registration: Please complete and return via e-mail

For more details contact:
Name: Michelle Rahman
Email: michelle@energy.tt
***

Officials from Trinidad and Venezuela Discuss Gas Deals

Officials from Trinidad and Venezuela. Source: PDVSA

(Energy Analytics Institute, Piero Stewart, 27.Mar.2018) – Delegations from Trinidad and Tobago and Venezuela meet in Caracas to review progress related to gas agreements between both nations, reported PDVSA in an official statement.

The delegations reviewed the progress of agreements to finalize construction, operation and maintenance of a gas pipeline that would span from the Dragon field in Venezuela to the Hibiscus field in Trinidad, and eventually supply the domestic market in Trinidad as well as abroad.

The delegation from Trinidad was comprised of the Minister in the Office of the Prime Minister, Stuart Young, and Ambassador Paul Byam; Permanent Secretary at the Ministry of Energy and Energy Industries, Selwyn Lashley; and Chairman of the National Gas Company, Gerry Brooks. The Venezuelan delegation was lead by Venezuela’s Petroleum Minister and President of PDVSA Manuel Quevedo; PDVSA Vice Minister of Gas, Douglas Sosa; and President of the subsidiary PDVSA Gas, Nemrod Contreras.
***

Trinidad – Upstream Activity Snapshot in 2018

(Kevin Ramnarine, Strategic Energy Adviser). Former Minister of Energy. Business School Lecturer. International Speaker, 3.Jan.2018) – This is a summary of upstream activity for Trinidad and Tobago in 2018.

1) Rowan will have 4 rigs drilling in 2018. By June 2018 all four will be working simultaneously. Two of these will be with BP, one with EOG and one with Shell. Good luck Rowan.

2) BHP Billiton resumes exploration drilling in Deepwater using the Transocean Invictus. This drilling is related to Production Sharing Contracts signed between 2013 and 2014. A lot of fingers are crossed.

3) Shell does the Starfish Infill Drilling (SID) project, which sees Shell try to tap the reserves of Starfish. They are using a Mearesk Semi Submersible for this. Good luck Shell.

4) DeNovo will have first gas from the Iguana field by Q2 2018. This will make DeNovo, Trinidad’s fifth natural gas supplier. Positive news indeed.

5) BP will be drilling wells for the Angelin project for which first gas is Q1 2019. Sadly we lost the platform in 2017 but the project is on schedule. Angelin became more prospective after the 3D seismic Ocean Botton Cable (OBC) survey of 2012 to 2013.

6) The economy will benefit from a full year of BP Juniper production and this will cause positive economic growth for the first time in 3 years. Congrats to all involved in this very historic project.

7) Work will start on the fabrication of the BP Cassia C compression platform. Hopefully some of this will be done at La Brea.

8) BP will be doing infill drilling on Cannonball and Cashima in 2018.

9) Lease Operators Limited (LOL) will be drilling exploration wells in their Rio Claro Land Block. That block was awarded in 2014. We expect at least 2 exploration wells in 2018 in this block. Maybe we will have an oil discovery on land for the first time since Carapal Ridge (many years ago).

Editor’s Note: Kevin Ramnarine is a strategic energy adviser and the former Trinidad and Tobago Minister of Energy. He is also a business school lecturer and international speaker.

***

LGO Approved for Mayaro Infill Wells in Trinidad

(LGO Energy plc, 4.Jan.2017) – LGO Energy plc provided a further update on its plans to recommence production drilling at the Goudron Field in Trinidad following its announcement of December 21, 2016.

The company’s local operating subsidiary, Goudron E&P Limited (GEPL), received approval from the Petroleum Company of Trinidad and Tobago (Petrotrin) and the Ministry of Energy and Energy Industries (MEEI) for the first of its planned Mayaro Sandstone infill wells, currently designated H18E G11(5). That well will be drilled vertically to a total depth of 1,250 feet and is expected to intersect the Mayaro Sandstone oil pay between 650 and 1,050 feet.

