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  • Trinidad & Tobago

    This special report has been produced by Elite Special Sections for distribution with Oil & Gas Journal

    New investment and technology revitalize an oil pioneer

    Trinidad and Tobago still has vast petroleum potential, despite more than a century as an oil producer. Oil and gas explorers are taking a fresh look thanks in part to government efforts to take the nations upstream and

    downstream industries to new heights

  • Government determined to create a globally competitive fiscal regime for oil and gas

    After a century as an oil producer, Trinidad and Tobago could be forgiven for choosing a quiet retirement from the petroleum business. But the small Caribbean nation of only 1.3 mil-lion people is determined to carve out an even bigger future in the upstream and downstream sectors.

    The country already punches above its weight in the worlds petroleum busi-ness. It ranks among the worlds top 20 gas producers, with an output of 40.7 billion cubic metres in 2011.

    BP produces more than half of this gas and is the largest petroleum producer in the country, where it has operated since the 1960s.

    Most of the countrys gas produc-tion is processed into 15 million tonnes of LNG every year by Atlantic LNG at the Port Fortin facility. Large volumes are also taken by US-based Methanex, which operates the worlds biggest methanol and ammonia plants at Points Lisas Estate.

    Oil production is a smaller part of the countrys petroleum economy, total-ing 136,000 barrels of oil per day across hundreds of wells onshore and offshore. Production has declined by about 30% since 2007, but this reflects chronic under-investment rather than any dry-ing up of the countrys oil opportunities.

    Trinidad and Tobago is part of the Eastern Venezuelan Basin, which is

    widely regarded as one of the oiliest places in the world. The country has already produced 3.5 billion barrels of oil, but this represents only 20% of the discovered reserves of 16 billon bar-rels. The leading geological expert on the region, Dr Krishna Persad, believes another 16 billion barrels of oil are still waiting to be discovered, along with an-other 50 TcF of gas.

    Trinidad and Tobagos coalition government of Prime Minister Kamla

    Persad-Bissessar, which came to power in 2010, is determined to attract new investment to realise some of this po-tential. It has a long-term vision for the countrys petroleum industry, but there are also pressing issues that require swift and effective action.

    The most urgent priority is a turna-round of the decline in oil production. The petroleum sector provides about 60% of public revenues, and the recent decline in oil production is eroding this critical revenue base. The countrys fi-nances remain in a very strong position, thanks to conservative management of many years of petroleum wealth. Trini-dad and Tobago had more than $US10 billion in foreign exchange reserves at

    Tax changes and new programs revitalize petroleum sector

    Human resources, a rich natural endowment of oil and gas and low production costs, make Trinidad and Tobago one of the most attractive places in the world to explore

    Mr. Larry Howai Minister of Finance and the Economy

    Sector revitalization

    Petrotrin

    Offshore

    Onshore

    NGC

    Downstream

    First Citizens

    Servicing

    Infrastructure

    Summary

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    CONTENTS

    All production and editing was done by

    www.elitespecialsections.com

    Project Director: Nathalie Martin-Bea

    Writing: David Upton

    Design & Layout: Antonio Caparrs

    Photos courtesy of: Petrotrin, NGC, NEC, PLIPDECO, TOFCO, BP, Methanex and Oscar Segura

    Published April 2013 in Oil&Gas Journal

    Special Thanks to:

    Minister of Finance Senator Larry Howai, Minister of Energy and Energy Affairs Senator Kevin Ramnarine, Minister of Transport Mr. Chandresh Sharma, The Energy Chamber of Trinidad and Tobago and its CEO, Dr. Thackwray Dax Driver and the Communication Departments of Petrotrin, NGC, NEC and PLIPDECO

    The staff of OGJ and Daniel Bernard for their help and support

    the end of 2012, and a sovereign wealth fund (the Heritage and Stabilization Fund) with a further $US4.5 billion.

    But government receipts from oil production have tracked downwards for almost a decade and the government is acutely aware it needs to act to avoid a permanent shift to a lower revenue base.

    Another key priority is finding more gas to feed the huge appetite of Atlantic LNG and the 90 downstream companies at Port Lisas Estate. The governments 2012 audit of gas reserves, conduct-ed by consultants Ryder Scott, shows proved gas reserves of 13.3 Tcf at the end of 2011. While this is a decrease of only 0.2 TcF or less than 2% from the previous year, it is part of an unbroken downward trend from a peak of 20.8 Tcf in 2002.

    BPs latest Statistical Review puts a figure of 14.2 TcF on the countrys prov-en gas reserves, slightly higher than the Ryder Scott figure. However, BPs review

    also points out that proven reserves will last for only 9.9 years at current rates of production.

    The outlook for oil reserves is less worrying, but is helped by the fact that falling production is placing less stress on the existing resources. BPs Statistical

    Review estimates total proved oil re-serves of 800 million barrels at the end of 2011, which will support another 16 years of production at current rates .

    The task of reversing the oil produc-tion decline and rebuilding gas reserves is led by Minister of Energy and Energy Affairs, Kevin Ramnarine, who was just 39 years of age when appointed to the role in 2011. He is possibly the young-est energy minister in the world, but his background as a petroleum engineer and experience as an economist with BG in Trinidad and Tobago also make him perhaps the best qualified.

    Ramnarine is under no illusions about the changing competitive envi-ronment for petroleum investment.

    The world 20 years ago was very different to today. Trinidad and Tobago was a very sought-after destina-

    tion for E & P in-vestment, but now we have to compete with new players, such as Ghana, Mo-zambique, Tanza-nia, Colombia and of course Brazil. Therefore we have

    to constantly reassess our fiscal system to ensure we are competitive.

    Ramnarine says a number of im-provements have already been made over the past three years. The most significant changes were in last years national budget, and included the in-

    we have to constantly reassess our fiscal system to ensure we are competitive

    Mr. KEvin raMnarinE Minister of Energy and Energy affairs

    Gulf of Paria in La Brea

  • troduction of special supplemental petroleum (SPT) tax rate for new field developments to encourage the devel-opment of smaller pools of oil and gas with marginal economics.

    Ramnarine says the country still has work to do. Cabinet has just appointed a committee to consult with all stake-holders in the energy sector and has terms of reference that include heavy oil development and reform of produc-tion sharing contracts. The committee will report in six months, and I am hoping to take up some of the recom-mendations in this years budget.

    President of the Energy Chamber, Roger Packer, says Trinidad and Tobago has some challenges and even more needs to be done to encourage exploration and investment in gas. We need to incentivise the E & P companies because when you are drilling offshore you need deep pockets. There are many smaller gas reserves out there that are not economic, but with the right tax incentives it will be possible to develop these fields and turnaround the decline in reserves.

    The governments determination to revitalize the petroleum sector has other

    dimensions than protecting public finances. Oil and gas has dominated the countrys affairs for several generations, and the industry is a way of life for the people of Trinidad and Tobago. The countrys schools and universities, which are free for all citizens right up to the level of PhD study, are geared for training people to work in oil and gas.

    Minister of Finance and the Econo-my, Larry Howai, says the countrys hu-man resources, combined with a rich natural endowment of oil and gas and low production costs, make Trinidad and Tobago one of the most attractive places in the world to explore.

