April 05, 2020, 11:58:42 PM

Author Topic: If Oil and Natural Gas runs out, does T&T have a Plan B?  (Read 7662 times)

0 Members and 1 Guest are viewing this topic.

Offline Flex

  • Administrator
  • Hero Warrior
  • *****
  • Posts: 16005
  • A Trini 4 Real.
    • View Profile
    • Soca Warriors Online
Re: If Oil and Natural Gas runs out, does T&T have a Plan B?
« Reply #30 on: January 28, 2015, 05:30:22 PM »
Ramnarine tells Energy Conference: Oil under US$50 not sustainable
By Rapheal John-Lall (Guardian).


Energy Minister Kevin Ramnarine says he does not foresee oil prices remaining under US$50 a barrel in the short or medium term because that price is not sustainable and is “below the break-even point for some companies here in T&T.” “It will certainly render the North Sea and US Gulf of Mexico oil production un-economic,” he said in a pre-recorded video message on the second day of the T&T Energy Conference at the Hyatt Regency Hotel, Port-of-Spain.

Ramnarine, who was out of the country along with Prime Minister Kamla Persad-Bissessar attending Monday’s Caribbean Energy Security Summit in Washington DC, said while T&T is not immune from the negative impact of the international oil and gas environment, eventually the local energy sector will rebound.

“We have been here before in the mid to late 1980s, in 1998 and again in 2008/2009. Each time the price of oil has recovered and the industry has survived and moved forward. In fact the service companies that survived the downturn of the 1980’s are today the largest service companies in the country.,” he said. Ramnarine said the Ministry of Energy engaged petroleum consultants Netherland, Sewell and Associates of Dallas to conduct an audit of T&T’s crude oil reserves.

“The results of the crude oil audit as at December 31st 2011 showed proved reserves were 199.5 million barrels of oil, probable reserves 85.5 million barrels of oil and possible reserves 124.8 million barrels. The total crude oil figure of the proved plus the probable plus the possible reserves for crude oil was 409.8 million barrels,” he said.

“The country’s condensate reserves, which are associated with natural gas production, were evaluated in the annual natural gas reserves audits conducted by Ryder Scott Company and at year-ending December 31, 2011, showed proved reserves at 43.5 million barrels of condensate, probable reserves of 24.4 million barrels of condensate and possible reserves of 30.8 million barrels of condensate. The total condensate figure therefore estimated by Ryder Scott Company at 98.7 million barrels of condensate.”

The minister said this showed that the country “has tremendous potential to produce more oil” and on that basis the ministry launched its 2013 onshore bid round. As a result, he said, licences have been signed with Range Resources, Lease Operators Ltd and Primera Oil and Gas out of which there will be 12 land-based exploration wells greatly adding to activity on land in coming years.

Ramnarine said the ministry  is considering two bid rounds in this year for land and nearshore acreage and for deepwater acreage. “We will however gauge the appetite of the companies in this low-price environment before we proceed with more bid rounds,” he said. He said several critical contractual obligations would soon be up for renewal, including the BG/Chevron contract with the NGC which expires in December and bpTT’s contract with the NGC which expires in 2018.

The real measure of a man's character is what he would do if he knew he would never be found out.

Offline Flex

  • Administrator
  • Hero Warrior
  • *****
  • Posts: 16005
  • A Trini 4 Real.
    • View Profile
    • Soca Warriors Online
Re: If Oil and Natural Gas runs out, does T&T have a Plan B?
« Reply #31 on: January 28, 2015, 05:32:21 PM »
Kamla calls for US$1b energy fund.
T&T Guardian Reports.


Prime Minister Kamla Persad-Bissessar yesterday suggested that a US$1 billion Caribbean Energy Thematic Fund be established to deal with regional energy security.

Speaking at the First Caribbean Energy Security Summit in Washington, D.C., said the T&T Government’s is committed to working with the United States and other Caribbean countries to achieve a “cleaner, more sustainable energy future” in the region.

“Energy is at the heart of efforts to build resilience through improved competitiveness and stronger energy security,” she said.

Persad-Bissessar said resilience can be built by transforming the energy matrix in the Caribbean, which requires a three-pronged approach:

• Improving conservation and energy efficiency,

• Maximizing the use of renewable energy sources

• Converting to Liquefied Natural Gas fuelled electricity generation for the base load capacity.

