Petroleum Company of Trinidad and Tobago Limited Opportunities with Petrotrin Khalid Hassanali President Energy Chamber Luncheon 17 th October 2012
Company Overview PETROTRIN is the largest integrated oil and gas company in Trinidad and Tobago (T&T) Overall Leadership Ownership Largest integrated Oil and Gas Company in T&T, a major revenue generator with a leading position in oil and gas refining as well as in exploration and production Sales Revenue (e) for FY2011/12 of TT $ 40 Billion 100% owned by the Government of the Republic of Trinidad and Tobago Government Take (e) for FY2011/12 of TT $ 1.6 Billion (Royalties, SPT, PPT, Levy) Location Strategically located to supply the Caribbean, Central America and the U.S. markets resulting in a transportation-cost advantage Crude Oil Producer Marketing and Refining Leading producer of crude oil in T&T - Average crude production of approximately 35KBPD in FY2011/12 approx. 42% of the country's total crude output Oil and Gas production from Joint Ventures 30KBOEPD Owner and operator of the sole crude oil refinery in T&T, the Pointe-a-Pierre Refinery Full conversion capacity of up to 168,000 bpd and average throughput of approximately 127,650 bpd Leading supplier of petroleum products in the regional CARICOM - 49% market share Clients Long standing sales relationships with international Oil & Gas companies Shell, Exxon and Chevron account for more than 23% of PETROTRIN s refined products sales. (e) - estimated 2
Petrotrin in National Development Business Investor Invested TT $24.5 billion during the period 2002 to 2011. FY 12/13 Capex of TT$ 4.0 Billion Operating expenditure including salaries and wages, materials, contracts, utilities, etc. amounted to TT $29.4 billion. FY 2012/13 Opex of TT$4.5 Billion Contributor to the Treasury Over TT $32.0 billion paid in royalties, SPT and Petroleum Profits Tax over the period 2002 to 2011 Some US $ 27 billion (TT $177.6 billion) earned in foreign exchange between 2002 and 2011 Developer of indigenous business capability Over 700 firms registered as contractors > 75% Local Over 2800 registered suppliers to the company > 75% Local Lease Operatorships ( 24), Farmouts (10) and IPSC (5) Community Relations Petrotrin fosters and maintains close relations with the communities adjacent to its operations and extends its corporate philanthropy to the wider national community Human Developer We cater for our employees as well as other citizens of Trinidad and Tobago through Employee training, Employee education initiatives, Leadership development, Undergraduate and Graduate Trainee Programmes, OJT and Apprenticeship 3
Petrotrin s Business Model / Strategic Imperatives Crude Imports FY 2011/12 Refined products sold to: Local 21% Regional 23 % Extra Regional 13% International 43% Upstream Producing Fields Refinery Strategic Imperatives Institute culture of accountability, efficiency, HSE and risk management Increase reserves and production Maximize returns on refinery investment Markets Cost Management 4
Exploration and Production 5
6
Joint Ventures Participating Interest BLOCKS EQUITY INTEREST JOINT VENTURE PARTNERS ONSHORE Moruga West 40.0% Neal and Massy Energy Resources Limited Central Block 35.0% BG Trinidad Central Block Limited SW Peninsula 27.5% Trinidad Exploration and Development Unlimited Parrylands 'E' 25.0% New Horizon Exploration Trinidad & Tobago Unlimited Central Range Deep 20.0% Voyager Energy (Trinidad) Ltd, Parex Resources (Trinidad) Ltd. Central Range Shallow 35.0% Voyager Energy (Trinidad) Ltd, Parex Resources (Trinidad) Ltd. Guayaguayare Deep 20.0% Voyager