Energy Minister Kevin Ramnarine says there is significant potential for heavy oil production in T&T and the recovery of this resource could increase oil production on both land and sea.
He said with the availability of 3D seismic data the time is right for a major heavy oil thrust. To this end, Cabinet has agreed to the grant of $4.5 million to the University of Trinidad & Tobago (UTT) for two projects. One to quantify heavy oil resources and another on using carbon dioxide produced at the Point Lisas Estate in enhanced oil recovery (EOR) projects. the grant is funded by the Energy Ministry's Production Sharing Contracts.
Ramnarine said when the ministry signs production sharing contracts, provision is made for money to be set aside annually by oil companies for research and development. However, this money has never been used for its intended purpose
In an address to the Energy Chamber at La Romaine, the minister recalled that at the Heavy Oil Technology Conference in Alberta in July 2010, Professor Richard Dawe, Dr Raffie Hosein and Wayne Bertrand said T&T had 1.5 billion barrels of heavy oil on land and a further 3.6 billion, off shore.
"This is a significant resource that cannot be ignored. The potential of enhanced oil recovery has never been fully realised and we believe that this has significant potential to increase oil production on land and in the Gulf of Paria," he said.
Noting that economics will drive any suh EOR investment decision and better oil prices could be a influential factor, Ramnarine said there is major heavy oil opportunity on land in the Morne L'Enfer, Forest and Cruze reservoirs.
He added: "The time is right at present for a major heavy oil thrust with the availability now of 3D seismic data over the heavy oil areas"
He said the technology has the potential to correct one of the main reasons for the many failed heavy oil projects in the past by defining the complex geology of heavy oil areas in the detail necessary for the design of a successful project.
However, he said, such a thrust has to be supported by a new fiscal framework.
At the 20th Caribbean Geological Conference hosted by the Geological Society of Trinidad & Tobago, on Monday, Ramnarine said deepwater exploration, the development of heavy oil resources, EOR, and the commercialisation of cross border reserves are all part of the new energy economy.
He expressed confidence that the economics of Loran-Manatee , which has advanced significantly over the last two years, will drive the T&T and Venezuelan governments and the companies involved to develop that natural gas potential over the next five years.
"This is a project that must happen because it is the right thing for the economies of both countries," he said
Ramnarine said the ministry's estimates for deepwater oil potential range from a low of 3.1 billion barrels to a high of 8.2 billion barrels of oil initially in place (OIIP).
"BHP Billiton has shown optimism for the prospects in our deepwater following the completion of the 3D seismic survey in February 2015, the largest seismic survey ever conducted by an independent oil company in the history of the industry," he said
Ramnarine said Government is willing to assist Barbados and Guyana in the development of their hydrocarbon exploration portfolios. The Barbados government recently signed offshore licences with BHP Billiton and Exxon recently announced the discovery of hydrocarbons in GUyana
"Our vision is that T& T must be at the centre of this emerging Caribbean energy sector," he said.