    In terms of human resources, we have one of the highest literacy rates in the region, and we have a very high level of tertiary level graduates. We have a high level of intellectual capital floating around in Trinidad and Tobago, as well as a low cost of operations and an attractive fiscal regime. All these things contribute to attracting large investors, and explain why such a small country is globally significant in terms of exports of LNG and ammonia.

    Ramnarine says improvements to the countrys fiscal regime is already leading

    Tax ChaNGeS SO Far AcutintheSPTrateforpre-1988offshoreareasfrom42%to33%,

    bringingitintolinewithrateforpost-1988areas,andtheintroductionofallowances for operators of small and/or mature fields

    TheintroductionofspecialSPTrateof25%fornewfielddevelopments

    Acutinthepetroleumprofitstaxfrom50%to35%foroffshorefieldsinwaterdepthsofatleast400metres

    Anincreaseinthecostrecoveryto80%foroperatorsofdeepwaterfields

    The introduction of a 140% capital uplift for exploration in deephorizons,definedas8000feetormoreonlandand12,000feetormorein marines areas

    Energy Map of Trinidad and Tobago May 2012. Source: Ministry of Energy and Energy Affairs

    www.petrotrin.com

    Petroleum Company of Trinidad and Tobago Limited (Petrotrin), the integrated, national oil and gas company of Trinidad and Tobago, has a rich and diverse history of operations, incorporating Exploration and Production and Refi ning and Marketing operations that are more than a century old.

    The company has within its portfolio a large complement of legacy assets and plants initially developed and installed by a variety of major multinationals as well as several new plants and projects that it has deployed in its thrust to retain its competitive advantage.

    In 2013 January, the company celebrated its twentieth (20th) anniversary of incorporation as Petrotrin, and continues in its pursuit to deliver superior results through safe and responsible operations in the areas of Exploration and Production and Refi ning and Marketing.

    Petrotrin continues to be an attractive investment destination for parties seeking business opportunities in the following areas:

    Onshore and offshore exploration and production

    Refi nery upgrade

    Environmental management

    ENERGY BASED, PEOPLE POWERED

  • to a pick up in exploration activity, as well as some exciting new discoveries.

    One of the best proxies for the sec-tor is the number of rig days, which increased by 27% to 2,788 in 2012 compared to the previous year. Thats the highest count since 2007. While it is difficult to accurately forecast rig ac-tivity, we expect it to top 3,000 days in 2013 as exploration activity accelerates. That activity translated into three dis-coveries in 2012- Petrotrin in Cluster 6, Bayfield in East Galeota and BP in the Savonette field.

    The biggest of the three discoveries is BPs Savonette-4 well, which added 1 TcF of gas reserves to its Savonette field in shallow water in the Columbus Basin. The discovery is BPs largest in Trinidad and Tobago in seven years and is an early reward for a significantly increased exploration program.

    A bigger future in gasThe shale gas revolution in the US has sent shockwaves through the global gas industry. Atlantic LNG was origi-nally cast as one of the losers because about 80% of its cargoes went to the US, which no longer needs to import gas.

    However, Atlantic LNG has been adept at switching to new customers in Latin America, Europe, Japan, China and Tai-wan. US customers now account for only 20% of sales. The company, owned by BP, BG, Shell (which recently bought Rep-sols interest), the government- owned National Gas Company and a subsidi-ary of the Chinese Investment Corpora-tion, is still producing at capacity and is achieving better prices than gas sold in the US at Henry Hub-linked prices.

    Atlantic LNGs competitive position is helped by the fact that its four trains were built long before the global blow-out in LNG constructions costs. The first train was commissioned in 1999.

    The high-price LNG markets in Asia will become more accessible next year with the completion of the Panama Ca-nal expansion. Closer to home, Panama and Costa Rica are both preparing to build re-gasification terminals as part of a switch from oil and diesel to LNG for power generation.

    Atlantic LNG Chief Executive Nigel Darlow says he sees a very bright future for the company, despite the massive amount of new ca-pacity under construction around the world and the likelihood of LNG exports from the US.

    If you speak to most industry experts, the consensus view is global demand for LNG will outstrip sup-ply over the next 10 to 15 years. There will always be a market for Atlantic LNG. Last year, the world produced 247 mil-lion tonnes of LNG. The view is that by 2025 the world will need to produce 425 million tonnes of LNG. That assumes the existing base will still be there, but some of that is in decline, so you will need to double the LNG supply over the next 10 years. Thats a huge challenge for the world, even with Australia, the US and new projects in East Africa.

    Energy Minister Ramnarine says the world is undergoing a huge transition towards gas in which Trinidad will play a major role. We are still the sixth larg-est exporter of LNG in the world, which is a great achievement for a country with relatively small gas reserves and a popu-lation of only 1.3 million people. this country will continue to play a major

    role in gas over the next 30 years, and the a lot of new reserves will come from exploration taking place right now in our shallow water and average depth water.

    Key strategiesThe improved fiscal regime is only one of a number of government strategies to kick-start the revival of the countrys pe-troleum sector.

    The national oil company Petrotrin has been given a new mandate to boost production from its existing assets and invest heavily in exploration.

    Petrotrins petroleum sharing con-tracts over the so-called Trinmar leases off the west coast were recently renewed with the Energy Ministry. Petrotrin has committed to invest $US300 million, which includes reactivation of 60 wells capped more than 10 years ago in South West Soldado field. This activity accel-erated last month with the arrival of a second workover rig. Petrotrin will also conduct a 3D seismic survey and drill up to six exploration wells.

    The Energy Ministry also signed a new licence with Trinity Exploration and Production for the Point Ligoure, Bright-on Marine and Guapo blocks, known as the PGB acreage. Trinity is the largest in-dependent based in Trinidad and is rid-ing the resurgence in the countrys petro-leum industry.

    Further off the east coast, the govern-ment has just completed its most suc-cessful release of deepwater acreage in 14 years. BHP Billiton, which is the countrys largest oil producer, picked up all four permits to be awarded with a commit-ment to spend a total of $US565 million.

    At the other end of the spectrum, new opportunities are being created for small operators with last months launch of first onshore acreage release since the late 1990s. Ramnarine says the onshore release is a key component of the govern-ments strategy to turn around the decline in oil production.

    Pipeline construction

    The consensus view is global demand for LnG will outstrip supply over the next 10 to 15 years. There will always be a market for atlantic LnGMr niGEL DarLow, aTLanTic LnG cEo

  • Petrotrin is Trinidad and Tobagos integrated national oil company with operations in both the upstream exploration and production (E&P) sector and downstream petroleum refining sector

    President Khalid Hassanali makes the point that while the companys revenue comes from sales of refined products, the production of every barrel of crude contributes to the companys refinery margin.

    At Petrotrin we live on the refinery margin. Thats what we look at every day, and right now the margins are healthy.

    Petrotrins solid position is in sharp contrast to other refineries in the Caribbean. In Jan-uary 2012, Hovensa, a joint venture be-tween Hess and Venezuelas national oil company, closed its refinery at St Croix on the US Virgin Islands.

    With a capacity of 500,000 barrels of oil per day (bopd), the Hovensa re-finery was among the 10 largest in the world, yet it still chalked up losses of

    $US1.3 billion over the previous three years. Valero Energy later announced it would close its 235,000 bopd Aruba refinery, also because of poor margins.

