PETROLEUM COMPANY OF TRINIDAD AND TOBAGO LIMITED

Petroleum Company of Trinidad and Tobago Limited

Petrotrin and its Model

Presented by:
Kain Look-Yee
Vice President, Exploration and Production
Petrotrin
OLADE- Regional Energy Integration Forum FIER 2007
Medellin, Colombia
2007 November 28
2007

PETROLEUM COMPANY OF TRINIDAD AND TOBAGO LIMITED

Presentation Outline

Company Overview
Strategic Goals and Targets
Upstream
Downstream
Future Plans

PETROLEUM COMPANY OF TRINIDAD AND TOBAGO LIMITED

Location Map of Trinidad and Tobago

A t la n t ic O c ean

ME

XI

CO

JAMAICA

PUERTO
R IC O

HI S P A N IO LA

G U AT E M A L A
H O N D UR A S
EL
S A LV A D O R

C arib b ea n Se a

NI C A RA G U A

C O S TA
R IC A

PAN A M A

C O L O M B IA

V E NE ZUE LA

PETROLEUM COMPANY OF TRINIDAD AND TOBAGO LIMITED

PETROTRIN

Fully State Owned Company

Integrated Exploration, Producing,

Refining and Marketing Organisation

Leading Oil Producer in Trinidad &

Tobago

Contribution to National GDP + 7%

Stable Financial Ratings

Baa2 Moodys
BBB+ - S&P

Evolution of Petrotrin
MERGER (Expanded Trintoc) (1985)
UBOT
(1912 - 1956)

SHELL
(1956 - 1974)

(1974 - 1985)

TLL
(1911 - 1956)

1993

(1956 - 1985)
TPD
(1918- 1961 )
APEX
(1919 - 1960)
KTO
(1920 - 1961)

Trinidad Northern
Areas (TNA) 1952

(1985 - 1993)

2000
TRINMAR LTD.
1993-2000

BRITISH
PETROLEUM
(1956 - 1969)

TESORO
(1969 - 1985)

1969-1974

1974-1985

TRINTOPEC
(1985 - 1993)

Petrotrin Established 1993 October 01

PETROLEUM COMPANY OF TRINIDAD AND TOBAGO LIMITED

Reporting Relationship
Government of The Republic of
Trinidad and Tobago

Board of Directors
Executive Chairman
Corporate Sec.
Chief Internal Auditor
GM Law & Land Management

President Operations
VP Finance &
Corporate Planning

VP
Expl. & Production

VP HR &
Corporate Services

PETROLEUM COMPANY OF TRINIDAD AND TOBAGO LIMITED

Strategic Goals and Targets

HSE

Business
Oriented
Relationship
Financial Discipline
& Self Sustainability

TARGETS
ROACE

14%

Reserve
Replacement

15% increase over

current

E&P Production
Costs

US$ 2 per boe

reduction in costs

Production
Portfolio

< 50% very mature

R&M Margins

US$ 2.0 per bbl

Net Margin Contribution

excluding revisions and at

industry F&D cost levels

40 50% gas

50% improvement GFR

HSE Targets

100% Env compliance

Market Share

Maintain Regional

Operational Excellence

Grow Extra-Regional

Growth Platform Development

Staff Satisfaction
75%
Score
Capabilities Gap

Petrotrin Strategic Goals Pyramid

90% of gaps closed

PETROLEUM COMPANY OF TRINIDAD AND TOBAGO LIMITED

UPSTREAM CHALLENGES
Declining production and reserves
Stripper land operations
High level of idle wells and unexplored
acreage
Aged infrastructure
High operating costs
Geologically complex reservoirs
Limited experienced technical professionals

PETROLEUM COMPANY OF TRINIDAD AND TOBAGO LIMITED

PETROTRINS UPSTREAM MODEL

EXPLORATION CARRY

Growth Joint Ventures

PSCs & E&P Licences

EXPLORATION
UNITIZATION

DEVELOPMENT

Reward

Petrotrin 100%
E&P Licences
Joint Ventures
Producing Fields

Farm Outs
Risk Service (Future)

