In keeping with the Government's drive to "revive" the fortunes of the local energy sector, foreign energy companies have been queuing up to invest. In recent speeches, Energy Minister Carolyn Seepersad-Bachan has said the energy sector was neglected by the former government. According to statistics Seepersad-Bachan provided, 16 exploration wells drilled in 2001. Between 2001 and 2010, the number of exploration wells drilled annually moved from from a high of 16 to a low of seven. Only two exploration wells were drilled in 2010. In 2005, T&T's oil production was 145,000 barrels a day. Today, it stands at 100,000. At the two signings for production sharing contracts within the last two weeks, Seepersad-Bachan said Voyager Energy Trinidad Ltd and RWE Dea won the contract for NCMA 2 block, while Voyager Energy won the contracts for NCMA 3 and Centrica Energy for NCMA 4 and Niko Resources Trinidad Ltd for Block 4(b).
Centrica Energy
One of the energy companies that has shown an interest in T&T is Centrica Energy, is subsidiary of the United Kingdom-based Centrica Plc. A PSC for Block 2 AB was signed by Centrica in mid-2009. In 2010, Centrica acquired Petro-Canada's T&T assets. Centrica opened its office in T&T on August 23, 2010, and employs 19 persons.
The company's current licences on Trinidad include :
• 17.3 per cent interest in the North Coast Marine Area (NCMA-1)
• 90 per cent working interest in Block 22
• 80 per cent working interest in Blocks 1a and 1b and
• 29.25 per cent working interest in Block 2ab
Ko Jacobs, country manager, Centrica Energy, who was speaking last week Monday at the signing ceremony for shallow water production sharing contracts (PSC), said Centrica's entry into Trinidad was in three phases, but occurred in a very short time. Jacobs said investing in T&T's energy sector is important to Centrica for several reasons. "It signifies quite clearly and very formally our intent to explore for hydrocarbons off the north coast of coast of T&T and, it demonstrates our strategic commitment to deliver value for our upstream business. "Hand in hand with that, we are happy to be part of Government's rejuvenation of exploration activity and the opportunity it presents for us to make a significant contribution to addressing the national energy balance. This excites us," he said.
He gave an outline of Centrica's international experience. "Internationally, we have strong metrics to backup our enthusiasm. In 2010, our global exploration and appraisal programme delivered a high level of drilling success, with 11 out of the 15 operated and non-operated well showing positive results. This is a success ratio of close to 75 per cent. "In the NCMA 4 Block, while we face a formidable task during the exploration period, we are hopeful for success, too," Jacobs said.
He said it is important that Centrica develops partnerships with local players. "Partnerships are important to us. We value team work and synergy's and look forward to working closely with the Ministry of Energy to harness their expertise. Petrotrin has agree source of local knowledge and has proven to be a valuable partner in our other blocks. "We believe it is important that we partner with in a positive way with other stakeholders to address the challenge faced by the oil and gas industry in T&T with a view to designing policies and procedures for the sustainability of the various industries. "We were very pleased to sign onto the Energy Chamber's safe to work in T&T (STOW) programme and look forward to being involved at the board level," Jacobs said.
Niko Resources Ltd
Bill Hornaway, chief operating officer, Niko Resources Ltd, one of the signatories for a PSC, gave a background to its presence in T&T. He said Niko Resources' first entry to Trinidad was Block 2ab off the East coast of Trinidad, which was signed in July 2009 with Petrotrin and Centreca. "We are very proud of our achievements. We are a Canadian company from Calgary. We concentrate 100 per cent on oil and gas. We have a market capitalisation of close to Cdn$5 billion. We have been very successful, with grassroots in oil and gas operations. Trinidad is one of our main exploration areas," Hornaway said.
In 2010, Niko Resources announced that it had acquired Voyager Energy, which became a subsidiary of Niko Resources. Hornaway said Niko Resources will probably spend this year upwards of $100 million, which includes drilling.
According to a corporate fact sheet, Niko Resources is an international oil and gas exploration and production company with its head office in Calgary, Canada. It has operations in India, Bangladesh, Indonesia, Kurdistan, Madagascar, Pakistan and Trinidad. The company is focused on sustained growth through the addition of high quality exploration assets to its diverse exploration portfolio. Fuelled by the success of its key natural gas properties, Niko Resources has stated it wants to continue its role as a leader in oil and gas exploration and production.
Niko's Trinidad presence:
• Interest in eight PSC's ranging from 32.5 per cent to 100 per cent
• Offshore and onshore blocks totalling 2.5 million acres
• Purchase of Sondre Resources interest in Block 5c in December 2010
• Will continue drilling in 2011.