GEPL has awarded a drilling contract to Trinidad specialist drilling contractor Sadhna Petroleum Services Company Limited for the drilling for two firm and a number of optional wells on a turnkey drilling basis using a small footprint conventional (rotary table) drilling rig. Site preparation will be conducted by Sadhna and will commence as soon as practical, after which rig mobilisation and drilling are anticipated to commence without delay. Individual wells are expected to take about 14 days to drill and complete for immediate production.

LGO has engaged Bedrock Drilling Limited, a UK based specialist drilling engineering company, to provide drilling engineering supervisory support to the drilling program. Bedrock will provide a site supervisory team during drilling and additional engineering and advisory support to GEPL.

Permission to drill the second Mayaro Sandstone infill well in the program, designated H18E N4, was sought from Petrotrin and the MEEI in December 2016 and approval is expected to be received shortly after which site preparation is expected to commence immediately following the site work at H18E G11(5).

GEPL has outline approval for up to 45 new wells in the Goudron Field and a program of up to 70 infill production wells to the field-wide Mayaro Sandstone oil pay is contemplated, commencing with the current initial well program which will be expanded based on results and the availability of funding.

The information contained in this announcement has been reviewed and approved by Neil Ritson, Chief Executive Officer and Director for LGO Energy plc, who has over 38 years of relevant experience in the oil industry. Mr. Ritson is a member of the Society of Petroleum Engineers (SPE), an Active Member of the American Association of Petroleum Geologists (AAPG) and is a Fellow of the Geological Society of London (BGS).

***

EMAS AMC Wins Contract for Angostura Project

(Ezra Holdings Ltd., 8.Sep.2015) – Singapore’s Ezra Holdings Limited (Ezra or the Group), a leading contractor and provider of integrated offshore solutions to the oil and gas industry, announced its subsea services division, EMAS AMC, finalized a contract with BHP Billiton for the Angostura phase 3 development offshore Trinidad and Tobago in the eastern Trinidadian sector of the Venezuela basin.

The total scope of work includes the project management, fabrication, construction and installation of 12-inch flowline along with a complete subsea package comprised of control umbilicals and detailed engineering, construction and installation of the pipeline end manifold (PLEM) and inline sled (ILS) for the Angostura phase 3 field development located approximately 22 miles (35 kms) northeast of Trinidad and Tobago.

“This award is especially rewarding for EMAS AMC as it draws on our ability to provide the best overall solution through our full spectrum of one-stop-shop capabilities, including project management, detailed engineering, pipelay, subsea installation, fabrication, survey and commissioning,” said Lionel Lee, Ezra group CEO and managing director.

Engineering and procurement are currently under way from EMAS AMC’s Houston office with fabrication of the subsea structures and stalking and spooling of flowlines to be carried out at EMAS Marine Base facility in Ingleside, Texas. Offshore execution is scheduled for mid-2016, utilizing the Lewek Express subsea construction and reel lay vessel.

Ezra has also recently announced that they have signed a binding Memorandum of Understanding for Chiyoda Corporation to invest in Ezra’s Subsea Services business, EMAS AMC, to form EMAS CHIYODA Subsea – a 50:50 JV.

***

T&T Energy Ministry Supports Expansion into Guyana

(Piero Stewart, Special for Energy Now, 1.Jun.2015) – Trinidad and Tobago will seek to capitalise on energy projects in the region as part of broader push outside of the country’s borders, and especially into Guyana, which has recently announced a significant offshore oil discovery.

Oil field service companies from Trinidad and Tobago are already dominant players in Suriname and will be interested in conducting work in Guyana, said Trinidad and Tobago Energy Minister Kevin Ramnarine during an interview June 13 in Port-of-Spain.

“There is a role, therefore, for us to have our energy service companies enter the Guyanese frontier energy economy, and this is something we support.”

Esso Exploration and Production Guyana Ltd., an affiliate of Irving, Texas-based ExxonMobil, announced in late May that the Liza-1 well it had drilled offshore Guyana in the Stabroek block had discovered more than 295 feet of oil pay.

