BPTT Activity Update at TTEC2017

Trinidad Energy Conference - BPTT Activity Update
Delivered by Andre Celestain – VP Operations
January 24, 2017

•	Salutations

Good morning
Over the past few years the Trinidad Energy Conference has been held against the backdrop of low energy prices. This year is no different in that sense and I will not attempt to go into a discourse on the reasons or the different perspectives that are being put forward. What is emerging is a common view that the global energy industry needs to be prepared to operate in a world in which energy prices will be “lower for longer”.

There are similar concerns at the local level along with concerns about gas supply. As operators the question we are asked most is, “What is being done to increase production?”

Today I will address the issue of what bpTT is doing to address the challenge.

At this point I would like to give a brief overview of our operations. BPTT currently operates in 904,000 acres off the east coast of Trinidad. We have 13 production platforms and two onshore processing facilities. Juniper will be our fourteenth platform, with another – Angelin progressing through BP’s project approval process. I will speak more about Juniper and Angelin later in this presentation.

At a global level, BP is developing into an organization that can succeed in the current low price environment. This is important to note because BP’s Trinidad and Tobago operations will play a key role in attaining some of the objectives that BP has set and the activity required to achieve those objectives is the focus of my presentation. To illustrate the role bpTT plays, production from our region accounts for about 17 percent of the BP’s production globally.

Let me be clear: Although the operating environment is being negatively affected by low prices, at least in the case of bpTT we have a full activity set in place to help deliver on our commitments in terms of national production and contribution to BP’s production as well. I would like to echo our public statements that bpTT intends to continue capital investment in its operations once the investment climate remains conducive.

Internally, as we continue to make adjustments to the low price environment we continue to manage capital and operating costs and have had success in increasing efficiency and instituting cost savings through many approaches including working with our supply chain, collaborating with other upstream operators and engaging our employees through an employee-led programme which recognizes and shares examples of cost savings throughout the business.

We are confident that a strong focus on safety, capital discipline, efficiency and maximization combined with the right investment climate would enable bpTT to succeed in a low-price environment.

Now for a closer look at our activity set starting with activities designed to increase production from our existing facilities.



Focus on Existing

In the short-term bpTT continues to focus on maximizing recovery from existing fields through a combination of well work, system pressure optimization and cycling of liquid loaded wells.

A major success in managing base performance has been high plant reliability which is up to 99% percent. We are proud of our plant reliability which is the product of ongoing investment in plant maintenance and a continuous and collaborative approach. One of our values is team work or ‘One Team’ as we put it and our performance in clearly demonstrates the value of the team with everyone taking ownership of the goal.



As you can see from these slides, we have consistently improved our performance and are among the top performing BP regions in terms of reliability.


New Well Delivery

BPTT will continue a three-rig programme for 2017. In terms of our existing infrastructure, our proposed drilling programme for 2017 will include the following:

•	Continuation of the Amherstia well programme which began in 2016. This programme is comprised of four new wells. The Amherstia programme will be completed in Q2.
•	The commencement of a three-well development programme on the Kapok facility in Q1
•	The commencement of a three-well development programme on the Serrette facility in Q3.

Major projects

As I noted earlier BP’s Trinidad and Tobago operations will continue to play a major role with BP operations and commitment to success. For example, major projects in this country will account for 20 percent of BP’s goal of adding 800 mboed of new production by 2020.

Following is the major project activity that we will be pursuing in 2017:




Juniper

We have already spoken about Juniper in previous updates. To recap - The Juniper facility will develop gas from the Corallita and Lantana fields located 50 miles off the south east coast of Trinidad, in water-depth of approximately 360 feet. It is bpTT’s first subsea development and will tie back to the Mahogany B hub.

	Juniper is on track for 3Q 2017 start-up
	All 5 wells have been successfully completed
	Major works have been completed at the Mahogany B hub in preparation for receiving gas from Juniper
	Pipelay and tie packs have been completed 
	Subsea infrastructure has been installed
	Installation is on track. The jacket and topsides have been installed.



Here you can see photos of installation of the jacket which took place last week.


TROC

The Trinidad Region Onshore Compression Project or TROC is designed to increase production from low-pressure wells in bpTT’s existing acreage in the Columbus Basin using an additional inlet compressor at the Point Fortin Atlantic LNG plant. Additional upgrades will be made to bpTT’s upstream facilities, as well as those of third parties to accommodate operations of the compressor.
	The project was sanctioned in July 2016
	The majority of the construction work is being handled by Atlantic with BP and other shareholder representation. 
	When it comes on stream, the TROC project has the potential to deliver approximately 200 million standard cubic feet of gas per day in 2017.  
	Both Pt Lisas and Atlantic will benefit from increased gas from TROC.
	Start up is planned for 2Q 2017.


Galeota Expansion Project

The Galeota Terminal facility was established over 40 years ago, and the goal of the GEP is to extend the life of the facility for another 20+ years. This will be achieved through a hybrid of brownfield/greenfield modifications to ensure the facility is fit for service and fit for purpose. While this project will not add production our onshore terminal is a critical piece of infrastructure in our network. This facility will receive water and condensate from our offshore fields and will processes these liquids ensuring market quality crude/condensate and also ensuring bpTT is compliant with the country’s produced water regulations.

This project will be a vital part of our long term sustainability and will prove beneficial for company and country.

