PETROConnect. No. 161, Issue 2 of Targeting Cost Efficiency

Transcription

1 PETROConnect No. 161, Issue 2 of 2016 Targeting Cost Efficiency

2 Strengthening International Relations The Ambassador to the Kingdom of the Netherlands Mr. Jules Bijl paid a courtesy visit to Petrotrin s President Fitzroy Harewood in February. The two gentlemen had a cordial discussion on the current state of the energy industry.

3 A Look At What s Inside Corporate News 4 Petrotrin Facts - Platform 14 6 Rig 4 Visit by Minister of Energy 7 Petrotrin s Performance Highlights (E&P and Refining) 8 PTO s Integrated HSE Management System Manual Approved for Implementation 9 President visits Petrotrin s Los Bajos Water Treatment Facility Features 10 Petrotrin Bingo Intranet Re-build Project Update 12 Recalibrating Seek the Opportunities 13 Hot Spell Outlook for 2016 Dry Season 14 CSR in Focus o Launch of Southern Games 2016 o Annual Prisons Calypso Competition In every issue 5 Editorial - Targeting Cost Efficiency Cover: Minister of Energy and Energy Industries, the Honourable Nicole Olivierre on a recent tour of WSPCL s Rig 4 operations at a Petrotrin location in the Fyzabad area accompanied by President Fitzroy Harewood and VPEP (Ag.) Stephen Awah. The PetroConnect is published monthly by the Corporate Communications Department for Petrotrin s employees and stakeholders. PetroConnect is also available on the Petrotrin webpage editor: Gillian Friday copy & editing: Afiya Ray, Michelle Singh-Seudat editorial team: Joy Antoine, Lisa Ogunsheye, Afiya Ray, Michelle Singh-Seudat contributors: Kester Lendor, Kim Gillezeau, Nkese Harriott, Jens Sastoo, Sade Smith, Valerie Quan Vie photographic contributions: Elmo Griffith, Kester Lendor, Lisa Ogunsheye, Sade Smith, Chevaughn Christopher, Andrea De Silva and Perry Jagdeo art+design: Kishore Raghoobar illustrations: Kris Raghoobar We would like to print your views on company related topics, departmental highlights etc. Send your comments to: PetroConnect, Corporate Communications Casuarina Avenue, Pointe-a-Pierre Republic of Trinidad and Tobago Fax: (868) / Phone: x. 2062, 2811, 2824, corp-comm@petrotrin.com PetroConnect No. 161, 2 of

4 PETROTRIN FACT Did you Know? Platform 14 located in the North Field of Petrotrin s Trinmar Operations is currently the largest producing Platform. The average daily production is approximately 6,100 bbls.

5 Editorial Targeting Cost Efficiency During the past month, Petrotrin s activities remained focused on sustainability and maintaining cost effective operations as internationally oil prices continued to trend between US$30 and US$35 per barrel. In this issue of the PetroConnect, we feature some of these activities. In February, Petrotrin officials accompanied the Minister of Energy and Energy Affairs, Nicole Olivierre during a visit to WSPCL Rig 4 in its land operations. In a separate exercise, our President Fitzroy Harewood also visited the Company s Los Bajos Water Treatment Facility accompanied by a team of Petrotrin officials. Read more about these visits on Pages 6&7 respectively. In this issue we also share with you the performance highlights of E&P and R&M as we recognize the hard work of our employees in the Company s core Divisions. We note as well the encouraging improvements that are continuing in our Refining Operations and commend all personnel for their continued efforts to maintain sustainable operations through these turbulent times. Given the sensitive nature of the industry within which we operate, we continue to focus on maintaining safe operations at Petrotrin, and we are pleased to highlight the fact that the Petrotrin Trinmar Operations Integrated HSE Management System Manual has been approved for implementation. As we focus on improving efficiencies, we also highlight the successful Well Information System Portal Rebuild and provide an update on the ongoing Intranet Rebuild Project on Page 12. This issue concludes with features on Petrotrin s CSR and employee-focused activities such as the Launch of Southern Games 2016, the Annual Prisons Calypso Competition, Petrotrin Bingo 2016 and National Panorama Finals As we turn our focus to March and the end of the second quarter in the fiscal year, we continue to emphasize the importance of working together to maintain safe, sustainable and cost efficient operations in the Company s best interest. Petrotrin on Social Media Visit our pages at: Facebook: YouTube: Twitter: Petrotrin (@Petrotrinnews) on Twitter The PetroConnect Team PetroConnect No. 161, 2 of