Since the announcement, already-tense relations between the governments of Venezuela and Guyana flared up after the former redrew its maritime border to include the Stabroek discovery.

Earlier this year, Trinidad’s prime minister announced that the country would be be working with the IADB to form an Energy Fund that would help stakeholders to capitalise on energy projects in the region, and specifically those related to power and regasification, among other sectors.

“So that is going to be a major policy imperative for the next five years,” said Ramnarine.

Trinidad and Tobago, home to Atlantic LNG, the first LNG export facility in Latin America, is looking to expand its service and experience into the region.

***

Caribbean Rex Finds Oil In Trinidad

(Rex International Holding Ltd., 21.Jan.2015) – Rex International Holding Limited (Rex International Holding or the Company, and together with its subsidiaries, the Group), one of the largest companies listed on the Catalist of the Singapore Exchange Securities Trading Limited, announced that its 98.4 percent-owned license-holding company Caribbean Rex Limited (Caribbean Rex), has completed the drilling of three wells in the South Erin Block in Trinidad & Tobago.

The wells were drilled as part of a three-well drilling program that Caribbean Rex started in the South Erin license in May 2014. Oil-bearing sands were encountered in all wells, two of which are deemed to be commercial with substantial net pay sands. Caribbean Rex will consider putting the wells on production as soon as testing has been completed and approvals have been granted.

Drilling activities in another of the Group’s concession in Trinidad & Tobago – the Cory Moruga block – constituting two wells, will be reported separately once concluded before the end of the second quarter in 2015.

The CH6 well in South Erin was drilled to 4,113 feet to the target formation of Lower Forest A and B sands while the CG8 well in South Erin was drilled to 5,900 feet to the target formation of Lower Forest A2, B2 and Cruse. Good quality oil-bearing sands were encountered in both these wells. The Cassava #1 well in South Erin was drilled to a total depth of about 6,000 feet to explore for extensions of productive Cruse and Lower Forest reservoirs outside of the main producing area. Although there were gas and oil shows, they were not in commercial quantities.

“We are pleased with our strike rate of 67 per cent (two out of three wells drilled) in the South Erin Block, achieved with the assistance of Rex Virtual Drilling. The information that we have gathered from the wells will be used to further deepen our understanding of the sand trends in the Cruse and Lower Forest reservoirs within the concession,” said Rex International Holding Chief Operating Officer Kristofer Skantze.

“We were able to get drilling costing down to below $1 million per well, which was about 40 percent below budgeted costing, as a result of our cost management measures and taking advantage of the lower cost of oil drilling services over the past months, arising from the global fall in oil prices.”

“Rex Virtual Drilling (RVD) has been incorporated together with conventional geological and geophysical studies in our work process to identify the locations of wells to drill. The drilling campaign in Trinidad holds important lessons for the refinement of RVD, especially for enhancing the technology’s use on onshore seismic data,” said Rex International Holding Chief Executive Officer Mans Lidgren. “The Rex Technology Management team will continue to work closely with the geological team to further improve the de-risking of the asset.”

Caribbean Rex holds a 100 percent working interest in South Erin Block and a 20 percent farm-in interest in Cory Moruga. In December 2014, Caribbean Rex divested its 100 percent interest in the subsidiary that holds the IPSC for the Inniss-Trinity concession, for an additional 34.19 percent stake in Caribbean Rex.

***

LatAmNRG: Heard on the Street 3Q:13

(Energy Analytics Institute, 30.Sep.2013) – Information in this section, provided by Energy Analytics Institute editors and reporters, is hearsay and thus should be treated as such.

The names of our many sources have been withheld to protect their identities and family members in Venezuela.

