Energy
big timers, set eyes on Constellation 1-Ibis Deep
Well
Trinidad
Guardian
Prime
Minister Patrick Manning took a tour of Constellation
1's Ibis Deep Well operated by bpTT
By
Kim Boodram
Trinidad
Express
Port
Spain
Petroleumworld.com
07 02 06
SOMETIMES,
the higher the risk - the higher the reward.
That's
the premise behind the US$70 million risk being
taken by EOG Resources, Petrotrin and NGC with the
Constellation 1's Ibis Deep Well. (BPTT is operating
the well.) If it pays off - the reserves are expected
to be no less than in the trillions of cubic feet
of natural gas.
If
not, as one Rig Floor official said, "there
are two types of abandonment. There's the kind where
you leave, never to return. Then there's the kind
where you leave and prepare for a re-entry."
The
Government hopes there will be a re-entry. Last
Friday, Prime Minister Patrick Manning took a tour
of Constellation 1 to view what he considers one
of this country's crowning achievements so far.
Also along for the tour were Public Administration
and Energy Minister, Lenny Saith, and bpTT Chairman
and CEO, Robert Riley.
Ibis
Deep is reaching for space previously unknown to
local energy seekers - it's aiming for a depth of
20,564 feet - nearly four miles. For most of the
crew on board it's a shining star on their resume.
From the Government perspective, it is part of this
country's apparent magic.
To
his detractors who warn that the goodies will run
out in the year following the next decade, Manning
has this to say:
"That
is wrong. The magic of Trinidad and Tobago is our
development on the basis of low reserves. What this
means is that we have to conduct an exploration
programme to find oil and or gas," he said.
"Traditionally, we have always been able to
do it."
He
has labelled his attitude towards Ibis Deep as cautiously
optimistic.
With
a 35 per cent chance of success (which is also bpTT
stake in the venture), if Ibis is successful the
load is expected to be in anywhere between two and
half to three trillion cubic feet of gas.
"It's
been a very interesting experience," said Saith.
"I've been sitting in my office and calculating
the amount of gas and money we could got out of
this. I wish the rest of the country could get a
better understanding and appreciation of how world
class we are in the energy sector."
Located
on acreage owned by EOG Resources on the South-East
Coast Consortium block, Global SantaFe's Constellation
1 was built in Singapore and could hardly get more
modern. It is highly automated - a perk in keeping
humans out of harm's way. This is unknown territory
for most of the crew and is a milestone in their
careers.
Extremely
high pressures and temperatures are the major concern,
since no one would have had experience with those
conditions in locals waters. Pressures are expected
to reach over 16,000 PSI and temperatures in the
range of 325 degrees. The team has been planning
this operation for two years and studying similar
models in Azerbaijan, Egypt and the Gulf of Mexico
Deep Water. Work cycles generally run for a fortnight
to 28 days aboard the rig.
"This
well is right up there in the top as
far
as challenging wells go," said Riley. "The
well, if successful, will open up a brand new source
of hydrocarbons for Trinidad and Tobago - most likely
gas - that could radically alter the existing reserves
picture. It will also yield considerable and valuable
new technical information that will help to improve
our knowledge and understanding of the basin and
hopefully lead to continued exploration success
for BP in Trinidad and Tobago...we will take up
where the Soca Warriors left off."
For
the PM, Ibis Deep Well, if successful will add to
the industrialisation budget.
"Ibis
Deep is going to be a major leap forward for the
oil and gas industry in the country, generating
a momentum that can rebound to the benefit of all
parties - the petroleum and service parties, the
Government and the national economy as a whole.
"We
are expanding and looking in new directions. We
are now moving into aluminium, polypropylene, ethylene
and polyethylene....," he said, adding that
by 2010 this country should be almost fully industrialised.
He
said that six projects will take place this year
- three ammonia methanol projects, two aluminium
projects and one iron and steel. There are four
more lined up for next year. He remarked that the
controversial aluminium smelters proposed for the
Southern Peninsula "will happen".
Manning
said most of this is based on the vision of the
country's first Prime Minister, Dr Eric Williams.
"We
are now seeing the realisation of that vision,"
he said.
Manning
said the Government was not reckless with money
and he pooh-poohed the frequent talk that this country's
resources are being practically given away in a
hurry.
"It
is important for the public to see what happens
out here," he said. "When we embark on
expenditure Government is not being wild. We are
incurring expenditure on the basis of the country's
productivity capacity. Revenues both current and
potential are considered."
Asked
whether plans are being made for the possible windfall,
Manning deferred to Riley, who said that if Ibis
Deep hits the jackpot this year, harvesting will
take maybe another five years to set up.
"So
you see, I am not living hand to mouth," Manning
joked.
In
response to accusations that this country is being
ripped off, the PM said:
"A
judicious balance has to be struck between incentives
for exploration and productivity and the revenue
that the country will gain from the exploitation
of its natural resources. We haven't done too badly
on it so far."
He
added that those opposed to his Government will
always "down cry" its efforts.
Saith
said independent consultants have been a part of
the taxation process of energy partners.
Riley
said that the balance has been working for both
parties.
"We
have spent a good deal of time looking at the taxation
and it has worked for us in the past," he said.
"I think we are achieving that balance."
Trinidad & Tobago Express
Wednesday, June 28th 2006
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©2006 Trinidad Express. All Rights Reserved.
