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Offline Flex

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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.

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Offline Flex

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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.

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Offline Flex

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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.


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Offline Sando prince

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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.


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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.”

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Offline Flex

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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

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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

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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.

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Re: If Oil and Natural Gas runs out, does T&T have a Plan B?
« Reply #38 on: April 28, 2020, 06:42:24 PM »
Imbert now forecasts $15B budget deficit.
By Gail Alexander (Guardian).


COVID-19 plus crashing oil prices have caused the 2020 Budget deficit to balloon from $5.3 billion to $15.5 billion - and the 2020 Budget is now being recalibrated.

And while Government’s been successful in slowing COVID spread, Finance Minister Colm Imbert says there’s no question that fiscal 2020 will be exceptionally difficult even if the pandemic fades in the second half of the year.

Imbert spoke about the situation in a statement to Parliament yesterday on the economic effect and Government’s financial response to the COVID-19 crisis.

He shared principal elements in Government’s package of policies to address public health and economic challenges posed by the pandemic. Imbert said a targeted financial support programme for an initial three months, costing approximately $4.5 billion, is providing a safety net for the most vulnerable households and businesses. (See page 15)

He said while the breadth, depth and duration of the effects of the virus are still uncertain, “our strategic initiatives have been swift as we seek to slow spread of the disease and minimise its economic consequences. We have been successful. We acted decisively, even before the World Health Organisation declared the virus a pandemic on March 11.”

As a result, he said the number of known/confirmed T&T cases as of yesterday was limited at 116 with eight deaths, plus 59 people have been discharged

“We recognised very early the characteristics of this crisis. It was fast moving and required quick, effective action which we initiated almost immediately. Our proactive approach saved us much of the pain and distress that other countries now face.”

But he said the comprehensive social, financial and economic support package of measures required to be taken has expanded Government’s expenditure “in the context of a serious erosion of our tax base caused by the oil prices’ collapse.”

Imbert added, “Accordingly, our fiscal deficit for fiscal 2020, which was originally estimated at $5.3 billion, is now expected to expand to $15.5 billion - $10.2 billion higher than was envisaged in our 2020 Budget.”

In calculating the revised deficit, he said Government noted that the collapse of the recent price of WTI oil to 1 US cent per barrel is having an adverse effect on other oil prices. He said Brent oil has dropped to $20.

“Such low prices were previously undreamt of,” he said.

“Notwithstanding the forecasts of the US Energy Information Administration and WEO of oil in the $30 range and gas in the $2.10 range for the rest of 2020, therefore, our latest revenue projections are based on conservative prices of $25 per barrel for oil for the rest of the year and $1.80 per MMBTU for natural gas.

“This results in a projected loss of revenue in fiscal 2020 of $9.2 billion, to which must be added another net $1 billion in extraordinary expenditure.”

Imbert added, “Within that $9.2 billion revenue loss, we estimate a loss of $3.8 billion in taxes on incomes and profits, and losses of $750 million in Business Levy and Green Fund Levy, $600 million in taxes on goods and services and international trade, $2.5 billion in royalties and production sharing and $1.2 billion in profits from state enterprises, among other areas.”

“There’s no question that fiscal 2020 will be exceptionally difficult even if the pandemic fades in the second half of the year, allowing for a gradual lifting of containment measures and a re-opening of the economy.”

He said the April 2020 World Economic Outlook envisages a partial recovery in 2021 but “there’s tremendous uncertainty around the outlook, given that it can get worse”.

Therefore, he said Government’s objective is to keep the economy moving, stimulate economic activity, provide financial assistance to individuals and businesses and keep as many people employed as is possible, including all workers in the public sector.

“We cannot allow this pandemic to destroy our economy and, therefore, while a reallocation of priority areas for spending is inevitable, it’s our intention to maintain our original expenditure target of $53 billion for fiscal 2020,” Imbert said.

For that reason, he said Government’s been in discussions with certain multilateral institutions and development banks to ensure that in addition to domestic financial resources, appropriate external financing is available to meet the requirements of the expanded fiscal deficit in 2020 and 2021.

Steps were also taken to allow for emergency drawdowns from the Heritage and Stabilisation Fund (HSF) not exceeding US$1.5 billion.

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Re: If Oil and Natural Gas runs out, does T&T have a Plan B?
« Reply #39 on: May 01, 2020, 08:27:02 AM »
US probes T&T fuel shipment linked to Venezuela
by Renuka Singh (Guardian).


