State-owned Heritage Petroleum expects to increase its crude oil production by 80 percent over the next four years according to its Chief Executive officer Arlene Chow.
Speaking yesterday at day one of the Energy Chamber’s Energy conference 2021, Chow explained that the time had come for the company to get its reserves out of the ground.
She said, “In our projections we will have 50 per cent growth based on the plan I have shown you, in production in our operated assets, and along with out LO (Leasse Operators) and FO (farm outs) and in our total barrels of 80 per cent in the next five years....How will we do this? Increase in capital spend with a focus on base stabilisation and in organic growth to reduce the accumulation of existing resources. We need to get the oil out of the ground.”
If this is achieved it will take Heritage’s production in excess of 60,000 barrels of oil per day and T&T back over 100,000 bo/d. Not seen since 2011.
Chow said the strategy has always been a production driven one for partnering, exploiting low hanging value that may have been missed in the past or required a new approach, for example Jubilee field that has one billion barrels of heavy oil.
She explained the rationale saying, “Partnering for value is an important aspect of being an NOC (National Oil company) in these energy transition times, and it was always an early strategic goal and remains important because the imperatives around CAPEX (capital expenditure), we need CAPEX, we need exploration, we need technology, and competency, some of which we need to get from our partners.
Our first exploration well which we will be doing is a joint venture with EOG in the South West Soldado and it is a huge farm in area, so we expect that EOG together with us will spud the first well at the end of 2021 and we are hoping for a very good result from this as we move forward.”
Chow said the EOG well is one of several exploration wells to be drilled in Heritage’s acreage including wells in the East Field, North Field and Main Field in the next two to three years.
“On land we have developed a solid hopper of six to nine wells for the next five years. We are restarting our EOR projects and reviewing new EOR projects as well.” the Heritage CEO explained.
She said Heritage was looking at innovative ways to exploit its reserves and accelerate production as necessary.