    Hassanali says Petrotrin has a num-ber of competitive advantages over other refiners in the region. We are in a better position than the merchant re-

    finers because about 40% of the crude we process is from our own production. That helps our margin.

    Petrotrin is pursuing a multi-pronged strategy to improve the margin of its re-fining business. At the top of the list is boosting the volume of oil from its own fields for processing through the com-

    panys 175,000 bopd nameplate capacity refinery at Pointe-a-Pierre.

    This strategy is aligned to the nation-al mandate articulated by the Govern-ment of Trinidad and Tobago to increase domestic crude production in an effort to further bolster the countrys economy.

    Petrotrin is already the countrys largest oil producer, with an output of about 43,000 barrels per day represent-ing approximately 50% of national pro-duction.Hassanali indicated that in the past year Petrotrin has been successful in stabilizing oil production levels after a period of decline.

    We are now embarking on a number of exciting programs. Some are already producing results. I am very confident we will see an increase in the short term, with much larger gains as new explora-tion and production initiatives are imple-mented. The quickest wins are coming from a new focus on the productivity of Petrotrins offshore properties in the Gulf

    Petrotrin, creating a secure future

    we are in a better position than the merchant refiners because about 40% of the crude we process is from our own productionMr. KHaLiD HassanaLi Petrotrin President

    of Paria, which produces a total of about 22,000 bopd. Chemical treatments to de-wax flowlines from offshore fields result-ed in an immediate production increase of more than 600 barrels of oil per day.

    In the Southwest Soldado offshore area, Petrotrin is making an initial invest-ment in reactivating 40 of 60 wells that had been drilled over the past decade but which remained inactive as a result of of sub optimal facilities availability. The organization is also planning to drill up to 20 new wells over the next year, including 18 development wells and 2 exploration wells in the Soldado acre-age. Production wells will be connected to a Floating Production Storage and Offtake (FPSO) vessel.

    Hassanali is particularly excited about the recent Jubilee discovery in the Cluster 6 area. Jubilee is a moderate sized new field with initially estimated volumetric reserves of 48 million barrels of oil, but its real significance lies in the discovery of light oil below a reservoir of heavy oil that is typical of the area. This creates the possibility of blending to dramatically improve the production rates of Petrotrins heavy offshore crudes.

    Hassanali says that the company is focused on boosting production in the shortest possible time and there is a new urgency in exploration and production activities. For example, one of our dis-covery wells from the 2011-12 drilling program was tied back to the onshore infrastructure as a producer within a matter of months.

    We are also changing our focus on productivity in the offshore leases. Our people would head out and return each day, which left only a few hours of op-erating time. We are now building off-shore accommodation on a number of our platforms with a view to operating on an offshore shift basis so we can pro-gress our plans more efficiently.

    Onshore, Petrotrin is also pursuing production gains from existing fields, but the companys primary focus is on ex-ploration for larger and more productive structures. In 2011, the company con-ducted the most comprehensive onshore 3D seismic survey undertaken in Trini-dad and Tobago, on a 312-square kilo-meter area on the South West Peninsula.Seismic data processing was completed

    recently, with interpretation in progress, which will be used as the basis of a new exploration drilling campaign in 2013. Hassanali says the companys geoscien-tists working on interpretation of the seismic data are optimistic about the po-tential for new onshore discoveries.

    Petrotrin has a number of other strat-egies for boosting onshore production that will progressively deliver higher volumes. In the shorter term, the com-pany is taking a more vigorous approach to managing its joint ventures. Petrotrin is also working with the Government on

    opening up new onshore acreage to at-tract exploration investment from inter-national companies.

    Improving oil production is only one of the levers available to Petrotrin in its quest to improve refinery margins. Has-sanali says other strategies for improving the companys bottom line are increased sales of higher-valued, refined products and better management of costs.

    We have just completed a very major upgrade of our refinery which we call the Gasoline Optimization Programme. This includes an upgraded catalytic cracker and the addition of other key units, which allow us to produce finished, higher-valued products of a quality to meet stringent market specifications.

    We are also near completion of an Ultra Low Sulphur Diesel plant that will produce diesel fuels that meet the most strict specifications in Europe and other international markets. We are actively pursuing these new markets and opportunities to move even further down the refined products value chain, Hassanali says.

    Over the next four years, Petrotrin will invest a total of US$2 billion in initiatives to boost its production and business performance. It is a large sum, but the risks are spread and there is a huge potential payback for Petrotrin, as well as Trinidad and Tobago.

    Petrotrin is also taking a lead role in reducing carbon dioxide emis-sions with a new project that will capture gas normally vented into the atmosphere from onshore oil wells. This project is aligned with the United Nations Clean Development

    Mechanism (CDM) initiative, a project which will help to reduce the coun-trys overall greenhouse gas emissions. The recovered gas will be processed and sold to customers.

    By registering the project as Trinidad and Tobagos first CDM, Petrotrin will be able to generate internationally recognized carbon credits. Proceeds from the sale of credits on global markets will be used to subsidize the cost of gas collection. The project is expected to reduce greenhouse gas emissions by the order of 400,000 metric tonnes of Carbon Dioxide annually, which is equivalent to the removal of about 80,000 cars from the countrys roads.

    Hassanali says the project reduces the countrys carbon footprint and improves energy resource use and sustainability.

    It is also bringing new technology to the local energy sector and generating a significant number of employment opportunities. We are very proud to be this projects sponsor, owner and developer.

    Courtesy of Petrotrin

  • Trinidad and Tobagos offshore petroleum areas offer an exciting mix of opportunities

    I n shallow waters off the east coast, the 50-year-old Galeota Block is a classic example of the opportuni-ties available to new entrants who are prepared to bring investment and mod-ern technology.

    The heart of the block is the Trintes field, which has produced 28 million barrels of oil since coming on stream in 1972. Four platforms have been installed over the life of field and oil produced from a total of 62 wells. In 2009, Petrotrin awarded a 65% interest in the block to Bayfield Energy, a company formed a year earlier by local petroleum industry executives who

    had seen the potential for redeveloping Galeota. AIM-listed Bayfield took over the operator role from Petrotrin, which retained a 35% interest.

    Since the end of 2010, Bayfield has carried out almost 66 work-overs and drilled 14 sidetrack wells at Trintes, using longer reach drill technology than previ-ously available. Production had almost doubled to 2,040 barrels of oil per day by mid-2012. A continuing platform-based drilling program is expected to increase production to over 4,000 bopd by the end of 2013 and almost 8,000 bopd in 2016.

    Bayfield ran out of cash in late 2012, but its work program for Galeota is con-

    tinuing following a takeover by locally headquartered in-dependent, Trinity Exploration and Production. The takeover was con-cluded earlier this year and included a $US90 million capital raising to fund an aggressive work program over 2013 and 2014.

    Elsewhere in the block, Bayfield conducted a 3D seismic survey and acquired 200 km of 2D data to sup-port further explo-ration and apprais-al of a number of discoveries made in the 1980s. The first of its explora-tion wells, EG8, made a significant oil and gas discov-

    ery in March 2012. The newly enlarged company plans to drill three exploration wells from the existing platforms. An-other two wells will be drilled in part-nership with Repsol to appraise the E8 discovery, which extends into Repsols neighbouring licence.

    Deepwater frontierGaleota is one of many old fields in the shallow waters of Trinidad and Tobago that are ripe for redevelopment. The fields are low to medium risk in terms of exploration difficulty, and field sizes of up to 50 million barrels are common.

