Drilling for oil in Nariva

UNTIL THE Dansam Dhansook bribery allegations forced it into the national spotlight, the onshore oil project at the centre of that controversy had been proceeding with occasional hitches but very little fanfare. For more than two years, Talisman (Trinidad) Petroleum Limited, a subsidiary of Talisman Energy, a large, diversified, oil and gas producer based in Canada, has been involved in one of the most ambitious onshore oil drilling projects ever undertaken in Trinidad and Tobago. On sites in the Eastern Block, located north east of Rio Claro and to the east of Ecclesville, in the western portion of the environmentally sensitive Nariva Ramsar site, Talisman is making final preparations to begin drilling for oil. Initially, two wells will be drilled — “Zaboca” and “Shadon Beni” —  under an exploration and production licence granted in 2002.

According to industry insiders, after weeks of delay the Environmental Management Authority (EMA) granted a Certificate of Environmental Clearance (CEC) for the project to proceed to the next phase — the deepest oil well ever drilled in the Eastern Block. It is expected to be drilled to a depth of between 12,000 and 14,000 feet. A rig is currently being serviced for use on the programme and is due to be shipped next Friday to arrive in Trinidad early next month. Drilling is set to start July 1. The project is unique because it will be the first oil well drilled in that area using 3D seismic data. Talisman officials are reported to be cautiously optimistic, based on what the seismic surveys reveal, that oil will be found. However, it was the seismic surveys, completed more than a year ago, that generated the current raging political scandal, bringing some unwelcome attention to Talisman and its activities in Nariva.

Dhansook, a businessman and PNM Councillor for Ecclesville in the Rio Claro/Mayaro Regional Corporation, claimed he paid bribes to two Government Ministers — Energy Minister Eric Williams and former Works Minister Franklin Khan — to secure contracts connected to the seismic surveys. In the fallout from those allegations, Talisman has come under scrutiny, particularly from members of the United National Congress (UNC), who are calling for a probe of the company’s operations in this country. Caroni East MP Ganga Singh, who is also the Opposition Chief Whip, has threatened to write to Canadian Minister of Justice Irvin Cotler, asking him to invoke that country’s laws relating to bribery of public officials. Singh recently announced at a UNC public meeting that he would ask Canadian authorities to investigate Talisman in light of the Dhansook scandal. Under Canadian law, fines and jail time can be imposed on nationals of that country who violate laws there or in foreign countries.

In response to Singh’s threat, Talisman’s resident manager in Trinidad and Tobago, Desmond Norris, has said that the company has nothing to hide. He admitted, however, that company officials were “extremely concerned” about maintaining its good corporate image. He insisted that Talisman officials had “never tried to defraud anyone.” Norris said in a statement, “We are very proud of our record and have always conducted our affairs in an ethical manner. Our reputation is important to us.” Talisman Energy is the largest independent Canadian oil and gas producer with operations in Canada, the North Sea, Indonesia, Malaysia, Vietnam and Sudan. The company is currently conducting explorations in the United States, Algeria, Colombia and Trinidad and Tobago. It has enjoyed significant successes in its Trinidad and Tobago operations and played an integral part in the largest oil discovery in this country in more than 20 years.

Success came from an exploration well in the Block 2 (c) production sharing contract offshore located in the Greater Angostura field. The company holds a 25 percent non-operated interest there, BHP Billiton holds a 45 percent interest and is the designation operator and Elf Petroleum Trinidad holds a 30 percent interest. According to a World Investment News Limited top report, the oil find is estimated at one billion barrels and could “fuel the local economy by as much as $2.5 billion a year.” Talisman plans to spend $100 million Canadian on exploration and development programmes in Trinidad and Tobago this year. It commenced its first oil production in the Angostura field in January. According to the company, production averaged 7,826 barrels a day for the first quarter of 2005, with a monthly average in March of 12,025 barrels a day.

Its production target for the year is 12,000 to 16,000 barrels per day. Even as it forges ahead with onshore exploration in Nariva, Talisman is maintaining a generous corporate presence in the surrounding communities. According to an environmental activist with an NGO based in the area, the Canadian company has implemented a steady stream of public relations and charitable ventures in the approximately two years that it has been operating in Nariva. “Under the terms of the Environmental Impact Assessment (EIA), they have to follow some very strict guidelines because that is a sensitive area,” the activist explained. “There are specific guidelines related to not entering waterways or cutting down trees and they have to be closely supervised by the Forestry Division.

“I don’t know how closely they are being scrutinised but there hasn’t been one single negative report in all the time that they have been operating here. “They have been very good corporate citizens around here, they are making a lot of people very happy... giving away all sorts of stuff, from digital cameras to a car in one case,” he added. “They have been providing a lot of funding and material support to the nearby communities and organisations, so everybody is happy to have them around.” The EIA for the seismic surveys were done by Walsh Environmental Scientists and Engineers, LLC, on behalf of Talisman and were put out for public comment from June to August 2003, after which the firm was granted a CEC to proceed with the work. The company is currently constructing an access road and is repairing a landslip on the road leading to the drilling sites. Construction of infrastructure is due to begin shortly.