Energy companies giving up Deep Secrets

He was speaking during last week’s gas conference hosted by the South Chamber of Industry and Commerce.

Mayers also announced plans by the Government to tender eight blocks in the deep Atlantic by the end of March. The eight 800 sq km blocks are located in water depth between 1,700-2,500 metres off the east coast.

Energy companies were also pumped up about their activities for this year and in the coming years. BP Trinidad and Tobago (bpTT) plans to start work on bringing a new gas field into production and is also preparing deep drilling in the Columbus basin by mid-year.

Sheldon Daniel, bpTT Vice president, communications and external affairs said the field named "Mango" has about one trillion cubic feet of gas reserves, which will primarily be used to top-up the company’s base wedge of gas before the start of decline from existing fields from around 2007 onwards.

The other major development in 2006 involves the deep drilling in the Columbus Basin of the 20,500 foot Ibis Deep vertical well, which will be the deepest ever drilled in the country.

"We will go so far to say that if Ibis Deep is successful, it will set the tone for future drilling programmes in Trinidad," he said, noting that EOG Resources and Petrotrin and National Gas Company are also partners. Spudding could take place by the end of the second quarter.

If the well which will cost US$50 million is successful, the reserves will be carved out of the South East Coast Consortium-owned by the partners — as a special area in which bpTT will hold 35 per cent in exchange for funding the exploration process.

"The outcome of this well is being watched closely, not only in bpTT but in the BP group," Daniel said.

Repsol YPF also revealed plans to undertake drilling of the Onyx gas field next year. "In the continuous search for new gas supplies, the Onyx project represents an important source of energy for Trinidad and Tobago, thus alignment among the Government and partners will contribute significantly to make this project a reality," according to Ferdinando Rigardo, Business Unit director of the Trinidad-based office.

The company which has its headquarters in Spain plans start up production by the third quarter of 2008.

Last year, bpTT sold the Teak, Samaan, Poui and the undeveloped Onyx gas field located off the southeast coast of Trinidad to Repsol YPF, the operator with a 70 percent stake and state-owned companies, Petrotrin with 15 percent and National Gas Company with the remaining 15 percent.

The Onyx gas field, in a water depth of 200 feet was discovered in the 1970s, when three exploration wells were drilled. Rigardo said the main reservoir is a 350 ft thick sand at a relatively shallow depth of approximately 4000 feet, divided by three main faults, forming four independents compartments.

"The schedule shows that Onyx is a fast track project which includes a detailed group of technical and managerial activities that will demand the coordination and the collaboration of the Trinidad and Tobago authorities to reach the target on time, " Rigardo said.

Describing Trinidad and Tobago as a "core country" in Repsol YPF?s portfolio, Rigardo said with the purchase of TSP, his company has become a major lease holder and one of the largest private oil and gas producers in the Caribbean.

At the end of 2004, Repsol YPF?s net production from Trinidad and Tobago was 115,000 barrels of oil equivalent per day, of which 90 percent was gas. The estimated closing production figures for December 2005 are of 130,000 of barrels of oil equivalent per day representing an increase of 13 percent over 2004 figures.

BHP Billiton, Trinidad and Tobago, which began oil production in the country a year ago said part of its future in this country was getting into gas production.

"Given the future growth potential of the local gas industry, companies with gas, like BHP Billiton Trinidad and Tobago, have an opportunity to support the future growth and development given the country’s historical impressive success at gas monetisation," President of BHP Billiton Trinidad and Tobago, Vincent Perreira said.

In the 2003-2004 bid round, BHP Billiton made bids for three blocks with several partners.

"We look forward to a determination of these blocks as it is imperative, like any business must, that we grow our business here. These are all deep-water blocks and BHP Billiton has a proven deep-water track-record which we are keen to apply in Trinidad and Tobago."

The company is also looking forward to the release of the Ultra Deep Water blocks and was excited by the possibility of what this new frontier exploration area might hold.