Angostura Development
Overview
- BHP Billiton has committed to the development of the first phase of the Angostura integrated oil and gas development located in Block 2 (c) offshore Trinidad and Tobago.
- In the first phase of the development, oil is produced from three wellhead protector platforms (WPPs) via flowlines to a steel jacket central production platform (CPP). Associated gas is being reinjected. Water depths are approximately 40 meters (130 feet) and the development utilises proven shallow-water technology.
- The Angostura development is consistent with BHP Billiton Petroleum's strategy of pursuing growth through oil exploration and production that can provide good returns.
- BHP Billiton is the first company to successfully pursue an oil and gas exploration programme in this under explored area.
- There is further exploration potential in the area, and opportunities exist to build a material energy business with ready access to significant oil and gas markets.
- BHP Billiton is positioning the gas resource in the growing gas market to further unlock value.
- Capital expenditure for the first phase of the Angostura integrated development will be around US$726 million (gross), US$327 million net to BHP Billiton.
- First oil production was delivered in January 2005.
- BHP Billiton is the Operator of the Greater Angostura development. The joint venture participants are BHP Billiton Petroleum, 45%; TotalFinaElf, 30%; Talisman Energy, 25%
Key Data
- Field life: Angostura's production life, for both oil and gas, is estimated at 19-24 years.
- Capex (Phase 1): US$726 million (US$327 million net to BHP Billiton)
Strategic Context
The Angostura Project is consistent with BHP Billiton Petroleum's strategy of pursuing growth through oil exploration and production that can provide good margins. Trinidad and Tobago's location also allows access to the high-demand US crude oil markets, as well as Latin American and European markets.
The Angostura field discovery opens a new productive play fairway off Trinidad's eastern coast. BHP Billiton is well positioned to grow reserves and production in this fairway through its Operatorship of the Block 2(c) production area, Block 2(c) remaining exploration area, and the adjacent Block 3(a). Additionally, the location of the production and transportation facilities will be well positioned to serve any BHP Billiton or third-party discoveries in the area.
The Greater Angostura Field
Block 2(c) is located approximately 24 miles (38.5 km) east of the island of Trinidad. During the six-year exploration phase of the PSC, four exploration and three appraisal wells were drilled, discovering significant oil and gas resources within a large faulted structure known as the Greater Angostura Structure.
Angostura-1, drilled in 1999, was the discovery well for the field, intersecting some 950 feet (gross) of gas pay within Early Oligocene sands. The hydrocarbon potential of the structure was confirmed by the drilling of Aripo-1, Kairi-1, Canteen-1, Kairi-2, Angostura-2, and Canteen-2. Each of these exploration/appraisal wells intersected oil and gas in Oligocene sands.
The Kairi and Canteen fault blocks contain most of the oil thus far. Aripo has a thin oil rim overlain by a significant gas cap.
Development Concept
The Angostura development is an integrated oil and gas development.
Oil is produced from three unmanned steel jacket wellhead protector platforms (WPPs) and sent via flowlines to a central steel jacket production platform (CPP) located in water depths of approximately 40 meters. The produced fluids are stabilised at the CPP to separate gas and any produced water. The oil is transported via an 18-inch pipeline from the CPP to an onshore storage and marine loading facility located at Guayaguayare Bay for export to market.
Produced gas will be treated to recover liquids, then reinjected to maintain reservoir pressure and enhance oil recovery. Gas commercialisation will commence between three to nine years after first oil production, depending on reservoir performance. The production facility has a nameplate capacity of 100,000 barrels of oil per day (bbl/d). All production facilities are of conventional design.
Contractual Regime
The Production Sharing Contract
Foreign participation in the Trinidad and Tobago oil sector is governed by Exploration and Production Licences and Production Sharing Contracts (PSC). All BHP Billiton's holdings are PSCs.
Future Growth Prospects
BHP Billiton and its partners are in a strong position to potentially add value through utilising the Angostura facilities as a regional production hub for any potential discoveries in adjacent Block 3(a) (BHP Billiton operator) and other potential third-party discoveries in the area.
Gas commercialisation (Phase 2 of the Angostura development) could be accelerated through proximity to a robust gas market and the use of existing Angostura facilities. Potential markets for Angostura gas include: LNG export, the local petrochemical industry, pipeline export to nearby islands, and CNG export.
Local Content
As the Operator of the Block 2(c) joint venture, BHP Billiton is committed to maximising local involvement of the field development. Significant local content opportunities have been created during the project phase, including the Kairi- 1 platform which was partly fabricated in Trinidad and Tobago. It is anticipated that during the operation phase this will continue, thus ensuring that sustainable support infrastructure is further developed in Trinidad and Tobago.
BHP Billiton has actively encouraged the establishment of joint ventures and collaborations between international suppliers and local organisations.