The History of Exploration by Amoco in Trinidad
Authors: Tiezzi Larry , Kinslow Linda , Ortmann Ken , Shaw Ed 
Published: October 2008

Trinidad Exploration Success

The last five years have been exceptional for Amoco Trinidad Exploration. We executed our Strategic Plan and delivered World Class Results as measured in benchmarks of resources found, success rate and cost of finding. Over this period we have discovered in excess of 2.4 BBOE with a success rate of about 70% and a cost of finding less than $0.15/BOE. We were able to achieve this success through a focused strategy that is comprised of elements such as Inspired People, Technology and Portfolio Management. We believe we will continue to succeed in an increasingly challenging and competitive environment by applying our learnings, by incorporating learnings from others and by continuing to embrace change.

Introduction

The first exploration discovery well off the East Coast of Trinidad was drilled by Amoco in 1969 and found over 350 MMBO in what is now Teak Field. This well was the ninth well drilled in the Columbus Basin by Amoco - the previous eight being dry holes. In the next four years, two other large oil fields were discovered, Samaan and Poui fields, as well as, two large gas and condensate fields, Cassia and Immortelle. This initial success was followed by a twenty year period with minimal exploration success, resulting in only a couple of very small discoveries. For example, from 1989 to 1993, Amoco drilled seven exploration wells with only one discovery.

With such dismal exploration results there was a retrenchment in our Trinidad exploration program. Amoco was on the verge of getting out of exploration in Trinidad. However by 1993, opportunities for increased usage of gas by the domestic gas market and in the export of LNG were being developed. In order to understand and capture these gas market opportunities, a gas strategy was developed and a new exploration drilling program was initiated. Although the need for an integrated strategy was critical, there are 2 overriding keys to Amoco's change in exploration success rate:Development and application of new technologies andcreative new ideas and concepts. The results of the development of a gas strategy, application of new technology and new play concepts has resulted in the discovery of over 14 TCF of gas and 300 million barrels of oil and condensate (&gt;2.5 BBOE) from 1994 thru 1998. During this time 21 wells were drilled with 15 being commercial discoveries for over a 70% success rate. These exceptional results over this short time period have caused a dramatic resurgence of interest by the industry in the exploration potential in the Columbus Basin.

Reasons for the Change

The change in the success rate from 14% in the 1989-1993 time period to 71% in the 1994-1998 time period is the result of several inter-related factors. These factors range from the change of strategy to new technology used for prospect development. One overriding factor is the complexity of the geology in the Columbus Basin that makes exploration more difficult, but also creates new exploration opportunities.

Strategy.

The gas strategy developed in 1993 required exploration success for the capture of new domestic and LNG export markets. It was recognized that the most important factor necessary to ensure the success of the strategy was its communication to the entire organization.