T&T stands to benefit extensively from the United Kingdom-based company Centrica having signed a US$48 million exploration agreement with State-owned Petrotrin, said Energy Minister Conrad Enill. “Its planned investment programme of approximately US$48.3 million over the next three years will entail, among other things, the acquisition of 3D seismic data, the drilling of three wells; two to depths of 2,500 metres each, and the third well, to a depth of 2,850 metres.
“In addition, Centrica has given its commitment to fund financial contributions of over US$11.0 million via a signature bonus of US$8 million, administrative charges, research and development, training and scholarships, over the same period,” Enill said. He was speaking at the signing ceremony at the Hyatt Regency Trinidad hotel, Port-of-Spain, yesterday. The agreement will enable Centrica to do exploration activity in shallow marine block 2(ab) off Trinidad’s east coast.
Richard Mew, upstream business director at Centrica, said though many energy-based companies are taking the cautious approach when it comes to exploration activities, Centrica’s investment in T&T is for the long term.
“I won’t say we’re certain about exploration. It is always a risky business, but we certainly have very high hopes of block 2(ab), which you have to remember, is a very large area.” Regarding the global economic downturn, Mew said he hopes there would be a turnaround.
“At the moment, there’s a severe global recession, but these things go in cycles, and we are convinced in time, the economy will pick up globally and prices will start to further. We hope that by the time we have success on the block, it would be a good time to invest,” Mew said.
Centrica is involved in upstream oil and gas production and power generation. It also has a mid-stream business involving trading and storage of gas. It also has a downstream business selling gas and electricity to its customers in UK and North America.
Commenting on T&T’s energy sector, Mew said it still looks good for investment, especially for newcomers, despite years of production. He said Centrica feels T&T is a good place to invest as it is politically and fiscally stable. Mew said he is not worried about Petrotrin having lost $600 million between October 2008 and May 2009.
“Petrotrin is being carried through the first exploration phase, and we are bearing their cost for the first part of the drilling phase, so in terms of their ability to cover their expenditure, it is not an issue in the short term,” Mew said.
Story from Trinidad & Tobago Guardian
Trinidad & Tobago Guardian
9 Jul 2009