6 Minister of Energy visits Well Services Rig 4 On 2016 February 05, the Honourable Minister of Energy and Energy Industries, Nicole Olivierre visited the Well Services Petroleum Company Limited s (WSPCL s) Rig 4 and toured its production operations. The Minister was accompanied by members of the Ministry of Energy and Energy Industries and several senior Petrotrin officials including President Fitzroy Harewood and Vice President Exploration and Production (Ag) Stephen Awah. WSPCL Rig 4, currently drilling well FZ 1050 in the Fyzabad area, is the second land rig to be introduced to Petrotrin s operations on land. The visit marked the first official tour of the rig for both Minister Olivierre and President Harewood. WSPCL Rig 4 was introduced to Petrotrin s operations in 2015 February marking the first time in more than five years that the Company has two land rigs in operation at the same time. Increased drilling activity by these drilling rigs on land supports Petrotrin s thrust to increase production and to exploit opportunities from its recent 3D seismic on land. 6 PetroConnect No. 161, 2 of 2016

7 Petrotrin Performance Highlights EXPLORATION & PRODUCTION DIVISION Production Performance Petrotrin s total equity oil production (excl. Farmouts and JV CVORR) in January was 42,002 bopd, 387 bopd lower than the previous month and 3,741 bopd or 8% lower than the corresponding month s budget. Land production increased by 226 bopd from the previous month and was 580 bopd lower than the month s budget; increase over the previous month was due to workovers completed in the month of January. Trinmar s production increased by 106 bopd from the previous month and was higher than the month s budget by 181 bopd. The LOs recorded a decrease of 512 bopd from the previous month and was 1,726 bopd lower than budget. The IPSCs decreased by 128 bopd from the previous month and was 1,339 bopd lower than budget. Farmouts recorded a decrease of 20 bopd from the previous month and was 41 bopd lower than budget. Equity JV oil/condensate (incl. Trintomar/EOGR) decreased by 79 bopd from the previous month and was lower than budget by 277 bopd. Gas Production Petrotrin s total equity gas production, inclusive of LO s and Trintomar/EOGR, averaged mmcfd for the month, an increase of 3.05 mmcfd from the previous month and lower than budget by 5.30 mmcfd. Gas production from the JVs increased by 7.75 mmcfd from the previous month and was 0.45 mmcfd lower than budget. Trinmar s associated gas decreased by 3.01 mmcfd from the previous month and was lower than budget by 4.04 mmcfd REFINING Refinery crude throughput averaged 141,401 bpd in January 2016, which was higher than the programmed value of 140,000 bpd. This was the second consecutive month that the crude throughput surpassed the programme. Total crude receipts for the month averaged 117,285 bpd. Refinery Performance The Refinery Utilization rate for January 2016 was 75%, which continued from the 78% achieved in December Crude throughput of 141,401 bpd was the highest since May 2013 Mechanical availability was 95.2% The Energy Intensity Index was 158 Volume of gases flared for January 2016 was estimated to be 59,365 fuel oil equivalent barrels (FOEB). This is indicative of an improved performance, given the high rate of the refinery utilization Fuel oil yield was 25 volume percent. This was due mainly to > 90% on-stream time on Nos. 4 VDU and 2 VBU Refinery Events Significant events in January 2016 were: 100% on-stream time achieved on No. 4 VDU, CCR and No. 1 CDU Reduction on Controllable Overtime to 18% of Basic Salary and Wages; this equated to TT$3.1 Million less in overtime as compared to December 2015 Continued high gasoline production, estimated at circa 50,000 bpd Product liftings were 143,269 bpd The 2VBU utilization rate was 83%, a major contributing factor to the fuel oil yield of 25 volume percent PetroConnect No. 161, 2 of