Any nation that assists Venezuela in avoiding embargoes will face sweeping sanctions imposed by the United States.

The warning comes from the US government after it became aware of reports that a shipment of Paria Fuel Trading Company fuel that left Trinidad and Tobago’s shores for Aruba may have eventually been sent to Venezuela in defiance of US sanctions against that country.

The Aruban refinery is linked to Citgo, a subsidiary of the Venezuelan state-owned oil company PDVSA and reports surfaced last week that the fuel cargo was shipped to Venezuala after it arrived in Aruba.

As these reports continue to swirl, a US State Department representative has told Guardian Media that the United States has warned other nations against assisting embattled Venezuela President Nicolas Maduro and his regime.

“The United States has put foreign institutions on notice that they will face sanctions for being involved in facilitating illegitimate transactions that benefit Nicolas Maduro and his corrupt network,” the representative said.

“The United States condemns all attempts by Maduro and his supporters to steal resources from the Venezuelan people.”

The local arm of the US Embassy’s Public Affairs Section was much more vocal about the possible transfer of fuel from T&T to Venezuela.

In response to questions on Wednesday, the US Embassy said that the “US government was aware of reports indicating that a shipment of gasoline from Trinidad and Tobago may have gone to Venezuela”.

It noted that if T&T is found to have assisted Venezuela in getting fuel, it could open the country up to US sanctions.

“In general, entities and individuals risk exposure to US sanctions by operating in the Venezuelan oil sector,” the US Embassy’s Public Affairs Section said.

“This remains true regardless of how the transactions with Venezuela are conducted, whether using currency or in-kind exchanges and without respect to whether such conduct is otherwise legal under another country’s laws.”

The US had imposed sanctions on the Russian owned Rosneft Trading S.A and its subsidiary, the Swiss-based TNK Trading International, back in March for supporting Maduro. The US has also imposed sanctions on Cuban company Cubametales and its parent company Corporacion Panamericana and the Italian-owned PB Tankers for operating in the Venezuelan energy sector.

On April 21, a shipment of excess fuel left Pointe-a Pierre and was sold and shipped to Aruba.

The Aruban refinery has been mothballed since 2012 and was only recently transferred from PDVSA to the Aruban government after US sanctions dried up credit lines for the Venezuelan company. There have been unsubstantiated reports coming out of Venezuelan media that the fuel was bound for Venezuela.

Addressing this, the US Embassy said, “Some of the companies engaged in the Venezuelan oil trade business attempt to disguise the true nature of their business. These activities help them evade US and other countries’ efforts to prevent corrupt activities and to preserve assets for the benefit of the Venezuelan people.”

The Embassy confirmed that it will “actively investigate all efforts by (Venezuelan President Nicolas) Maduro and his supporters to circumvent US sanctions.

The Embassy added that the US government will also take “appropriate action” against those determined to be engaged in sanctionable activity as well as those found violating US sanctions.

Guardian Media reached out to US representatives after Paria Fuel Trading Company chairman Newman George confirmed a shipment of excess fuel left Trinidad on April 21 and was shipped to Aruba.

George confirmed a Swiss-based company, ES Euro Shipping S.A, contacted the Paria executive on March 28 to negotiate for the sale of the fuel.

The principal of ES Euro Shipping S.A is Wilmer Ruperti, a Venezuelan shipping tycoon who is also linked to Maroil Trading. Maroil Trading had close ties with former Venezuelan president Hugo Chavez and even reportedly ensured the country received fuel supplies in 2002.

Ruperti, according to George, was only able to get 150,000 barrels of fuel on April 21.

“We did our due diligence. Everything was above board,” George said in a telephone interview last Thursday.

“You have to understand that we buy in January for February and we buy in February for March. When the restrictions were imposed, it meant we had excess fuel because less people were travelling.”

There has also been speculation that Ruperti bought fuel from the US, stored it in tanks near the defunct Petrotrin and then transferred it to his vessel. But George said that was not true.

“We just don’t have the space to store fuel for anyone. We need all the storage space we have,” he said.

Since it began pursuing the story, Guardian Media has tried several times to contact several Government officials for comment on the matter, including Prime Minister Dr Keith Rowley, Energy Minister Franklin Khan and National Security Minister Stuart Young. However, there has been no response forthcoming from either of them.

