Bernard Looney at BPTT update June 1, 2017

Speaker: Bernard Looney
Job title: BP Chief Executive, Upstream
Date: June 1 2017
Event: BPTT Update on Developments and Exploration
Venue: Trinidad Hilton and Conference Centre
Opening 
•	Thank you, Norm. 
•	Minister Franklin Khan, Minister Stuart Young, Minister Colm Imbert, Mr. Wendell Mottley, senior public sector officials, leaders from the local energy sector, key project stakeholders, members of the media – good afternoon.

•	It is very exciting to be here today to reaffirm BP’s commitment to Trinidad and Tobago and to celebrate what we have recently achieved together.

•	Today, I will briefly speak about three things:
1.	Celebrating recent successes;
2.	What these mean for the country and to BP, and;
3.	The current business context.

1.	Celebrating recent successes
•	Firstly – today is about celebrating recent successes. 
•	We are here to celebrate many successes, five of which are:
i.	the completion of gas contract negotiations with the National Gas Company (NGC);
ii.	the long- awaited sanction of the Angelin project by BP largely supported by the successful negotiations; 
iii.	the safe start-up of two projects – Sercan II with our partner EOG and the Trinidad Offshore Compression project (TROC);
iv.	the imminent start-up of the Juniper project, and;
v.	hot off the press, I am extremely happy to announce that we have found gas in commercial quantities in our two exploration wells – Savannah and Macadamia.
•	The results of these exploration wells have unlocked approximately 2 tcf (trillion cubic feet) of gas to underpin new developments in these areas. 
•	The Savannah exploration well was drilled into an untested fault block east of the Juniper field in water depths of over 500 feet.  Based on the success of the Savannah well, bpTT is expecting to develop these reservoirs via future tie-back to the Juniper platform.
•	The Macadamia well was drilled to test exploration and appraisal segments below the existing South East Queen’s Beach (SEQB) discovery which sits 10km south of the producing Cashima field.  This new discovery in the Macadamia well combined with the existing shallow SEQB gas reservoirs, is expected to support a new platform within the post-2020 timeframe.

•	These were the first exploration wells drilled by BP in Trinidad in a decade.  The discoveries mark the start of a rejuvenated exploration program on the Trinidad shelf with a further three exploration wells to be drilled.
•	We certainly have a lot to be proud of.
•	I would however like to echo Norm’s sentiments that we could not be celebrating today if the projects were not delivered safely.  
•	Congratulations and thanks to all involved in the safe completion of these key projects and business activities.
•	We are grateful to all of you, including the government, the National Gas Company, our business partners, contractors, suppliers and other stakeholders from across the industry. Thank you.

2.	Country and company
•	Secondly – what does this mean for the country and for BP?
•	These accomplishments are hugely important to BP, and to Trinidad and Tobago.


•	Meeting our commitments is something BP takes very seriously. TROC and Juniper are two out of seven major projects which BP promised our shareholders to start up in 2017. This highlights how vital our Trinidad operations are to BP in meeting our investor commitments and reinforcing market confidence. 
•	The gas produced from Trinidad is key to BP delivering on our commitment to provide 800 thousand barrels per day of new production by 2020.
•	Production from Trinidad will account for approximately 20% of BP’s growth in its upstream segment over the next four to five years.
•	And more importantly, for the country, the increased production volumes also mean that we are doing our part to close the gas supply/demand gap which has been a major challenge for the industry here in Trinidad over the past several years.
•	In the short term, the start-up of Juniper, TROC and Sercan II will greatly assist us in meeting our near-term production goals and help to alleviate gas shortages.  
•	In the medium term, the sanction of Angelin ensures that we can maintain production levels past 2019.
•	In the longer-term, the success of the Macadamia and Savannah exploration wells underpins two new field developments post 2021.
•	And, the gas contract negotiations help improve the financial frame of our business in Trinidad and underpin future investments.

3.	Business context
•	Thirdly, a few words about the external environment – the environment we all work in.  While it is great to have confidence in the future, we must be very aware of the extremely challenging times we face – with energy prices below pre-2014 levels.
•	This has an impact on our revenues and those of the country. Prices have been reset and we have to reset our expectations accordingly. We all have to work harder at managing costs, finding efficiencies and collaborating more, if we are to continue to be successful in this new energy world.
•	And while these new projects and gas discoveries will go a long way to alleviating the gas supply challenges, we know they will not fully solve the issues. 
•	There is still work to be done to ensure we can fully reap the benefits of these new opportunities and we need to work together to ensure the gas remains as competitive as it can be.


Close
•	In closing, we should all be extremely proud of delivering these key milestones; it is an affirmation that BP remains committed to Trinidad and Tobago for the long term.
•	Finally, let me again say a big thank you to the government and all stakeholders for your partnership, cooperation and friendship. I look forward to Trinidad and Tobago remaining the flagship business that it has been for the past 55 years.