8 PTO s Integrated HSE Management System Manual approved for implementation In January 2015, Petrotrin Trinmar Operations (PTO) commenced revision of its Health, Safety & Environment Management System (HSE MS), in alignment with the Company s HSE MS Framework. This was a joint effort between HSE and the Line, as reflected by the composition of the core team: Mr. Jemmot Beckles (SMPO-Ag.) Mrs. Anisa Ali-Garibsingh (HSE Assessment & Certification) Ms. Stacy Ramdeen (HSE Trinmar Operations) Ms. Tenisha Leach (HSE Trinmar Operations) Using Trinmar Operation s existing processes and procedures, a HSE Management System Manual was developed based on international standard requirements. The scope of the 8 PetroConnect No. 161, 2 of 2016 Management System covers all of the assets under the control of PTO and the performance of controlled activities by employees and contractors. A comprehensive internal review of the draft manual was conducted with PTO HSE Admin and Operations personnel supported by Head HSE PTO Ag. Allyson Williams and Head HSE Assessment & Certification Ag. Jens Sastoo. The draft was completed in September 2015 and submitted for review by Management and the Line. Based on the feedback received, the manual was amended and submitted for approval in January The HSE Management System Manual received final approval from the Vice President Exploration & Production (VP EP) Ag. Stephen Awah, on 2016 January 22. The HSE MS Manual comprises 16 key elements that drive a robust HSE System, with opportunities for continual improvement to match best practices and standards in the oil and gas industry. The implementation of these elements would assist in reducing incidents, increasing business efficiency, promoting a sound HSE Culture and pushing PTO s operational performance beyond compliance. Manager-HSE Shyam Dyal, commended the team on a job well done, and emphasized the importance of rolling out the Elements of the integrated HSE Management system to all Trinmar employees. Training on the elements of the HSE MS commenced in January 2016, and will continue on a monthly basis to reach all employees.

9 President Harewood visits the Los Bajos Water Treatment Plant A Petrotrin team, led by Petrotrin President Fitzroy Harewood and Manager HSE Shyam Dyal, toured the Bernstein Tank Farm in Forest Reserve and the Los Bajos Produced Water Treatment Plant 2016 on February 18 as part of an HSE Leadership visit. The Los Bajos Produced Water Treatment Plant has a rated capacity of 25,000 BWPD and is at present processing approximately 14,000 BWPD. The plant treats produced oilfield waters for re-use in industrial operations and for discharge to the environment and is currently meeting regulatory discharge specifications. It is the only plant of its kind in Trinidad and Tobago. PetroConnect No. 161, 2 of

10 Winston Cox Jerome Sastoo Fidellis Toussai BINGO PetroConnect No. 160, 161, 12 of 2016 Kevin Williams

11 Kernisha George nt Allana Taylor Clarence Braithwaite Kristle Celestine Petrotrin employees and retirees from all fields registered to participate in Bingo 2016 on February 26 at the Ballroom, Pointe-a-Pierre Club. The event was hosted by the Corporate Communications Department as part of its monthly programme of activities. Participants played several versions of Bingo attempting to achieve specified patterns from the drawn numbers, such as Capital T, Any Straight Line, Box the Free, Capital X, Postal Stamp, Capital L and Jackpot. Each individual game ended when players achieved the specified pattern and shouted Bingo! to indicate a possible win. The cards were then checked to verify the accuracy of the Bingo. Congratulations to all employees and retirees who participated in this event in the true meaning of friendly competition. WINNERS CAPITAL T - Winston Cox (Electrical) ANY STRAIGHT LINE - Jerome Sastoo (E&I Trinmar) BOX THE FREE (INNER BOX) - Fidellis Toussaint (ICT P-a-P) CAPITAL X - Allana Taylor (Process Optimization, Trinmar) POSTAL STAMP - Kristle Celestine (HSE Operations) CAPITAL L - Kernisha George (Electrical & Instruments Administration) & Clarence Braithwaite (retiree) JACKPOT - Kevin Williams (Maintenance Support, Trinmar Operations) PetroConnect No. 160, 1 of