She said the cost of this solution is not supportable for countries with high debt and minimal fiscal space, and it is therefore necessary to engender co-operation for building resilience through energy security.

Persad-Bissessar proposed a methodology to work with the Inter-American Development Bank (IADB), the Caribbean Development Bank (CDB), the World Bank, the IMF and other international donors, friends of the Caribbean and the private sector to provide the method and means of achieving energy security in a manner that is efficient and sustainable.

She said the T&T Government has been working in close collaboration with the IDB over the last 18 months to design a new initiative that is home-grown in the Caribbean.

“After rigorous economic analysis and technical feasibility studies and a thorough assessment of these, we have agreed as a government on the creation of a Caribbean Energy Thematic Fund for Caricom member states,” she said.

Persad-Bissessar proposed working with traditional donors and countries with a strategic interest in the region and the private sector to provide the necessary financial and technical support for transformation of the energy sector, maximizing public private partnerships.

“We must look past short term fluctuations in oil prices to focus on the long term strategic interests of the region,”she said. 

In a joint statement issued at the end of yesterday’s summit, participating countries said their agreed to “comprehensive, planning-based and research-driven approaches to energy transition, including implementation of pilot and demonstration projects, based on successful models so that individual clean energy projects are part of a fully integrated, climate-resilient energy transition plan toward clean sustainable energy for all.”

They also agreed to specific reforms, including adoption of recommendations from the 2013 Caricom Energy Policy afore introduction of new technologies favouring sustainable and clean energy.

In addition, where “technically and commercially feasible” the objective will be lower carbon electricity generation through wind, solar, geothermal power, hydropower, bioenergy, ocean energy, energy recovery from waste, and other clean energies.

The real measure of a man's character is what he would do if he knew he would never be found out.

Offline Flex

  • Administrator
  • Hero Warrior
  • *****
  • Posts: 16005
  • A Trini 4 Real.
    • View Profile
    • Soca Warriors Online
Re: If Oil and Natural Gas runs out, does T&T have a Plan B?
« Reply #32 on: March 01, 2015, 05:56:28 AM »
Audit finds company exposed to criminal probes, litigations, penalties
By Asha Javeed (Express).


Spending Spree

Failure by the corporate com­mu­ni­cations depart­ment of the National Gas Company (NGC)to ade­quate­ly account for how its budget ballooned from $67 million in 2012 to almost $200 million in 2014 has potentially left the management and board “exposed to criminal and integrity probes, litigations, penalties, fines and reputa­tional damage”.

That was the conclusion of an audit conducted into just one depart­­ment of the country’s most profi­table State company in Novem­ber 2014.

In 2013, NGC recorded a profit after tax of $6.5 billion for its finan­cial year.

The company’s internal audit team for this report, which was obtained by the Sunday Express, included internal audit manager Rabin­dranath Lakhan, its head, Financial & Compliance Audit Marina Dukhedin-Lalla, senior auditor Wendy Murray-Thomas and auditor Rebecca Procope.

The corporate communications department (CorpCom) is respon­sible for sponsorships, donations and any community-related activity in which NGC invests.

The audit revealed weak inter­nal controls “resulting in the con­ceal­ment (deliberate or other­wise) of the true extent of the company’s expenditure, obligations and com­mitments”, and there was evi­dence of CorpCom management’s “non-compliance with standard and requisite requirements”.

“No information was provided on the approval for the increase from eight recreational facilities to 23 although budgetary and costs reporting protocols require full disclosure. Such arbitrary and inconsistent management reporting practices distort the outcomes of the company’s analyses of CorpCom’s expenditures; value for money received; and cost behaviours rele­vant to its planning, budgetary, forecasting activities. Such practices are also indicators of fraud and/or gross negligence,” the audit noted.

Among NGC’s communications expenses were:

1. In 2012, the budget for Econo­mic & Communities was $21.7 million. The budget increased by 114 per cent to $83.6 million in 2014.

2. Donations moved from $2.3 million in 2012 to $9.13 million in 2014, an overall increase of 515 per cent.

3. In 2012 and 2013, the company spent no money on reputation and branding. But by 2014, $20.4 million was spent under the category Repu­tation and Branding.

