May 2016 Financial News

Loran/Manatee closer to reality

May 26, 2016

ENERGY Minister Nicole Olivierre on Monday expressed optimism that this country will soon be able to monetise natural gas reserves located in the Loran/ Manatee field. The Minister expressed her optimism following bilateral talks between Prime Minister Dr Keith Rowley and Venezuelan President Nicolas Maduro at the Diplomatic Centre in St Ann’s on Monday.

On the conclusion of those talks, Rowley and Maduro announced that both countries had reached consensus in the areas of trade, energy and national security.

On the energy front, Maduro said historic agreements were signed for the benefit of both countries, “where we will use gas in our shared fields.”

Maduro said a joint venture will be established to conduct all the investments required in order to tap those resources to the benefit of both countries. Rowley made reference to efforts by both countries to monetise natural gas in the Loran-Manatee field which straddles the countries’ maritime border. Loran- Manatee has an estimated 10.25 trillion cubic feet of gas, of which 26.25 percent belongs to TT.

“We have agreed and signed the relative memoranda which allows Venezuela and TT to now direct operating companies to proceed on our cross-border initiatives,” the Prime Minister stated. He said this could see the monetisation of cross-border gas, Venezuelan gas in Trinidad plants and together, “TT and Venezuela can approach the international market.”

Speaking afterwards with reporters, Olivierre said, “One of the other agreements signed, outlined the parameters under which the unit operator of that field would be operating.”

Saying significant progress has been made in the last couple of years regarding the monetisation of gas reserves in Loran/Manatee, Olivierre said, “We have reached the stage whereby we feel we are that much closer to actually signing off on the unitisation and unit operating agreement which would then lead to the submission of a development plan.”

She explained this would identify details such as production profile and exactly how many platforms would be needed. “We are getting closer,” Olivierre said.

The Minister also said this country has the opportunity to tap into natural gas reserves in the Dragon Field, which is totally in Venezuelan waters. “What is new about this arrangement is that we now have an opportunity to purchase gas directly from Venezuela,” she stated.

She said a pipeline would have to be built so gas from the Dragon Field can be fed into this country’s gas transmission system and the closest point for that connection would the Hibiscus Platform in the North Coast Marine Area on TT’s side of the maritime border.

Olivierre said gas from the Dragon Field could greatly help to ease the natural gas shortage this country is facing across the board.

The Mariscal Sucre Dragon field is around 25 mi (40 km) north of the Paria peninsula, state of Sucre, at a water depth of 328-427 ft (100 -130 m).

Olivierre said there were no discussions about TT supplying LPG to Venezuela or PetroCaribe at Monday’s bilateral talks. Told about a conversation which President Anthony Carmona had with Maduro prior to coming to the Diplomatic Centre, Olivierre said there was “not much opportunity” for this country with Venezuela in terms of electricity generation.

“They have generation capacity that is waiting for gas production. Not develop their gas fields,” she said.

Source:
Clint Chan Tack
Newsday
Thursday May 26, 2016

http://www.newsday.co.tt/businessday/0,228331.html