BPTT boss: Balance risk, reward

February 3, 2014

BP Trinidad and Tobago regional president Norman Christie is calling for a change to the risk and reward structure of the local energy sector.
Christie was speaking as part of a panel titled Balancing the Risk-Reward in the T&T Energy Sector at the Trinidad and Tobago Energy Conference on Monday.

Christie explained that there is a need for returns to be consistent with the risks being taken by industry players. He added that while the structure now in place was essential in building T&T’s energy sector, the time has come to review the structure to ensure it remains relevant to the changing global environment.
Christie said: “We are currently operating under a structure that was appropriate for the time it was created but the industry has changed dramatically since then and what has got us here will not keep us competitive.”
Christie explained that recent fiscal incentives have helped but other changes are required to remain competitive. 
He recommended a comprehensive framework which addresses such issues as natural gas utilization and allocation or the balance between LNG and downstream usage, energy conversion requirements or what plants best utilize natural gas to create value and market reflective pricing or the elimination of subsidies.
He noted that bpTT remains confident about its long-term prospects in the Columbus Basin. The company had recent success drilling from its Savonette platform and has been encouraged by early data from the Ocean Bottom Cable Seismic survey. He added though that future investment could be affected if steps were not taken soon to change the risk and reward structure. 
Christie said: “Collaboration will be key if we are to be successful in bringing about the transformation required.”

Note to editors:

BPTT operates in 904,000 acres off Trinidad’s east coast. An affiliate company BPEOC also has Production Sharing Contracts for 899,000 acres in two deepwater blocks off the north east coast. BPTT has 13 offshore platforms and two onshore processing facilities.

Further information:
Danielle Jones, bpTT: +1 868 497-4747
Luis Araujo, bpTT: +1 868 793-3374