Trinidad News, Tobago News

Welcome to Breaking News Trinidad and Tobago
Friday, November 17 2017 @ 10:32 PM AST

Grenada gas find to boost Trinidad & Tobago, Russia, Venezuela relations

Grenada gas find to boost T&T, Russia, Venezuela relations

A new Russian gas find in Grenada, now under assessment for commercial viability, promises to boost relations between Trinidad & Tobago, Venezuela, Russia and Grenada, as closest infrastructure to monetise said gas would be the Dragon field connection to Royal Dutch Shell's Hibiscus platform off the north coast of Trinidad, government and Drilling Info data confirmed last week. The Shell-owned pipelines from Dragon would send gas to majority Shell-owned Atlantic liquified natural gas (LNG) facility in Point Fortin for export. London-based oil and gas giant BP plc, the state-owned Chinese Investment Corporation (CIC), and the National Gas Company of T&T (NGC) are the minority shareholders in Atlantic.

Not far from the prolific Dragon gas field, Grenada's gas find is near its border with Venezuela, Grenada Prime Minister Dr Keith Mitchell said in Jamaican (Observer) and Grenadian (News784) media last week. "The findings are being tested for quality," he said. Subject to change on official announcement, the find is unofficially estimated to be around 3.8 trillion cubic feet (tcf) of gas. To put into perspective, BP's celebrated Juniper US$2.1 billion project, brought into production last quarter, has an estimated 2 tcf. The size of the find would be consistent with the Dragon field area which is said to have, counting environs, above 13 tcf, a full two tcf more than all of T&T's known and proven reserves according to the BP Statistical Review of World Energy 2017.

Noticias Logistica y Transporte, a logistics and transport publication out of Venezuela, estimated the topic will be high on Venezuelan President Nicolas Maduro's agenda when he visits Prime Minister Dr Keith Rowley some time in November, the culmination of talks begun by Energy Minister Franklin Khan's on October 3 in Moscow. The report said Rowley welcomed the visit of Maduro to strengthen relations also between Russia and T&T. During a visit to Grenada in 2015, Maduro initiated with Mitchell, oil and gas cooperation between Grenada and Venezuela.

Incentives given to Russians

After Grenada's Parliament passed in June the Hydro Carbon Exploration Incentive Bill 2017, containing a package of incentives for oil and gas exploration, Russia's Global Petroleum Group (GPG) found gas near the Venezuelan border, according to October 19 reports out of Grenada, citing an interview with Mitchell.

Grenada parliamentary Leader of Government Business Gregory Bowen, who brought the incentive bill before the house said at the time, the plan was to determine the existence of natural deposits of oil and gas as well as the quality, and quantity. In a Grenada government June 13 statement, the Mitchell administration said it "will be advocating for locals to be employed on the rig for the period of exploration."

In a June 2 statement Mitchell said: "New potential looms for Grenada's rapidly recovering economy as the search for oil in Grenadian waters is set to begin within months. Prime Minister, and Minister of Energy Mitchell announced "that an oil exploration campaign is to start, as his administration continues an aggressive momentum to bolster an economy on the rocks about four years ago under the National Democratic Congress government."

Mitchell's announcement was in a national address the night of June 1, "on the heels of glowing tribute from the Internationlm Monetary Fund (IMF), the World Bank, the Caribbean Development Bank (CDB), and other international bodies who have singled Grenada's economic come back story as a model."

Mitchell: GPG most prospective

Mitchell said the Global Petroleum Group (GPG), which the Government of Grenada granted authorization to conduct a seismic survey on the island, has identified 'the most prospective geographical features offering greatest exploration and economic potential'.

"They have prepared all the engineering and logistical plans for the exploratory drilling campaign, engaged all the contractors, subcontractors and vendors necessary, and are on the verge of commencing the exploratory drilling campaign within the next month or two," Mitchell told the nation.

