Dear Editor,
Guyanese are being inundated with Pedantic Pronouncements by certain People, who claim knowledge about the Oil and Gas Industry.
These have come from near and far. We have the petroleum academics – experts from University of Uitvlugt to Ulverston, from Babu Jaan to Britannia, all ignoring the complexities of the petroleum world. Over the past twenty-four hours, as a continuum of these persistent pontifications, Jagdeo now poses the question as headlined “Are Exxon’s costs bloated, Jagdeo says billion-dollar cost reduction in Liza 1 alone worrying.”
Another sensational headline –“Guyana stands to lose US$55B in bad oil deal” – and so the crusade continues. It is an old technique to pose such questions only designed to create confusion and doubts among the populace. None of us believe that these oil giants are angels, but while we can forgive market vendors and others from expressing views and be part of the round of rumours, senior political personalities have a duty to be responsible in order to cause neither confusion nor discontent.
In an earlier contribution, I noted that over time, that petroleum has been the source of Confusion, Coups and Corruption. Only sincere committed leadership can avoid the above three pitfalls. Petroleum is new to Guyana and I believe those who are really interested in the well-being of our Cooperative Republic should work together so that this and succeeding generations can share the bounty that beacons.
We have just found oil and some people believe that this administration will just wave a magic wand and create ideal conditions over-night; conditions that has taken others years to achieve, while dealing with the vagaries of a tricky international environment.
Dear Editor, I ask that you share this information extracted from the Ministry of Energy and Energy Industries, Trinidad & Tobago, so that we can all appreciate the dynamics of change in the petroleum industry and pointing to the reality that ideal conditions are not achieved overnight. Following, are the historical facts of the Petroleum Industry of Trinidad & Tobago: –
1857: First well drilled for oil in Trinidad – 61 metres deep in the vicinity of the Pitch Lake by the Merrimac Company.
1865: Walter Darwent founded the Paria Oil Co. to drill for oil in south Trinidad.
1866: First successful oil well drilled by Walter Darwent at Aripero.
1901: Randolph Rust and Mr. Lee Lum drilled and tested a well which produced 455 liters of oil in two hours.
1903: Guyaguayare No. Three…first well to be drilled with rotary equipment.
1904: A Mines Department instituted as a branch of the Public Works with the production of manjak.
1908: Commercial oil production begins in Trinidad near the Pitch Lake, La Brea.
1910: First export cargo of crude oil was shipped by tanker at Brighton, La Brea.
1911: Discovery of Tabaquite field most northerly oilfield found on land, to date.
1912: Small refinery built at Point Fortin.
1914: Production reached 1 MMB/year and the oil industry employed 1,200.
1919: Refinery capacity increased to 9,000 barrels of oil per day. Sixty-six percent of crude oil produced was refined locally.
1921: Production began from Trinidad Leaseholds Ltd.’s Cat Cracker Unit at Pointe-a-Pierre.
1930: Crude oil production increased to 10 million barrels per year.
1930: First importation of oil from Venezuela for refining locally.
1930: First geophysical surveys made in the Brighton area.
1932: Electrical well logging introduced in Trinidad.
1933: Trinidad Oilfields Ltd. introduces gas injection in the Forest Reserve Upper Cruse sand.
1937: Widespread labour unrest in the oilfield area.
1940: Refining capacity increased to approximately 285,000 bbl/day.
1954: Marine drilling for oil began in the Soldado Field by Trinidad Northern Areas Limited (TRINMAR).
1954: Deepest well drilled on land Apex, Fyzabad Well No. 560 drilled to 16,155 feet.
1955: Discovery of the northern-most gas field in Trinidad at Mahaica, by Dominion Oil Limited.
1955: Production from Soldado oilfield at Trinmar initiated.
1958: First well started on platform 1.2 miles offshore from Brighton. The platform was designed to accommodate 36 wells, which was a world record for this type of platform.
1959: Federation Chemicals Ltd. pioneered the use of natural gas in Trinidad and Tobago as a chemical feedstock in the manufacture of ammonia.
1961: Galeota No. 1 first exploratory well drilled offshore the East Coast of Trinidad. Well produced oil but considered uneconomic.
1962: Formation of the Ministry of Petroleum and Mines.
1963: Appointment of Commission of Enquiry into the Oil Industry.