Guardian Media sent the following questions to Minister Young:

1. Has T&T facilitated a shipment of fuel to Aruba?

2. Was this discussed during the visit with Venezuelan VP Delcy Rodriguez last month?

3. Was the head of PDVSA Juan Santana also at this meeting? Is this country facilitating fuel shipments to Venezuela?

Young read the messages but did not respond. He also declined calls to his mobile phone.

Guardian Media sent the same questions to Communication Minister Donna Cox and there was no response.

Guardian Media also sent these questions to Prime Minister Rowley:

1. Is this something that was arranged during the Delcy Rodrigues visit with you last month?

2. Was PDVSA president Juan Santana also at that meeting?

3. Is T&T facilitating shipments to Venezuela?

He also did not respond to those questions and calls to his mobile went unanswered.

Oilfields Workers’ Trade Union (OWTU) president general Ancel Roget read messages sent to him on the same issue but did not respond either.

In January 2019, United States Ambassador to T&T Joseph Modello said Rowley’s continued recognition of Maduro’s regime was “deeply concerning”. The US recognises opposition leader Juan Guaido.

Rowley responded to Modello then, saying that he took “umbrage” to Modello’s statements. He even criticised United National Congress (UNC) leader Kamla Persad-Bissessar for also publicly supporting Guaido over Maduro. He said then that if the Opposition believed it had to take instructions from the US Embassy, they should all leave the People’s National Movement out of that.

The Rowley administration has walked a fine line of neutrality since the massive socio-political collapse in Venezuela.

Who is Wilmer Ruperti?

2002

Wilmer Ruperti allegedly played a pivotal role in the Venezuelan energy industry breakdown in 2002/2003. According to reports at that time, he made oil tankers available to the Government. The provision made it possible for then-president Hugh Chavez to survive the then opposition’s attempt to cut off Chavez revenue source.

2016

The shipping tycoon confirmed that he paid the legal fees for two of Venezuela President Nicolas Maduro’s nephews, who were charged in a Manhattan court for conspiring to import 800 kgs of cocaine into the US.

2019

Ruperti in court over a sex-tape row after he sued a debt collector for allegedly swapping confidential documents for a sex tape related to another billionaire.

According to international reports, Ruperti’s company hired the debt collector and gave him access to internal documents. Ruperti then accused the debt collector of trading sensitive files.

2020

Ruperti’s company Maroil Trading billed PDVSA for the provision of 250,000 barrels of gasoline.

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Re: If Oil and Natural Gas runs out, does T&T have a Plan B?
« Reply #40 on: August 10, 2020, 12:06:37 PM »
‘More oil to come’
T&T Guardian Reports.


Energy expert Dr Krishna Persad says while the recent audit of this country’s oil reserves has estimated that our unrisked prospective resources is three billion barrels, he is a bit more optimistic. He has predicted five billion barrels.

“They said 3.2 billion barrels of oil and my figure is perhaps about five billion in terms of oil. I am not far off but I’m just a little bit more optimistic than them,” Persad said.

On Wednesday Energy Minister Franklin Khan revealed that an audit of T&T’s crude oil reserves and resources for the year ended 2018 prepared by Netherland, Sewell and Associates Incorporated (NSAI) revealed significant increases in this country’s oil prospects.

“Proven Reserves jumped by 10.3 per cent from 199.5 million barrels to 220.1 million barrels. Probable Reserves rose by 16.6 per cent from 85.5 million barrels to 99.7 million barrels and Possible Reserves climbed by 8.5 per cent from 124.8 million barrels to 135.5 million barrels,” according to the audit Khan said.

“The NSAI’s best estimate of our Unrisked Prospective Resources is now a mammoth 3.2 billion barrels. This is an increase of 773.4 per cent over the Unrisked Prospective Resources at January 1, 2012 of only 368.2 million barrels,” he said.

Persad said new discoveries are extremely good.

“There is more gas and oil to be found and I can say that with a great deal of certainty of the probability of this being true because we have seen that the source rock is present, that the discoveries are being made, and that the discoveries include gas. In the east coast there is indications of liquid hydrocarbon down below,” Persad said.

Persad gave a breakdown of the prospectives around the country.

“I have always considered Herrera’s onshore in the Southern Basin to be highly prospective for oil. Touchstone is proving us all wrong because they thought they were going to get oil too. They made two substantial discoveries recently of gas and gas condensate,” Persad said.