The government statement the day after said: "At present, Grenada does not produce any oil. However, if the GPG’s drilling campaign proves successful, it may result in outcomes that will have positive rippling effects across the Grenadian economy." GPG has been in Grenada since 2013.

Mitchell said: "Their achievements to date, represents the furthest any company conducting petroleum exploration in Grenada has ever reached - and the quest continues, with future prospects in sight."

Since 2016, data held by GPG was valuable enough for a US Company to then sue the Russian company "for seismic data and other information" in Texas in the United States. The records show appellants, RSM Production Corp. and Jack Grynberg (collectively RSM), sued appellee Global Petroleum Group, Ltd. (GPG) and other entities for misappropriation of trade secrets and other claims based on the alleged misuse of certain seismic data. Global filed a special appearance, which the Texas trial court granted and upheld when RSM appealed. To file a special appearance in Texas lawsuits means the defendant contests the state court's jurisdiction over his or her person or property.

Not first cross-border Grenada move

This is not Grenada's first cross-border move. Mexico's MX Oil signed a non-binding Memorandum of Understanding (MoU) with the Government of Grenada in December last year, with regard to making an investment in the exploration and development of hydrocarbons in a subterranean area adjoining the maritime boundary with Trinidad and Tobago.

The area covered by the MoU includes "underexplored prospective Grenada Tobago Basin acreage adjacent to the Venezuelan/Trinidadian Patao - Poinsettia gas trend," an MX Oil statement said at the time. The company said the intention of the MoU was to form the basis for the negotiation of a more detailed Production Sharing Agreement (PSA) which, if signed, is likely to occur during the first half of 2017.


RESOURCES:

US company sues Russian company for seismic data
http://caselaw.findlaw.com/tx-court-o...51255.html {October 20, 2016}


Background story: Grenada eyes T&T oil and gas http://www.trinidadexpress.com/201612...gas-fields

News784 https://news784.com/regional/grenada-...discovery/ {October 19, 2017}


SOURCE: https://info.drillinginfo.com/grenada...e-wildcat/ {July 31, 2017}

RUSSIANS in Grenada since 2013 http://thenewtoday.gd/local-news/2013...#gsc.tab=0

Grenada Upper House passes Hydrocarbon Incentives Bill http://www.gov.gd/egov/news/2017/jul1...-bill.html {July 3, 2017}

Grenada approves New Laws with big incentives for Oil Explorers
http://www.gov.gd/egov/news/2017/jun1...orers.html {June 13, 2017}

{June 2, 2017}
Grenada search for Oil set to begin
http://www.gov.gd/egov/news/2017/jun1...begin.html {June 2, 2017}


MX Oil has signed a non-binding Memorandum of Understanding (MOU) with the Government of Grenada with regard to making an investment in the exploration and development of hydrocarbons in a subterranean area adjoining the maritime boundary with Trinidad and Tobago.

The area covered by the MOU includes underexplored prospective Grenada Tobago Basin acreage adjacent to the Venezuelan/Trinidadian Patao - Poinsettia gas trend.

The intention of the MOU is to form the basis for the negotiation of a more detailed Production Sharing Agreement ("PSA") which, if signed, is likely to occur during the first half of 2017.

It is expected that the PSA will cover matters including, but not limited to, tenure and work programme including 2D seismic and, subject to these results proving encouraging, further exploratory phases including 3D seismic data acquisition.

The signing of the MOU does not guarantee that the Company will be successful in securing a PSA and the Company will update the market in due course in the event of any significant development.


Additional Note from the Government of Grenada:

Companies continuously show interest in exploring for oil and gas in Grenadian waters. On their contacting the Energy Ministry, they are given information on available areas for exploration and that there is no seismic data for these areas since these areas have never been investigated before.

Such virgin areas hold little prospects for investors/explorers, who eventually move to other countries with greater prospects and where data are available.

As indicated in the above release, MX oil and Government, through the MOU, will engage in three months of discussions to ascertain whether conditions can be reached for MX Oil to enter into an exploration arrangement with GOG.
If an agreement is reached after the three month period of discussions, then the Government of Grenada will be able to say it has an investor.