Activity at the project site began in Q4 2016 and the project is expected to take approximately two and a half years to execute with a targeted start-up date of early 2019.  Bechtel is the main contractor for this project.



Angelin

The Angelin field is located 60 kilometres off the south east coast of Trinidad in water-depth of approximately 65 metres. Angelin was originally discovered by the El Diablo well in 1995 and appraised by La Novia in 2006. 
•	Angelin is progressing through BP’s project approval process 
•	Sanction is subject in part to negotiations currently taking place between bpTT and Government. My president Norman Christie would have expanded on the significance of those negotiations to the sanction of Angelin.


Accommodations project

The accommodations project is designed to improve the living quarters on our offshore facilities. Work is now approximately 95 percent complete. In 2017 we will move to installation on Mahogany B and Amherstia is planned for 2018.


Partnering

At bpTT we continue to pursue options to develop resources and this includes partnering with other operators. An example of this is the Sercan joint venture between bpTT and EOG with EOG as operator. The first well from the expanded Sercan Development came into production in December. 

New opportunities
So far I have spoken about extracting more from existing and development projects. I would now like to turn to how we are targeting new opportunities.

This involves going back into existing fields and using the results of seismic to unlock new opportunities and going after smaller pools. When we talk about small pools within existing fields we are looking at fields with a resource size of less than 50 bcf. There are small pool opportunities within existing fields and future new field developments and we are using the data from the OBC seismic to help unlock these opportunities.

As we have stated previously, the Ocean Bottom Cable seismic Phase 1, which was completed in 2013, gave us improved understanding of the subsurface largely through enhanced imaging that minimised the problems caused by shallow gas. 
It should be noted that development of Angelin was fast-tracked because of the results of the data provided by the OBC and four out of the five opportunities we have identified for our exploration programme followed on from interpretation of the OBC.



Phase 2 of the Ocean Bottom Survey began in December and will run until March. The survey area is approximately 423 square kilometres. The area being surveyed is under the existing Teak and Poui fields.

The map shows the survey area.

Firstly, at an estimated 90 days, phase 2 will be completed at a fraction of the time taken on Phase 1 which took about 12 months to complete.

The reduction in duration will mean cost savings and reduction in exposure to risk through the reduction in vessel times.



This slide shows some of the vessels being used in the survey.
Secondly, Phase 2 will also be different from Phase 1 because of the use of nodes instead cables. This will be the first time that nodes are being used in T&T.

Exploration



Our exploration programme will continue in 2017 with the Savannah well which was spud at the end of 2016. Savannah is located 6 km southeast of Juniper in water depths of 500 feet and could potentially be a tie-in to the Juniper subsea system. 
We will share more on Savannah at a later date. Hopefully it will be good news.


We also propose to drill Macadamia in Q2. Macadamia will be the second well in our exploration programme and will be drilled in water depth of 274 feet. 
The map on screen shows the location relative to bpTT’s existing infrastructure.
Macadamia was one of the four exploration opportunities that have followed on from the OBC Phase 1.



CSR

Finally, although the current environment has negatively impacted our business, bpTT remains committed to fostering development through our work in communities. 
BPTT’s social responsibility philosophy is premised on providing support to create the right conditions for growth and investment by working with partner communities to create suitable socio-economic activities, good governance and openness to learning and development. 

We are well aware that bpTT’s impact goes beyond the energy sector and we continue to work on fostering development through our focus areas of education, enterprise development and capacity building, environment, and arts and culture, social support, and bpTT Stakeholder relationships. We continue to work with our partner organisations to increase efficiency in the delivery of our corporate social responsibility programmes without minimizing the impact of those programmes.
I would like to talk briefly about two of our programmes:

In Mayaro we have helped to form umbrella organisations to look specifically at opportunities to develop the community through sport and education. This initiative began in 2013 based on a need identified by the community to create opportunities for development. This programme is led by the community with bpTT providing support.

Outside of the Mayaro/Guayaguayare area, BP is fostering community development through its Beyond Borders programme which was developed in 2010 through a partnership between BP Trinidad and Tobago, The Rose Foundation and the Ministry of National Security through its Citizen Security Programme. 

The programme provides organizational development skills in a number of communities such as Beetham Gardens, Farm Road (St. Joseph), Mt. D’or, Covigne and Embacadere. Since the start of the training initiative in 2010, 35 organisations have been formed across the five communities, resulting in community-based business initiatives in the areas of bottled water, construction, graphic arts, transportation and catering. 


Here you can see a photo of the Living Expo held in November which highlighted how community groups are using local produce to create agro-processing opportunities.
In 2017 we will continue these programmes which form part of our wider CSR strategy.



Conclusion

To recap, bpTT remains committed to investment in T&T once the environment remains conducive and, as I have demonstrated in this presentation, we have a robust activity set that will enable us to “compete in an evolving energy environment” as the conference theme states.

Globally, the energy sector is evolving with a major feature being low prices that many agree will be ‘lower for longer’. However, as my regional president stated previously at this conference, we should not let a downturn go to waste. In other words we should use the current environment to improve efficiency and to maximise our production as we focus on our activities. At bpTT we are seeing the benefits of this approach and these improvements will enable us to meet our commitments over the long-term. 

As I noted earlier, Juniper will play an important role for bpTT, BP and T&T. As I leave I would like to share a brief video on Juniper.

Thank you