expo: Energy Minister Kevin Ramnarine, left, points out an overhead display which was part of the BP Technology Showcase to London-based BP chief executive Bob Dudley at the Hyatt Regency (Trinidad) in Port of Spain on Tuesday night.
—Photo: Stephen Doobay
BP encouraged by 2014 budget
The fiscal incentives implemented in the 2014 national budget have encouraged world energy giant BP to authorise work on the Juniper platform off Trinidad’s East coast, group chief executive Robert Dudley said yesterday.
Speaking at the Energy Chamber’s annual general meeting at Hyatt Regency (Trinidad), Port of Spain, Dudley said even though the incentives still need to be enacted into law through amendments to the Finance Bill, the company will take this into account when approving Juniper, bpTT’s next major project planned for the development of the Coralita and Lantana fields.
“The benefits of these fiscal changes have been evident in the recent successful bid rounds, particularly in deepwater, and we can now expect to see increased investments in exploration and development as a result of the changes announced last month...within BP we will take these changes into account and make changes in our investments in another part of the world. That’s called the competition for capital and that’s good for Trinidad,” Dudley said.
In June, bpTT president Norman Christie had said until Trinidad and Tobago could “get the economic environment right”, Juniper would not be sanctioned by parent company BP.
The company has said that over a five-year period it will invest US$5 billion in T&T.
One aspect of this is the application of technology that has the potential to unlock reserves.
“In Trinidad we have conducted what we call an ocean bottom cable (OBC) seismic survey.
“This is the first time that this technology has been deployed in BP in a marine environment. This was a significant investment (US$250 million) for our Trinidad business and the early results have been encouraging. They have given us renewed optimism about the potential of the Columbus basin,” Dudley said.
He noted that the energy industry is a “long-term” industry, where decisions have to be made ten years out.
“In many countries in which we operate political systems have become very short term—15 to 18 months in some cases, and I’m encouraged by what is happening here and the long-term outlooks that have been talked about to keep the gas industry and jobs flowing. We appreciate the support that the industry has been shown and we believe it has resulted in mutual benefit for the country and its citizens, as well as for energy companies and their shareholders. This is the balance that we should always strive for,” he said.
Trinidad and Tobago contributes 17 per cent to BP’s global output, and the company is one of the largest contributors to GDP (gross domestic product), paying close to $10 billion in Petroleum Taxes in 2011.