Heritage Petroleum Company (Heritage) has announced the commissioning of its latest offshore oil well, S-938.
In a release yesterday, the company hailed the moment as a significant milestone in its field development efforts.
The well, which is located within the Soldado East Field, has an expected average daily rate of 500 barrels of oil per day (bopd).
Heritage said it is expected to contribute significantly to the company’s revenue.
The release stated, “S-938 is the third well to be put into production after commencing its offshore drilling programme, in line with Heritage’s strategy to grow high-margin production. Drilling of S-938 began in August 2023, and after rigorous design and engineering efforts, the topsides were completed in March 2024. This was followed by the requisite inspections and statutory approvals prior to commissioning.”
Heritage’ CEO Erik Keskula, said, “I wish to thank all the company and contractor personnel that diligently worked to safely deliver this new production to Trinidad and Tobago. Over the next month, we will operate the well with a goal of optimising fluid production rates to maximise oil recovery and cash flow”.
He underlined the strategic importance of S-938 and stated it would play a role in developing a track record of delivering new offshore wells and facilities to increase production.
Heritage said it anticipates ongoing benefits from this well and three additional wells that are expected to be commissioned in the coming months. Additionally, as Heritage continues to expand its Offshore Drilling programme in the third quarter of 2024.
In a Guardian Media interview last July, Keskula said Heritage produced about 38,000 barrels of oil per day–both onshore and offshore combined–but there is potential for more given its acreage and assets.
He said he surveyed T&T’s terrain and assessed its probable potential for more oil success, before he took on the challenge to increase oil production.
He noted that production optimisation has “really unique and interesting challenges.”
“So really trying to find a way to bring out the best of those assets, even though they’ve been worked on for many years, and in this case, decades, but that suits my experience and expertise really well having done that previously in my career,” he explained.
The Heritage CEO said with Heritage it is not just growing production, but increasing the right kind of production.
“Growing production that has higher margins, and really brings in revenue for the Government and the people is something that really motivates me,” he said.
He acknowledged that the company faces issues of asset integrity by virtue of how long its assets have been operational.
That, unfortunately, leads to issues like leakages.
He noted that Heritage has undertaken a robust asset integrity programme.
“But it will take time to address and we’ve got the plans in place, as well as the response teams in place in the event,” he said.