Page 19 - LatAmOil Week 03 2021

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The objectives of the Pilot CO2 EOR have been commercial proposition for Trinidad’s 13 high- potentially more efficient alternative to water-
successfully achieved, despite the unforeseen est ranked mature onshore oil fields that have to flood and has established the Company as the
COVID-19 pandemic; electrical power outages date produced over 1.75bn barrels of oil prior leading services provider for mobile CO2 injec-
influencing the efficiency of the Inniss-Trinity to their consideration as being suitable for CO2 tion for enhanced oil recovery. The success-
field operations, the understandable regulatory EOR operations. Expansion of CO2 EOR is sub- ful development of the CO2 EOR business in
delays due equally to COVID-19 and the intro- ject to increasing available CO2 off-take and the Trinidad allows the business to be valued on the
duction of a new CO2 EOR operating system Pilot CO2 EOR provides the commercial model basis of its assets, invested project costs, existing
being employed for the first time in Trinidad at for a Finance Investment Decision by others in contracts, goodwill and CO2 EOR operational
the Inniss-Trinity field, the requirement for flexi- the future. experience.
ble operations to find solutions to overcome well Forward programme: Swab four wells to eval- Paul Griffiths, CEO of Predator Oil & Gas
integrity issues in some of the wells in the AT-4 uate well condition and, if suitable, return to pro- Holdings, commented: “The excellent results
Block that were drilled over 60 years ago, and the duction, including potentially perforating the from the Pilot CO2 EOR project, despite a
increasing competition for workover rig time. Herrera #2 Sand in one well that had not been challenging operational environment due to
During the period of the Pilot CO2 EOR previously produced from this reservoir. Timing COVID-19, has de-risked the case for CO2
operations, the commercial model has been of well workovers will depend on rig availabil- EOR and established the Company as the
strengthened by optimising operating costs, the ity and any COVID-19 delays for the import of ground-breaking leader in CO2 EOR expertise
rise in WTI oil price from $30.74 per barrel on packers for downhole completions. and delivery onshore Trinidad and within the
May 18, 2020, to $53.02 per barrel on January Commence CO2 injection at new rates wider Caribbean region. Results more than just
15, 2021, and the increased threshold to $75 per determined by the results of the Pilot CO2 EOR support pre-Pilot CO2 EOR forecasts and cre-
barrel before Supplementary Petroleum Profit Project and maintain for up to twelve months to ate a solid foundation for expanding production
Tax is applied to operating profits. reach, by cumulative monthly growth, target pla- growth over the next twelve months. Expand-
Commercial considerations: Injected CO2 teau production for the Herrera #2 Sand in the ing our successful CO2 EOR business can be
volumes for the Pilot CO2 EOR, the key metric AT-4 Block in the range 243 to 547 bpd, in align- achieved by increasing production revenues
for minimising operating costs, are currently at ment with pre-Pilot CO2 EOR desktop forecasts. and also by offering fee-paying services to other
the lower end of desktop estimates made prior to Business development: The pre-Pilot CO2 operators with profit-sharing entitlements.”
the commencement of operations. EOR success has de-risked CO2 EOR in Trini- Predator Oil & Gas Holdings, January 20 2021
Combined with increased oil prices, changes dad and has provided the commercial, environ-
to SPPT and early confirmation of enhanced mental and technical model for future projects.
production profiles potentially in line with the Capitalising upon this proven, fully integrated, PETROCHEMICALS
upper end of pre-Pilot CO2 EOR forecasts, working business model, expertise, and the
enhanced near-term operating profitability exclusivity of liquid CO2 supply by introducing Commercial operations
is now considered to be achievable, subject to a fee-paying and profits-sharing service under
efficient operational and regulatory procedures the commercial model established by the Com- commence at methanol/
based on the learning curve established during pany for Inniss-Trinity CO2 EOR, is now a prac-
Pilot CO2 EOR. tical near-term objective of the Company. Five dimethyl ether plant in
At WTI oil price of $50 per barrel, projected in-country operators and two international State
EBITDA net-backs per barrel of oil for the P50 oil companies have made initial exploratory Trinidad and Tobago
and P10 pre-Pilot CO2 EOR production profiles approaches to assess suitability of CO2 EOR for
at plateau production are estimated to be in the some of their producing, mature, oil field assets. Mitsubishi Gas Chemical Co. (MGC), Mitsub-
range $15-25 per barrel. There are no new capital Enhanced Oil Recovery is likely to become ishi Corp. (MC) and Mitsubishi Heavy Indus-
investment costs required. a key component of work programme com- tries Engineering (MHIENG) have teamed up
Resources potential: 459,000 barrels, repre- mitments required to extend Incremental Pro- with National Gas Co. (NGC) of Trinidad and
senting a 15.9% recovery factor over five years duction Service Contracts. The successful CO2 Tobago and Massy Holdings, a joint venture in
based on STOIP of 2.887mn barrels, are poten- EOR Pilot has demonstrated a practical and the Republic of Trinidad and Tobago, Caribbean
tially recoverable using CO2 EOR from the Her- Gas Chemical Ltd (CGCL), to launch commer-
rera #2 Sand in the AT-4 Block in Inniss-Trinity. cial operations of a methanol and dimethyl ether
The CO2 EOR Pilot has de-risked “the pending (DME) plant.
development” CPR definition of these resources. CGCL was established in March 2013, and
A further 410,000 barrels may be recoverable for it completed construction. Fueled primarily by
other Herrera reservoirs in the AT-4 Block using natural gas sourced from Trinidad and Tobago,
CO2 EOR. the plant has an annual production capacity
CO2 EOR resources, pending development, of 1mn tonnes of methanol and 20,000 tonsne
for the entire Inniss-Trinity field were deter- of DME. It began operating commercially in
mined to be 6.8mn barrels (Best Estimate or December 18, 2020.
equivalent to P50 case) by SLR Consulting (Ire- Currently, the global demand for methanol
land) Ltd. Exclusivity of liquid CO2 supply in is approximately 81mn tonnes per year, and that
Trinidad dictates that these resources are best is expected to increase steadily in step with GDP
developed by the specialist services provided by growth. Through this business, MGC, MC and
the Company and not through licence or asset MHIENG are aiming to help meet that demand
acquisition. and provide a boost to economic growth in the
Successful Pilot CO2 EOR has de-risked Caribbean.
medium- and long-term CO2 EOR as a Mitsubishi, January 19 2021

Week 03 21•January•2021 www. NEWSBASE .com P19