12 Intranet Rebuild Project The Intranet Rebuild Project, which is currently underway, is being conducted to support the efficiency of processes, reduce costs and support the learning of the organization. Once completed, the intranet (the Petroweb) will be a valuable strategic asset for the organization and is therefore being rebuilt to deliver many benefits including: Single interface to all enterprise applications. Effective communication and news distribution infrastructure. Centralised resource of business information and knowledge. Supporting tool for initial and ongoing training requirements. Platform for an online community, which bridges the different field areas. One element of the current intranet (last overhauled in 2007) that makes the project even more critical at this time is the fact that it is currently past the end of life phase of Timing, Benefits and Status Update its life cycle. This means that it no longer receives continued (vendor) support, either because existing marketing, support and other processes are terminated, or it is at the end of its useful life. The life cycle of an intranet is usually a period of five (5) years. The project team is addressing the limitations of the current intranet and ensuring that the rebuilt intranet will deliver real business benefits and support strategic goals in a timely manner. To date, the team has completed the following: Obtained executive leadership support Reviewed existing intranet and determined intranet goals Conducted and analysed stakeholder interviews Determined strategic and tactical recommendations Conducted a content audit of current site The team is now engaged in addressing information architecture needs and developing a new intranet design. Stay tuned for further updates on the project. Recalibrating - Seek the Opportunities Petrotrin like most energy companies has seen the oil price dive from over US$100 about two years ago to its current level of under US$35 and must therefore recalibrate to ensure its continued survival. Generally, conversations about risk are focused on the negative aspect; the uncertainty of outcomes but there is also the opposite side of the spectrum, the positive risks or opportunities. Opportunities are generally derived through creativity. So what is creativity it is a function of knowledge, curiosity, imagination and evaluation. It allows for the examination of the positives of the decision and is best managed through a proper framework if it is to operate effectively. One such approach is shown in the figure above that can be adapted to suit departments work activities. Fostering creativity requires managing risk taking and failure aversion. 12 PetroConnect No. 161, 2 of 2016 However, by discussing in advance any foreseeable risks and creating the necessary contingency plans, the work environment can encourage employees to contribute suggestions for improving our current business operations. If we are to move beyond this period, we need to review the structures that were designed to support efficient ways of working but somehow have not allowed us to achieve the successes. Let us utilize the out-of-box thinking approach and do things differently.

