BG plc, through its subsidiary BG Exploration and Production
Ltd., and its 50/50 co-venturer Texaco Trinidad Incorporated,
a wholly owned subsidiary of Texaco Overseas Holding
Inc. today signed a Production Sharing Contract (PSC)
in Port of Spain, Trinidad with the Honourable Senator
Finbar Gangar, Trinidad's Minister of Energy and Energy
Industries. The PSC covers 408 square kilometres of new
exploration acreage in the offshore Columbus Basin of
Trinidad and Tobago.
The terms of the contract include an initial exploration
phase of four years, with a second optional phase of
2 years. The work programme in the first phase calls
for the drilling of two exploration wells and acquisition
of over 350 square kilometres of 3-D seismic. Seismic
acquisition is programmed to begin in early 1998.
Block 5a is located approximately 90 kilometres off
the east coast of Trinidad in water depths ranging from
100 to 400 metres. The successful Dolphin gas field,
operated by BG on behalf of the BG/Texaco consortium
and currently producing 170 million cubic feet of gas
per day (mmscfd) for sale to the National Gas Company
of Trinidad and Tobago, is located immediately to the
west of Block 5a. This, combined with recent oil and
gas discoveries on other neighbouring acreage, has enhanced
the potential for discovery of hydrocarbons in the newly
acquired block.
Malcolm Brown, BG's Exploration Director, who was in
Trinidad and Tobago for the signing ceremony described
the event as "a reflection of BG's growing confidence
in the oil and gas potential of Trinidad's hydrocarbon
provinces. In addition it continues to cement Trinidad's
status as a core country in the company's overseas exploration
portfolio".
Simon Bonini, President and General Manager of BG's
Trinidad activities added "the acquisition of Block 5a
by BG/Texaco is another building block in the consortium's
thrust to increase its percentage share of oil and gas
production in the region".
Donald McDonald, Texaco's Regional Exploration Director
who was also in country to sign the contract on his company's
behalf was quoted as saying "Block 5a is key to Texaco's
desired expansion in the gas market opportunities in
Trinidad".
Notes to Editors
BG plc entered the energy industry of Trinidad and Tobago
in 1989, and has interests in the following:
East Coast Marine Area
In addition to Block 5a, BG and Texaco each have 50
per cent interest in Blocks E, 6b and 6d in the East
Coast Marine Area.
Dolphin Field
The Dolphin gas field in Block 6b, operated by BG on
behalf of a 50/50 BG/Texaco partnership, entered production
in March 1996. The field will be supplying up to 275
mmscfd to the National Gas Company of Trinidad and Tobago
under a 20-year supply contract. Reserves are estimated
at one trillion cubic feet.
North Coast Marine Area 1 (NCMA1)
BG is operator and has a 60% interest in NCMA 1, which
contains undeveloped gas fields with potential reserves
of more than three trillion cubic feet of gas. In 1997
BG drilled two successful exploration wells in the area
to further define the Hibiscus Gas Field. BG's partners
are Agip and Deminex, each with 20% interest.
LNG Export Project
BG has a 26 per cent shareholding in the Atlantic LNG
plant at Point Fortin, Trinidad, which is currently under
construction. First exports of gas to the United States
and Spain are on schedule for the second quarter of 1999.
Texaco
Texaco involvement in Trinidad and Tobago began as early
as 1913 under the name of Trinidad Leaseholds Ltd. (TLL).
In 1951, Texaco entered Trinidad under its own name through
the acquisition of the Antilles Company and Texaco consolidated
all its interests in Trinidad under Texaco Trinidad,
Inc. In addition to their interests in the East Coast
Marine Area, Texaco is one-third shareholder in Trinmar
with partner Petrotrin. Trinmar produces approximately
30,000 barrels of oil per day (BOPD) and 24 MMSCFD of
gas from established fields in the Gulf of Paria, offshore
western Trinidad.
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