“In my opinion the prospects onshore in that area and the southwestern peninsula are substantial for both oil and gas. The prospect for oil and more gas in the deep waters offshore the east coast are even more substantial,” he said.

“In terms of onshore I am thinking we are looking at maybe two tcf (trillion cubic feet) and maybe 500 million barrels of oil,” Persad said.

“I have said publicly that we are looking at probably another 50 tcf of gas to be discovered in the east coast. I also believe that there is at least another three to four billion barrels of oil to be discovered in that east coast province area and in addition to that in the Gulf of Paria probably another 500 million to be discovered,” he said.

Former energy minister Kevin Ramnarine said the audit findings are very exciting but more needs to be done.

“What that 3.2 billion number is saying is that it has identified the significant potential in the deepwater and again all that would not be possible if the ministry of energy did not have three deepwater bid rounds between 2010 and 2014,” Ramnarine said.

“So, as far as the deepwater goes, there is very exciting stuff. The challenge for deepwater is the cost of development because of the depth of water and the distance from shore it becomes very expensive to develop those natural gas fields and to develop any oil which is found.

“The challenge for T&T’s government going forward is to work with BHP to make sure they are able to successfully commercialise all this natural gas that they have been finding. If they do find oil in deepwater which I expect then that just helps and enhances the economics of the entire development.

“But the deepwater is the future of the hydrocarbon industry in Trinidad and, so far, the news has been very good so I am very optimistic.

“I have always been very optimistic about our deepwater and I think that Broad Side is going to be a well which we will all have to be closely monitoring because the outcome there could change a lot for T&T,” he said.

Ramnarine said T&T is doing itself more harm than good by not having more deepwater bid rounds.

“T&T is shooting itself in the foot by not putting out more deepwater acreage in a bid round. Our deepwater acreage has therefore become very attractive because BHP has been successful so if we put out the unlicensed deepwater acreage we will obviously attract a lot of attention from major international players and what we want is as much interest and activity in our deepwater,” he said.

“I would say that we would need to have a new deepwater bid round as soon as possible and the reason for that is that since the year 2014 BHP has been working on developing the deepwater. They have done the largest 3D seismic survey ever in this country’s history in deepwater and they have drilled ten exploration wells in the last four years,” Ramnarine said.

“Seven of those exploration wells have encountered hydrocarbon so my point is this BHP has clearly derisked the deepwater. By derisking the deepwater what they have done is they have made the existing unlicensed deepwater acreage more valuable,” he said.

Last month when announcing the possibility of a new deep water bid round early next year Khan explained why one was not done during his five-year tenure.

“And seeing that this is the season I just want to say something that has been in the press for some time with regards by a former energy minister that this administration has not proposed any bid round over its five-year period,” Khan said.

“I would like the gentleman to know and the country to know you don’t just ups and have a bid round,” he said.

Khan said there are two criteria for a bid round.

“One, it must be licensed acreage so as minister of energy I cannot have a bid round onshore in the southern basin because all the acreage, by and large, is under license,” he said.

“Nor can I have a bid round in the Gulf of Paria because the Gulf of Paria, by and large, in the prospective acreage is under licence,” Khan said.

“It is very difficult to have a shallow water bid round because most of the acreage is under licence and would have made absolutely no sense to come out with a parallel deep water bid round while BHP was involved in some serious exploration,” Khan said.

Ramnarine said Khan was being contradictory since the energy ministry advertised back in 2016 a number of onshore blocks for which they invited nominations.

“And then strangely that onshore bid round we just never heard anything about it again,’ he said.

“What I want to say to Minister Khan is that it is not correct to say there is no unlicensed acreage left onshore. There is unlicensed acreage left onshore and I am also told that some of the acreage which is currently with Heritage. Heritage does not have the deeper rights that is the right to drill into the basement or deeper,” Ramnarine said.

“Mr Khan will be remembered by history as the only minister of energy to have never signed a production sharing contract. I think I signed 17 production sharing contracts in my time and ministers before me all signed production sharing contracts,” Ramnarine said.

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Re: If Oil and Natural Gas runs out, does T&T have a Plan B?
« Reply #41 on: August 17, 2020, 08:51:17 AM »
Another huge slide in TTNGL’s quarterly profits.
By Kyron Regis (Guardian).


