Jul 2014 Financial News

Repsol confirms new oil find

Jul 04, 2014

Repsol has discovered hydrocarbons in its Teak Bravo North (TB14) well in the Teak Samaan Poui (TSP) block offshore T&T, east of the island of Trinidad, the company confirmed in an e-mail yesterday. “This discovery, made in an extension of the existing Teak field, has an estimated 40 million barrels of oil in place,” the company said. “The TB14 well was tested flowing at 1,200 barrels of oil per day of good quality crude and is on production. This find is in addition to the successful completion of the Teak field development well TB13, which began producing from May 2014. For the last three years, Repsol has exceeded its internal resource addition targets outlined in its global 2012-2016 strategic plan.”

This find in the TB14 well has upgraded the northern portion of the Teak B field that was not known to exist before,. The new area is estimated to contain more than 40 million barrels of oil which increases the field’s current reserves, adds new production and extends its productive life, the company said. Repsol operates the field with a 70 per cent interest, partnered by co-venturers Petroleum Company of T&T (Petrotrin) and the National Gas Company of T&T (NGC), with a 15 per cent participation each. “I am happy to receive news of Repsol’s success,” said Energy and Energy Affairs Minister Kevin Ramnarine when asked for comment. “These new reserves are already being produced and are adding to the national numbers. In the last three years, we have succeeded in arresting the decline in oil production which started in 2006.

“There is a lot more to be done. However, arresting the decline in itself is an achievement. Repsol’s success is due to a range of factors that include the changes in the fiscal regime in 2010 to 2014.” Repsol and its partners are carrying out a two-rig drilling campaign aimed at adding new resources and production to the TSP fields, which have been producing since the 1970s. TB14 well was tested flowing at 1,200 barrels of oil per day of light crude oil. Prior to this, the first well in the 2014 drilling campaign, TB13, was drilled and is currently flowing at a rate of 1,384 barrels of oil per day of light crude oil. “This incremental volume from TB13 and TB14 represents a significant increase of 25 per cent from the current TSP production,” Repsol said. The two-rig drilling campaign was made possible due to recent revised fiscal regime incentives implemented by the government of T&T, which has resulted in increased rig activity, additional new production and new reserves.

“The company currently has a two-rig drilling programme using the Seadrill West Freedom and the Rowan Gorilla III,” Ramnarine confirmed. “Repsol and its partners continue to work in the area and expect to carry on drilling during the current year and also in the following years,” the company said. Repsol has been investing in T&T since 1995 and currently holds rights over the TSP block and other offshore exploration and production blocks. Its production in the country averaged 135,046 barrels of oil equivalent per day (boepd) last year, representing 39 per cent of company’s total production. Repsol has boosted its exploratory activity in the last few years with significant success, with more than 50 discoveries since 2008, including some of the world’s largest finds in the period. In 2013, Repsol posted the highest reserve replacement rate amongst its peers at 275 per cent, which also exceeded the company’s internal reserve addition targets for a third consecutive year to reach a total 1.515 billion barrels of oil equivalent.


Source:
Trinidad Guardian
Friday July 4, 2014

http://www.guardian.co.tt/business/2014-07-04/repsol-confirms-new-oil-find