    Further off the east coast towards the Atlantic, a new deepwater frontier is finally attracting strong interest from international oil companies. The region is very lightly explored, but has the promise of some two billion barrels of oil, according to local expert Dr Krishna Persad. The governments own estimates place potential for up to 24 TcF of gas and 4.2 billion barrels of oil.

    The Energy Ministry has encouraged exploration in this deepwater frontier for over a decade, but until recently had managed to award only two blocks to BP. In the latest round in 2012, the government finally cracked the code according to Ramnarine, and will offer another new round in April 2013.

    Bids for the 2012 blocks were received from a whos who of interna-tional oil companies, but BHP Billiton made a clean sweep, picking up all four blocks to be awarded. The diver-sified Australian resources giant, which boosted its petroleum arm in 2011 with $US20 billion of US shale gas acquisi-tions, has committed to spend $US565 million in Trinidads deepwater Atlantic province. This includes 5,330 square

    Offshore beckons with promise of old and new

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    kilometers of 3D seismic and six deep-water exploration wells.

    BHP Billiton began exploring in Trinidad and Tobago in 1996 and made its first discovery in 1999. Oil production began in 2005 from the Angostura project, with gas production following in 2011. Country Manager Vincent Pereira says the deepwater acreage win is very significant for the company. We are very excited by this opportunity. We have a very significant deepwater business in the Gulf of Mexico and we will be bringing that capability to Trinidad and Tobago.

    BP secured a 100% interest in two deepwater blocks in July 2011 and has quickly advanced its exploration program. The company has conducted ocean bottom cable seismic in its deepwater permits in what is a technological first for exploration in the country.

    The Savonette platform operated by BP

    NEC tugboats at the port of Pointe--Pierre

    we are very excited by this opportunity.

    we have a very significant deepwater

    business in the Gulf of Mexico and we

    will be bringing that capability to Trinidad

    and TobagoMr. vincEnT

    PErEira,

    BHP Billiton country Manager

  • New drilling technologies and 3D seismic are making onshore oil exploration more rewarding and attracting overseas players

    Offshore has dominated Trinidad and Tobagos modern era of pe-troleum activity, but the once-prolific on-shore areas are coming back into focus after decades of decline.

    The countrys onshore oil fields date back more than a century and tradition-ally have been reluctant producers, with enhanced oil recovery techniques used as far back as the 1950s to boost produc-tion rates measured in the 10s of barrels per day. The Energy Ministry has made boosting onshore investment a key prior-

    ity because it offers one of the best hopes in the short term of reversing the national decline in oil production. Onshore fields still produce about 14,000 barrels of oil per day, and have potential for signifi-cantly increased output.

    Minister Kevin Ramnarine says the onshore fiscal regime is now much more competitive and this has led to a renaissance of drilling activity. We expect 19 wells onshore in 2013, which is the most exploration wells in more than a decade.

    The surge in activity is led by Trinity Exploration and Production. The home-grown petroleum explorer and producer plans to drill 12 exploration wells in 2013, aimed at adding to its onshore 2P reserves of 2.1 million barrels. Onshore production is currently about 2,000 bar-rels per day, including 1,320 barrels per day from the WD-5/6 field.

    The attractive economics of onshore oil were highlighted in the recent of-fer document for Trinitys $US90 mil-lion capital raising. Consultants to the

    Onshore revival set to boost oil output

    company estimated a cost of between US$0.6 million and US$1 million for each well, with production expected in the range of 26 to 57 barrels per day.

    The profit potential has also caught the attention of overseas companies, with AIM-listed Leni Gas and Oil of the

    UK boosting its presence and ASX-listed Range Resources of Australia entering the countrys onshore sector in the past year.

    Leni Chief Executive Officer, Neil Rit-son, says Trinidad is an attractive propo-sition for the company and his aim is to achieve production of 5,000 barrels of oil per day in the next five years. Trini-dad is an exact fit with our corporate strategy of onshore oil in existing fields which can be redeveloped given the current oil price sce-nario and with new tech- nologies. There is a wealth of opportunity here. Leni acquired its first field in 2008 and substantially increased its footprint in 2012. To date, the focus has been on workovers, but new wells will be drilled in 2013 using newer technology such as coil tube drilling to reduce costs.

    We are also looking at bringing some sand control technologies using modern polymers that have never been used here. And even in the more mundane

    areas of water treatment, we have access to some new technologies in the US that will allow us to operate more efficiently.

    The biggest news in the onshore sec-tor is the release last month of three new blocks in the first onshore bid round since the late 1990s.

    The government is offering three blocks over a total of 150,000 acres

    in the Southern Trinidad Basin. The area has not been subject to major exploration campaigns, but lies within a petroleum fairway that includes the Penal/Barrackpore field, which has produced in excess of 150 million barrels to date. Bidding for the onshore areas closes on 14 June.

    Trinidad is an exact fit with our corporate strategy of onshore oil in existing fields which can be redeveloped given the current oil price scenario and with new technologies. There is a wealth of opportunity hereMr. nEiL riTson, LEni chief Executive officer

    Altech Rig-1 at Goudron field

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  • The Trinidad model helped NGC become the most valuable company in the region, but changes are afoot

    The fruits of the famous Trinidad and Tobago model are easy to see on the short drive north from San Fernando to the capital of Port of Spain. A few minutes out of San Fernando are views along the coast of the Point Lisas

    Industrial Estate, a hub of more than 90 downstream petroleum companies that would be the envy of much larger nations. The estate includes the worlds largest methanol and ammonia plants and a host of industries that convert the countrys abundant supply of natural gas into value-added commodities.

    The Trinidad and Tobago model is shorthand for a number of strategic plans developed by government in the 1960s to create value from the massive volumes of gas flared or vented from offshore oil rigs. The gas was an inevi-table by-product of many of the coun-trys oil fields, but had no market. The world of LNG, which could have taken Trinidads gas to export markets, was still at an embryonic stage.

    The National Gas Company (NGC) was formed as a 100% state-owned

    company in 1975 to take surplus gas and build infrastructure to compress and distribute it to industrial users. Today, NGC is the most valuable com-pany in the Caribbean, with assets of $US6 billion. It owns 1,000 kilometers

    of pipelines, including a new line to Tobago, and can transport 4.4 billion cubic feet of gas per day.

    The Points Lisas Industrial Estate was one of the first pillars in the Trini-dad model. It was established in 1966 under the manage-ment of the Port Li-sas Industrial Estate Corporation (PLIP-DECO). Raw gas is treated by Phoe-nix Park Gas Pro-cessors (PPGPL), which operates one of the largest gas processing plants in the Americas at Port Lisas. PP-GPL is owned by NGC (51%), Cono-

    coPhillips (39%) and Pan West Engi-neers (10%). NGC also has minority in-terests in trains 1 and 4 of Atlantic LNG.

    While the Trinidad model has been a huge success, there are critical challeng-es ahead that will change the funda-mentals of doing business for NGC and for the countrys downstream industry.

