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Trinidad: BPTT to lose 15% of its production

St. Lucia News Online

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(TRINIDAD GUARDIAN) BPTT’s pro­duc­tion will fall by up to 300 mil­lion stan­dard cu­bic feet per day in 2020 and 2021, ac­cord­ing to the en­er­gy ma­jor.

This is a 15 per cent drop in pro­duc­tion and con­flicts with the Mid-year Bud­get Re­view pre­sent­ed by Fi­nance Min­is­ter Colm Im­bert. Im­bert tried to down­play the sig­nif­i­cance of the de­cline by say­ing he ex­pect­ed lit­tle im­pact on nat­ur­al gas pro­duc­tion.

But BPTT told Guardian Me­dia, “Giv­en re­cent dis­ap­point­ing re­sults on a cou­ple of in­fill wells, we are now un­like­ly to have the 200-300 mm­scf/d that we were ex­pect­ing to sup­ply in­to Train 1, es­pe­cial­ly in the 2020 to 2021 time frame. These vol­umes would have been sup­plied un­der a new, as yet un­signed, gas sales agree­ment be­tween BPTT and At­lantic 1.”

Im­bert told the Par­lia­ment that the drilling cam­paign had re­sult­ed in on­ly one un­pro­duc­tive well and he found the con­cerns to be “alarmist.”

Im­bert in­sist­ed that the “BP wells with less than sat­is­fac­to­ry re­sults are on­ly two (2) in num­ber and are in­fill wells in ex­ist­ing gas fields. Un­like ex­plo­ration wells, in­fill wells are nor­mal­ly brought in­to pro­duc­tion al­most im­me­di­ate­ly. I am ad­vised that one of these in­fill wells will go in­to pro­duc­tion short­ly, al­though with low­er vol­umes than an­tic­i­pat­ed, leav­ing just one un­pro­duc­tive well. All this dra­ma over one un­pro­duc­tive well is to­tal­ly un­nec­es­sary!”

But BPTT told Guardian Me­dia the two wells that failed were in its Can­non­ball and Cashima fields and while the fields are still pro­duc­ing it has had to re­vise its fore­cast for gas.

“The two wells con­cerned were in our Can­non­ball and Cashima fields. We will con­tin­ue to pro­duce gas from the ex­ist­ing wells in the Can­non­ball and Cashima fields, how­ev­er, we have re­vised our pro­duc­tion fore­cast for the 2020-2021 pe­ri­od in these two fields. We will re­view the re­sults from these two wells and ap­ply any learn­ings in­to fu­ture in­fill drilling pro­grammes.” BPTT ex­plained.

BPTT is by far the largest nat­ur­al gas pro­duc­er in the coun­try with an av­er­age pro­duc­tion in 2019 of 2.1 bil­lion cu­bic feet per day. The com­pa­ny said while the drilling pro­gramme would neg­a­tive­ly im­pact its pro­duc­tion over the next two years it will not af­fect its planned de­vel­op­ments.

The com­pa­ny told Guardian Me­dia, “There is no im­pact on fore­cast pro­duc­tion from our oth­er fields and there is no im­pact on our 2019-2020 ex­plo­ration drilling pro­gramme or on our sanc­tioned new field de­vel­op­ments, An­gelin, Cas­sia Com­pres­sion and Mat­a­pal. We will con­tin­ue to bring on new wells in An­gelin as planned this year and con­tin­ue to tar­get first gas from Cas­sia Com­pres­sion in the sec­ond half of 2021 and Mat­a­pal in 2022. We will al­so step up our fo­cus on well work and sys­tem op­ti­mi­sa­tion to max­imise base pro­duc­tion from our ex­ist­ing fields.”

BPTT al­so rub­bished sug­ges­tions that the an­nounce­ment was re­lat­ed to on­go­ing ne­go­ti­a­tion with the Gov­ern­ment for the ex­ten­sion of the Train 1 LNG plant.

The com­pa­ny not­ed that an agree­ment had been reached on the price for the LNG to be pro­duced from Train 1 un­der a new, and as yet un­signed, gas sales and LNG off-take arrange­ments. It added that BPTT and the At­lantic 1 share­hold­ers were in dis­cus­sions to fi­nalise the terms of these arrange­ments when the dis­ap­point­ing well re­sults be­came known.

The com­pa­ny al­so tried to as­sure that it will is un­like­ly to im­pact the down­stream sec­tor that is al­ready be­ing im­pact­ed by nat­ur­al gas short­ages.

BPTT said, “We are fo­cused on max­imis­ing base pro­duc­tion from our ex­ist­ing fields and bring­ing on pro­duc­tion from new fields to meet our con­trac­tu­al com­mit­ments to NGC and the oth­er At­lantic trains.”

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