50.24$US/1 Barrel
58.30$US/1 Barrel
53.70$US/1 Barrel
70.77$US/1 Barrel
75.61$US/1 Barrel
75.71$US/1 Barrel
77.66$US/1 Barrel
68.98$US/1 Barrel
68.83$US/1 Barrel
67.03$US/1 Barrel
51.81$US/1 Barrel
57.57$US/1 Barrel
55.28$US/1 Barrel
62.57$US/1 Barrel
64.72$US/1 Barrel
60.50$US/1 Barrel
62.00$US/1 Barrel
54.25$US/1 Barrel
59.25$US/1 Barrel
60.75$US/1 Barrel
485.00$US/MT
378.00$US/MT
705.00$US/MT
585.00$US/MT
508.00$US/MT
467.00$US/MT
368.00$US/MT
395.25$US/MT
678.00$US/MT
832.75$US/MT
SEATTLE (Oil Monster): IN a blow to the Government and the National Gas Company’s (NGC) continued efforts to keep the price it pays for natural gas from upstream companies a secret, EOG Resources has revealed that, last year, they sold its gas to the NGC for US$4.43 per million standard cubic feet (mmscf).
This means, in 2022, it was significantly more expensive for the NGC to acquire gas from EOG and sell it to the petrochemical sector.
The Government and State-owned NGC have always tried to keep the price they purchase natural gas as a secret, arguing it negatively impacts the country’s competitiveness. Still, EOG has consistently been transparent in its earnings out of Trinidad and Tobago.
In its financial statement for 2022, the American outfit said the US$4.43 per mmscf/d is higher than the US$3.40 it earned in 2021 and the US$2.57 in 2020.
On the downside, however, the company noted that its production dropped significantly, down to 60 mmscf/d in 2022 when compared to 2021.
Figures from the Ministry of Energy show EOG producing 320 mmscf/d with a significant fall between May last year and November 2022.
In its notes that formed part of the financial statement, EOG revealed, that in the third quarter and full year of 2022, the realised natural gas price for Trinidad includes a one-time pricing adjustment of $3.37/mcf and $0.76/mcf, respectively, for prior-period production following a contract amendment with the National Gas Company of Trinidad and Tobago Limited.”
On an earnings call on Friday, its CEO Ezra Yacob announced that in an effort to stop the decline in production, EOG expected a drilling rig to arrive in T&T soon and noted that it was six months behind schedule.
He added that EOG will begin the construction of its second offshore platform for Trinidad, so it can also bring on the Mento discovery it made with bpTT onto production.
Yacob said, “There has been a bit of a rig delay on our Trinidad drilling programme. So, that will start about midyear this year. We did set a platform there—this past year—based on one of the discoveries that we made in 2020. We should start construction on another platform there, named Mento, later this year, also based on some of the work that we did in that drilling campaign that ended in 2020.”
The Mento well discovered natural gas in February 2020 and is estimated to hold one trillion cubic feet (tcf) of gross resource potential with 500 billion cubic feet (bcf) of net natural gas resources.
The well was started on January 2, 2020, and was drilled to a total depth of 14,769 feet.
Yacob brushed off the current low gas prices in the US and said EOG was looking at longterm, not shortterm pricing.
As the Express had reported, prices at Henry Hub has dropped more than half from late last year and have caused at least three companies in the US to stop additional drilling, saying the price is too low.
The price at the Henry Hub has a direct impact on the amount of money that the finance minister receives and as a result on the lives of each citizen of T&T.
Yacob acknowledged that prices at Henry Hub were low but said EOG will continue to look for and produce more gas in the US because of the more than seven billion standard cubic feet of natural gas per day expected to be exported from the US with new and other capacity coming online by 2025.
Courtesy: www.trinidadexpress.com
Forozan Blend | 75.61 | |
Iran Heavy | 75.71 | |
Iran Light | 77.66 | |
Forozan Blend | 68.98 | |
Iran Heavy | 68.83 |