    The biggest challenge is gas price. NGC has had a monopoly on the sup-ply and price of gas. It has used this power to achieve a balance between fostering the development of indus-try and making cash surpluses for its government shareholder. But the de-cades-old pricing mechanism, which is linked to global steel and petrochemi-cal prices, has been challenged by the increasingly global nature of the gas in-dustry and the decline in prices caused by the US shale revolution. Gas buy-ers in Point Lisas Estate are demanding lower prices, while the countrys largest producers are making no secret of their desire for higher prices to help support new exploration and development.

    Trinidad and Tobagos biggest gas producer, bpTT, sells 40% of all its gas

    NGC evolves with markets and prepares to head overseas

    Point Lisas Industrial Estate

    to NGC and is at the forefront of calls for a renegotiation of gas sales contracts with the government distributor. bpTT Chairman, Norman Christie, says there is an urgent need to renegotiate with NGC. Its a conversation we cant avoid because the gas world has changed, and it has changed dramatically .... we would be very sorry to see if we end up in a circumstance where NGC is nego-tiating contracts for sale of gas without considering the implications for the suppliers of that gas.

    Energy Minister Ramnarine agrees the relevance of the NGC monopoly model should be examined in the in-creasingly global gas market, and says there have already been some hybrid contracts giving gas buyers a more direct relationship with upstream suppliers.

    The Minister also says the current model will no longer ensure NGCs growth. In a speech to the countrys an-nual Energy Conference in Port of Spain in January, Ramnarine said the exist-ing NGC business model, which has worked well, will however not provide the accelerated growth that is desired.

    The question now for the NGC becomes one of capital efficiency and growth.

    The time has come for the NGC to consider the forward and backward vertical integration of its business and seek investment opportunities outside of this country. I can tell you NGC is currently in discussion with three multi-national companies in Trinidad and Tobago for the acquisition of their all or part of their assets and it is also examining investment opportunities in Africa. The vision therefore is that the NGC is the vehicle for growth through which this country can expand its foot-print at home and abroad. In years to come we envision the NGC becoming to our country what Petrobras is to Bra-zil and Statoil is to Norway.

    With retained earnings of more than

    $US3 billion, NGC is cashed up and in a strong position to take advantage of ex-pansion opportunities. NGC President, Indar Maharaj, says he is talking to a number of companies about NGC tak-ing an equity interest in new gas-based projects that go further down the manu-facturing chain. This gives the investor a sense of security in that the National Gas Company is going to participate, and it also gives us an opportunity to bring added value to the country by participat-ing as what is almost a private investor.

    He says partnerships between the private and public sectors at Port Lisas Estate go back as far as 1981. There was a lean period in the commodity markets and the government was forced to sell off many of its equity interests. Now we have come full circle and we know we need to manage our risk when we invest in these businesses, and have a better understanding of the cyclical nature of commodity markets. We must have a long-term perspective.

    Maharaj says NGC is also focusing on building international presence. We have to go globally. It is imperative that as our business matures we look at other geographic markets, first by taking baby steps and then quickly accelerating.

    PPGPL is making its own plans for international expansion, accord-

    ing to President, Eugene Tiah. We have had suc-cess here and we want to take what we have devel-oped and start internationaliz-ing the business.

    Our ambition is to go to countries that have new-found sources of natural gas and say: We think we can help you. We would like to participate with you to develop similar businesses as an eq-uity partner, just as ConocoPhillips was a joint partner here with other enti-ties. Tiah says PPGPL is looking at op-portunities in Tanzania, Mozambique, Ghana, Nigeria, Bolivia, Colombia and other countries in Latin America and Africa where there have been major gas discoveries.

    toFCo is a leading provider of fabrication, construction and offshore

    services for platforms and facilities servicing the oil and gas industry. tofco

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    we have to go globally. it is imperative that as our business matures we look at other geographic marketsMr. inDar MaHaraj President nGc

    Courtesy of NGC

  • The government is pushing the petroleum industry to go further downstream and find ways to add even more value to gas resources

    Minister of Finance Larry Howai says methanol and ammonia are only the first step downstream and can be stepping stones to products of higher value. If you go further down-stream you get to things like sodium methoxide and melamine. You can go to petrochemicals and polypropylenes and so on. We are looking to go further downstream in the energy sector and build on the strengths we have.

    The push downstream includes a $US250 million plan to encourage the countrys car-loving population to switch to compressed natural gas (CNG), which is significantly cheaper at the pump than gasoline. The plan cre-ates a new, value-added market for gas within Trinidad and Tobago, and will make it easier for the government to phase out a generous gasoline subsidy.

    Government-owned National Pe-troleum Marketing Company (NP) has

    already established seven CNG fuel out-lets at key locations as part of a major upgrade of its network of 140 service stations. The roll-out of multi-sta-tions with CNG pumps is part of a plan to convert 90,000 of the countrys 690,000 vehicles to CNG within five years.

    NP Chief Executive Officer, Kenneth Mohammad, said CNG is a cheap and environmentally friendly fuel. There should be an aggressive move for the country to CNG, especially in Tobago where we are the only fuel provider. The sea transport is a heavy burden for us.

    I spoke to a taxi driver the other day who had converted his vehicle to CNG. He uses TT$20 a day and he works from six in the morning to six

    in the evening. TT$20 of CNG, that is about US$3 for the entire day. Mohammad was appointed a year ago to

    put NP on a stronger competitive foot-ing. While it has some competition as fuel retailer, it will be subjected to an onslaught by new entrants if the gov-ernment subsidy is removed. The new CEO is also leading an expansion by NP into under-developed markets at home such as marine bunkering and into new markets in the region.

    The countrys two methanol produc-ers, Methanex Trinidad and Methanol

    Heading further downstream to add more value

    cnG (compressed natural gas) is a cheap and environmentally friendly fuel. .There should be an aggres-sive move for the country to cnGMr. KEnnETH MoHaMMED

    nP Marketing cEo

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    Holdings (Trinidad) Ltd, also have their sights set on the liquid fuels market. Methanex Trinidad Managing Director, Charles Percy, says methanol demand has traditionally been tied to the level of activity in the building industry. In re-cent years, however, the largest driver of global demand has been the increasing use of methanol in China to blend with higher-priced gasoline. Most vehicles can use fuels with up to 10% methanol without modification.

    Even though we are on this side of the world, it has been worth our while to sell methanol to China. So we thought Can we do fuel blending here in Trinidad, albeit that we have cheap liquid fuel, and show that it works outside China? We decided to come together with our competitor and launch a study of blending methanol in the fuel pool. We recognise that the Trinidad market is small, but once we can show it can be done here by two of the worlds largest players in the methanol business, we can take that and use it anywhere in the world. That will enhance the opportunity for growth in the methanol market globally.

    Percy says a technical feasibility study has been completed and a commercial plan is currently with the government. Once the technical and commercial plans have been put together we expect that project to go forward.

    The plan will create additional pres-sure to boost the countrys gas reserves

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    Pitch Lake at La Brea in southwest Trinidad is a natural wonder of the world. The lake has fascinated explor-ers and scientists since its discovery in1595bySirWalterRaleigh,whoex-tracted tar to caulk his ship.

    The lake has been mined for almost a century and is widely known for its excellent asphalt, which has been used to pave the grounds of Buckingham Palace, famous international airports and even Germanys autobahns.

    Lake Asphalt of Trinidad and Tobago is the government-owned corporation with responsibility for mining and man-aging the lake, which is also one of the countrys biggest tourist attractions.

