June 2, 2017 / 11:11 AM / 4 months ago

BP gives green light to $500mln gas project offshore Trinidad

* BP announces two major discoveries in Trinidad and Tobago

* New project to offset BP’s declining production in country

By Ron Bousso

LONDON, June 2 (Reuters) - BP has given the go-ahead for its $500 million Angelin offshore gas field development in Trinidad and Tobago to help offset declining production in one of the company’s main hubs.

Drilling at the Angelin field, some 60 kilometres off the south-east coast of Trinidad in a water-depth of approximately 65 metres, is set to begin in the third quarter of 2018.

First gas from the facility is expected in the first quarter of 2019, BP said in a statement.

The development, the first major offshore project that the London-based oil and gas company approved this year, will cost around $500 million dollars, a company spokesman said.

The project includes four wells and will have a production capacity of approximately 600 million cubic feet of gas a day that will be tied into the Serrette platform via 21 kilometres of new pipeline. The gas will then be sold into the domestic market or exported via the Atlantic liquefied natural gas (LNG) terminal.

BP also announced it had made two significant gas discoveries with the Savannah and Macadamia exploration wells offshore Trinidad which unlocked some 2 trillion cubic feet (tcf) of gas.

BP’s production in Trinidad has been in steady decline over the last few years, falling from 461,000 barrels of oil equivalent per day (boed) in 2010 to 309,000 boed in 2016, according to Biraj Borkhataria, analyst at RBC Capital Markets.

The country acounts for nearly 10 percent of BP’s global production.

“The sanctioning of Angelin and the new discovery provide a pipeline of resources to help stem ongoing decline rates, which in addition to the start-up of Juniper later this year should help maintain production levels in this important country for BP,” said Borkhataria. (Reporting by Ron Bousso; Editing by Greg Mahlich)

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