1967: A new production high of 65 million barrels per year was achieved.
1968: First commercial oil discovery off the East Coast of Trinidad (off Pt. Radix) well OPR-2.
1968: Government of Trinidad and Tobago and the United Nations carried out a seismic survey off Trinidad’s North Coast.
1969: New Petroleum Legislation enacted Act No. 46 of 1969.
1969: On July 1, Government in a joint venture with Tesoro Corporation, acquired the local assets of British Petroleum; GOTT’s first venture into national ownership of an oil company.
1969: The National Petroleum Company was established by law.
1970: First Marine concessions under the new petroleum act were given out (North Coast Marine Areas).
1971: Drilling began off the North Coast of Trinidad…..natural gas discovered.
1972: Trinidad and Tobago National Petroleum Marketing Company created.
1972: Commercial production began offshore the East Coast of Trinidad … from AMOCO’s Teak Platform.
1972: Delta Exploration Co., contracted to conduct a seismic survey of 2 million acres of offshore territory in East Coast and Gulf of Paria.
1974: On August 31st, Government acquired the local operations of Shell Trinidad Limited and formed the Trinidad and Tobago Oil Company Limited (TRINTOC).
1974: Petroleum Taxes Act revised the taxation methods in the petroleum industry and introduced the Refinery Throughput Tax.
1975: Formation of the National Gas Company for the transmission and sales of natural gas.
1977: The Government of Trinidad and Tobago takes its option of an additional 20 per cent participation in South Coast Consortium as a commercial discovery is announced.
1977: Tringen – Commissioning activities were completed and the shipment of ammonia destined for the U.S.A. and Europe began.
1979: FERTRIN – Sod-breaking ceremony January 1979.
1980: Formation of the National Energy Corporation.
1980: Commissioning of the Iron and Steel Company of Trinidad and Tobago (ISCOTT).
1981: TRINTOC granted an Exploration and production (Public Petroleum Rights) Licence over Block 9-North of the NW Peninsula of Trinidad.
1982: TRINTOC enters into a processing agreement with TEXACO Trinidad Inc. for the processing of 1 million bbls of crude oil.
1982: Installation work begins on the second cross country pipeline by the National Gas Company.
1983: Cassia Gas Field comes on stream in May 1983
1983: Urea plant at Point Lisas commissioned in December 1983
1983: Decline in world crude oil prices. OPEC marker crude price cut from $34/bbl., which
adversely affects the local oil industry.
1983: Supplemental Petroleum Tax for land operations reduced from 35 per cent to 15 per cent.
1983: Offshore section of NOC 760mm (30 inch) pipeline completed and put into service.
1983: Seismic survey using the vibroseis method initiated by Western Geophysical Co. (of USA).
1984: Crude oil production registers its first increase since 1978, production increased from 155.078 bbl/d to 163,937 bbl/d. This represents an increase in average daily production of six per cent above the 1983 average.
1984: Data from the marine seismic new areas off the North and East Coast of Trinidad and Tobago put on sale.
1984: Joint UNDP/ World Bank Assessment of Trinidad and Tobago undertaken.
1984: Methanol Plant at Point Lisas begins commercial production.
1985: AMOCO produces its 500 millionth barrel of crude oil i.e. 22.6 per cent of total crude production for the country at that date.
1985: Submarine production allowance terminated with effect from 31.12.83.
1985: TEXTRIN is integrated with TRINTOC as some of its assets are acquired by GoTT.
1985: Fire on TRINTOC, Pointe-a-Pierre jetty kills 14 employees.
1985: GoTT acquired Tesoro Corporation’s 49.9 per cent equity in Trinidad-Tesoro Petroleum Company Limited for 3.23 million barrels of residual fuel to be paid over a period of 18 months: May 1986 to November 1987. Name of the Company changed to Trinidad and Tobago Petroleum Company Limited (TRINTOPEC).
1986: OPEC failed to agree on an oil production policy that could have reversed the collapse in world oil prices. This decline in oil prices had a negative impact on the local oil industry.
1986: Compressed natural gas (as a substitute motor car fuel) pilot project is launched and the first CNG filling station inaugurated.
1988: Trintomar Limited incorporated to develop and operate acreage held by the SECC. Comprises Trintoc 40 per cent, Trintopc 40 per cent and NGC 20 per cent.