    Chairman Kuarlal Rampersad says the company is seeking a publicly list-ed joint venture partner with the funds to modernize the companys infrastruc-ture and the skills to support a major expansion. A push into downstream

    markets such as roofing membranes is also a priority.

    There are a few asphalt lakes in other countries, but material from these lakes must be processed. Our asphalt is natural and is a phenomenal product. That is why a lot of people come to us. The market is huge and our only chal-lenge is to keep up with demand.

    Rampersad says China leads demand. We have just signed China RailwayConstruction Company has signed to take30,000metrictonnesforthefirstthree years and that is to be renewed foranother50,000metrictonnesonanannual basis for the following five years. WealsohaveBrazil,whichisveryinter-estedofWorldCupandtheOlympicsinthe very near future.

    New clients are also lining up in Zimbabwe, Mozambique and Panama, which is upgrading its road network from concrete to asphalt.

    New markets for a natural wonder

  • Entrepreneurial Trinidad focussed Onshore oil producer Listed in London on AIM With a track record in environmentally

    sensitive areas

    DELIvErIng grOWTh ThrOugh AcquIsITIOn Of PrOvEn rEsErvEs & EnhAncEMEnT Of PrODucIng AssETs

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    because availability of feedstock is already an issue for Methanex. In Trini-dad and Tobago we have had very good feedstock supply over the years. Only in the last two years, we have had some supply challenges and not been able to get all the supply we want, Percy says.

    The government-owned National Energy Company (NEC) is spearheading the countrys move further downstream. NEC was formed in 1979 as a separate entity to partner with NGC on making the Trinidad model a reality. Today, NEC is a wholly owned subsidiary, but still operates independently. NEC built Point

    Lisas Industrial Estate and a number of the key projects within it. This group includes the world-scale methanol plant, TT MC1, which was privatized and is now operated by MHTL.

    NECs former President, Andrew Jupiter, says when NEC was established in 1979 the government had a simple request that is still current today. We were asked not only to facilitate, not only to promote, not only to create and conceptualise, but to make it happen ourselves. And NEC made

    Point Lisas Industrial Estate happen. He says the evolution of the countrys downstream industry has already passed through three generations gas, meth-anol and LNG and is now entering a new phase that will feature value-added manufacturing by smaller companies using feedstocks such as formaldehyde and melamine.

    The fourth generation must be dif-ferent, whereby we should link energy to manufacturing. The operators of these projects will not have $US1.5 bil-lion to build a methanol plant or an am-monia plant, but they will have $US10 to $US15 million to give to us, to go further downstream and make lami-nates, plasticides and to be involved in coatings and all of those areas.

    Jupiter said the new generation of downstream manufacturers could be easily financed by local banks, creating new industries and employment. I believe we must also have to look at inorganic chemicals, like calcium

    chloride. These projects would take only a small amount of gas, but they can be brought onstream faster and they create employment.

    The evolution of the countrys downstream industry has already passed through three generations gas, methanol and LnG and is now entering a new phase that will feature value-added manufacturingMr. anDrEw juPiTEr, nEc former President

    Port at Point Lisas

    G overnment-owned First Citizens Bank of Trinidad and Tobago is stepping up its support for the countrys energy sector.

    Chief Executive Officer Larry Nath says some of the traditional large energy banks had decreased their global activi-ties because of challenges in their home markets, potentially creating opportuni-ties for local lenders such as First Citi-zens. Nath is well aware of the increased risks and complexities of financing larger energy projects, which is why First Citi-zen has formed an alliance with a major global bank to take on bigger mandates. We have teamed up with an internation-al investment bank with a global energy practice and are already in the market for financing deals for a number of larger energy projects. This represents a differ-ent role for First Citizens compared to the past, when we supported local proj-ects as a junior member of a multi-bank syndicate. Our new alliance is the best of both worlds. It allows First Citizens to help fill a potential financing gap for the countrys most important industry, with-out taking on inappropriate risks for our shareholder.

    First Citizens already has a wide and deep connection with the energy indus-try as a lender to the countrys vibrant and diverse oil and gas services industry. Nath says the service industry in Trini-

    dad and Tobago is the oldest in the region and has de-veloped strongly, especially over the past 20 years.

    In the early days, the global service providers dominated the local industry, but now we have a number of local entrepreneurs stepping up, providing things such as supply boats and upstream services. These are financed by

    Citizens Bank and other local lenders, which would have been unthinkable in the not-too-distant past. They have taken their services into international markets are winning business in head-to-head competition with the global firms. Were proud to have played a role in supporting the development of these local champions.

    Nath says there has never been a bet-ter time to invest in Trinidad and Tobago. The country has already taken many de-cisions in terms of changing regulations to encourage investment. A great amount of work has been done to improve the incentives, including tax concessions that have made it more attractive to bring in offshore rigs and related equipment. We have enviable double tax treaties and market access treaties, which means companies setting up here have the op-tion of exchanging goods and services with other countries at very competitive prices throughout the world.

    Nath added that Trinidad and Tobago was also becoming a strategic entry point to the region for an increasing number of multinationals. We have been an independent country now for 50 years and have had orderly elections every five years under a Westminister-style system of democracy. We offer stability for business investment, and we are finding that more companies are expressing an interest in establishing a base for investment here and entering into neighbouring energy provinces.

    The peoples bank of Trinidad and Tobago takes on a larger role as traditional lenders retreat

    First Citizens boosts support for energy sector

    There has never been a better time to invest in Trinidad and Tobago. The country has already taken essentially all the hard decisions in terms of changing regulations and laws to encourage investmentMr. Larry naTH, Group cEo

    First Citizens support for the energy industry was extended recently into the renewable sector. The bank has partnered with Trinidad-based So-laris Energy to help residential cus-tomers purchase and install solar hot water systems in their homes.

    To encourage homeowners to make the switch to green energy, First Citizens offers low interest rates on solar energy financing. Homeown-ers can also capitalise on generous government incentives, including a 25%taxcreditonsolarwaterheat-ersand0%VATonsolarwaterheat-ers and photovoltaic systems.

    First Citizens support for renew-ables is part of the banks large community assistance program. This includes a long history as a major sponsor of petroleum industry con-ferences along with the countrys annual Trade Investment Conven-tion,which is the largestB2Bcon-ference in the region. First Citizens is also a supporter of the countrys geoscience and engineering students through scholarships and bursaries.

    Change for tomorrow

    Port of Spain view

  • Locals leverage their strong skills base and favorable currency into a winning position

    Home-grown service companies compete head-on with global players

    O il and gas service industries are thick on the ground in Trinidad and Tobago, as might be expected in a country that began producing oil over a century ago. But what many overseas operators do not expect is the large number of home-grown companies that can compete head-on with the global heavyweights of the services sector.

    The favorable US/TT dollar exchange rate gives local companies a significant cost advantage over international com-petitors, but a forex benefit on its own would never deliver success in the highly demanding petroleum industry. Lo-cal companies have competed success-fully against all comers by leveraging the countrys renowned skill base and focus-ing on innovation and service.

    A strong supply of local skills has also been a big factor in their success. The government took the lead in 1997 by

    establishing the National Energy Skills Center (NESC) to co-ordinate and drive training efforts across the public and private sectors. To date, the Centre has trained 12,000 tradespeople and another 110,000 in information technology. The NESC is always improving, with logistics provider JSL International co-operating

    on the development of a new training facility that simulates the high-stress conditions on the floor of an offshore rig.