The release by MX oil, and authorized by the Government of Grenada, indicates just this.
The MOU is NON-Binding and there may be no investment coming from these discussions.
http://www.gov.gd/egov/news/2016/dec1...enada.html {Dec 22, 2016}





A US Company sued the Russian company that reportedly found gas in Grenada, for seismic data and other information, back in 2016. Appellants, RSM Production Corp. and Jack Grynberg (collectively, “RSM”), sued appellee Global Petroleum Group, Ltd. (“Global”) and other entities for misappropriation of trade secrets and other claims based on the alleged misuse of certain seismic data. Global filed a special appearance, which the trial court granted and upheld when RSM appealed. http://caselaw.findlaw.com/tx-court-o...51255.html {October 20, 2016} To file a special appearance in Texas lawsuits means the defendant contests the state court's jurisdiction over his or her person or property.




Demonstration on Electricity Generation using Liquefied Natural Gas
http://www.gov.gd/egov/news/2015/dec1...l-gas.html {Dec. 8, 2015}





October 20, 2015 – GIS: Venezuela has promised to assist Grenada in developing potentials which may exist in the oil and gas sector.

President Nicolas Maduro, who visited the island on Saturday, October 17, says he will immediately instruct his foreign minister, Delcy Eloina Rodriguez, to form a team to begin dialogue with St.George’s.

The Venezuelan leader told Prime Minister Dr. Keith Mitchell during a bilateral meeting, that Caracas and St.George’s should not delay on this initiative.

“We can work together on this.

I entrust the Foreign Minister to form this team and let us move as quickly as possible.

We have vast experience in oil and gas,” President Maduro told the meeting, which included energy minister Gregory Bowen, Health Minister Nickolas Steele, Oliver Joseph, Minister for Economic Development, and Dr. Clarice Modeste, Minister for Foreign Affairs.

“The minister of energy will work with you on this. Tell us how far you want to go and we will go with you."

New talks between Grenada and Venezuela are expected to focus on boundary delimitation following initial discussion on the issue some years ago.

Prime Minister Mitchell told President Maduro that Grenada is just as eager to reach an agreement, particularly in light of the positive implications for the local economy.


“There is a necessity for delimitation of our boundaries so we can access the resources, as Venezuela has been able to do.

We want to advance this as soon as possible because the indication is that there are serious resources to be accessed when this happens,” said Prime Minister Mitchell, who is also chair of the OECS authority.


“It is in the entire region’s best interest to settle any disputes, boundaries or otherwise in the most peaceful manner possible.

Anything less would be disastrous. Venezuela, you have the resources, you have the infrastructure.

We are not trying to get anything more than what our fair share is.”

Meanwhile, Grenada’s former Energy Minister, Gregory Bowen, reminded the Venezuelan leader that positive discussions on the boundary delimitation had begun a few years ago with the late President, Hugo Chavez. Minister Bowen informed President Maduro that a Grenada team is standing by to return to the table.


“We also discussed as part of that arrangement, moving directly to joint exploration and development in the unresolved area in the event that a boundary cannot be agreed upon by the parties," recalled Bowen, in reference to initial discussion between both countries.”


“With the great friendship between our two countries, it should be easily accomplished.
Our big brother has the knowledge and capacity to help us”.

The Venezuelan team readily agreed to work together, with the President Maduro saying "so we can develop and work together in relation to issues of oil and gas, using technology that PDVSA has. That is Chavez' order and we need to fulfill as soon as possible. That can be easily resolved.”
http://www.gov.gd/egov/news/2015/oct1...l-gas.html {Oct. 20, 2015}




{April 21, 2010}

Grenada, Trinidad and Tobago sign Delimitation Treaty
http://www.gov.gd/egov/docs/other/del...renada.pdf
{April 21, 2010}

Story Options