COMBUSTIBLES
  • A number of gasoline stations along VenezuelaColombia border remain closed due to a lack of supply. [El Universal]
CORPORATE SUITE
  • Venezuelan Oil Minister and PDVSA President Rafael Ramirez was named as Venezuela’s Economic Vice President by President Nicolas Maduro. [EAI]
CROSS BORDER DEALS
  • T&T and Venezuela signed a cross border natural gas deal. Deal signed by Venezuelan Oil Minister Rafael Ramirez and Trinidad Energy Minister Kevin Ramnarine. [EAI]
  • Trinidad Energy Minister Kevin Ramnarine was been under pressure in Trinidad for recent agreements reached with Venezuela regarding cross-border commercialization deals for the Loran-Manatee gas fields. [EAI]
  • Central American energy connection could reduce prices from Guatemala to Panama. [El Espectador]
DISCOVERIES
  • Colombia’s state oil company Ecopetrol announces new oil discovery at Guainiez-1 well in Guaroa. [EAI]
DIVESTMENTS
  • Chile’s ENAP sells 49% interest in Primax Peru and Primax Ecuador for $312 mln. [El Universo]
ELECTRIC SECTOR
  • YPFB Corp. completed 23,141 domestic gas connections in May.2013. [La Razon]
  • Interconexión Eléctrica S.A (ISA) wins bid for design, financing, construction, operation and maintenance of Encuentro-Lagunas project in Chile. [Portafolio.co]
  • Peru’s Energy and Mining Ministry has identified hydrocarbon and electric sector projects worth $26,530 mln thru YE:20. [El Comercio.pe]
  • Electric consumption in Uruguay reaches 1,808 MW on Jun.20.2013 up from record of 1,745 MW achieved on Jul.4.2011. [El Pais]
EXPLORATION & PRODUCTION
  • Bolivian officials search for hydrocarbon investments and technology at Russian Gas Forum [La Razon]
  • Gas output in Bolivia reached 57.08 MMcm/d in the 1Q:13, up 24.2% compared with 45.94 MMcm/d in the 1Q:12. [La Razon]
  • Bolivia’s average production was 56.2 MMcm/d in the first five months of 2013. [El Espectador]
  • YPFB plans investments of $8,406 mln during 2013-2016. [La Razon]
  • YPFB Petroandina SAM President Jaime Arancibia announced the Lliquimuni block could contain 1 Tcf. [La Razon]
  • France’s Total announced plans to develop the 3 Tcf Incahuasi field in Bolivia, after drilling the ICS-2 exploration well. [La Razon]
  • Russia’s Rosneft is interested in investing in exploration and development activities in Bolivia. [La Razon]
  • Repsol’s oil production in Bolivia rose to 3,400 b/d from 2,600 b/d. [La Razon]
  • Ecuador’s Hydrocarbon Secretariat expects oil production to average 518,503 b/d in 2013, up from 503,610 b/d in 2012. [EAI]
  • Ecuador’s Hydrocarbon Secretariat expects the country’s petroleum sector will realize investments of $3.6 bln in 2013, up from $2 bln in 2012. [EAI]
  • Extraction of oil in the Yasuni National Park will utilize new technologies, Wilson Pastor said on state television. [EAI]
  • Ecuador gov’t cancels $34.5 mln committed by Germany for the protection of the Yasuni National Park. [EAI]
  • Mexico’s state oil company Pemex creates company to search for oil deep offshore and shale gas in the USA.
  • Venezuela’s Oil Minister Rafael Ramirez said during an interview on Venezuelan state television or VTV that the decision to stop sending oil to the US had to be taken by Venezuelan President Nicolas Maduro. [EAI]
ENERGY REFORMS
  • Mexico’s left is betting on more autonomy for Pemex without changing the constitution.
EXPORT-IMPORT
  • Venezuela is looking for additional partner(s) for the Mariscal Sucre gas project offshore, Venezuelan Oil Minister Rafael Ramirez says. [EAI]
  • Spanish gov’t requests legal security and respect for the rules of the game in Argentina. [La Nacion]
  • Venezuelan imports of electricity from Colombia continue to increase. [El Universal]
  • Gas imported by Argentina and Brazil up 56.95% and 20.26%, respectively, in the 1Q:13 compared with the 1Q:12 [La Razon]
  • Argentina imported 14.63 MMcm/d from Bolivia in the 1Q:13 compared with 9.32 MMcm/d in the 1Q:12 [La Razon]
  • Brazil imported 32.01 MMcm/d from Bolivia in the 1Q:13 compared with 26.62 MMcm/d in the 1Q:12 [La Razon]
  • Bolivia exported an average 14.1 MMcm/d of gas to Argentina in the first five months of 2013. [El Espectador]
  • Bolivia exported an average 31.3 MMcm/d of gas to Brazil in the first five months of 2013. [El Espectador]
  • Enarsa owes YPFB $180 mln for gas deliveries made in Mar.2013 [La Razon]
  • PDVSA currently exports 330,000 b/d to India but plans to increase this figure to 400,000 b/d, PDVSA President Rafael Ramirez said. The official said PDVSA is also exporting 630,000 b/d to China. [EAI]
  • PDVSA owed $270 mln by Paraguay’s Petropar according to Paraguayan News Portal. [EAI]
FINANCE / EQUITY AND DEBT OFFERINGS