Energy (Trinidad) Ltd Guayaguayare Shallow 35.0% Voyager Energy (Trinidad) Ltd OFFSHORE East Brighton (Sub-Area B) 30.0% Primera East Brighton Limited / SOOGL Antilles (Trinidad) Ltd. Pt. Ligoure 50.0% Ten North Energy Limited Pelican 16.0% EOG Resources Trinidad Limited / The National Gas Company of Trinidad and Tobago Limited (NGC) SECC 16.0% EOG Resources Trinidad Limited / NGC NCMA Unitized Area 19.5% BG Trinidad & Tobago Limited / ENI Trinidad & Tobago Limited / NSGP (Ensign) Limited TSP 15.0% Repsol YPF S.A. (Repsol E&P T&T Limited) / NGC Block 1A 20.0% Centrica (Horn & Wren) Limited Block 1B 20.0% Venture North Sea Gas Limited Block 3A 15.0% BHP Billiton (Trinidad 3-A) Ltd / Chaoyang Petroleum (Trinidad) Block 3A Limited / Kerr-McGee TT E&P Ltd / Elf Exploration Trinidad B.V. Mayaro Guayaguayare 30.0% Sonde Resources Trinidad and Tobago Limited Block 22 10.0% Centrica Resources Limited Galeota 35.0% Bayfield Energy (Galeota) Limited Block 2ab 35.0% Centrica Resources (Armada) Limited, Niko Resources Trinidad and Tobago Limited, Voyager Energy (Trinidad) Ltd. NCMA2 20.0% Niko Resources Trinidad and Tobago Limited, RWE Dea AG NCMA3 20.0% Niko Resources Trinidad and Tobago Limited NCMA4 20.0% Venture North Sea Oil Limited
Exploration and Production Strategic Focus Areas Reversing the declining trend of reserves and production from a mature asset base while developing new fields Controlling cost of operations Improving Asset Integrity Pursuit of External Opportunities 8 8
Exploration and Production Key Upstream Activities Exploration and subsequent development activity following 3D seismic on Land. Accelerated exploitation of Trinmar Licence SWS reactivation and development Cluster 6 (Jubilee) Improving recovery from stripper land operations (Enhanced Oil Recovery (EOR), Field Optimization etc.) Reactivation of idle wells Monetization of Trinmar heavy oil reserves Upgrading infrastructure on land and offshore Drilling and Workovers Trinmar 1 drilling rig yr and 2 workover rig yrs Land 1.5 drilling rig years 18 workover rigs (10 Contractor) Land Bid Round Petrotrin to facilitate Land bid round on behalf of MEEA. Areas outside of existing producing fields to be put out for bid 9
SWS CONTRACTED FLOATING FACILITY(BEFORE RETROFIT)
CLUSTER 20 PREP WORK (before works)
SW Soldado Cluster 20 (Prep work ongoing)
Refining and Marketing 13
Refining and Marketing Clean Fuels Upgrade Gasoline Optimisation Programme is almost complete. Last plants are being commissioned. GOP comprised New Isomerisation Unit New CCR Platformer Unit New Acid/ Alkylation Train Upgraded FCCU Associated offsites and Utilities Ultra Low Sulphur Plant under construction 86.3 % Complete (Construction) Margin Maximisation Assessing opportunities to move further down refined products value chain Expansion of local bunkering Opportunities in external markets #8CDU Turnaround ( 49 Days ) 14
Gasoline Optimisation Plants Acid Alkylation Complex FCCU CCR Platformer Isomerisation Unit 15
ULSD CONSTRUCTION 16
ULSD Construction 17
Other Opportunities Supply of services and systems in respect to enhancing our water and air quality Consultancy services Mitigation treatment systems Technology application CDM project opportunities Project implementation opportunities Leverage Petrotrin s POA to include other projects Other Opportunities Refinery water supply from Sea Lots Land and Trinmar pipeline and facilities Maintenance Chemical Treatment of pipelines Debottlenecking production facilities at Trinmar Supply of marine craft Offshore residential facilities 18
Q&A
WILD FOWL TRUST AT POINTE-A-PIERRE 20