THE GOVERNMENT OF THE REPUBLIC OF

TRINIDAD AND TOBAGO

FIESP 14th International Energy Conference , Sao Paulo Brazil

August 5, 2013

Development of Natural Gas

Industry in South America -

Trinidad and Tobago

THE GOVERNMENT OF THE REPUBLIC OF

TRINIDAD AND TOBAGO

• History of Petroleum developments

• Brief look at Trinidad and Tobago

• Growth of Natural gas Industry

• Present state of Industry

• Trinidad and Tobago Gas Value chain

• Success factors in T&T Model

Agenda

THE GOVERNMENT OF THE REPUBLIC OF

TRINIDAD AND TOBAGO

• Earliest known oil wells were drilled in China in 347 AD • Ancient records of China and Japan - allusions to the use of

natural gas for lighting and heating. • First documented shipment of petroleum from South America -

Venezuela was in 1539 when a single barrel of oil was sent to Spain to alleviate the gout of Emperor Charles V

• Earliest mention of petroleum in Trinidad occurs in Sir Walter Raleigh’s account of Pitch Lake in 1595;

• First successful oil well in modern times Baku 1848. Others include Drake well in Pennsylvania 1859, Peru 1863, Trinidad 1866 and Venezuela and Bolivia in the 1910’s

History of Global Petroleum Development

THE GOVERNMENT OF THE REPUBLIC OF

TRINIDAD AND TOBAGO

• First Oil discovery in Trinidad in 1866 by Captain Walter Darwent • Commercial Oil production started in 1908 in Point Fortin • First Commercial Gas field development 60 years ago in Penal

1953 for electricity generation • First Offshore Gas filed development – Teak 1974 (Amoco) • First use of gas for manufacture of Petrochemicals in Trinidad –

1959 – Federation Chemicals limited (Grace) • First manufacture of LNG in Trinidad and South America – 1999

Atlantic LNG – Amoco Trinidad Oil Company, BG Trinidad, Repsol, Cabot LNG and National Gas Company of T&T (NGC)

• Avg. Gas Production (end of May 2013)- 4.3 bcf/d

History of Trinidad and Tobago Petroleum Development

THE GOVERNMENT OF THE REPUBLIC OF

TRINIDAD AND TOBAGO

Brief Look at T&T

• Republic of Trinidad and Tobago Official Name

• 5,128 sq. km (1,980 sq. miles) Area

• 1.3 million Population

• English Language

• Tropical Dry:Jan – Jun; Wet :Jul –Dec Climate

• TT Dollar (US$1 = TT$6.44) Currency

• Democratic Republic Political System

• Energy, Manufacturing, Tourism Economic Activity

• Multi-racial People

THE GOVERNMENT OF THE REPUBLIC OF

TRINIDAD AND TOBAGO

Brief Look at T&T

THE GOVERNMENT OF THE REPUBLIC OF

TRINIDAD AND TOBAGO

Key Economic Indicators 2012

• US$23.8 billion

GDP

• US$18,000

GDP per capita

• 1.2% Real GDP growth

• 9.3% Inflation

• 4.9% Unemployment

• US$ 11.64 billion

Net Foreign Reserves

• US$12.98 billion

Export

• US$9.06 billion

Imports

THE GOVERNMENT OF THE REPUBLIC OF

TRINIDAD AND TOBAGO

Energy Sector Key Indicators

• 81,753 bpd

Avg. Crude Oil Production (2012)

• 127,000 bpd

Avg. Oil Refining Throughput (2012)

• 4.1 bcfd Avg. Natural Gas Production (2012)

• 35,314 bpd Avg. NGL Production (2012)

• 25.2 Tcf 3P Gas Reserves (as of Jan

1st, 2013)

• 31.6 Tcf

Exploratory Gas Resources (as of Jan 2013)

Growth of Natural Gas Industry

Cumulative Production (1908- 2012): Oil : > 3.5 billion barrels Gas : >3.8 billion boe

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8/5/2013 10

T&T Onshore and Offshore assets

Trading

OIL

& G

AS

(Develop Field) and (Produce) Wells & Facilities

Retail Sites / Stations

Melamine, UAN, Polyolefin

Plastics & Speciality Chemicals

(Exploration) Seismic, Geological, & Drilling

Refineries

Upstream (Exploration and Production) Downstream

(Decommission) Wells & Facilities

End

Users

Operators

Service

Providers

Storage Facilities

Indirect Support

Capital Build Projects

• Platforms

• Refineries

• Primary Petrochemicals (Ammonia & Methanol)

• Downstream Petrochemicals

Regulatory Agencies:

CARIDOC

Ammonia & Methanol Plants

T&T Energy Value Chain

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T&T Natural Gas Value Chain

[8%]

[56%]

[29%]

8/5/2013

Power Generation

8%

Ammonia Manufacture

15%

Methanol Manufacture

14%

Other 4%

Iron & Steel Manufacture

3%

Liquefied Natural Gas

(LNG) 56%

4 Liquefied Natural Gas Trains

1 Crude Oil Refinery

10 Ammonia Plants

1 Urea Plant

7 Methanol Plants

5 Iron and Steel Mills

6 Electricity Generation Sites

1 Ammonia-Urea Ammonium Nitrate-Melamine (AUM) Complex

Avg 2012 : 4.1 bcf/d

Gas Utilisation by Sector - 2012

Success Factors of T&T Model

• Active Government involvement

• Institutional Arrangements

• Legal System

• Unique market related gas pricing model

• Availability of global market opportunities

• Private/ Public Sector Collaboration/Direct Foreign Investment

• Development of Skilled Workforce 8/5/2013 18

FUTURE OF NATURAL GAS INDUSTRY

• Cross Border Gas field development with Venezuela

• Oil and Gas potential of Deep Water Atlantic Basin

• Increasing Linkage between Energy and Manufacturing

• Availability of an emerging environmentally friendly fuel DiMethyl Ether -DME

• Gas is the fuel for 21st Century sustainable economic development

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THE GOVERNMENT OF THE REPUBLIC OF

TRINIDAD AND TOBAGO

THANK YOU

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