4. In 2012, NGC spent $8.4 million in advertisements. By 2014, there was an 80 per cent increase to $20 million.

5. The NGC went from spending $2.4 million in a category External Communication-Gas Facts to $4.5 million in 2014.

6. In 2012 and 2013, there was no category of spending for Corporate Social Responsibility. In 2014, $9.5 million was spent.

7. In 2012 and 2013, there was no category of spending for Environ­mental & Greening. In 2014, $3.2 million was spent.

“The audit team reviewed similar expenditures from 2012 to 2014”, and it “showed that costs of these projects have escalated by 50-114 per cent,” the report stated.

“Manager CorpCom (Charmaine Mohammed), in response to audit queries, stated that the increases were due to inflation. However, statistical data provided on the Central Bank of Trinidad and Tobago’s website relating to inflation showed an average rate of seven per cent under review. Additionally, some in­creases were made when other bu­siness activi­ties within NGC were required to reduce budgets and actual expen­di­ture in 2013, that is, by memo dated January 11, 2013, staff train­ing and conferences, seminars and workshops reduce by 30 per cent and 25 per cent respectively,” it noted.

“CorpCom’s management has not provided any evidence to substantiate the reasonableness of the costs of community-related projects, monies expended on said projects, nor any evidence that value for money was received,” it noted.

Audit Conclusions

“Audit has concluded that CorpCom’s management of risk may be incomplete (based on lack of detailed information provided to Audit on risk management activities) and may expose the organisation to risks such as corrupt procurement practices, invalid transactions, poor quality works, lack of transparency, false advertisements and disclosures, potential conflict of interests which can result in a breach of public trust,” the audit said.

“CorpCom’s lack of records to support its risk management of community-related projects that are impacted by the Environmental Management Agency (EMA) and the Occupational Safety and Health (OSH) Act, can be viewed as breaches of the legislations, especially as NGC’s published Free­dom of Information Act (FOIA) statement indicates that the com­pany maintains these records.”

It added: “If the underlying records to support this declaration are proven to be non-existent then the declaration will be assessed as a false declaration which can result in charges of criminal negligence against management and directors,” the audit warned.

“There is also evidence and/or red flags or materialising risks within CorpCom’s procurement and contracting activities for community related costs. CorpCom’s approved budget 2014 included a list of ten recreational facilities under its Corporate Social Responsibility programme. On review of 2014 June, CorpCom’s Management report showed that works were committed for fifteen (15) and another eight (8.) are under consideration for 2014. Assurance cannot be provided that CorpCom’s activities are compliant or that they create value for monies expended,” the audit said.

The audit also noted that insufficient infor­mation was provi­ded by CorpCom to ensure compliance with legal and regula­tory require­ments as well as NGC’s procurement rules.

“Hence, assurance cannot be provided that the sums allocated within CorpCom’s budget for community-related pro­jects, donations, spon­sorships and adver­tise­ments were utilised in a manner that resulted in the company receiving value for money (best combination of price and quality, and acceptable time frame),” it said.

“The lack of reliable records and major varia­tions observed between Legal Services and CorpCom’s informa­tion on MOUs, contracts and valuations for com­munity projects, are clear indicators that neither the company nor CorpCom’s man­age­ment has established a formalised process for the execu­tion, assign­ment of respon­sibility, moni­toring, performance evaluation and reporting of all agreements/MOUs and contracts exe­cu­ted, most of which are valued (more than) TT$2 million. Hence at no time is the com­pany aware of or able to assess the entire popu­la­tion of MOUs and other agreements, their related commitments and obligations (financial and legal/regulatory), be it by a deliberate lack of transparency and dis­clo­sure or by manage­ment’s negli­gence,” it said.

Following the submis­sion of the audit for sign-off, the Sunday Express understands that one auditor has since been reassigned to another NGC subsidiary.

Last week, the NGC advertised for two audi­tors.

All-Inclusive Fetes

Last week, the Sun­day Express reported that over $1 million was spent on tickets to all-inclusive fetes by the NGC for Carnival 2015.

The NGC bought 1069 tickets at a cost of $1,073,497.80.

The company spent $352,000 on 220 $1,600 tickets for the South Cancer Support Group, which took place on January 31.

But while 130 tick­ets were assigned to the Corporate Commu­nications staff, 245 were assigned to the man­ager of corporate com-munications. (See table above).

