Sunday, October 11 2009

TRINIDAD IS currently subdivided into a number of blocks of varying areas. Most are currently under licence to a number of companies.

Currently there are two approaches in which a company can obtain a block. One is where a company may approach the Ministry of Energy and Energy Industries (MOE) for a particular block and offers a work programme (drilling, technical studies, 3D seismic). Usually, these offers are ignored in favour of Bid Rounds. This is where the MOE offers specific areas for companies to bid on.

The MOE, as part of the bid process, supplies all available data (eg, wells, samples, 2D and 3D seismic data) which the company works on to see if the area is prospective. if there are wells that have encountered hydrocarbons in the block then there would be more interest unlike a block where there are only dry holes.

A company would choose to bid on a block if there are a number of prospects that have DHI’s (Direct Hydrocarbon Indicators) eg flat spots, AVO (Amplitude Variation with Offset) responses and their sizes and potential volumes. Thus a block that has all of the above will attract many bidders. A block without any obvious prospects will not attract any bidders as happened in the last bid round.

The expected work programme for the block (eg, number of wells, amount of 3D seismic data, signature bonus, taxes, carried partners, etc) may however deter companies from bidding.

Where more than one company bids for a Block, the one who offers the best work programme/ signature bonus would be the one invited to negotiate a PSC (Production Sharing Contract). In the case where a single company bids and their bid does not meet the MOE’s expectations, two things can happen either it is refused or they are invited to have further discussions.

When a block is awarded, negotiations to sign the PSC actually begin. Once this process is completed the work programme can begin. An EIA (Environmental Impact Assessment)/CEC (Certificate of Environmental clearance) must be done to comply with environmental laws and this process can take more than a year (a major source of concern for companies) depending on the area.

Once this is granted by the Environmental Management Authority, the 3D or 2D seismic survey can begin. Offshore, this can take up to two months depending on the size. Onshore, however, the process takes a lot longer. Before the survey can begin permission must be obtained from land owners to enter their property to run cables, drill shot holes, etc. If owners cannot be found, plans must be changed.

Land 3D takes longer because lines must be cleared through vegetated areas (only about 1m wide) and cross roads to avoid towns etc (three to four months). Once seismic data is acquired it is sent off for processing which can take three to six months. Once processed it is interpreted by geologists and geophysicists to define potential TRAPS and what kind of hydrocarbon may be present.

Geologists/geophysicists look for anticlines, fault and stratigraphic traps. An anticline will provide a closed container to hydrocarbons that are migrating upwards through the rocks, the faults also may provide a barrier to the fluids trapping them, stratigraphic is where the rock changes from sand to clay, the clay stops the movement of hydrocarbons trapping them.

Prospects are identified, reviewed by teams, and ranked by potential reserves for drilling.

Once drilling locations are identified, a drilling rig needs to be found. Offshore rigs can cost between US$300,000-500,000 a day and there may be problems to find one. Onshore, depending on the depth, a drilling rig must be brought into Trinidad, again at great cost.

Drilling a well can take three to six months, depending on the depth and if there are problems.

If a discovery is made, the 3D seismic interpretation is updated with the new well data, hydrocarbon reserves estimates updated and a decision is taken if this discovery is economic at current prices.

From the time of signing the PSC and possibly making a discovery, the process may take a minimum of two years.

(Information provided by Curtis Archie, a director at the Geological Society of Trinidad and Tobago.)“Significant Hazard” means a hazard that is an actual or potential cause or source of:

• Serious harm.

• Harm being more than trivial.

• Harm that does not occur normally, or is usually not easily detected, until a significant time after exposure.

Control Measures

For significant hazards, employers must:

• Where practicable, eliminate the hazard.

• If not practicable, isolate the hazard.

• If impracticable to eliminate or isolate, minimise the hazard to employees (eg, using a Safe System of Work) and in addition, as appropriate:

* Ensure appropriate PPE is provided, accessible and used

* Monitor employee exposure to the hazard.

* Seek the consent of employees to monitor their health, and

* With informed consent, monitor employee health.

Information for Employees

Before employees begin to work, they must be informed by their employers of:

• Hazards employees may be exposed to at work.

• Hazards employees may create which could harm others.

• How to minimise the likelihood of these hazards becoming a source of harm to themselves and others.

• The results of any safety and health monitoring.

• The location of safety equipment, and

• Emergency Procedures.

Employers must also inform employees of the results of any safety and health monitoring, while protecting the privacy of individual employees.

Employee Involvement and Participation

Employers must ensure that all employees have the opportunity to be fully involved in the development of procedures for identifying hazards and dealing with significant hazards, or dealing with or responding to emergencies.

Training for Employees

Employers must ensure that employees are either trained, competent and sufficiently experienced to do their work, or are adequately supervised by an experienced person. Additionally employees must be adequately trained in the safe use of equipment, including PPE and safety equipment.

Safety of People Who are not Employees

Employers are also responsible for the safety and health of persons, who are not employees, but can be affected by the work. Employers must take all practicable measures to ensure that employees do not harm any other persons while they are at work. This includes members of the public, or visitors to the workplace.

So how then do we become OSHA Compliant?

You should first get a copy of the Act and study its provisions, which for the most part apply to all industrial establishments. Then conduct or have a competent person conduct a Gap Analysis in respect of the requirements of the Act.

(Information provided by

Anisa Allaham-Hosein)