EXCLUSIVE BY GAIL ALEXANDER
Expanded business opportunities and more jobs are in the pipeline as a result of the Heritage Petroleum Company Limited's plan to use more third-party service providers in fulfilling its exploration/production mandate.
That's among HPCL's plans which company CEO Mike Wylie spoke about with the Guardian last Thursday at Petrotrin's Port-of-Spain office. Replying to queries, he formally introduced himself to T&T, his background, how he got the job and what HPCL will be about.
Wylie began operations December 1 with HPCL's advent as part of the restructured Petrotrin entity under holding company Trinidad Petroleum Holdings Company Ltd. Other subsidiaries are Paria Fuel Trading company and Guaracara Refining, custodian of refinery assets.
Texan-born, it's Wylie's board-mandated task to get HPCL to the Top 25 international competitor level (from Petrotrin's bottom 25 ranking) and ensure exploration and production (E&P) drives the restructured entity as the Government plans.
Wide on qualification and experience globally, Wylie's management of the restructured entity is also informed by the plight of workers who lost jobs in the changeover: his family also experienced that when he was a child.
"As in all things…that was a beginning and this (Heritage) is also a beginning—not an ending," Wylie said.
"An ex-Petrotrin worker told me, 'Mike, I grew up staring at that (Petrotrin) fence hoping one day, I'd work there. I'd dream of it and I built myself and education around that as it was the best thing I could do for me and my family'.
"I can't think of anything in the US I look at that way," Wylie added.
"It tells me how important Petrotrin has been to T&T. I want people to feel the same way about Heritage. I want to build it into one of the best employers on work quality, training, happiness, and workplace success."
He was on the "ground" from Monday. Eighty per cent of his leadership team now in place, met Wednesday. He's met some officials of Paria Fuel Trading which will clean the crude oil produced by Heritage and store it. A mechanical engineer since intern days at Exxon-Mobil, he said he has "zero refinery experience" and has no involvement in Guaracara Refining company.
The Government had summarised Wylie as the person who'd get T&T's oil out of the ground and market it. He likes the description with one addition, "We're going to do it profitably. You won't see growth production at all costs—only in a profitable, responsible manner."
He's emphatic that T&T's oil production future is in enhanced oil recovery—his field of expertise in many places. "How well you control risk and understand and monetise the assets is what makes a successful E&P," he added.
First-year target: revive production back to over 40,000 barrels of oil per day, plus growing HPCL and understanding assets.
One of HPCL's new paths involves third-party job growth. He said many jobs which Petrotrin formerly did internally will now be done externally.
"E&P is a very small portion of the job. A large portion—as you start rigs—involves third-party contractors working (oil) fields. A well drilling operation adds 80 to 100 people to the job pool. A workover rig involves 20 to 25 people. In January we should be getting six to eight workover rigs running. Jobs will be expanded, but the job type is what's different."
He explained E&P companies' expertise is in engineering, geology, finance, risk management. "But E&Ps ask people to be multi-skilled rather than single-skilled. Best source for this expertise is via a contractor whose speciality is multi-skilled employees."
Plans for HPCL's mechanical, electrical and other workshops will be done by third parties, "rather than having a worker sit and wait for work".
"If I need a drill, I'll call a well drilling expert. This way, people stay busier in the long term, get better wages and generate a workforce that's more competitive and desirable internationally."
He'd contacted third-party contractors in January to set up a service supply agreement. This includes regarding HPCL assets.
Wylie wasn't expecting the magnitude of unused equipment the company has, "Some, never used. Hopefully salvageable. We'll figure out what staff can repair and get everything else cleaned."
He said HPCL has very good assets on and offshore—but lacks technology, capital investment, efficiency, maintenance, and upkeep. "Some assets are 100 years old; 'new' ones are 30 years and still operating when that lifespan's too long."
Wylie believes HPCL will "absolutely" require new technology with "significant" capital injection.
