TT's oil production hits two-year high

Oct 13, 2014 12:00 AM

The Ministry of Energy said T&T's oil production hit a two-year high in September. An October 7 release from the ministry said national oil production averaged 84,848 barrels per day, the highest in two years, and that the increase in production took place year-on-year and month-on-month. In August, production averaged 82,184 barrels of oil per day (bopd) and in September 2013, the national average production was 81,140 bopd.

The release was issued after an October 3 meeting of Energy Ministry officials with the chairman, directors, and management of London-listed LGO plc (formerly Leni Gas & Oil). It was the first meeting between Energy Minister Kevin Ramnarine and new LGO chairman Stephen (Steve) Thomas Horton who was appointed on August 27. Horton had been a non-executive director of the company since February 2011 but replaced founder David Lenigas who had been the company chairman since its incorporation in August 2006.

At the Goudron field in Guayaguayare, LGO has been finding oil in every well it has drilled. The British company has a commitment to the government to drill 30 wells, and the finds have been helping to boost onshore and national production numbers. Ramnarine and British High Commissioner Arthur Snell visited Goudron in October last year.

Since then LGO's production has more than doubled, climbing from 266 bopd (October 2013) to 700 bopd (October 2014). Ramnarine said in the statement that he was “pleased with the progress being made by LGO in Goudron and looked forward to even more oil production in 2015.” Yesterday, LGO announced it has already started to sell the increased oil production and had “made the first sale from the newly commissioned sales tank at the Goudron Field.

“A total of 1,886 barrels of crude oil were shipped from the new sales tank to the Pointe-a-Pierre refinery,” LGO said. LGO CEO Neil Ritson said: “A further milestone in field operations was reached yesterday with the first oil sale from the newly commissioned 2,000 barrel facilities. Production from the field can now be raised without any further immediate constraints imposed by the sales infrastructure.”

Previous maximum daily sales were limited to around 750 barrels and the new infrastructure will be capable of handling oil sales through the remainder of 2014 and to mid-2015 when a lease automatic custody transfer (LACT) meter is expected to be installed to handle higher sales volumes as production continues to ramp up with the ongoing drilling programme, the company said.

Optimisation of the flow rates from the four wells now producing on Pad 2—GY-665 to GY-668—will now continue unrestricted by facilities throughput. This process of optimisation is expected to take approximately two weeks to complete, LGO said.

LGO said: “Following the excellent production results obtained in the wells to date it has been deemed justified to further optimise the well design to achieve ideal drilling conditions and future production potential at the Gros Morne Sandstone. The new well design will be used in all future wells that target the Gros Morne as a primary reservoir.”

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