State-owned Petrotrin is expected to increase its crude production by a further 21,000 barrels of oil per day (bo/d) over the next three years at an estimated cost of $5 billion, according to Energy Minister Franklyn Khan.
Speaking on Monday at the sixth conference of the Geological Society of T&T, Khan said that Petrotrin offers the best hope to increase crude production in the short term.
With this in mind, he announced a planned jump in the company’s production by 21,000 bo/d or a 30 per cent increase from its current production.
In an interview with the Business Guardian at the same conference, Petrotrin’s president Fitzroy Harewood said the company has been gradually increasing production to the point where it is up to 46,000 bo/d from 41,000 bo/d in December, a jump of 12 per cent.
Asked where the 21,000 bo/d output increase was going to come from, Harewood said, “So the combination of drilling on land, which we want to push up to two rigs if we can next year, and then the resumption of drilling in Trinmar next year as well as the EOR (enhanced oil recovery) activities will give us some fillip.”
Harewood said the company would also be returning to exploration drilling, or searching for new crude. He pointed out that under a production sharing contract with the government, the company is expected to drill three wells in the North Marine Block in 2017, but while it will start two of the three in 2017, all will be completed in 2018.
“We are working towards starting that work in the fourth quarter this year and the next well in 2018. The licences acreage is North Marine and we have an obligation to do exploratory wells. Actually it was suppose to be the end of 2017 but when we took some time to review our prospect generation and do some more work on the data set, the ministry allowed us to go to 2018,” Harewood told the Business Guardian.
Mobile production facility to be commissioned
Harewood said the wells in North Marine are being drilled based on the recently acquired 3D seismic which gave Petrotrin improved sub-surface vision and he was quietly confident that it will generate good prospects.
“They are exploration wells based on the 3d seismic data we have done, and we have looked at the prospects and leads and the expectation is that we should have some good prospects. We are doing some de-risking of the prospects right now and doing peer reviews and it should give us some good co-ordinates to go after and it will see what it brings us,” he said.
Khan revealed that the state-owned company will spend over $5 billion in the next three years on exploration and production as it tries to get additional equity crude for the refinery.
One such project is the South West (SW) Soldado project in which crude has stayed in the ground for years because of a lack of infrastructure to produce it.
Harewood said Petrotrin was making progress in its attempts to get production out of the block.
“SW Soldado is a huge project and we have the first phase which has been delayed with the mobile production facility. Our expectation is to have that commissioned and operational next year and therefore the oil that is behind pipe should come onstream,” said Harewood.
Asked how much oil can be expected from SW Soldado, Harewood explained, “There have been various estimates. When we actually produce it we will know of the flow. We have had estimates of between 3,000 bo/d to as high as 6,000 bo/d. I think it’s something between those two numbers. We plan to bring the mobile production unit into place, complete the piping, then bring on stream the production that we can get from the wells already drilled. After that we plan to drill additional wells.”
