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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.”