T&T’s proven gas reserves decline but only marginally (1.1%) and are being replaced almost as fast as they are used.
Minister of Energy and Energy Affairs Kevin Ramnarine, at the presentation of the Ryder Scott audit at the Hilton in Port of Spain yesterday, said that although T&T’s proven gas reserves declined 1.1 per cent, this was possible only because replacement ratio was 89.3 per cent. This means T&T was able to replace gas expended from its proved reserves almost as fast as it went out.
Ramnarine said: “Considering the proven reserves, there was a small decrease from 13.26 trillion cubic feet (tcf) to 13.11 tcf or a decrease of 0.15 tcf or 1.1 per cent over the proven reserve figure. Our total production in 2012 was 1.41 trillion cubic feet of gas and we were able to replace 1.26 tcf of reserves from the probable up to the proved category through new field discoveries, extensions and revisions to achieve a replacement ratio of 89.3 per cent.”
He sais this positive movement of reserves was mainly due to upward revisions for bpTT, arising from the drilling of the Savonette 4 well which resulted in two new field discoveries and the re-mapping and re-evaluating of the petrophysical analysis for its Serrette and Juniper areas.
The minister said a number of other resources were not included in the $1 million Ryder Scott audit. He said: “The Ryder Scott Company did not take into account Blocks NCMA 2, NCMA 3, and 4(b) for which a total of five exploration wells are expected in fiscal 2013/2014. These blocks are estimated to have a total reserve estimate in the range of 6.06 to 20.28 trillion cubic feet based on company estimates.”
He said that excluded also were Blocks TTDAA 14, 23 (a) and 5(d) which were awarded to BP and BG respectively in 2012.
Giving more examples of excluded blocks he referred to the four deep water blocks awarded to BHP Billiton. “The preliminary estimates of the combined unrisked natural gas resource potential of these blocks are in the range of 2.4 tcf to 23.6 tcf. These deep water blocks have also been excluded from the purview of the audit. When we add the potential rsources from these blocks our exploration resources could increase by 8.0 tcf to 44 tcf. Trinidad and Tobago, ladies and gentlemen, is not running out of natural gas,” he said.
In interviews after Republic Bank Senior Economist Dr Ronald Ramkissoon praised the achievement. Trinity plc Chief Executive Officer (CEO) Monty Pemberton and bpTT Regional President Norman Christie endorsed the minister’s words. All the major energy companies upstream and downstream heads attended the event.
Ryder Scott Managing Senior Vice President Herman Acuna who flew in for the presentation told the Business Guardian after presentation that 2013 estimates look good but did not want to divulge any more.
The audience heard that over the last two years T&T’s proven reserves showed marked reduction in the rate of decline. The reduction in 2012 was in the order of 1.1 per cent and 2 per cent in 2011 compared to 9.5 per cent for both 2010 and 2009 and 16 per cent for 2008.
Ramnarine said the government is arresting the decline in proven reserves by providing a “conducive” environment to the energy industry. He said the government has provided incentives and opportunity for upstream companies to explore, appraise and develop new and existing acreage.
The minister has high praise for bpTT’s head Norman Christie. He said: “BP which is the largest producer in T&T is expanding gas production at its Savonette platform. The company is drilling a new well at Savonette 6 which will come on stream by year end with an estimated gas production of 200 million standard cubic feet per day (mmscfd). This will complement production of the Savonette 4 well which is currently producing at a rate of 250 mmscfd and can go to 270 mmscfd”