Lease Outs

Risk

PETROLEUM COMPANY OF TRINIDAD AND TOBAGO LIMITED

PRODUCTION SHARING CONTRACTS (PSCs)

Title to mineral interest is retained by the State
Contractor operates at his sole risk and expense
and is entitled to a recovery of its cost out of
production (cost recovery hydrocarbon)
After cost recovery, the balance of production
(profit hydrocarbon) is shared on a sliding scale
split between the state and the contractor as per
contract terms
Projects are typically ring fenced for tax purposes
Unlike concessions, Government has a managerial
say in the operations (approval of work
programme, budgets etc.)

10

PETROLEUM COMPANY OF TRINIDAD AND TOBAGO LIMITED

LEASE OPERATORSHIPS AND FARMOUTS

KEY ELEMENTS
LEASE OPERATORSHIP

FARMOUT

Sub-Licence for five (5) years

Sub-Licence for five (5) years

Only wells leased

Acreage leased

Limited rights to petroleum in

block

Unlimited access / rights to

petroleum in block

Drilling optional

Drilling obligation

Production / Well Servicing

expertise required

Wider range of expertise

required

Low CAPEX required

Higher CAPEX required

ORR to Petrotrin

ORR to Petrotrin

PETROLEUM COMPANY OF TRINIDAD AND TOBAGO LIMITED

12

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PETROLEUM COMPANY OF TRINIDAD AND TOBAGO LIMITED

JOINT VENTURES
KEY ELEMENTS
EXPLORATION JV

DEVELOPMENT JV

Partner(s) earns equity by

meeting its work
obligation

Blocks Production transferred

to JV on execution of contract

3-D Seismic and exploration

drilling commitment

Drilling A Key Commitment

Bonus payment to Petrotrin for

developed reserves and
facilities

Partner funds Petrotrins

share of the minimum
work obligations (MWO)

Generally Petrotrin has an

Exploration carry and pays its
share of development cost.

Contribution to training
scholarships for Nationals.

Signature bonus

and

PETROLEUM COMPANY OF TRINIDAD AND TOBAGO LIMITED

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PETROLEUM COMPANY OF TRINIDAD AND TOBAGO LIMITED

UNITISATION
KEY ELEMENTS
Merging of contiguous leases and developing
areas jointly
Expenses and revenues shared according to a
mutually agreed percentage split
Selected reservoirs or all reservoirs may be
unitised

15

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PETROLEUM COMPANY OF TRINIDAD AND TOBAGO LIMITED

Exploration & Production Alliances

Number

Production as at 2007 October

of

Oil

Gas

Oil & Gas

Blocks

BOPD

MMSCFD

BOEPD

Joint Ventures

16

3,838

134.7

27,068

Lease Operators

23

4,581

0.7

4,701

Farmouts

13

2,091

2,091

52

10,510

135.4

33,860

Total

17

PETROLEUM COMPANY OF TRINIDAD AND TOBAGO LIMITED

LEASE OPERATORSHIP, FARMOUT AND JOINT VENTURE

OIL PRODUCTION
LO/FO/JV OIL PRODUCTION
10000
9000
8000
7000

5000
4000
3000
2000
1000
0

Oct-89
Apr-90
Oct-90
Apr-91
Oct-91
Apr-92
Oct-92
Apr-93
Oct-93
Apr-94
Oct-94
Apr-95
Oct-95
Apr-96
Oct-96
Apr-97
Oct-97
Apr-98
Oct-98
Apr-99
Oct-99
Apr-00
Oct-00
Apr-01
Oct-01
Apr-02
Oct-02
Apr-03
Oct-03
Apr-04
Oct-04
Apr-05
Oct-05
Apr-06
Oct-06
Apr-07

