Keith
Matthews
ChevronTexaco
chairman and chief executive David O’Reilly, right, makes
a point during Tuesday’s media conference at Whitehall
while Prime Minister Patrick Manning listens in.
Photo: Keith Matthews
By
Luis Araujo
The Trinidad Guardian
PORT
SPAIN
Petroleumworld.com
02 19 06
Energy
major ChevronTexaco re-affirmed its commitment to T&T on
Tuesday but chairman and chief executive David O’Reilly
would not say whether the company was looking at LNG or downstream
projects.
“I
think both should be evaluated and wherever we can create the
most value. You have to look at the whole value chain for this
purpose,” O’Reilly said, following a meeting with
Prime Minister Patrick Manning earlier this week.
“You
have to evaluate the market at the time, so it’s hard
to speculate but I think both are possibilities.”
The
Government has signed agreements for several downstream energy
projects, including aluminium smelters and urea ammonia nitrate
plants.
The
six plants due to start this year have an investment in excess
of US$7 billion.
Gas
producers, though, are reportedly reluctant to commit their
reserves to these projects, preferring to continue the more
profitable LNG business.
Manning
said that despite the objections, the Government is pressing
ahead with the development of the domestic industry.
“We
are accelerating our domestic gas development so that we can
speed up the manufacturing process base.
“We’ve
made it clear that domestic gas is given first priority. After
that priority is satisfied then we think about export gas,”
he said.
“More
than that, the companies that make a contribution to the domestic
gas utilisation at this time would be given special consideration
for the identification of gas for export. It’s all clear
to the companies involved.”
ChevronTexaco
is also looking at possibilities in oil exploration.
“The
potential for oil exploration and development is another issue
that will be evaluated,” O’Reilly said, adding that
Manning had spoken about the need to re-evaluate the potential
of oil in T&T.
ChevronTexaco
is now primarily a gas producer in T&T, producing 400 million
cubic feet a day (mmcfd) last year with its partners. That was
up from 225 mmcfd the previous year. The company aims to increase
that to 500 mmcfd by the end of 2006.
The
natural gas goes to downstream industries and to Atlantic LNG
Trains II and III.
ChevronTexaco
has found gas in the Loran field that straddles the T&T/Venezuela
border. The gas in those fields has remained in the ground while
the two countries work out a unitisation agreement. That agreement
will essentially spell out how the reserves are to be shared.
ChevronTexaco
has interests in blocks on both sides of the border. On the
T&T side, the interest is in Block 6d along with British
Gas. The company has also encountered gas in Venezuelan borders.
“We
spent considerable time with the PM discussing the goals and
objectives for development and I must say I have great admiration
for the long-term plan to raise the standard of T&T to a
more fully developed country,” O’Reilly said.
“We’re
very anxious to continue to grow our business. We think we have
the capacity to do that through further drilling and evaluation
of prospects we have discovered. This will go to both domestic
and export markets.”
ChevronTexaco
is looking at potential domestic and LNG projects in Venezuela
as well, O’Reilly said: “The Government expressed
an interest in developing both sectors and I anticipate that
eventually will be the case. I anticipate that they will have
both businesses, very similar to what you have here in T&T.”