13 Hot Spell Outlook for 2016 Dry Season The Trinidad and Tobago Meteorological Service (TTMS) recently issued a warning that local temperatures have been 60 percent higher than normal, with maximum temperatures possibly hitting as high as 33 degrees Celsius. The outlook for the 2016 Dry Season indicates a harsh Dry Season for Trinidad and Tobago, with odds that are highest for below average rainfall totals for the season overall, across the entire country. The TTMS expects the first half of the season (January to March) to be particularly hot and dry with below average rainfall totals and hotter than average daytime and night time temperatures forecasted across all areas of the country. These high temperatures can be hazardous to health, especially for people who may be particularly vulnerable such as the elderly, persons with long-term or serious illnesses and young children. As such, the TTMS has advised that it is important to keep out of the sun as much as possible to avoid sunburn, wear appropriate clothing, and keep hydrated at all times. They have also advised against leaving anyone in a closed, parked vehicle, especially infants, young children and pets. The hot temperatures and dry air, along with moderate to strong winds can also combine to create high fire potential in grassy areas. Persons are also being advised to avoid activities that promote open flames, fires and sparks since they have the potential to quickly develop into bush fires. Water Alert - Pointe-a-Pierre Operations Following the El Nino effect in 2015, Petrotrin has implemented various initiatives in an attempt to manage reservoir levels. These initiatives which began in September 2015 will continue to June 2016 and currently include Leak Repairs to prevent wastage, Recovering Waste Streams and Maximizing water sourced from the Guaracara River and WASA. It is anticipated that these initiatives are likely to provide enough water to sustain the Refinery until June 2016 when rainfall is expected to increase. The Rainy Season is also expected earlier this year following the El Nino effect. The water situation at the Pointea-Pierre Refinery however, is still of great concern, Reservoir data project a steady decline until June 2016, as such relevant personnel are monitoring usage and have action plans in readiness should the projected rainfall not occur. As of 2016 March 01 reservoir levels stood at 511 million imperial gallons which is equivalents to 57% reservoir capacity. All employees, residents and tenants are therefore reminded to adhere to the following restrictions: All Plants and Facilities are to utilize minimum amount of water for their respective operations. All non-essential activities requiring water are to be approved by the Manager Utilities All usage of water from the Hydrant System is strictly prohibited except where duly authorized by the Fire and Utilities Departments The use of hoses connected to the Domestic System for watering plants and lawns, washing vehicles, watering golf course greens and other similar activities are strictly prohibited. The Company wishes to urge all stakeholders to comply with these restrictions and to apply conservation techniques in all activities. PetroConnect No. 161, 2 of

14 CSR in FOCUS Launch of Southern Games The official launch of Southern Games 2016 was held on 2016 February 11 at the Petrotrin Sports Club, Pointe-a-Pierre. This year, Petrotrin once again joined with other members of the corporate sector as a major sponsor of Southern Games. The event, now in its 52nd edition, was originally started during the 1930s by Petrotrin s predecessor, Trinidad Leaseholds Limited as an afternoon delight for Trinidad and Tobago more so for the southern communities. Over the years, the Games developed into one of the main sporting events in all of Trinidad and Tobago, and its popularity has been immortalized by author and historian Michael Anthony in his novel The Games Are Coming. Owing to the downturn in the economy and the challenges faced with sponsorship, the organizers of this year s Games changed the format to a one day event carded for 2016 March 13 at the Guaracara Park. Notwithstanding, patrons will still be treated to the best in local athletics as well as regional and international cycling as some of the local athletes and cyclists on show are hopeful of representing Trinidad and Tobago at the Olympics in Rio de Janeiro later this year. Petrotrin is proud to continue its support to fulfilling Southern Games original purposes of, providing critical opportunities for sporting development, serving as a source of motivation to aspiring athletes and providing entertainment for patrons and job opportunities for vendors in neighbouring communities. Petroconnect extends best wishes to all competing athletes! 14 PetroConnect No. 161, 2 of 2016

15 CSR in FOCUS Goldern Grove Remand Yard Maximum Security Prison Petrotrin supports Calypso in the Prisons The scintillating sounds of brass once again filled the air at the 2016 Prisons Calypso competitions held at seven state correctional facilities. Petrotrin as part of its Corporate Social Responsibility continues to partner with the Prison Service by providing hampers for all participants at the various competitions. The Company has supported this initiative at the Prisons for the past 26 years. The musical accompaniment at the various competitions was Women s Prison provided by the Youth Training Facility (YTC) musical band, the Maximum Security Prison (MSP) Band and the Carrera Convict Prison (CCP) band. At this year s competition, topics included crime, drugs, child abuse, love and peace but the trending topic centered on political commentary. The quality of the compositions was an indication of the skill and talent that reside behind the walls of the nation s correctional facilities. Women s Prison Maximum Security Prison Goldern Grove Remand Yard PetroConnect No. 161, 2 of

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