petroleumworld

In spite of negative premonitions that oil reserves were running dangerously low, API Holdings Company Ltd has embarked on a US$20 million programme to exploit existing and new oil reserves in the Oropouche basin. The second phase of the programme, which involves the drilling of eight new oil wells, will begin around midday today, in the Oropouche Farmout region. The first phase of the programme is already in full swing. In an interview yesterday, Harold Jagdeo, API’s operations manager, said API marked a 600 per cent increase in oil production since phase one was launched in 2007.

Speaking to reporters after the ceremonial opening of phase two yesterday, Jagdeo said Petrotrin granted API a sub-license to operate and manage the Oropouche field. At the time of the handover in 2007, Jagdeo said oil production stood at roughly 57 barrels of oil per day. “API sought to increase production in three phases. A geo-technical study was done to review the existing geology and reservoirs of existing fields, to determine the extent of recoverable reserves, available for exploitation. “We engaged in three programmes to boost production. These included swabbing wells, which involves the mechanical lifting of oil from the wells, reactivating old oil wells and recompleting wells. That exercise yielded a 600 per cent increase in oil production from 57 barrels of oil per day (bpd) to 300 bpd,” Jagdeo explained.

Environmentally sensitive
He said the second phase involves the drilling of 40 new oil wells. Given Oropouche’s environmentally sensitive nature, Jagdeo said the Environmental Management Authority granted a certificate of environmental clearance to drill the new wells. Jagdeo said the drilling depths range from 2,100 feet to 4,200 feet. “With the initial production of the new wells, we expect a further 80 bpd per well,” Jagdeo said. He said that by the first quarter of 2011, API plans to conduct a $25 million three-dimension seismic survey across the entire field to locate more wells.

“After this, we will commence a pilot enhanced oil recovery project in the AO 43 sand by extracting nitrogen from the air and injecting nitrogen and salt water from the Gulf to recover additional reserves,” Jagdeo said. He said this technology was the first of its kind in T&T and will yield a production increase of 400 bpd. Basdeo Seeram, drilling consultant for API, said that at the end of phase three in 2011, oil production may peak over 1,000 bpd. Seeram said the fields which were being exploited were deemed economically unfeasible by Petrotrin. Seeram said the drilling will be environmentally safe because a process of dry drilling will be used to ensure there is zero liquid discharge to the environment.