Wooing T&T expats
"We're working out funding. (But) Petrotrin's debt was passed to Trinidad Petroleum Holdings and the debt's there," he said.
Timeline for repair completion hinges on funding and the latter depends on HPCL's requirement. HPCL's budget is yet to be closed though there are projections. "We'll be spending money, it may escalate as we get simple things fixed," he added.
On projected profit figures floated by Government, Wylie said this would have been based on model prices, "We're building a company to survive a low oil price."
He's highly optimistic about T&T's prospects for crude oil marketing. "Multiple buyers were bidding for our crude. We haven't missed a beat. Our biggest market is US Gulf Coast refineries," he said.
To meet the targeted 800 staff complement, employees are being added, daily, he confirmed. "Some are from outside Petrotrin. There's a lot of talent in Petrotrin. We have no bias against ex-workers, we're just seeking the right people, right work attitude and culture on problem-solving."
Wylie's also wooing T&T expatriates, "There's a lot of T&T people all over the world. I put the word out there globally in initial recruiting, seeking them."
Reinforcing fenceline links
First outreach particularly focuses on fenceline communities. He said he is a "big advocate" for Science, Technology, Engineering, and Maths being taught in schools.
"Kids are a soft spot for me...ensuring kids of those communities have the right opportunities for education, training for instance—we'll see more of that."
Wylie's eager for HPCL engineers, scientists and other employees to be role models for students. But he doesn't favour entitlement mode which—in Petrotrin's case—presented problems when operations ceased. "We'll continue good neighbourly focus on Pt Fortin and Santa Flora. We should be part of helping. But not the entire part."
And he's aware healing from Petrotrin's cessation will take time. "It was a difficult situation: for those directly affected, it's traumatic; others may have felt it was time for something to be done.
"Your administration has focused on T&T's assets bringing value to the people so that's Heritage's direction: increased tax revenue and job growth. HPCL will be on the same standard as local and international companies, no exceptions. I may get some heartache about that at some point, but we'll be professional and consistent. We want to be a world-class company. That means we have to act like one."
PLANS INCLUDE
•Simple repair work offshore including damage from the big August earthquake, starting ASAP.
•Orientation on HPCL's identity, basis, brand, stability.
•Focus on crews in fields, effecting changes.
•From January, revived increased production with more than six workover rigs.
•Cleaning the large amount of stored oils on hand to outfit it for sale.
•Repair of ageing equipment/infrastructure.
•Onland drilling rig in operation by March.
•Also start-up of offshore workover rig programme.
•Introduction of different production-enhancing technological assets.
•Production-sharing partners have been assured nothing changes.
• Other agreements also came to HPCL via recent vesting of Petrotrin assets.
•Special team focus on project south of Soldado to source value from that.
• Risk management cost efficiencies to understand how to live in a one barrel (oil) environment and in case oil prices drop again.
• Behavioural training on safety.
Wylie frowns on incidents which plagued some HPCL locations during Petrotrin's end-stage operations last week. Only essential personnel operated on Monday when he went to HPCL's Southern locations to assess and ensure it was safe to bring out workers. On Wednesday all staff was out.
While understanding the development resulted from ex-workers emotional venting and minor dollar value was involved, he's concerned about effect on the reputation of Petrotrin, HPCL and T&T.
”It's not what banks want to see as we restructure. They want stability, predictability. When they see incidents and hear words like 'sabotage' and “'fire”, that's of concern to any investor. And should be to any citizen.
“Thieves also tried to take advantage of the transition taking minor stuff, scrap metal. There was no damage. All assets were protected and a great job of full production was ongoing in that period. When people steal from HPCL and Petrotrin, they're stealing from everyone in T&T including their children.
“In the past maybe, it was overlooked. But what used to be overlooked regarding minor theft, will no longer be overlooked. We'll be very focused and involved with the Police Service. The biggest focus I have in running this company is gonna be safety—we can't be good without that. Safety isn't something we do, it's something we are."