After being hit with an 85 per cent slide in profit for the first quarter (Q1) of 2020, Trinidad and Tobago NGL Ltd (TTNGL) has revealed a profit for the second quarter ended June 30th 2020 (Q2) of $7.6 million. This successive quarterly reduction in profits amounted to $20 million or 72.5 per cent.

Moreover, TTNGL’s profit of $14.5 million for its half-year ended June 30th 2020 also represented a large decline of 80.2 per cent or $58.9 million.

In TTNGL’s unaudited financial statements, the Chairman Conrad Enill said: “The 2019 novel coronavirus disease (COVID-19) pandemic has ravaged the worldwide economy and the reduced economic activity has resulted in changes in the energy supply and demand patterns in 2020.”

Enill acknowledged that economies across the world have suffered declines in gross domestic product (GDP) during the first half of 2020, as compared to the previous corresponding period last year.

He continued to note that uncertainties persist across all energy markets, including liquid fuels, natural gas, electricity, coal, and renewables.

Enill added that crude oil prices averaged 35 per cent lower than in 2019 and Natural Gas Liquids (NGL) prices, which correlate strongly with crude and refined product prices, were also materially lower during the first half of the year.

For the six months to 30 June 2020, Enill said the volatility in the energy commodity markets driven by the impact of COVID-19 resulted in the precipitous decline of Mont Belvieu (MB) product prices, and significantly impacted the performance of the Company’s underlying asset, Phoenix Park Gas Processors Ltd (PPGPL).

The NGL Chairman indicated that recorded MB product prices were 44 per cent lower than the corresponding period in 2019.

He asserted that the impact of the lower prices was mitigated by higher price differentials recognized during the year, noting “differentials were 34 per cent than in 2019 and reflected PPGPL’s strong competitive position in the markets it serves, despite the impact of COVID-19.”

Enill said that PPGPL’s strong position is further strengthened by the continued strong demand for its products, which have remained relatively steady since the onset of the pandemic.

Additionally Enill noted “the company has benefited from a slight recovery in product prices, which has positively impacted its profitability in Q2 2020.”

The TTNGL Chairman also remarked that the effects of COVID-19 also disrupted the planned performance and markets of the petrochemical producers at Point Lisas, which translated into lower natural gas demand and lower gas volumes through the PPGPL facility for processing.

However, Enill added: “Positively, NGL content in the gas stream was 6 per cent higher than in 2019, and was a result of continued efforts by NGC to deliver higher NGL content gas streams to Point Lisas Industrial Estate.”

According to Enill, NGL production to June 2020 was 10 per cent lower than in 2019 and PPGPL continued to maintain high operating availability (over 99 per cent), and has sustained its focus on prudent cost and cash management.

Following the acquisition of the NGL liquids marketing assets of Twin Eagle Liquids Marketing LLC in February 2020, PPGPL created a subsidiary—Phoenix Park Energy Holdings (PPEH) to own and operate the assets acquired from Twin Eagle.

Enill expressed: “Since start-up, the performance of PPEH has been positive, and earnings from this acquisition are expected to impact PPGPL results positively in the short term.”

Notwithstanding a challenging market and operating environment, Enill posited that the TTNGL Board of Directors remains cautiously optimistic about the future and its investment in PPGPL.

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Re: If Oil and Natural Gas runs out, does T&T have a Plan B?
« Reply #42 on: September 02, 2020, 03:32:54 PM »
Significant fall in natural gas production
By Curtis Williams (Guardian).


T&T’s natural gas production plummeted in June to its lowest level since 2016 averaging a mere 3.110 billion standard cubic feet per day (Bscf/D).

The information is contained in the latest report on the energy sector which was released by the Ministry of Energy and Energy Industries on August 11th, one day after the general elections.

According to the figures from the Ministry, natural gas production declined from 3.5 Bscf/D to 3.1 Bscf/D or a fall of 400 million standard cubic feet per day (mmscf/d).

To put it into perspective the 400 mmscf/d is equivalent to all the gas used to power the entire country. It is enough gas to power Atlantic LNG’s Train 1 prior to its debottlenecking. It is also enough gas to run four methanol plants and an ammonia plant.

This represents a significant fall from production in 2018 which averaged in June 2018 3.81 Bscf/D and a year ago which was 3.45 Bscf/D.

Recently the Business Guardian reported that the upstream companies (BPTT,Shell,EOG, BHP) had been asked by the National Gas Company (NGC) to reduce their daily contracted quantities because there were a number of petrochemical plants that had shut down because the collapse of global prices for methanol and ammonia along while the relatively high prices for gas being demanded by the NGC had made them uncompetitive.

