Petrotrin profits swimming upstream

The company has also seen “higher than planned production and revenues” from its share of gas production (19.5 percent equity) to ALNG from the Block 9/NCMA JV.

Apart from boosting its profitability, this has helped to provide the necessary funding for future capital investments, according to the August issue of PetroConnect, a Petrotrin publication.

Petrotrin’s own current crude oil production stands at an average of just over 63,000 BOPD while the refinery at Pointe-a-Pierre needs about 160,000 barrels to process on a daily basis. Since imported crude is significantly more expensive to acquire it makes good business sense to maximise local production, As a result, the company said it is allocating a greater proportion of capital expenditure to the upstream in order to upgrade the asset portfolio from low yield mature assets to high yield growth fields, thereby reducing costs and accelerating exploration and development.

The purpose of all this is increasing production by all possible means, the company said.

The refinery said this was all part of its 2005-2009 strategic plan that calls for a radical restructuring and improvement of its EandP portfolio.

Special emphasis, it said, is being placed on oil and gas winning activities in both Petrotrin’s own operations, as well as in the lease operatorship farmouts programme and joint venture operations.

These objectives are being achieved mainly through development drilling, re-completions and enhanced oil recovery projects, it was noted.

“This current financial year we have performed reasonably well and have made significant strides in strengthening our reserves foundations. We are working assiduously on our gas initiatives with our joint venture partners in the North Coast Marine and Central Block areas. On land we have once again opened some gas wells to production,” the report said as it referred to its 15 percent interest in the East coast Marine properties of Teak, Samaan and Poui fields.

In the area of joint ventures, the company said it bought interest in Marine Blocks 3(a) and 22 as it sought to position itself to exploit the lucrative offshore province. “Our joint venture investments continue to bear fruit, especially in the area of gas, and these have impacted positively on our profits during recent years,” the article said.

Petrotrin said it planned two full rig years of onshore drilling and one rig year of Trinmar drilling as well as a full complement of recompletion and heavy workover activity onshore and offshore.

It said it was also looking to exploit its opportunities in Galeota and said it expected to initiate new projects to exploit our heavy oil resources.

The lease operatorships and farmouts programmes continue to provide a stable and steady source of crude to Petrotrin with an average production of around 6,100 BOPD per year, the company said..

Referring to significant infrastructure upgrade works at its Trinmar’s offshore structures and to its EandP fields, Petrotrin said it was this “window of opportunity” afforded by the current high prices that allowed it to make significant investments and expand operations.