    One of the best examples of home-grown service companies is Trinidad Off-shore Fabrication Unlimited (TOFCO), established 10 years ago as a joint ven-ture between Weldfab of Trinidad and

    Methanex is the worlds largest supplier of methanol to major

    international markets with production facilities in Canada, Chile,

    Egypt, New Zealand, Trinidad and Tobago.

    www.methanex.com

    Global leader in methanol supply

    Methanexs two-plant facility, Point Lisas, Trinidad

    Beachfield Launcher Station

    Chet Morrison Contractors of Louisi-ana, USA. TOFCO has quickly become established as a leading provider of fabrication, construction and offshore services for platforms and facilities. The companys first project was bpTTs Cannonball platform. Other clients include EOG and BG, including BGs Poinsettia platform, which is the larg-est constructed in Trinidad and Tobago.

    General Manager Shuresh Gangabis-soon says when TOFCO started it was the new kid on the block and had to compete with established and proven contractors. BP took a bold step in giving us our first project, which was at a time when government was placing a lot of emphasis on local content. We finished Cannonball on time, within budget and very good qual-ity. That led others to come on board.

    He says overseas petro-leum companies have an op-portunity to build a stronger relationship with Trinidad and Tobago by selecting lo-cal contractors such as TOF-CO. We have the skills, with the exception of some of the design engineering, and there is a cost advan-tage. It costs much more to bring ex-pats to Trini-dad, but you can achieve the same high standards by having just one ex-pat who works with four or five local engineers. That also builds local skills as well.

    Hydro Tech is another lo-cal company that has grown into a strong competitor for maintenance service operators based overseas. The business began in 1987 as a hydro-blasting business, but pro-gressively expanded into a full range of maintenance and related construction services. Hydro Tech Chairman Trevor Lynch says the companys first client back in 1980s was Amoco (now BP). We have been accustomed to working to international standards with glob-al technologies since our inception. We have continued over time to keep

    abreast of new developments so we can bring that kind of value to the client. He says Hydro Techs suc-cess stems from its long-term focus on developing an inte-grated maintenance solution.Offshore facilities have limits in terms of space and equipment, so we thought an integrat-ed and multi-skilled team would bring a lot of value to the sector.

    High technology service providers such as Coastal Dynamics have also set up base in Trinidad and Tobago. The small consulting company is run by two oceanographers, Nazeer Gopaul and Frank Teelucksingh, who special-ize in modeling ocean conditions and providing environmental studies for the oil and gas industry. The company was the first to conduct numerical modeling of ocean currents in Trinidad, and is the leading the use of global models in local

    conditions. Today, Coastal Dynamics client list includes all of Trinidad and

    Tobagos major petroleum companies.Other home-grown success stories in the services sector include Trinsulate 2

    Caribbean. The company operates in the specialized field of thermal insulation, which is dominated by global providers. Manag-ing Director Ian Fernandes says the companys success reflects its understanding of the importance of ser-vice and 24/7 availability. Thats been a major selling point to our clients in Point Lisas and elsewhere. To get a Trinidadian to come out and work at Carnival is a major challenge, but we have completed urgent jobs for clients even during the festival.

    Perfection Services is a local company that has carved out a leading posi-tion as a supplier of cargo container units, tanks and other modular units for the offshore sector. Perfection Services Chief Executive Officer Desmond Roberts says the company is ex-panding on a number of fronts, including offshore

    accommodation units for platforms in Trinidad. New geographic markets are also being targeted in partnership with other service companies. I am look-ing to establish Perfection Services in a number of countries in the region. Bar-bados is one, and I would like to have a presence in Cuba. Guyana and French Guiana are others we are looking at. Now is the time to establish in these countries, and Suriname, because they will become like Brazil.

    First Citizens already has a wide and deep connection with the industry as a lender to the countrys vibrant and diverse oil and gas industry and the First Citizens Group is one of the leading financial services groups in Trinidad and Tobago. First Citizens offers a full range of retail, corporate and merchant banking as well as asset management, trustee and brokerage services.

    The Group is headquartered in Trinidad and Tobago and First Citizens Bank, which is the largest part of the Group, has an extensive retail branch network in Trinidad and Tobago with a large deployment of ATM and point of sale devices in both islands.

    First Citizens Bank of the Year 2012

    Building our Future through Innovation Service and Excellence

    First Citizens already has a wide and deep connection with the industry as a lender to the countrys vibrant and diverse oil and gas industry and the First Citizens Group is one of the leading financial services groups in Trinidad and Tobago. First Citizens offers a full range of retail, corporate and merchant banking as well as asset management, trustee and brokerage services.

    The Group is headquartered in Trinidad and Tobago and First Citizens Bank, which is the largest part of the Group, has an extensive retail branch network in Trinidad and Tobago with a large deployment of ATM and point of sale devices in both islands.

    www.firstcitizenstt.com

    First Citizens Bank of the Year 2012

    i am looking to establish the company in a number of countries in the regionMr. DEsMonD roBErTs Perfection services Managing Director

  • Safety culture second to none

    JSL International is at the forefront of local companies exporting oil and gas services know-how to the Caribbean region and beyond. The Port of Spain- headquartered company provides logis-tics to the increasing number of drilling companies in Trinidad and Tobago as part of the recent upswing in explora-tion activity.

    JSL exports know-how to the region

    JSL was estab-lished only five years ago, but has already em-barked on rapid expansion in the region, accord-ing to Managing Director Javid Ramcharitar. Currently were operating in Colombia, Guyana, Suriname, French Guyana and were in the process of expanding into Nica-ragua, Brazil and the Gulf of Mexico. As you know Trinidad has a lot of expe-rience in terms of the oil and gas sec-tor,ahundredyearsplus.Withalloftheupcoming activity in the region, we be-lieve that we can export our knowledge

    we proudly implement localization and nationalization plans across the regionMr. javiD raMcHariTar jsL international cEo

    and know-how in terms of expand-ing and weve done so successfully. The beauty of JSL is that we proudly implement localization and national-ization plans across the region. Weincorporate locals, for example we go into Colombia and incorporate Colom-biansintotheproject.Webringthemto Trinidad and make sure they get necessary offshore training.

    Methanex workers

    Major oil companies and contractors are signing on to Trinidads own standards in safety

    Decades of experience have taught com-panies in Trinidad and Tobago the im-portance of safety. This is reflected in the outstanding safety records of a number of companies, including Phoenix Park Gas Processors and Hydro Tech, which have not had lost time accidents in decades.

    The local Energy Chamber has for-malized the countrys high safety stan-dards with its Safe to Work (STOW) pro-gram, launched six years ago. Chamber President, Roger Packer, says STOW is a formal certification program in health,

    safety and environment practices. We ask all contractors to sign on to a Trini-dad and Tobago standard, which is set very high, like a Harvard degree. STOW certification is not mandatory, but the major petroleum companies have begun

    setting deadlines by which all contrac-tors must be STOW certified. The coun-trys safety culture has also helped create the leading safety products company in the region, Caribbean Safety Products. The company began in 1983 with a staff of 12 manufacturing leather gloves. Today, it employs almost 400 people and supplies safety products, services, secu-rity and training to more than 600 cus-tomers worldwide. Managing Director, Dipinder Manocha, says the companys success reflects its closeness to custom-

    ers in the region and an under-standing of their needs. We are the only compa-ny in the Ameri-cas that will make a product to suit the cus-

    tomers design, regardless of the size or quantity of the product. We will make products to suit the customers specifica-tions, and we work as a consultant to as-sist them in making sure they follow local and international OHS regulations.