The Sunday Express was unable to get a response from Moham­med on why she was assigned that quantum of tickets and who were the recipients of those tickets.

No response from NGC

On February 20, the Sunday Express sent a list of questions to NGC’s vice-president of human and corporate relations, Cassandra Patrovani-Sylvester with regard to the audit.

At that time, Patro­vani-Sylvester replied and copied the e-mail to NGC’s president, Indar Maharaj, and committed to providing a response on February 23 because Maharaj was due to travel.

The e-mail said: “I confirm receipt of your email and the questions contained within which have been referred to the president, NGC.

A response will be forthcoming no later than Monday, February 23, 2014, as the presi­dent is due to travel.”

However, the Sunday Express did not receive any response to the questions it submitted on the date.

Last Friday, the Sun­day Express sent another e-mail and copied man­ager of corporate commu­nica­tions Char­maine Mohammed, seeking answers to the questions, which were overdue by a week.

Patrovani-Sylvester responded by sending the e-mail again to Mo­ham­med, with the note:

“Charmaine, good morning.

Ms Javeed’s e-mail is self-explanatory.

I gave a commitment following conversation with the president for a response by Monday, 23 February, 2015.

Your attention to this matter would be appreciated.”

However, the Sunday Express received up to yesterday.

Telephone calls and text messages were also sent to Mohammed seeking a response.


The real measure of a man's character is what he would do if he knew he would never be found out.

Offline Sando prince

  • Hero Warrior
  • *****
  • Posts: 8902
    • View Profile
Re: If Oil and Natural Gas runs out, does T&T have a Plan B?
« Reply #33 on: April 16, 2015, 12:45:59 PM »
Rowley outlines plans for T&T to energy execs

http://www.guardian.co.tt/news/2015-04-16/rowley-outlines-plans-tt-energy-execs
 
In outlining his plans should he become the next Prime Minister of T&T, Opposition Leader Dr Keith Rowley says he will strengthen diplomatic relations with Caricom and the international community so as to expand T&T's energy industry. Speaking on his intentions for the challenged energy sector at the Energy Chamber’s conference at Cara Suites Hotel and Conference Centre yesterday, Rowley promised to open new doors for both state and private sector companies with the signing of several Memorandums of Understanding (MOU).

Special focus will be placed on the United States, United Kingdom, Venezuela, Ghana, Germany, China, Saudi Arabia, India and Caricom members. He hinted at seeking a possible MOU with the Barbados government for offshore hydrocarbon exploration with T&T being a processing market. “We expect from a PNM standpoint to be the next government of Trinidad and Tobago and I commit very early to lead the requisite delegations to Ghana, in particular, where we lost some significant opportunities; Suriname, Guyana and Barbados to ensure we get those opportunities.

Especially in Suriname, Guyana and Barbados, I am going to make sure that we offer them a platform where we can work together so when they do put out the energy that we have now, Trinidad and Tobago can play a significant role in it, from use of our technical expertise,” Rowley said.

He added, “With the advent of shale gas and the impact it will have on the global energy sector, the discovery of substantial natural gas reserves in Africa—Tanzania, over 60 tcf, Mozambique over 150 tcf—the development of new technologies that will allow natural gas to become the feedstock for products traditionally associated with oil such as transportation fuels, including diesel and gasoline [and] the plastic industry, Trinidad and Tobago may be presented an opportunity to increase its role in the global energy industry.

One of his challenges will be the remodelling of major state companies such as the National Gas Company and Petrotrin, which he said had spent substantial funds outside their core business that should have been used on investment programmes. He said key roles would be assigned to those companies in expanding the sector.

He also hinted at a human resource shake-up, saying that his government would put the best people to head state companies, while the Ministry of Energy and Energy Affairs would be staffed with experienced and qualified professionals.


Offline Flex

  • Administrator
  • Hero Warrior
  • *****
  • Posts: 16005
  • A Trini 4 Real.
    • View Profile
    • Soca Warriors Online
Re: If Oil and Natural Gas runs out, does T&T have a Plan B?
« Reply #34 on: January 14, 2016, 05:09:54 PM »
Trinidad faces downturn as energy prices collapse.
By DAVID McFADDEN
The Associated Press


PORT-OF-SPAIN, Trinidad (AP) — During the good times, earnings from natural gas and oil exports made the tiny Caribbean nation of Trinidad and Tobago one of the richest countries in the Western Hemisphere. The collapse in world oil prices now has it facing the threat of a punishing and prolonged downturn.