Colombia:

  • Ecopetrol $900 mln bond issue was oversubscribed by 3.1 times. [El Espectador]
  • Ecopetrol road show was led by Bank of America and visited fixed income investors in Singapore, London, Hong Kong, Chile and Peru. [El Espectador]
  • Ecopetrol road show led by Bank of America visited the following US cities: New York, Chicago, Los Angeles and Boston. [El Espectador]

Venezuela:

  • Venezuela’s Central Bank (BCV) holds auction for $330mm with PDVSA bonds.

Venezuelan Debt to China:

  • China has loaned Venezuela nearly $40 bln to date, excluding new agreements signed recently between the countries, of which $20 bln has been paid back. [EAI]
  • Venezuela currently owes $20 bln to China, which represents almost 2.4 months of PDVSA’s revenues assuming oil prices above $100/bbl. [EAI]
  • Assuming China were to lend Venezuela another $44 bln, the country would owe the Chinese nearly $64 bln, which is about 6 months of PDVSA revenue with oil prices above $100/bbl. [EAI]
  • Venezuelan debt of $64 bln to China would represent almost 7.7 months of PDVSA’s revenues assuming oil prices above $100/bbl. [EAI]

Peru:

  • Investments in energy projects in Peru to fall 50% by YE:20. [El Comercio.pe]

Ecuador:

  • China’s Industrial and Commercial Bank (ICBC) could finance 70% of Pacific Coast refinery project. [El Comercio]
GENERAL
  • Colombia’s National Hydrocarbon Agency (ANH) said the country’s oil reserves were 2,377 MMbbls at YE:12. [Portafolio.co]
  • S&P and Fitch raise rating on Emgesa ISA to BBB from BBB-. [Portafolio.co]
  • Chinese executives with LinYi Cake Trade Co. visited Bolivia to inspect the construction process and advances at a pilot lithium battery plant in La Palca in Potosi. [La Razon]
HEAVY OIL
  • Peru to prioritize $1,500 mln in investments for the integration of heavy oil lots in the northern amazon region [El Comercio.pe]
  • PDVSA has 15,000 workers in the Orinoco Heavy Oil Belt of Faja but plans to increase this figure to 40,000, PDVSA President Rafael Ramirez says. [EAI]
  • PDVSA, Cupet (Cuba) and Sonangol (Angola) agree to create JV to produce 20,000 b/d in the Faja. [El Nacional]
  • PDVSA reports in 10.Oct.2013 press release that it has a 71% interest in PetroCarabobo 1 Faja project, meaning the company assumed Petronas’ 11% interest. Partners in the PetroCarabobo 1 project now include PDVSA (WI 71%), OVL (WI 11%), OIL (WI 3.5%), OIC (WI 3.5%) and Repsol (WI 11%). [EAI]
  • Rising drilling costs in the Faja are just one of many issues companies are confronting today. [EAI]
  • Russia’s Lukoil announced plans to exit the Junin Block 6 project in the Faja.

