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PETROLEUM COMPANY OF TRINIDAD AND TOBAGO LIMITED 1

Petroleum Company of Trinidad and Tobago Limited

2007

PETROLEUM COMPANY OF TRINIDAD AND TOBAGO LIMITED

Presented by: Kain Look-YeeVice President, Exploration and ProductionPetrotrin

OLADE- Regional Energy Integration Forum FIER 2007 Medellin, Colombia

2007 November 28

Petrotrin and its Model

1


Presentation Outline

Company Overview Strategic Goals and Targets Upstream Downstream Future Plans


Location Map of Trinidad and Tobago

H O N D U R A S

N I C A R A G U A

C O S T AR I C A P A N A M A

J A M A I C A H I S P A N I O L A P U E R T OR I C OG U A T E M A L A

E LS A L V A D O R

C O L O M B I A

M E X I CO

C a r i b b e a n S e a

A t l a n t i c O c e a n

V E N E Z U E L A


PETROTRINPETROTRIN

Fully State Owned Company

Integrated Exploration, Producing, Refining and Marketing Organisation

Leading Oil Producer in Trinidad & Tobago

Contribution to National GDP + 7%

Stable Financial Ratings Baa2 Moodys BBB+ - S&P

Evolution of Petrotrin

TRINMAR LTD. 1993-2000

SHELL(1956 - 1974)

UBOT(1912 - 1956) (1974 - 1985)

TLL(1911 - 1956)

(1956 - 1985)

Petrotrin Established 1993 October 01

TPD (1918- 1961 )APEX (1919 - 1960)KTO (1920 - 1961)

BRITISHPETROLEUM(1956 - 1969)

TESORO(1969 - 1985)

TRINTOPEC(1985 - 1993)

2000

(1985 - 1993)

1993

MERGER (Expanded Trintoc) (1985)

Trinidad Northern Areas (TNA) 1952

1969-1974 1974-1985


Executive Chairman

President Operations

Chief Internal AuditorCorporate Sec.

GM Law & Land Management

VP Finance &Corporate Planning

VP HR &Corporate Services

VPExpl. & Production

Reporting Relationship

Board of Directors

Government of The Republic ofTrinidad and Tobago


ROACE

Production Portfolio

Market Share

Reserve Replacement

E&P Production Costs

R&M Margins

TARGETS14%

15% increase over current excluding revisions and at industry F&D cost levels

< 50% very mature40 50% gas

Maintain RegionalGrow Extra-Regional

US$ 2 per boe reduction in costs

US$ 2.0 per bbl Net Margin Contribution

HSE Targets50% improvement GFR100% Env compliance

Staff Satisfaction Score

Capabilities Gap

75%

90% of gaps closed

Petrotrin Strategic Goals Pyramid

HSE

Financial Discipline & Self Sustainability

Operational Excellence

BusinessOriented

Relationship

Growth Platform Development

Strategic Goals and Targets


UPSTREAM CHALLENGESUPSTREAM CHALLENGES

Declining production and reserves Stripper land operations High level of idle wells and unexplored

acreage

Aged infrastructure High operating costs Geologically complex reservoirs Limited experienced technical professionals


PETROTRINPETROTRINS UPSTREAM MODELS UPSTREAM MODEL

Risk

Farm OutsRisk Service (Future)Lease Outs

Growth Joint VenturesPSCs & E&P Licences

EXPLORATION CARRY

DEVELOPMENT

EXPLORATION

UNITIZATION

Joint VenturesProducing Fields

Petrotrin 100% E&P Licences

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PRODUCTION SHARING CONTRACTS (PSCs)

Title to mineral interest is retained by the State Contractor operates at his sole risk and expense

and is entitled to a recovery of its cost out of production (cost recovery hydrocarbon)

After cost recovery, the balance of production (profit hydrocarbon) is shared on a sliding scale split between the state and the contractor as per contract terms

Projects are typically ring fenced for tax purposes Unlike concessions, Government has a managerial

say in the operations (approval of work programme, budgets etc.)


LEASE OPERATORSHIPS AND FARMOUTSLEASE OPERATORSHIPS AND FARMOUTSKEY ELEMENTSKEY ELEMENTS

LEASE OPERATORSHIP Sub-Licence for five (5) years Only wells leased Limited rights to petroleum in

block Drilling optional Production / Well Servicing

expertise required Low CAPEX required ORR to Petrotrin

FARMOUT Sub-Licence for five (5) years Acreage leased Unlimited access / rights to

petroleum in block Drilling obligation Wider range of expertise

required Higher CAPEX required ORR to Petrotrin


JOINT VENTURESJOINT VENTURESKEY ELEMENTS KEY ELEMENTS

Partner(s) earns equity by meeting its work obligation

3-D Seismic and exploration drilling commitment

Generally Petrotrin has an Exploration carry and pays its share of development cost.