After two decades of nearly uninterrupted prosperity, the government is being forced to scale back spending by 7 percent, siphon some $1.5 billion from a stabilization fund over the next couple of years and warn its 1.3 million people that they will have to make do with less.

“We must all appreciate that the circumstances we now face as a nation require sacrifice and managed adjustment in our living standards,” Prime Minister Keith Rowley warned in a recent speech.

Those standards include American-style shopping malls, cheap electricity, subsidized gasoline and so many families with multiple cars that highways weaving past abandoned cane fields are often clogged with traffic jams in both directions.

Things have been going so well for so many years that locals repeat the mantra “God is a Trini,” meaning the twin-island republic, known for high spirits and rollicking Carnival celebrations, is so blessed that things will always turn out well. But the specter of tough economic times is starting to prompt a glum self-examination.

“You can see it coming: Times will be getting hard. Previous governments have spent too lavishly and now it’s time we have to pay the piper,” said Adrian Lashley, a father of five who runs a small clothing shop in downtown Port-of-Spain, the capital.

Trinidad gets roughly 45 percent of its gross domestic product and 80 percent of export revenue from the energy industry. In June 2014, the price of Trinidad’s benchmark crude was $106 per barrel and the government had drawn its 2015 budget anticipating $80 a barrel, but the price has plummeted to near $30. Prices for liquid natural gas, Trinidad’s main export, have declined by some 45 percent.

The global price collapse has already inflicted serious economic damage in oil-producing nations such as Venezuela and Nigeria. With forecasts suggesting that world prices won’t recover anytime soon, economists say this downturn will have a serious bite here. Last month, the Central Bank of Trinidad and Tobago announced the country was officially in recession, with no economic growth in 2015.

“The situation is very, very dire because of the extent to which we depend on the oil and gas sector. The government’s no longer going to have access to the kind of resources it’s been used to in order to maintain the country,” said economist Indera Sagewan-Alli, executive director of the University of the West Indies’ Caribbean Center for Competiveness.

Trinidad and Tobago, just 7 miles (11 kilometers) off the coast of oil giant Venezuela, became a significant global energy player about 25 years ago when it tapped big reserves of natural gas. That helped rescue the country following an oil bust in the 1980s that touched off labor unrest, contracted the economy by 35 percent, and forced the government to seek help from the International Monetary Fund.

Rowley, who took office in September, has warned that the country will have to go to the IMF again if it doesn’t make the right adjustments now. Trinidad and Tobago has few local industries so the economy is almost entirely dependent on foreign exchange.

“We need it for food, medicines, clothing, books and education, cars, trucks and tractors, and computers. We are very dependent on foreign exchange to sustain our economy and our standard of living,” Rowley said.

The government is calling on businesses to find cheaper sources of imports and for consumers to buy whatever locally produced goods they can find. Rowley said government spending must be slashed as its expenditures are roughly 35 percent of gross domestic product.

For many years, officials have repeatedly said that Trinidad’s economic base had to be broadened to provide protection from global energy downturns. Yet, little has been achieved.

Terrence Farrell, a former Central Bank deputy governor, told The Associated Press that Trinidad and Tobago is in a stronger position now than during the oil bust of the early 1980s. It’s built up roughly $10 billion in official reserves and $5.6 billion in a “heritage and stabilization fund” created in 2007 can help cushion swings in energy prices.

Still, he said mismanagement and corruption over the decades has meant far too much money vanished or was frittered away.

“There’s no question we ought to be in a better position than we are right now,” Farrell said. “We clearly could have done a lot more with our oil and gas resources.”

The real measure of a man's character is what he would do if he knew he would never be found out.

Offline Flex

  • Administrator
  • Hero Warrior
  • *****
  • Posts: 16005
  • A Trini 4 Real.
    • View Profile
    • Soca Warriors Online
Only one gas station of 138 in T&T has licence.
« Reply #35 on: February 22, 2016, 02:42:07 AM »
Of a total of 138 gas stations operating, only one has a retail licence.
By VERNE BURNETT (NEWSDAY).


