[UPDATED] Khan: Expect rough 2021 but good 2022 for Trinidad and Tobago energy industry

Franklin Khan -
Franklin Khan -

Minister of Energy and Energy Industries Franklin Khan has said 2022 will be a good year for the local energy industry, but the country will first face a challenging 2021.

He spoke at a virtual news conference Thursday on the results of a 2019 audit of TT’s gas reserves done by oil and gas consultancy agency, Ryder Scott.

Khan, taking from the audit, said results showed that between 2016 and 2019 TT experienced an upward trend of technically recovered resources (TRR). So much so that in 2019, TT had a 113 per cent recovery of its proven and developed reserves.

Khan said the audit confirmed three unbroken years of growth in TT’s gas resources. Gas production remained relatively flat between 2018 and 2019.

He added there were upcoming projects which could give TT access to thousands of millions of square cubic feet (mscf) of natural gas on a daily basis.

He said from the first quarter in 2022 to as far as 2026, projects would consistently be started by companies like BHP, which will begins its Ruby project early this year. That project would provide up to 150 mscf per day. Also BP's Matapal project would have a capacity of 300 mscf per day.

“The Manatee project from Shell, which was the successful de-linking of the Loran-Manatee unitisation treaty in Venezuela, is carded for 2024 into 2025,” Khan said.

Ryder Scott executive vice president Herman Acuna said the TRR – resources which can be produced through current technology – increased in most cases.

TRR in proven resources increased from 10.5 tcf (trillion cubic feet) to 10.7 tcf. Developed reserves went up from 6.5 tcf to 6.8 tcf.

The TRR in possible reserves however dropped from 6.5 tcf to 6.4 tcf.

TRR from exploration also went down, from 53 tcf to 50.3 tcf. Acuna pointed out, however, most of the gains recorded came from the successful exploration of deepwater blocks.

“EOG had success with the Mento and Osprey East exploration wells and BHP had deepwater success with the Bele, Boom and Tuk exploration wells,” Acuna said.

He said TT got some additional volumes from field appraisal activities and optimising the development of deepwater opportunities.

Last year, BPTT remained the top producer, with 50 per cent of the production share. Shell is the runner-up, with about 20 per cent of the production share, followed by EOG, BHP and De Novo, which produced 12 per cent, ten per cent and two per cent respectively.

Khan told reporters that supply chains could benefit from projects coming online next year.

“From 2021 onward to 2025 and 2026 when the large Manatee development would come on stream, and hopefully when the deep deepwater gas will come on stream, we may well be in a position where there is surplus gas.

“That is why we felt, from a strategic point of view from the Government, that we should keep train one (of Atlantic LNG) operational.”

Khan said while BP did not renew its contract to supply train one, Government will continue to keep it in an “operation-ready” mode.

“What we don’t want to do is get caught with our pants down, where later there is gas and we don’t have the capacity to process it.”

For now NGC continues to manage the distribution of its resources in the most efficient way possible and the optimisation of its supply, Khan said.

Responding to questions on Heritage Petroleum’s $100 million oil and gas deal with Government, he said the new venture will secure its tenure in the combined blocks formerly owned by Trinmar and North Marine. Khan said Heritage would have the green light to optimise production from existing fields and explore for new energy and oil reserves in the Gulf of Paria.

“There is significant opportunity in the Gulf of Paria. That potential is currently being quantified and they are developing an investment plan to proceed to get the production from its current 38-40,000 barrels a day to well over 60,000 barrels a day in the next two years. So that is a positive.”

This story has been been updated with additional details. Below is the original article.

Minister of Energy and Energy Industries Franklyn Khan assured that 2022 will be a good one for the Trinidad and Tobago energy industry, but the country will first have to face a challenging 2021.

He made the assurance during a press conference revealing the results of a 2019 audit of the TT gas reserves done by oil and gas consultancy agency Ryder Scott.

Khan, taking from the audit, said results showed that between 2016-2019 TT experienced an upward trend of technically recovered resources (TRR) being acquired. So much so, that in 2019, TT acquired a 113 per cent recovery of its proven and developed reserves.

Khan said the audit confirmed three unbroken years of growth in TT’s gas resources. Gas production remained relatively flat between 2018 and 2019.

He added that there were several upcoming projects that could give TT access to thousands of millions of square cubic feet (mscf) of natural gas on a daily basis.

He said, from the first quarter in 2022 to as far as 2026, projects would consistently be started from companies like BHP who will be starting their Ruby project in early 2021. That project would provide up to 150 mscf per day. Also BP's Matapal project would have a capacity of 300 mscf per day.

He added, “The manatee project from shell which was the successful de-linking of the Loran-Manatee unitisation treaty in Venezuela, is carded for 2024 into 2025.”

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"[UPDATED] Khan: Expect rough 2021 but good 2022 for Trinidad and Tobago energy industry"

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