bp Trinidad and Tobago (bpTT) has said it is deeply concerned and disappointed that confidential information it shared at a recently held technical meeting ended up in yesterday’s Trinidad Guardian Newspaper.
The company lamented that the information was shared under a condition of confidentiality, in which it was expressly stated that it was a forecasted view that was subject to change and that further dissemination required bpTT’s consent.
The multinational said while it understands that natural gas production is of national importance, forecasts shared without full context can be damaging to the country’s reputation and confidence in its energy industry, ‘particularly as we know these forecasts will change’.
Guardian Media reported exclusively that bpTT told the Dr Keith Rowley administration that going forward it should expect much lower than forecasted natural gas production, with the shortfall being as high as 15 per cent this year and over ten per cent until 2024.
In a confidential series of documents which Guardian Media obtained copies of, bpTT also told the administration that it has sustained significant losses over the last five years, including a whopping $2.825 billion before tax last year.
The documents show that even with the announced projects like Matapal and Cassia C, while they will increase production by about 140 million standard cubic feet per day (mmscf/d) of gas, this will still fall short by an average of over 200 mmscf/d.
The following questions were sent to bpTT on the issue:
Can bpTT say whether it has revised its estimates of natural gas production downwards between now and 2030?
Can bpTT say what has occasioned the lower projected volumes?
Can bpTT say if it is unlikely to return to the 2bcf/d before the middle of the decade?
What does this reduced outlook mean for LNG supplies to T&T?
Is the limiting factor discoveries or investment?
However, bpTT’s response was guarded.
“We do not comment on long-term forecasts because they include assumptions on exploration and appraisal activity, unsanctioned projects and volumes from developments operated by others. These all carry a degree of uncertainty and are subject to change. Our goal remains to efficiently find and develop resources to satisfy our contractual obligations,” the energy giant said.
The bpTT forecast, which continues until the end of the decade, shows the company will not return to producing the two billion cubic feet of natural gas.
bpTT has for decades been the largest single private-sector contributor to government revenue and foreign exchange earnings.
bpTT said the documents represent a long-term forecast which that by its very nature, was a snapshot at a point in time based on a set of assumptions about future investments and development activity that is subject to change.
“For this reason, we do not share or comment on long term forecast publicly as we expect that the longer term outlook will change as exploration, appraisal and development work progress and our job as a responsible operator is to continue to invest, innovate and partner to maximize the recovery of resources in existing and new basins.”
The company has neither denied the authenticity nor accuracy of the documents.