EDITOR’S NOTE: Smaller Russian companies are starting to exit the Faja, ceding more control to Rosneft or other Russian entities; a signal that something could definitely be wrong in Venezuela and the Faja. [EAI]

  • PDVSA announced during the HOLA 2013 conference that it was looking to utilize its heavy oil techniques in Mexico. [EAI]
LAWSUITS
  • Repsol turns down $5,000 mln offer from Argentine gov’t regarding 51% interest expropriated in 2012. [La Nacion]
  • Ecuador’s President Rafael Correa says on Ecuadorian state television that US-based Chevron Corp. is an enemy of Ecuador. [EAI]
LNG
  • By 2015 Uruguay’s ANCAP expects to be exporting 5 MMcm/d of gas from the Puntos de Sayago regasification plant in Uruguay to Argentina’s YPF. [LaRed21]
PETROCHEMICALS
  • Peru to prioritize $3,500 mln in investments for the petrochemical industry. [El Comercio.pe]
PIPELINES
  • Peru to prioritize $3,500 mln in investments for the southern gas pipeline. [El Comercio.pe]
PROTESTS / STRIKES
  • About 50 workers with Petrocedeno JV in Venezuela demand that PDVSA respect their benefits [El Universal]
REFINERIES
  • Peru to prioritize $3,514 mln in investments for the modernization of the Talara refinery. [El Comercio.pe]

Venezuela:

PDVSA’s participation in Abreu e Lima Refinery in Brazil:

  • PDVSA President Rafael Ramirez says co. and Petrobras officials continue to discuss JV prospects regarding the Abreu e Lima refinery. [EAI]
  • From an operational and strategic business plan point of view, PDVSA’s participation in the Abreu e Lima refinery does not make sense. [EAI]
  • Abreu e Lima refinery in Pernambuco could easily source sufficient oil from the Brazil’s offshore pre-salt region w/o having to look to Venezuela for heavy oil. [EAI]
  • Any decision PDVSA President Rafael Ramirez takes regarding the company’s participation in Abreu e Lima refinery w/Petrobras will be politically based. [EAI]

Comments regarding Amuay Refinery explosion on 25.Aug.2012:

  • PDVSA President Rafael Ramirez says explosion at Amuay refinery was sabotage. Amuay refinery explosion was caused by gas leak at Block B23. As a result of the explosion, 42 persons were killed, 5 are still missing, 150+ were seriously injured. published by the Energy Orientation Center (COENER). [EAI]
  • Amuay refinery explosion to cost PDVSA an estimated $1.8 bln, according to COENER. The refinery is processing 645,000 b/d nearly 10 months after major explosion. [Ultimas Noticias]
  • PDVSA to spend an estimated $585 mln on maintenance activities at the Amuay and Cardon refineries, PDVSA President Rafael Ramirez says. [EAI]
SOCIAL
  • CITGO Corp. donates 625,000 energy saving light bulbs to families in 21 cities in the USA [PDVSA

***

Venezuela, Trinidad Meet Over Border Gas

(Energy Analytics Institute, Ian Silverman, 26.Aug.2013) – Venezuelan Oil Minister Rafael Ramirez met with his counterpart from Trinidad and Tobago, Kevin Ramnarine in Caracas to discuss a development plan for natural gas fields that straddle the maritime borders of their countries.

The ministers announced plans to develop the Manatee-Loran gas discoveries offshore in the cross-border Block 6d (Trinidad) and Block 2 (Venezuela).

The blocks contain estimated gas reserves of 10 Tcf, Ramirez said. Under a Framework Treaty and Unitization Agreement, Venezuela and Trinidad will assume interests of 73.06% and 26.94%, respectively, in developments, Ramirez said.

PDVSA and Chevron will likely develop the fields from the Venezuelan side of the maritime border, Ramirez said. Additionally, gas from the developments on the Venezuelan side will be shipped via a pipeline to Güiria and destined for export to Colombia.

Editor’s Note:

Venezuela and Trinidad signed a Unification Agreement in March 2007. Other fields that straddle Venezuela and Trinidad maritime borders include Kapok-Dorado (Block 1), Manakin-Cocuina (Block 4).

***