1988: Three offshore blocks: 511, Lower Reverse ‘L”-shaped and “U”-shaped blocks put up for competitive bidding.
1988: GoTT revises Supplemental Petroleum Taxes and announces major tax incentives for workovers and marine heavy oil production.
1989: Bidding invited for four new blocks off the East Coast – Block 89/2, Block 89/3, Block 89/4 and Block 89/5.
1989: Introduction of the lease operatorship and farmout programme.
1989: Exploration and Production Licence signed for Block 5-11 (Trintopec/Mobil).
1989: Signing of the joint venture agreement for the formation of the Phoenix Park Gas Processors Ltd.
1989: Caribbean Ispat commenced operations in May 1989.
1990: Venezuela and Trinidad and Tobago sign an oil cooperation agreement.
1991: Blocks 89/2 and 89/3 awarded to BHP (Americas) Inc. and Unocal Corporation respectively.
1991: Norsk Hydro-Agri Trinidad Limited commenced operations in January 1991. This company operates three ammonia plants in Point Lisas.
1991: Phoenix Park Gas Processors Limited commenced operations.
1992: EOG Resources started operations. EOG is currently contracted to sell gas to NGC and condensate to Petrotrin.
1993: The Petroleum Company of Trinidad and Tobago (Petrotrin) is registered on January 21, 1993, with an authorised share capital of TT$1,500 million. Petrotrin is the single entity formed as a result of the merger of the state-owned oil companies – Trintoc and Trintopec.
1993: British Gas signed a revised production sharing contract with the Government of the Republic of Trinidad and Tobago on September 09, 1993.
1993: Enron and British/Texaco lease marine fields Keskidee and Dolphin respectively.
1995: LNG Consortium forms Atlantic LNG.
1996: Start of construction of Atlantic LNG facility at Point Fortin.
1996: Government opens third round of competitive bidding for 13 offshore leases for deep-water production sharing contracts between itself and international companies.
1996: Trinidad Exploration and Development Company Limited (TED) signed an exploration and production licence with the Government of the Republic of Trinidad and Tobago in February 1996.
1996: Broken Hill Proprietary (BHP) signed a production sharing contract and started operations in Trinidad and Tobago in April 1996.
1996: Talisman (Trinidad) Holdings Limited signed a production sharing contract with the Government of the Republic of Trinidad and Tobago in April 1996.
1996: ELF Exploration Trinidad B.V. signed a production sharing contract with the Government of the Republic of Trinidad and Tobago in November 1996.
1997: Repsol Exploration signed a production sharing contract with the Government of the Republic of Trinidad and Tobago in January 1997.
1997: AGIP Trinidad and Tobago Limited signed a production sharing contract with the Government of the Republic of Trinidad and Tobago in March 1997.
1997: Deminex Trinidad Petroleum GmbH signed a production sharing contract with the Government of the Republic of Trinidad and Tobago in March 1997.
1997: Farmland MissChem Limited commenced operations in the Republic of Trinidad and Tobago.
1997: Messer Trinidad and Tobago Limited entered into a joint venture with Neal and Massy and was incorporated in 1997. It operates three industrial gas plants in point Lisas.
1997: PCS Nitrogen Trinidad Limited acquired Arcadian’s operations.
1998: Petrotrin’s Pointe-a-Pierre Refinery Upgrade , a US$355M project is completed and commissioned.
1998: EXXONMOBIL Exploration & Production Trinidad Limited signed a production sharing contract with the Republic of Trinidad and Tobago in February 1998.
1998: Trinidad Shell Exploration and Production B. V. signed a production sharing contract with the Government of the Republic of Trinidad and Tobago in February 1998.
1998: New Horizon commenced operations in September 1998.
1999: Venture Production (Trinidad) Limited entered into a joint venture with Petrotrin on October 1999.
1999: Atlantic LNG starts production with Train I.
2000: Agreement reached for expansion of Atlantic LNG trains two and three.
2001: BHP Billiton announces that wells Canteen One and Kairi One encountered significant oil and gas columns in previously-untested undiscovered Oligocene sands.
2001: Titan Methanol Company first production was in April 2001.
2001: Caribbean Nitrogen Company commenced operations.
2002: Vermillion entered into a joint venture with Petrotrin in August 2002.
2002: First commercial gas produced from British Gas North Coast Marine acreage.
