ENERGY DEAL

ENERGY DEAL: Signing the gas sales agreement for the Ruby Field at the Ministry of Energy in Port of Spain yesterday are, from left, NGC president Mark Loquan, NGC chairman Conrad Enill and Energy Minister Franklin Khan.

The National Gas Company (NGC) and energy giant BHP have completed negotiations for a gas sales agreement for the Ruby Field off the east coast of Trinidad.

When production comes on stream, it is expected to boost the country’s oil production by nearly 16,000 barrels per day (bpd), and natural gas production by approximately 80 million standard cubic feet per day (mmscfd).

NGC and BHP announced the completion of negotiations for the Ruby Field during a signing ceremony at the Energy Ministry in Port of Spain yesterday.

Ruby is located in Block 3(a), off the east coast of Trinidad, and is expected to be commissioned in the fourth quarter of 2021.

BHP is the operator of the block, with NGC, through its subsidiary NGC E&P (Netherlands) BV, and Heritage Petroleum as partners, the NGC said in a statement later yesterday.

The Ruby project will comprise five development wells and one platform producing from the Ruby and Delaware fields in Block 3(a).

Production from this Block will tie-in to adjacent infrastructure in Block 2(c) resulting in synergies for both blocks.

The Ruby project’s expected production is 16,000 barrels per day of crude oil along with 85 mmscfd of gas production.

“To put this into perspective, the latter is sufficient to supply a large-scale ammonia or methanol plant which would normally use between 40 to 100 mmscfd depending on the plant’s output,” the NGC stated.

Speaking at the signing ceremony, Energy Minister Franklin Khan said: “Block 3a, where the Ruby project is located, has certainly come a long way since the PSC was executed in 2002. When this journey began, the initial parties to the contract were BHP Billiton (Trinidad-3A) Ltd, BG Trinidad EC Ltd, Talisman (Trinidad Block 3A) Ltd and Elf Exploration Trinidad BV.

“However, the other parties opted out along the way and BHP remained. Fortunately, BHP did not shy away from the complexity of Block 3(a). When all is said and done, BHP would have spent at least US$0.5 billion on this project, which is no small amount.”

Khan said BHP holds a 68.46 per cent interest, while two T&T companies—Heritage Petroleum and NGC—hold the remaining 20.13 per cent and 11.41 per cent interest, respectively.

He noted that the last major oil discovery was in the Angostura field offshore in 2005.

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