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OMEL/ Petrotrin joint venture fits into Company Strategic Plan |
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Petrotrin,
along with the Ministry of Energy and Energy Industries and the Oil and
Natural Gas Company of India (ONCG) Mittal Energy Limited (OMEL) signed
a production-sharing contract for the North Coast Marine Area, Block 2 (NCMA
2) at the Hyatt Regency Hotel in Port of Spain on December 30, 2008.
The
signing followed months of intense and astute negotiations on both sides
of the table. |
From left: V. Chawla, Charge D'Affaire, Indian High
Commission of Trinidad and Tobago, Energy Minister, Conrad Enill,
Vishwanath Ravindranath, CEO of OMEL and
Executive Chairman, Petrotrin, Malcolm Jones |
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In 2006 OMEL submitted a bid for the NCMA 2 after the
Government invited bids for the exploration and production of certain
onshore and submarine areas.
Part of
the agreement was that Petrotrin would be a 35 percent partner with OMEL
in NCMA 2. |
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Executive Chairman,
Malcolm Jones (right) in conversation with Energy Minister, Conrad Enill |
Omel
Energy T&T Limited is a subsidiary of ONGC Mittal Energy Limited. The
Company has been incorporated in Trinidad and Tobago to pursue the oil
and gas exploration and production activities.
Over the
next four years, the Petrotrin-OMEL Joint Venture will carry out an
aggressive work programme that includes the drilling of at least five
exploration wells to depths ranging from 9,000 to 13,000 feet.
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Petrotrin’s interest would be fully carried in respect of the minimum
work obligations for the initial exploration phase.
In
his address, Minister of Energy and Energy Industries Senator the
Honourable Conrad Enill said that the fact that OMEL was signing a
production sharing contract with State-owned Petrotrin against the
backdrop of a dismal global financial outlook is evidence of confidence
in Trinidad and Tobago. It showed that Trinidad and Tobago’s robust
energy sector is still able to attract foreign investment.
Describing
the current oil, gas and petroleum product market as a ‘temporary price
discontinuity’, the Minister of Energy expressed confidence and optimism
for the future. |
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He said:
“Trinidad and Tobago has been able to attract investments. And OMEL,
your presence here today, even in this environment, gives hope for a
brighter tomorrow.”
Minister
Enill reminded the audience that Trinidad and Tobago is currently
celebrating 100 years of oil and that this country possesses vast
experience in the energy business that has been characterized by
fluctuating cycles over the years. The energy industry is therefore not
a stranger to adversity. |
Executive Chairman, Petrotrin, Malcolm Jones (left) pens his
signature to the document, being observed by Energy Minister Conrad
Enill (centre) and Vishwanath Ravindranath CEO of OMEL |
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He said
that the current economic environment provides challenges for investors
and that no country is immune to the effects of the slowdown. He
cautioned that all energy companies must review their ways of doing
business if they are to survive in the current scenario.
Permanent
Secretary in the Ministry of Energy and Energy Industries Leroy Mayers
commended the parties for bringing the Signing to fruition and added
that this agreement brings significant financial benefits to Trinidad
and Tobago. |
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From left: V. Chawla, Charge D'Affaire, Indian High
Commission of Trinidad and Tobago, Aloke Roy of OMEL, Sookdeo Heeralal of
Petrotrin an B.S. BOra of OMEL |
He said: “Trinidad
and Tobago will benefit from a US$30 million Signature Bonus at the very start
of this Production Sharing Contract.”
Petrotrin’s
Executive Chairman Malcolm Jones said: “Despite its uncertainties, I believe
that 2009 and beyond will depend on the quality of the decisions that we make
from day to day.
“I think that
today’s signing is an example of a quality decision that will yield rich
benefits in the years to come.” |
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The Executive
Chairman added that this Joint Venture initiative “fits squarely within
Petrotrin’s strategic business plan of further diversification into the natural
gas sector. This is evidenced by such ongoing projects as the upgrade of our
refinery and the construction of a Gas to Liquids plant”.
The North Coast
Marine Area block 2 is located in the north coast of Trinidad in water depths
that average 150 metres and comprises a total area of approximately ninety-eight
thousand, six hundred and sixty-nine (98,669) hectares.
The Block is
within a prolific dry gas province in which a productive hydrocarbon system has
already been established. The area includes some well-known gas fields such as
Hibiscus, Chaconia, Ixora and Poinsettia to the Southwest and the overlapping
Orchid Discovery to the East. |
News Highlights 2008 |
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