Trinidad and Tobago

East Coast Marine Area (ECMA)

The BG Group-operated Dolphin gas field, located 83 kilometres off the east coast of Trinidad in Block 6(b), commenced production in 1996. Dolphin is contracted to supply 250 mmscfd gas to the National Gas Company (NGC) under a 20-year supply contract together with 100 mmscfd to Atlantic Train 3 and 120 mmscfd to Atlantic Train 4. A new production contract to supply 220 mmscfd of gas to NGC for up to 15 years commenced in 2009. To enable delivery of this new supply, the drilling of five further development wells in the Dolphin field was completed in 2009.

The gas is produced under a Combined Development Plan for the fields in Blocks 5(a), 6 and E. Production is currently delivered from the Dolphin field through 13 platform wells and the Dolphin Deep field from two sub-sea wells. These wells were the first sub-sea completions in Trinidad and Tobago. The Dolphin Deep sub-sea facilities are tied back to facilities on the Dolphin platform. ECMA gas is delivered to NGC via a pipeline to the Poui platform where it connects to the domestic network. Gas is delivered to Atlantic LNG through a second offshore pipeline bringing gas from the Dolphin platform to shore at the Beachfield receiving terminal. It then connects to NGC’s 76 kilometre onshore Cross Island Pipeline extending from Beachfield to Atlantic LNG at Point Fortin.

In 2005, BG Group and partner completed the Manatee-1 well in Block 6(d) in the ECMA, which indicated gross resources of 1.8 tcf. This discovery demonstrated the extension of the Loran field from Venezuela into Block 6(d) in Trinidad and Tobago. In 2010, the governments of Trinidad and Tobago and Venezuela ratified the field-specific treaty for the cross border Loran-Manatee field, providing a framework for advancing a field development plan by the partners.

North Coast Marine Area (NCMA)

The BG Group-operated NCMA development, located 40 kilometres off the north coast of Trinidad, includes the Hibiscus, Poinsettia and Chaconia gas fields. There is a Unitisation Agreement with Petrotrin for the development of accumulations within the NCMA Unit Area. In 2000, the government of Trinidad and Tobago approved the development of the three fields. These fields are being developed in up to four phases to supply gas to Atlantic LNG Trains 2, 3 and 4.

The Hibiscus platform was installed in 2001, together with a pipeline from NCMA to Atlantic LNG at Point Fortin. In 2003, de-bottlenecking increased the capacity of the pipeline to 30% above the original design.

In 2002, BG Group and its partners announced first gas production from the NCMA Hibiscus field into Atlantic LNG Train 2. NCMA is contracted to supply 240 mmscfd gas to Train 2 for up to 20 years, in addition to 45 mmscfd to Train 3. Production into Train 3 started in 2003. NCMA started to supply gas to Atlantic LNG Train 4 in 2005. The Train 4 supply contract is for approximately 80 mmscfd for ten years.

The key recent project has been the development of the Poinsettia field as part of Phase 3c and includes accessing the Heliconia and Bougainvillea accumulations as part of Phase 3d. This has involved building a new drilling and production platform, the largest structure installed in Trinidadian waters, with initial production from a single sub-sea well. A new pipeline connects the new platform to the existing Hibiscus platform 20 kilometres away. First gas from Phase 3c was achieved in January 2009. The drilling programme completed successfully in 2010 via completion of six development wells, thereby increasing NCMA deliverability to Atlantic LNG. All six wells are on production.

The NCMA 4a compression project which will sustain existing production from the NCMA fields was sanctioned by BG Group and partners in December 2010.

Central Block

BG Group holds a 65% interest and operatorship of this 111 square kilometre block. State-owned company Petrotrin holds the remaining 35% under an Exploration and Production Licence. The discoveries in the onshore block include the currently producing Carapal Ridge field, as well as Baraka, Baraka East and Corosan.

A new gas plant with a capacity of approximately 65 mmscfd was commissioned in 2007, near the existing production site at Carapal Ridge. This was de-bottlenecked to 80 mmscfd in 2010.

BG Group supplies 20 mmscfd gas and approximately 1 000 bopd condensate to Petrotrin, for use in its refinery at Pointe-à-Pierre, Trinidad. Gas is transported via a 12 kilometre pipeline that connects to the NGC network. An additional 23 mmscfd is supplied to BG Group’s capacity in Atlantic LNG Train 4. The development of the Baraka and Baraka East discoveries and compression (known as the BTIC project) was sanctioned in 2009 and is currently in the execution phase, with first gas planned for 2012. This will allow for the extension of existing gas supply contracts to both the domestic and export markets.

Block 5(c)

In 2007, BG Group signed a farm-in agreement with Canadian Superior Energy Inc. (now Sonde Resources) for Block 5(c), 94 kilometres off the east coast of Trinidad. BG Group took a 30% working interest in the PSC and assumed operatorship in April 2009. In July 2009, BG Group exercised its pre-emption rights under the Joint Operating Agreement to increase its stake in the block to 75% which became effective in?September 2009. In December 2010, Voyager Energy (Limited), a subsidiary of Niko Resources Limited, acquired the remaining 25% interest owned by Sonde Resources.

Each of the three wells drilled on Block 5(c) since mid-2007 has encountered hydrocarbons and has been successfully tested. The first well, Victory-1, was drilled 10 kilometres north-east of the Dolphin platform. The second well, Bounty, targeted a separate prospect, approximately four kilometres away from the Victory well. Drilling and testing of the third exploration well, Endeavour-1, completed in 2009. The well targeted the same reservoir section as Bounty-1 but on a separate structure, approximately nine kilometres north-west of the Bounty discovery. Declaration of Commerciality was made in July 2011. An appraisal drilling programme is proposed to commence in 2013, subject to partner agreement.