Identifier
Created
Classification
Origin
09PORTOFSPAIN360
2009-09-04 10:47:00
UNCLASSIFIED
Embassy Port Of Spain
Cable title:  

DROP IN T&T PROVEN GAS RESERVES

Tags:  ENGR EPET EIND TD 
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VZCZCXYZ0000
RR RUEHWEB

DE RUEHSP #0360 2471047
ZNR UUUUU ZZH
R 041047Z SEP 09
FM AMEMBASSY PORT OF SPAIN
TO RUEHC/SECSTATE WASHDC 0024
INFO RUEHHH/OPEC COLLECTIVE
RHMCSUU/DEPT OF ENERGY WASHINGTON DC
RUCNCOM/EC CARICOM COLLECTIVE
RUEHSJ/AMEMBASSY SAN JOSE 0515
UNCLAS PORT OF SPAIN 000360 

SIPDIS

SENSTIVE BUT UNCLASSIFIED

STATE FOR EEB/IEC, WHA/EPSC, WHA/CAR
ENERGY FOR POLICY/INTERNATIONAL Q GWARD, SBROWNE
SAN JOSE FOR REGIONAL ENVIRONMENTAL HUB

E.O. 12958: N/A
TAGS: ENGR EPET EIND TD
SUBJECT: DROP IN T&T PROVEN GAS RESERVES

UNCLAS PORT OF SPAIN 000360

SIPDIS

SENSTIVE BUT UNCLASSIFIED

STATE FOR EEB/IEC, WHA/EPSC, WHA/CAR
ENERGY FOR POLICY/INTERNATIONAL Q GWARD, SBROWNE
SAN JOSE FOR REGIONAL ENVIRONMENTAL HUB

E.O. 12958: N/A
TAGS: ENGR EPET EIND TD
SUBJECT: DROP IN T&T PROVEN GAS RESERVES


1. (U) Summary: Ryder Scott's annual audit of Trinidad and Tobago's
gas reserves released on September 2 showed a decline in the
country's proven gas reserves from 16.99 trillion cubic feet (tcf)
in December 2007 to 15.37 tcf in December 2008. The audit found,
however, an increase in the nation's probable gas reserves from 7.88
tcf to 8.45 tcf and an increase in possible gas reserves from an
estimated 5.89 tcf to 6.29 tcf over the same time period. End
Summary.


2. (U) In a public response, Energy Minister Conrad Enill
highlighted the GOTT's intention to offer six shallow blocks for
competitive bidding in Q1 of 2010, four off the north coast and two
off the east coast. Enill said that the six blocks comprised
870,000 hectares and contained gas reserves of 8.3 tcf of unrisked
identified exploration resources. He added that a study of deep
waters areas has been completed and anticipates a subsequent bidding
round in Q2 2010. Enill said that the new proposals would fall
under a revised tax regime structured to further incentivize gas
field exploration and development.


3. (U) Energy Ministry Permanent Secretary Leroy Mayers told Econoff
that the drop in proven reserves was predominantly due to companies'
hesitation to invest in expensive exploration and development in the
current economic climate. He expressed confidence that future
exploration will show a continued increase in proven reserves.
Mayers said that a government team is currently holding discussions
in London to promote investment. He said that the current fiscal
scheme is "not in line with the economics" and that the tax system
needed to be revised to make investment less costly for operators.



4. (U) In a separate discussion, Atlantic LNG (ALNG) External
Affairs Advisor Terrence Walker concurred with Mayers, saying that
ALNG's geologists and technicians are similarly confident that with
future exploration the figures for proven reserves will continue to
increase.


5. (SBU) Comment: The timing of the Ryder report's public release
appears to be part of a concerted effort to mitigate public
criticism toward the upcoming national budget announcement scheduled
less than a week away, on September 7th. Both Mayers and Walker
expressed privately their impatience with the current fiscal regime
and their hope that the audit's findings will influence public
opinion and spur the Cabinet to take what they view as necessary
actions to further incentivize foreign investment. End Comment.

KUSNITZ