February 7, 2012 / 4:00 PM / 7 years ago

BP Trinidad to spend US$1.1 billion in 2012

PORT OF SPAIN, TRINIDAD, Feb 7 (Reuters) - BP Trinidad and Tobago (BPTT) plans to spend US$1.1 billion this year in the Caribbean island which will include ocean bottom seismic surveys in its existing acreage, its president told an energy conference.

BPTT Regional President Norman Christie said on Monday that Trinidad and Tobago assets remain competitive in the BP portfolio, resulting in continuing investments and its recent successful bids for two deepwater blocks in the Atlantic.

BPTT operates 13 offshore platforms and one onshore processing facility and produces approximately 450,000 barrels of oil equivalent a day.

Christie however said the competitive landscape is changing with new oil and gas basins opening up, new players emerging and technologies changing. Locally, the subsurface and surface landscape are becoming more economically challenging, accessing resources is harder and more costly, and infrastructure is aging, he added.

He said it was important for the government to strike the right balance between attracting and keeping investments.

“So, in a real sense, every year BPTT is competing for new capital which needs to be attracted in the same way that a new company is attracted to Trinidad and Tobago.

“This is particularly striking when you think about Trinidad and Tobago competing for capital against huge resource basins and markets such as Brazil, Angola, China, India, and Russia,” Christie said.

Striking the right balance is important “because time is against us,” he said, adding that the country needs to prove up new reserves, reach new agreements for gas supply and build or fix infrastructure.

“All of these things take time and in my estimation we are already playing catch up. We need to get ahead of the game and to do this we need to improve the speed of decision making and improve coordination of activity across the industry. Inaction or slow action is not an option,” he said.

A 2010 gas audit conducted by U.S.-based Ryder Scott showed that the country’s proved reserves dropped to 13.4 trillion cubic feet (TCF) from 14.4 tcf in 2009 and 15.4 TCF in 2008.

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