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Perenco casts sight on Petrotrin’s Trinmar assets
Managing director of Perenco Trinidad, Baptiste Breton, says the French oil and gas company would be interested in Trinmar should the government make it available.
Breton was quick to add, however, that as far as he was aware there is no such offer on the table.
In a rare interview he told Business and Money, “Of course we will be interested in the Trinmar asset if it is on the table. We would certainly look at it. We are a company interested in mature oil and gas assets and we are looking for opportunities in T&T but we have not seen any at the moment.”
The government has stated its intention to fix Petrotrin this year and has lamented that the company’s cost of producing oil both on land and in its Trinmar asset was too expensive and would require a mixture of capital injection and significantly more investment to make it profitable.
In addition, it is well known that the Trinmar asset, which produces around 20,000 barrels of oil per day (bo/d), has significant potential to produce a lot more oil.
The Trinmar asset has more than 100 million barrels of proven reserves and significant exploration prospects but has not been able to bring the oil to market because of ageing infrastructure.
Perenco is known globally for purchasing aging assets and turning them around.
It is also the operator and 70 per cent owner of the Teak Samaan Poui or TSP fields off the east coast of Mayaro that was once operated by Amoco.
Breton said Perenco is confident that by 2020 it can increase TSP daily production to in excess of 15,000 barrels of oil per day.
This would be a 25 per cent increase in production from its current 12,000 bo/d.
“You have to consider that we are losing 500 to 1000 bo/d in production every year and therefore what we are doing is saying we will compensate for that annual loss and plateau the production to more than 15,000 bo/d and this can be done by 2020.”
According to Breton, the strategy would be a mixture of drilling new wells and doing significant work over of many of the wells that have already been drilled.
He noted that, at present, TSP has over 100 wells drilled but only 60 per cent were producing.
He said the idea was to reopen some of the shut-in wells and allow for growth of the asset.
This year the company intends to do six well workover programmes that it hopes will stabilise production between 12000 bo/d and 13000 bo/d.
“We have not indicated how much money we are going to spend in the next year because that is not a public figure but it is going to result in six workover wells being done in the next calendar year that we expect would ensure we don’t lose any production and that will marginally improve our overall figures,” said Breton.
He added that over the last 20 years as the field declined, so too did the drilling in the fields to the point where there were only an average of three wells.
He noted there have been some workover wells that produced as much as 3,000 bo/d when they are first started up in the asset.
He told the Energy Chamber’s annual Energy Conference at the Hyatt Regency hotel that Perenco does not believe in allowing ageing fields to die a natural death but adopts the approach of being able to significantly extend the life of fields.
TSP was started in 1974 and peaked production in 1977 at 144,000 bo/d.
It has, so far, produced 30 per cent of its original reserves.
Upon purchasing the asset one year ago from the Spanish outfit Repsol, Perenco’s CEO, Benoît de la Fouchardiere said, “We are very pleased to be entering T&T with the acquisition of a 70 per cent interest in the Teak, Samaan and Poui fields. Maintaining production from ageing assets is a core Perenco competence, and this transaction highlights Perenco’s delivery of our operator-led strategy. We look forward to a long partnership with T&T and welcome the former Repsol employees to Perenco.”
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