The NGC is the aggregator so it buys natural gas from the upstream companies and then sells it onto the downstream operators at a profit.

According to numbers from the Ministry of Energy BPTT was the major contributor to the decline in the natural gas production.

The Ministry report showed that BPTT’s production in June was 1.738 Bscf/D as opposed to 1.994 in January. That is a fall of more than 250 mmscf/d. EOG’s production also fell by more than a quarter or just under 100 mmscf/d.

In terms of usage LNG and methanol production were the worst affected.

Methanol utilisation of natural gas fell from 577 mmscf/d to 375mmscf/d or a fall of more than 200mmscf/d. This is a 35 percent fall in utilisation and probably reflective of the closure of plants.

The news is also not good for LNG usage which also fell dramatically from a high of 2.06 Bscf/D in April to 1.71 Bsc.f/D in June.

These numbers are all going to hurt government revenues since it means lower production of LNG and petrochemicals and in the petrochemical context, no taxes on profits from plants that are under significant pressure. It will hurt revenue from gas production since the royalty is on volume and the lower the volume the less money government gets.

There is however some better news as Heritage Petroleum led a 5000 barrels of oil per day (bo/d) increase in crude production in June when compared to May this year. In June, crude production averaged 56,316 bo/d compared to 51,218 bo/d in May.

The figure however represents the continued decline in production from the high in the 1970s of over 250,000 bo/d down to the relatively minuscule production today.

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Re: If Oil and Natural Gas runs out, does T&T have a Plan B?
« Reply #43 on: September 15, 2020, 12:44:31 AM »
Major oil and gas announcement expected.
By Curtis Williams (Guardian).


Prime Minister Dr Keith Rowley is expected to make a major announcement on oil and gas exploration success when he holds a news conference at the Diplomatic Centre this morning.

Sources have confirmed that the Prime Minister will reveal the good news at a joint news conference with the President BHP Billiton Trinidad, Vince Pereira and Minister of Energy Franklin Khan.

According to a media invite a live virtual press conference will be held to discuss the Return of the Invictus Deep Water drillship and the Drilling of the BHP deepwater Well Broadside- 1.

Earlier this year BHP’s Vice President, Exploration Sonia Scarselli in an exclusive interview with the Business Guardian spoke extensively about the Broadside well.

Scarselli said Broadside 1 would target a much deeper horizon.

She said: “So we will penetrate the shallowness of that interval where we encountered oil seeps in the Le Clerc and Victoria wells but we will now go drilling deeper than we have done in the past. Since we have a much larger understanding, a better understanding of the full hydrocarbon systems and potential for the area. In the Le Clerc well we encountered the oil seeps. So part of the well we will drill the next couple of months it is to test this oil potential.”

Scarselli said in the original Le Clerc well, the plan was to drill to relatively shallow depth but when there was gas and then oil seeps were found so the company decided to continue drilling given that it was a frontier basin and wild-cat exploration it wanted to take as much information as it could from the well and only stopped when the pressure came too much to continue. So now they have a better understanding of the geology BHP will take another look at the acreage.

BHP’s vice president, Exploration, said in the case of the North the company does not expect to find oil because she believes that the source rock is over mature.

“We tested that so we don’t expect to find any lead with that. In the South is a different story, so in the South, because we encountered the shallow section was biogenic so it was locally sourced. So expect to go deeper to find oil because we don’t think the oil has migrated shallow enough. It takes a certain amount of time for the oil to migrate through the rocks and because of the level of maturity in the south we don’t think it has migrated that shallow yet,” Scarselli said.

She said there are similarities and differences in the Guyana and T&T deep water and the company incorporated the information from Guyana to a mega-regional view of the basin. She said the source rock we have in T&T deepwater is a Cretaceous source rock in the Cenonian age which is similar to what there is in Guyana and most of the Central Atlantic.

She noted, however, in terms of the fold of play, there are differences. “There are differences in water systems and age compared with where we are looking, the main difference is the age of maturity of the source rock in Guyana vs T&T. So certainly we’ll learn a lot from the experience there but we’re also looking at different petroleum system overall,” Scarselli said.

