Assumed operatorship of Block 5(c) and increased stake by 45% to 75% First gas from Poinsettia New 220 mmscfd contract to supply NGC commenced Endeavour well on Block 5(c) successful

BG Group has been operating in Trinidad and Tobago since 1989, and is a key gas producer in the country. BG Group currently supplies gas to the domestic market and to Atlantic LNG. In 2008, approximately two thirds of production was exported as LNG with the remainder going to the domestic market.

Key dates

1996
First Dolphin production

1999
Atlantic LNG Train 1 start-up

2002
Atlantic LNG Train 2 start-up

2003
Atlantic LNG Train 3 start-up

2004
Acquisition of Central Block

2005
Manatee-1 discovery

Atlantic LNG Train 4 start-up

2006
Dolphin Deep onstream

2007
Signed farm-in to Block 5(c) and began drilling programme

2008
Victory and Bountywells on Block 5(c) successful

The BG Group-operated Dolphin gas field, located 83 kilometres off the east coast of Trinidad in Block 6(b), commenced production in 1996. The asset 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 July 2009. To enable delivery of this new supply, the drilling of five further development wells in the Dolphin field was completed in April 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 reserves of 1.8 tcf. This discovery demonstrated the extension of the Loran field from Venezuela into Block 6(d) in Trinidad and Tobago. In 2007, the governments of Venezuela and Trinidad and Tobago signed a Framework Unitisation Treaty for cross-border developments.

BLOCK 5(c)	back to top

In 2007, BG Group signed a farm-in agreement with Canadian Superior Energy Inc. for Block 5(c), 94 kilometres off the east coast of Trinidad. Under the terms of the agreement, 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 (JOA) to increase its stake in the block to 75% (anticipated to close in third quarter, subject to conditions precedent).

Each of the three wells drilled on Block 5(c) since mid-2007 have encountered hydrocarbons and have been successfully tested. The first well, Victory-1, was drilled 10 kilometres north-east of the Dolphin platform. The second well, Bounty, was spudded in February 2008 and targeted a separate prospect, approximately 4 kilometres away from the Victory well. The third exploration well, Endeavour-1 was spudded in August 2008. Drilling and testing was completed in first quarter 2009 and the results are currently under evaluation. The well targeted the same reservoir section as Bounty-1 but on a separate structure, approximately 9 kilometres north-west of the Bounty discovery. The data from all three exploration wells is being collectively evaluated before deciding on commercial viability.

The BG Group-operated NCMA development, located 40 kilometres off the north coast of Trinidad, includes six gas fields: Hibiscus, Poinsettia, Chaconia, Ixora, Heliconia and Bougainvillea. There is a Unitisation Agreement with Petrotrin for the development of accumulations within the NCMA Unit Area. In December 2000, the government of Trinidad and Tobago approved the development of the first 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. De-bottlenecking in 2003 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 Train 2. NCMA is contracted to supply 240mmscfd gas to Train 2 for up to 20 years, in addition to 45mmscfd 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 80mmscfd for ten years.

Since 2003, there has been further development activity on the Ixora, Chaconia and Hibiscus fields.

The key project during 2008 was the phased development of the NCMA. Activity has included the development of the Poinsettia field as part of Phase 3c and will include accessing Heliconia and Bougainvillea fields as part of Phase 3d. This has involved building a new drilling and production platform, the largest structure installed in Trinidadian waters, with the 4 200 tonne topsides built entirely in Trinidad, and 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.

CENTRAL BLOCK	back to top

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.

BG Group currently supplies 20 mmscfd gas and approximately 1 000 bopd condensate to Petrotrin, for use in its refinery at Pointe-à-Pierre. Gas is transported via a 12 kilometre pipeline that connects to the NGC network.

A new gas plant with a capacity of approximately 65mmscfd was commissioned in 2007, near the existing production site at Carapal Ridge. This increased capacity supplies approximately 23 mmscfd to BG Group’s capacity in Atlantic LNG Train 4, in addition to the supply to Petrotrin’s refinery.

Pre-sanction studies are currently ongoing for compression and the development of the Baraka and Baraka East discoveries.

ATLANTIC LNG	back to top

The Atlantic LNG Company of Trinidad and Tobago, in which BG Group is a shareholder, constructed its LNG plant at Point Fortin, south-west Trinidad, which began operating in 1999.

The first train has a productive capacity of 3.1mtpa LNG. Train 2 commenced production in 2002 and Train 3 in 2003, these additional two trains having a productive capacity of approximately 6.6mtpa.

With the completion of the 5.2mtpa Train 4 in December 2005, the total LNG production capacity of Atlantic LNG is approximately 15 mtpa.

The LNG produced from gas supplied to Trains 2 and 3 by BG Group and its partners is sold to BG Gas Marketing (BGGM), a wholly owned BG Group subsidiary, under a long-term contract for import into the Elba Island LNG receiving terminal in Georgia, USA.

LNG produced from the BG Group liquefaction capacity in Train 4 is sold under a long-term contract to BGGM for delivery into the US market via the Lake Charles import terminal in Louisiana.

Atlantic LNG Trains 2, 3 and 4 represent fully integrated projects for BG Group, involving the production and liquefaction of gas in Trinidad and Tobago, the shipping of LNG to the USA and the subsequent regasification for onward sale into the US market.

Further information on Atlantic LNG can be found on its website www.atlanticlng.com

 
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