May 2004 Financial News

Talisman hopeful for Eastern Block

May 04, 2004

By Curtis Williams
Trinidad Express
PORT SPAIN
Petroleumworld.com 05 02 04

EXPLORATION manager of Talisman (Trinidad) Petroleum, Des Norris says his company is encouraged by what it has seen from the recent 3d seismic it shot in the Eastern Block.

Speaking with Express Business at the completion of the survey, Noris said preliminary look at the data makes Talisman hopeful that the oil trend which his company and its joint venture partners have been successful in finding offshore will continue on land into the Eastern Block.

Noris said: "Talisman and our partners have conducted successful exploration offshore and we hope the same geological trend continues onshore."

Talisman which along with BHP and Total made the largest oil discovery in 30 years in Trinidad and Tobago believes that the trend from the Angostura field will extend onland into the Eastern Block.

Oil has already been discovered in the Eastern Block but Talisman is going after deeper horizons where they hope to make far more significant discoveries.

The seismic programme was the largest onshore 3D seismic exploration programme ever undertaken in Trinidad and Tobago.

About 2.44 million person-hours (the equivalent of about 1,250 people working full-time for a year) were required to complete the work with most of the temporary jobs going to workers from Rio Claro, Biche, Mayaro, Moruga, Tableland and Charuma all communities with high levels of unemployment.

Noris argued that Talisman took the opportunity to improve the skill set in the rural areas with training programmes in electronic repairs, defensive driving and first aid while others gained experience as geophysical assistants, field supervisors, radio technicians and health, safety and environment officers.

Noris said Talisman spent $188 million on the project, of which over $ 72 million was spent in Trinidad and Tobago.

He said: "About $45 million was paid in wages. Spending on vehicle and equipment purchases and rentals and other supplies and services totalled $25 million."

Initially Talisman was refused an Environmental Clearance Certificate from the Environmental Management Authority to do conduct its seismic survey in parts of the Nariva swamp but following a public battle with the Authority and a legal challenge to the decision Talisman prevailed.

Noris said project, which began in late 2002, took more than 18 months to complete because Talisman used hand tools and ox carts instead of machinery in order to minimise the temporary environmental impact of required brush clearing.

Seismic exploration involves the carefully controlled underground detonation of small explosive charges. Recording the resulting sound waves provides information about underground geological formations that may hold gas or oil.

Noris said Talisman expects to spend several months evaluating the results of the seismic program, selecting the most promising locations to explore for oil and gas and seeking regulatory approval to proceed with an exploratory drilling program.

He said: "If Talisman's exploration programme is successful, the company expects it will create additional employment opportunities."


Trinidad Express
Wednesday, April 28th 2004