Scarselli said BHP’s strategy is to target tier-one opportunities. She explained: “We want to find the traps so we can deliver multiple hundred million barrels of discovery. So that is like really the minimum threshold that we are looking and it could be a set of multiple traps that can deliver this amount. Normally when you open a new play you can find maybe some larger traps and smaller traps but necessarily you need to have quite a large amount to move forward with the development, because we are targeting large trap we are looking for the deepwater it is sort of numbers we are talking about,” Scarselli ended.

Today we will find out the extend of their success.

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Re: If Oil and Natural Gas runs out, does T&T have a Plan B?
« Reply #44 on: October 03, 2020, 03:41:53 PM »
BPTT starts up Galeota expansion project
T&T Guardian Reports.


BP Trinidad and Tobago LLC (bpTT) has announced the safe start-up of the Galeota expansion project (GEP).

President, bpTT Claire Fitzpatrick said this was a proud moment for the company as it culminated years of work and effective partnerships between teams, contractors and the many people who worked together to safely deliver the project. “Although this project does not directly increase production, it is an important investment in safe, reliable and environmentally compliant facilities that will support our continued operations over the coming decades,” Fitzpatrick explained.

In a statement the company noted the project has been under construction since late 2016 began September 28, 2020, reiterating that the completion represented a major milestone for bpTT.

“The Galeota Terminal is core to bpTT’s operations and is essential to T&T, as it processes all hydrocarbon liquids produced from bpTT’s 15 offshore facilities as well as from other upstream producers,” the company said.

It noted Galeota terminal began operations in 1972 and the GEP was necessary to maintain the safe, reliable and compliant terminal operations for the next 20 plus years.

The new facility will restore the terminal’s capacity to process 20,000 barrels per day (bpd) of condensate.

“It will also make our operations safer, by separating the entrained gas and produced water more efficiently, thereby reducing condensate volatility,” bpTT said, adding that it also provides increased safety for personnel as a newly constructed control room will now move operators further away from the plant.

In addition, the facility has the capacity to efficiently process 50,000bpd of produced water and enables compliance with T&T’s water pollution rules.

At its peak during construction, GEP employed approximately 900 people, 96 per cent of whom were nationals, bpTT said.

It added over the past four years, the project also brought significant benefit to the community of Mayaro and its environs through partnerships with local suppliers for the provision of various services and contract labour.

The GEP also invested TT$3.5 million into the community, mainly supporting education programmes.

These provided grants to students wishing to pursue Caribbean Advanced Proficiency Examination (CAPE) and scholarships to those wishing to pursue tertiary level education, the company said.

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Re: If Oil and Natural Gas runs out, does T&T have a Plan B?
« Reply #45 on: October 07, 2020, 12:46:45 AM »
Sale of NP stations and port privatisation long overdue, says PwC
By Joel Julien (Guardian).


The sale of gas stations owned by National Petroleum and the privatisation of the port of Port-of-Spain are two measures which are long overdue, Brian Hackett the Territory Leader of PwCTrinidad and Tobago has said.

Hackett made the statement in the PwC’s budget memorandum titled Recover and Reset - 2020 and beyond.

“We applaud the firm decisions taken by the Government to take some initial concrete steps to restructure the state sector, reset the economy and curtail expenditure both at the public and private sector levels. In particular, we applaud the removal of the imposition of fixed retail margins for all liquid petroleum products for petroleum retailers and dealers,” Hackett stated.

“Additionally, gas stations owned by the Trinidad and Tobago National Petroleum Marketing Co (NP) will now be offered for sale to the private sector with first preference to be given to existing dealers and concessionaires,” he stated.

“While it is not the only, or indeed, the most important criterion that should guide the divestment of public assets, we do await further details on how this divestment will be configured to ensure that value to the people to Trinidad and Tobago is appropriately maximised whilst ensuring the widest practical coverage of retail stations remains within our twin island state,” Hackett said.

He then mentioned the government’s plans to “privatise the managerial, operational and financial responsibility for commercial activities of the Port Authority of Trinidad and Tobago.

“We are hopeful that this privatisation will be undertaken in the context of a coherent and implementable national port policy. Both measures have been long overdue, and we look forward to further initiatives in the coming years to reduce the regrettable extent to which the state still participates in our local economy,” Hackett said.

Hackett said it is PwC’s hope that the COVID-19 pandemic will continue to provide real and sustainable impetus to implement much needed measures such as the digitalisation of the public sector and the narrowing of the digital divide across the nation.