BO PD

6000

Lease Operatorships

Farmouts

JV's (100%) - Land & Nearshore

18

PETROLEUM COMPANY OF TRINIDAD AND TOBAGO LIMITED

Gas Production Profile

1994-2007 (MMSCFD)
160.0

NCMA

140.0

NCMA/
Central
Block

SECC
Conversion

120.0

80.0
60.0
40.0
20.0

Ow n Operated

JV/LO/FO

20
07

20
06

20
05

20
04

20
03

20
02

20
01

20
00

19
99

19
98

19
97

19
96

19
95

0.0
19
94

MMCFD

100.0

19

PETROLEUM COMPANY OF TRINIDAD AND TOBAGO LIMITED

Oil & Gas Production Profile

1994-2007 (BOEPD)
100000.0

NCMA

NCMA/
Central
Block

90000.0

SECC Conv.
/TSP

80000.0
70000.0

50000.0
40000.0
30000.0
20000.0
10000.0

Ow n Operated

JV/LO/FO

20
07

20
06

20
05

20
04

20
03

20
02

20
01

20
00

19
99

19
98

19
97

19
96

19
95

0.0
19
94

BOEPD

60000.0

PETROLEUM COMPANY OF TRINIDAD AND TOBAGO LIMITED

PARTNERS
International Major Oil & Gas Companies

BG
BHP
Talisman
Anadarko
EOG Resources
Petro-Canada
ENI
Repsol
Total

International Independent Oil & Gas Companies

Canadian Superior
New Horizon Trinidad Ltd

Local Independent Oil Companies

Neal and Massy Energy Resources
Ten Degrees North
Primera

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PETROLEUM COMPANY OF TRINIDAD AND TOBAGO LIMITED

DOWNSTREAM CHALLENGES
Aging and inefficient equipment
Low valued product slate
More stringent gasoline and diesel
specifications
Market competition (PetroCaribe)
Competition for experienced technical
professionals

21

PETROLEUM COMPANY OF TRINIDAD AND TOBAGO LIMITED

Pointe-a-Pierre Refinery
Established 1917
Average Crude Capacity of 160,000 BOPD
Phase 1 Upgrade Completed 1997
GOP Upgrade In Progress
GTL Plant In Progress
ULSD Project in Planning

22

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PETROLEUM COMPANY OF TRINIDAD AND TOBAGO LIMITED

Rewards

PETROTRINS DOWNSTREAM MODEL

PAP Industrial Estate
Synergistic Refinery/Other
Companies to improve
fuel oil yield
Pointe a Pierre
Refinery
Avg. Capacity 160,000 bpd
Clean Fuel Upgrade
in Progress

Downstream
Joint Ventures
New Products e.g. GTL

Old Point Fortin

Refinery Facilities
Converted to
Terminal Operations
Lease out
of Acreage

Risk

24

PETROLEUM COMPANY OF TRINIDAD AND TOBAGO LIMITED

Sources of Crude Supply (MBPD)

Indigenous (Molo)

62.0

South America

64.0

(Venezuela, Colombia, Ecuador and Brazil)

West Africa

34.0

(Nigeria, Gabon D.R. Congo and Angola)

TOTAL CRUDE

160.0

Main Products
(Domestic Usage approx 20% of Total Volume)

LPG
Aviation Gasoline
Motor Gasoline
Kerosene/Avjet

Gas Oil/ No. 2 Fuel Oil

Fuel Oil
Bitumen
Sulphur

25

PETROLEUM COMPANY OF TRINIDAD AND TOBAGO LIMITED

FUTURE PLANS
Upstream

Downstream

Expansion of
JV/LO/Farmout
programmes

Completion and
Commissioning of Gasoline
Optimization Project

Risk Service Contracts

New ULSD Distillate

HDS/HDA Unit

Partnerships for
development of heavy oil
and tar sands
Cross Border Unitisation of
Gas Fields (Venezuela)
Participation in new bid
rounds

Offsites and Utilities Upgrade

Crude Distillation Unit
Upgrade
Berths Upgrade

Upgrade of Sour Water

Treatment Facilities
International Joint Ventures

PETROLEUM COMPANY OF TRINIDAD AND TOBAGO LIMITED

26

Petroleum
Petroleum Company
Company of
of Trinidad
Trinidad and
and Tobago
Tobago Limited
Limited

Thank You

2007