Minister of Energy and Energy Affairs, Nicole Olivierre has said that the ministry will not approve the operation of any new service station in the country without that station having a retail marketing licence. She made the comment in interviews following the official opening of the St. Christopher Service Station on Wrightson Road, Port of Spain on Thursday evening.

During her address she mentioned that the new service station was the only one of the 137 gas stations in the country which had a valid retail marketing licence.

She said all the others are operating without such licences, and gave them a six month deadline to meet the requirements to get the licences.

She said the existing situation is untenable and urged the gas station dealers to work more quickly to meet the requirements for the issuance of the licences.

She said the last retail marketing licences were issued back in 2010.

In an address at the function, NP Chairman Sahid Hosein said that in light of the Prime Minister’s call for all State enterprises to reduce expenditure where possible, NP had already taken austere measures to reduce operating expenses, and had cut total operating expenditure by five percent year on year , and achieved a 27 percent reduction in overtime- related spending through improvements in work scheduling, and operational efficiencies.

He added that “these are not ordinary times and threfore greater emphasis will be placed on our network rationalisation plan to ensure that our limited resources are being best utilised in a way that works for the benefit of the majority of people.”

He added, “Where we choose to operate service stations has to make sense, especially for the service station dealers who are challenged by fixed margins in the face of the Green Fund and Business Levy tax standing as it does at 7 percent. It also has to make good business sense in terms of operating expenditure for NP.” Asked in an interview afterward if this meant NP would have to close and relocate some stations, Hosein responded, “NP is going to do a rationalisation.

There might be some areas where its no longer economic to operate a service station, and with the developments in the country there are areas that might not have a station that we will want to put in a station. Unfortunately we are not as fleet as we would want to be, having made a decision that we want to open somewhere we have to go through all the bureaucracy.” He said he intended to work with the ministry and those people who want to put up service stations to see how the bureaucracy could be cut.

The real measure of a man's character is what he would do if he knew he would never be found out.

Offline Sando prince

  • Hero Warrior
  • *****
  • Posts: 8902
    • View Profile
Re: Only one gas station of 138 in T&T has licence.
« Reply #36 on: February 22, 2016, 03:39:51 AM »


She said all the others are operating without such licences, and gave them a six month deadline to meet the requirements to get the licences.

She said the existing situation is untenable and urged the gas station dealers to work more quickly to meet the requirements for the issuance of the licences.


Enough time for them to get the required licenses. No excuses when time come and you do not have now

Offline Flex

  • Administrator
  • Hero Warrior
  • *****
  • Posts: 16005
  • A Trini 4 Real.
    • View Profile
    • Soca Warriors Online
Re: If Oil and Natural Gas runs out, does T&T have a Plan B?
« Reply #37 on: March 18, 2020, 05:40:30 AM »
Shell gets approval for Colibri gas development, first gas expected 2022
CARLA BRIDGLAL (NEWSDAY).


Shell TT has made a final investment decision approving its Colibri project off the northeast coast of Trinidad, including the development of Block 22 and NCMA-4 (north coast marine area).

The two blocks are held in partnership with the Heritage Petroleum Co Ltd.

In a release, the energy giant said Colibri is expected to add a total of 43,100 barrels of oil equivalent per day or 250 million standard cubic feet of gas production per day, through a series of four subsea natural gas wells. Colibri will also include the installation of flowlines from the wells to the existing Poinsettia Platform located in the NCMA acreage. Drilling is expected to commence in the second half of 2020, with first gas anticipated in 2022.

In the statement, Shell TT's vice president and country chair Eugene Okpere said the development, along with Barracuda which was commissioned in 2019, were critical to the company's near to medium growth strategy in TT and part of its commitment to secure the country's energy future.

“We’re really excited to have achieved this milestone coming on the heels of the approval of the Barracuda project in November 2019.”

In November 2016, Shell TT purchased 100 per cent of Centrica’s gas interests off the north coast, including NCMA 1, NCMA-4 and Block 22.

The Shell-operated Colibri development is co-owned with Heritage, which has a working interest of 10 per cent and 20 per cent respectively in Block 22 and NCMA-4. Colibri, when combined with Barracuda and existing developments, will deliver more gas to the T&T domestic market and the LNG export markets.

The real measure of a man's character is what he would do if he knew he would never be found out.