BG to develop gas discoveries off Trinidad

• Where BG will develop gas off Trinidad [144326 bytes]

BG, which was formed to manage U.K. gas transportation and international exploration and production operations of the demerged British Gas plc, is operator of a group granted a production-sharing contract for North Coast Marine Area 1 license, which is 40 km off Trinidad and covers 230,000 acres.

The license area contains Hibiscus, Orchid, Iris, and Poinsettia discoveries, which have estimated reserves of more than 3 tcf of gas.

The area consists of two former licenses: DAB West, with interests held by BG 60%, Agip SpA 20% and Deminex GmbH 20%; and DAB East, where BG, Agip, and Deminex each own one-third interest (see map).

Supply for LNG

BG and partners intend to develop the fields to supply gas to the Atlantic LNG Co. liquefied natural gas export plant, currently under construction at Point Fortin on Trinidad (OGJ, Dec. 16, 1996, p. 12).

The $1 billion LNG export project is due on stream in winter 1998-99, with production capacity of 3 million metric tons/year. BG has a 26% interest in Atlantic LNG, which is led by Amoco Corp.

A BG official said development of the finds will depend on the Atlantic LNG project being expanded and requiring more feed gas and on government sanctioning production for export rather than domestic needs.

More drilling

BG acquired 3D seismic data over the license area at yearend 1996 and plans to drill two wells in the next 6 months to help delineate Hibiscus discovery.

BG hopes to develop North Coast Marine Area to produce first gas in 2000. Development options will depend on an appraisal drilling program, but a new pipeline to the LNG plant is envisioned.

BG has chartered a drill ship, which is expected to spud the first delineation well in Hibiscus in May.

The company is already operator of one gas field off Trinidad. This is Dolphin field on Block 6b, started up in March 1996 to supply as much as 275 MMcfd of gas to National Gas Co. of Trinidad and Tobago.

BG is operator and equal shareholder with Texaco Inc. in Dolphin field. The two companies also each own 50% interests in Blocks E and 6d, to the east of Trinidad.