    JSL International Managing Di-rector Javid Ramcharitar says many international arrivals in Trinidad are sur-prised the country safety standards are so high. Typically when foreigners think of Trinidad and Tobago, they do not realize the level of sophistication and falsely as-sume they will be doing the instruction, but many companies come here and im-prove their knowledge about work safety. Because weve had a petrochemical base in Trinidad for 100 plus years, weve im-ported a best practice and its been organic. Its evolved. Weve recognized interna-tional standards that have been imple-mented for decades now so theres a lot of good practice in existence.

    we work as a consultant to assist the customers in making sure they follow local and international oHs regulations

    Mr. DiPinDEr ManocHa csP Managing Director

    A major program to build infrastructure will help diversify the economy and support new growth by the petroleum sector

    Trinidad and Tobago has begun an ambitious, 12-year program of building infrastructure to diversify its economic base. The goal is to increase the non-energy sectors share of GDP to 66% over the next five years.

    The plan has been named the Public Sector Investment Programme (PSIP) and kicked off with spending of $US1.2 billion in last years Budget. The government aims to harness private investment as well by creating a number of public private partnerships a first for the country.

    The governments objective is to boost the quality and reach of the coun-trys infrastructure, with an emphasis on projects supporting non-energy indus-tries such as financial services, tourism, information and communications tech-nology, agriculture and creative arts.

    Maritime industry is also a key target because of the expansion of Panama

    Canal and the additional shipping activity expected to pass through the region from 2015. Transport Minister,

    Chandresh Sharma, says the Panama Canal expansion brings enormous opportunities for us because we have such a strategic location and we have the human resources. We are able to turn ships over and service them very quickly. We also have the benefit of some of the lowest fuel costs in the world.

    In December, Sharma announced the government was seeking expres-

    sions of interest in the construction of a third major port, at La Brea. Ports Authority Chairman Joseph Toney says

    the new La Brea port will mean oil and gas com-panies and other business will not have to rely on any one port to get their plant and equipment into the country.

    The idea is that business will have no excuse for not wanting to do business with us, and no excuse for not being comfortable in getting plant, cranes and whatever on to shore. We are discov-ering more gas and oil so there will be many more opportunities and the en-ergy sector can only expand and grow if we have these facilities for those who want to do business with us.

    Infrastructure investment to support next wave of growth

    The Panama canal expansion brings enormous opportunities for us because we have such a strategic location and we have the human resourcesMr. cHanDrEsH sHarMa Minister of Transport

  • Cargo area at port

    Toney was appointed just over a year ago to lead a revitalization of ports services. We have had our challenges, but we are making progress. Equipment is being repaired. We have a new system to locate items quickly and move cargo around efficiently. We are also getting the union and Ports

    Authority agreement in sync. We want a comfortable and satisfied workforce.

    The energy industry has not been left behind in the rush to diversify, with plans for another new indus-trial port on the east coast to support deepwater exploration in the Atlantic. Design and construction of the new

    Galeota Port is be-ing managed by the National En-ergy Corporation (NEC). The new port will expand an existing facility developed decades ago to support Amocos explora-tion and produc-tion. NECs former President, Andrew Jupiter, says the plan is to create a port that can meet the needs of all of the countrys off-shore E&P compa-nies. Beyond that, we have also seen what is happening in Suriname and Guyana, and also in French Guiana. We believe that we can use the Galeota Port as the base to service the new de-velopments that are

    happening in these countries. So for the first time we are looking beyond Trinidad and Tobago for port operations to the wider region. Point Lisas Industrial Port Development Corporation (PLIPDECO) is also considering an expansion of its port facilities. President Ashley Taylor says the expansion could be part of a public private partnership with a global-ly experienced operator in port manage-ment. The big focus for us is port and logistics. While energy will continue to be a focus, we feel one of the growth ar-eas we have yet to capitalise on is trade and logistics.

    Renewables get a kick-startIn a country with abundant and inex-pensive fossil fuels, it is no surprise renewable energy has been slow to take off. The government is forcing the communitys hand by driving a switch from gasoline to compressed natural gas and is also stimulating investment in renewables such as solar and wind. Once such company that plays both fields is the Trinidad-based Mora Ven Holdings which, in addition to its suc-cessful oilfield, has captured a large share of the market of hot water heat-ers with its innovative sister company Solaris Energy Limited. They design and manufacture their products in the Caribbean and are expanding into solar electricity (photovoltaics) and wind energy.

    Leading the way in energy solutions

    Mora Ven Holdings Limited operates Trinidad & Tobagos

    oil field, Mora Oil Ventures is a local leader in natural resource based energy solutions. Supporting Mora Oil Ventures is its sister company, Solaris Energy Limited, an internationally recognized, innovative renewable energy company. Dedicated to showcasing regional talent and ability, Solaris Energy designs and manufactures its industry- leading products in the Caribbean. Together, they push Mora Ven Holdings as a true force in energy.

    1-868-628-3708 mail@moraven.com

    energy company - Mora Oil Ventures. With its prolific

    The recent Savonette discovery by BP could easily be an emblem of the fu-ture of the countrys petroleum industry. The discovery of 1 TcF of gas-in-place was made from BPs producing platform and will be brought into production al-most immediately at 250 million standard cubic feet per day. It is an impressive re-minder that Trinidad and Tobago is big petroleum territory and that massive po-tential is within easy reach.

    The signs everywhere are promising. Government-owned Petrotrin is leading the renaissance with plans to invest more than $US2 billion in redevelopments of old fields and major exploration pro-grams both onshore and offshore. The private sector also has aggressive plans to boost investment. Atlantic LNG is invest-ing $US500 million in maintenance this year in a clear signal it sees a very bright future ahead, even in the wake of the US shale gas revolution.

    BHP Billiton has just committed to spend $US565 million to offshore explo-ration and is leading a new wave of explor-ers seeking giant oil fields in the Atlantic.

    BP is also exploring deepwater and has plans to invest up to $US6 billion over the next few years, including a possible subsea development of its Juniper field.There are still hurdles. BP says investment is not a certainty and needs the right gas prices from NGC and an appropriate fiscal regime. The government acknowledges industrys calls for more to be done, and promises to have good news in 2013. It will be a new chapter in a highly success-ful relationship between government and industry that has already run for 50 years.

    The attraction of Trinidad and Tobago is perhaps best summed up by the Presi-

    New investment from the public and private sectors is flooding in with the aim of unlocking untapped potential

    A brighter oil and gas future in easy reach

    dent of Phoenix Park Gas Processors, Eu-gene Tiah, who has worked in the indus-try for 30 years. I have seen consistency, regardless of which government has been in power. There have been tweaks in the energy policy but the policy has more or less remained consistent and open to incentivising overseas investment. Once you come and establish a business there is clarity about the requirements and there is a good understanding of a need for regulation, not strangulation. A na-tion that lives off multi-billion dollar for-eign investment could not have a better pitch than that.

    Worker in a LNG plant

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