2002: Trinidad’s ninth ammonia plant comes on stream.
2002: Phoenix Park Gas Processors signs a train two and train three natural gas liquids agreement with Atlantic LNG.
2002: Atlantic LNG train two first commercial shipment in September 2002.
2002: BPTT begins installation of the world’s second largest natural gas processing/production platform in Kapok Field.
2002: Production of natural gas begins from Hibiscus field on the North Coast.
2002: BHP Billiton declares commerciality of the Greater Angoustra Structure, reserves estimated at 1 billion barrels oil & 1 tcf gas.
2002: BG/Texaco announces Dorado One gas discovery in block 5a.
2002: BPTT announces that Iron Horse 1s1t has found 1tcf natural gas.
2002: TED spuds first exploration well on south-west penninsula lease.
2002: Block U-b awarded to Primera and EOG.
2002: Vintage Petroleum announces gas and condensate discovery at Carapal Ridge On, onshore Trinidad, first since Navette in 1957.
2002: Block 3A awarded to the consortium of BHP Billiton (operator), TFE, BG & Talisman.
2002: Eastern Block awarded to Talisman (joint venture).
2002: EOG announced commercial gas discovery with Parula One in in the SECC block.
2002: EOG awarded Reverse L block.
2002: MOE begins aquisition of Ultra deep water 2D seismic survey.
2002: Venture Petroleum began exploration and development drilling on the Point Ligoure Joint Venture.
2002: Commercial production began from Osprey Field (EOG)
2002: Exxon-Mobil drilled two wells in blocks 25(b) and 26, bptt in Block 27 (deep water).
2002: BPTT announced Red Mango 2st1 as a gas/condensate discovery.
2003: BPTT commissions the world’s largest offshore gas processing facility, Cassia B, capable of producing 2 billion cubic feet of gas a day.
2003: BPTT installs Bombax, BP’s largest diameter marine pipeline worldwide (48?) and one of the largest in the world.
2003: Cross border talks with Venezuela- signing an MoU and Letter of Intent.
2003: Offshore competitive bid rounds held for nine shallow water shelf and deep water blocks
2003: A Draft of the Quarry Policy Green Paper was prepared.
2004: Six blocks were awarded from the “2003 Competitive Bid Rounds”: 1(a), 1(b), 3(b), 4(a), 5(c) and 22.
2004: Stimulation of production of onshore acreages via 1. PETROTRIN surrendering individual “Deeds of Surrender” and being re-awarded “Core Areas” licences incorporating new terms and conditions. 2. Establishing a consortium of companies for the Southern Basin onshore exploration project.
2004: Two new petrochemicals plant established: Atlas Methanol and the N2000.
2004: Formulation and implementation of a “Local content policy”.2005 ALNG Train four was completed ahead of schedule in December 2005.
2005: Start of construction of the 56” Cross Island Pipeline (largest in the Western Hemisphere) from Beachfield to Pt. Fortin.
2005: Construction of four offshore platforms at LABIDCO: Oilbird, Cannonball, Cashima and Mango.
2005: The “2005/6 Competitive Bid Round” began which offered eight onshore and eight deep-water blocks.
2006: The Petroleum Fiscal Review was implemented which made amendments to major pieces of legislation including supplemental petroleum Tax. A new model PSC emerged from this review.
2007: The “Unitisation Framework Treaty” for the cross border gas between Venezuela and TT was signed.
2007: Nine blocks were awarded in the “2005/6 Competitive Bid Round”.
2009: BPTT Savonette platform installed and 1st gas produced.
2010: BPTT Serrette platform installed.
I have faith in the leadership of the Government of Guyana. The government is certainly not perfect, but clearly by far the best given the circumstances of Guyana today. A Guyana with a young population eager and sometimes impatient to benefit from our natural resources. We live in a world, where the human species from as far back as we know has been characterised by change. Change itself designates a conspicuous and rather pervasive feature of both our introspective and sensory experiences.
The pretenders of wisdom and knowledge of oil and gas must know and understand the inevitability of change. In our circumstances, what is vital is to have in charge of the Ship of State, a person whose integrity cannot be questioned and whose relationships are underlined with a level of civility and compromise. These qualities will allow our leadership to dispel doubts and to utilise our God-given resources for the benefit of all of the people.
Regards,
Hamilton Green