Contribution to training and scholarships for Nationals.

Signature bonus

EXPLORATION JVEXPLORATION JV

Blocks Production transferred to JV on execution of contract

Drilling A Key Commitment Bonus payment to Petrotrin for

developed reserves and facilities

Partner funds Petrotrins share of the minimum work obligations (MWO)

DEVELOPMENT JVDEVELOPMENT JV


UNITISATIONUNITISATIONKEY ELEMENTSKEY ELEMENTS

Merging of contiguous leases and developing areas jointly

Expenses and revenues shared according to a mutually agreed percentage split

Selected reservoirs or all reservoirs may be unitised


Exploration & Production Alliances

NumberProduction as at 2007 October

of Oil Gas Oil & Gas

Blocks BOPD MMSCFD BOEPD

Joint Ventures 16 3,838 134.7 27,068

Lease Operators 23 4,581 0.7 4,701

Farmouts 13 2,091 - 2,091

Total 52 10,510 135.4 33,860


LEASE OPERATORSHIP, FARMOUT AND JOINT VENTURE LEASE OPERATORSHIP, FARMOUT AND JOINT VENTURE

OIL PRODUCTIONOIL PRODUCTION

LO/FO/JV OIL PRODUCTION

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Lease Operatorships Farmouts JV's (100%) - Land & Nearshore


Gas Production Profile 1994-2007 (MMSCFD)

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

1994

1995

1996

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1998

1999

2000

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2003

2004

2005

2006

2007

M

M

C

F

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Own Operated JV/LO/FO

NCMA/ Central Block

SECC Conversion

NCMA


Oil & Gas Production Profile 1994-2007 (BOEPD)

0.0

10000.0

20000.0

30000.0

40000.0

50000.0

60000.0

70000.0

80000.0

90000.0

100000.0

1994

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2007

B

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Own Operated JV/LO/FO

NCMA/ Central Block

SECC Conv. /TSP

NCMA


PARTNERS International Major Oil & Gas Companies

BG BHP Talisman Anadarko EOG Resources Petro-Canada ENI Repsol Total

International Independent Oil & Gas Companies Canadian Superior New Horizon Trinidad Ltd

Local Independent Oil Companies Neal and Massy Energy Resources Ten Degrees North Primera


DOWNSTREAM CHALLENGESDOWNSTREAM CHALLENGES

Aging and inefficient equipment Low valued product slate More stringent gasoline and diesel

specifications Market competition (PetroCaribe) Competition for experienced technical

professionals


Pointe-a-Pierre Refinery

Established 1917Average Crude Capacity of 160,000 BOPDPhase 1 Upgrade Completed 1997GOP Upgrade In ProgressGTL Plant In ProgressULSD Project in Planning


PETROTRINPETROTRINS DOWNSTREAM MODELS DOWNSTREAM MODEL

Risk

Old Point Fortin Refinery FacilitiesConverted to Terminal Operations

Downstream Joint Ventures

New Products e.g. GTL

PAP Industrial EstateSynergistic Refinery/Other

Companies to improve fuel oil yieldPointe a Pierre

RefineryAvg. Capacity 160,000 bpd

Clean Fuel Upgrade in Progress

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Lease out of Acreage


Sources of Crude Supply (MBPD)Indigenous (Molo) 62.0

South America 64.0(Venezuela, Colombia, Ecuador and Brazil)

West Africa 34.0(Nigeria, Gabon D.R. Congo and Angola)

TOTAL CRUDE 160.0

Main Products(Domestic Usage approx 20% of Total Volume)

LPG Aviation Gasoline Motor Gasoline Kerosene/Avjet

Gas Oil/ No. 2 Fuel Oil Fuel Oil Bitumen Sulphur


FUTURE PLANS

Expansion of JV/LO/Farmoutprogrammes

Risk Service Contracts Partnerships for

development of heavy oil and tar sands

Cross Border Unitisation of Gas Fields (Venezuela)

Participation in new bid rounds

International Joint Ventures

Completion and Commissioning of Gasoline Optimization Project

New ULSD Distillate HDS/HDA Unit

Offsites and Utilities Upgrade Crude Distillation Unit

Upgrade

Berths Upgrade Upgrade of Sour Water

Treatment Facilities

Upstream

25

Upstream DownstreamDownstream


2007

Thank YouThank You

Petroleum Company of Trinidad and Tobago LimitedPetroleum Company of Trinidad and Tobago Limited

Presentation OutlineLocation Map of Trinidad and TobagoPETROTRINEvolution of PetrotrinPRODUCTION SHARING CONTRACTS (PSCs)LEASE OPERATORSHIPS AND FARMOUTSKEY ELEMENTSUNITISATION KEY ELEMENTSExploration & Production Alliances PARTNERSPointe-a-Pierre RefinerySources of Crude Supply (MBPD)FUTURE PLANS

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