“Given the systemic inequality which the pandemic has further revealed with respect to the ability of all of our students to gain access to effective tuition, we are hopeful that the initiative to provide 45,000 internet WiFi hotspots for students in need, the expansion of existing Wi-Fi hotspots and the establishment of internet cafes across all areas of the country will have the intended effect of balancing the scales within our education system and indeed our wider society,” he stated.

Hackett said the pandemic has shown us exactly how interconnected and interdependent we are.

“However, it also resulted in one positive for our small nation as digitalisation could provide regional and wider global opportunities. The digitalisation of the country could be the catalyst to move many businesses from a market of potential buyers of 1.4 million to over 7 billion,” Hackett stated.

“From our PwC experience, I can attest that had we not made the move a few years ago to digitalisation of almost every aspect of our operations, the adaptation to the so called ‘new normal’ would not have been as seamless for our team and to the contrary, it would have required a sudden and deep learning curve for our business,” he stated.

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Re: If Oil and Natural Gas runs out, does T&T have a Plan B?
« Reply #46 on: October 07, 2020, 02:06:12 PM »
PM: Govt won’t allow gas monopoly
By Peter Christopher (Guardian).


Government will not allow the gas situation to become worse.

This was the word from Prime Minister Dr Keith Rowley yesterday as gave assurances that the decision to privatise National Petroleum gas stations will not lead to a monopoly.

“It will be very transparent and it will be very open. And if course we will not, nothing is reserved for anybody. Conglomerate or solitaire. The situation is that we will ensure that there is transparency in what we do. Nothing is reserved for anybody,” Rowley said following the opening of the new Diego Martin Health Centre in Diamond Vale.

During Monday’s Budget presentation, Minister of Finance Colm Imbert announced the liberalisation of the fuel sector as well as the intended sale of all NP gas stations, with operators to be given first preference.

However, this has brought fear of a monopoly among private entities and increased costs at the pumps as a result for the public. But Rowley tried to allay those fears.

“Of course, the Government will have to ensure that whatever we create does not worsen our situation or give any undue advantage or create any disadvantage,” he said in response to questions of a potential monopoly emerging.

He also downplayed the possibility of runaway prices adversely affecting the wider public, as he said it placed a level of responsibility on the consumer to manage the market as he reminded that National Petroleum never controlled the fuel prices.

“That was never NP’s role, fuel prices were a cabinet decision. It will be more of a market situation because of competition in the market, the consumer will now play a bigger role,” he said.

“If the people who are now going to get involved in owning gas stations and they are competing, you wouldn’t go to a gas station where the price is higher would you?

“And by the same token, if the price of oil goes up and takes the price of fuel up with it, you wouldn’t run up and down with your car because you feel to drive? You would make a decision as to when you travel, how many people you carry if you have family, how often you travel, how much fuel you burn, so you now have the lever in your hand to determine how you influence your fuel expense.”

Rowley also responded to complaints from used car dealers, who expect their market to collapse amid the removal of tax concessions for the imported vehicles and the reduction of the importation of the age of used cars to three years. He explained that the importation of cars was not a national priority at this time.

“I would simply say to the people in the car business, used car, unused car and whatever, if I have a choice to make between ensuring we have foreign exchange to buy medicine for the hospital, I would restrict the expenditure on motorcars. Because one thing this country is not short of is motorcars, but we cannot be short of medicine for the hospital. And that is my answer,” Rowley said.

In fact, he revealed that consideration was made to completely ban the importation of cars.

“You know there are some countries in situations like this where all they did was ban the importation of cars. Case closed,” he said.

“We didn’t do that. But yet that was an option that we had you know. And I must tell you we considered it you know. It was considered. But we said we will take the next option, which is to restrict the importation.”

Rowley also explained the reasoning behind the decision to privatise the Port of Port-of-Spain, which he said would raise the level of the port. (See editorial on Page A12)

“At this point in time, the option that is best for us is to get it into a situation where the Port of Trinidad and Tobago could be a recognised port by those who use the world’s transportation service,” he said.

“We are receiving the outcome of our decades of management. Getting weaker and weaker and weaker and weaker in port business. What foreign investment would do, or even local investment for that matter, if we get it out of the public service into the hands of private sector.

“They automatically will put the port into an international perspective. The investment that they will make to upgrade the port and so on, they will focus not just being the Port in Port-of-Spain for colloquial business and reasons but see it in the context of international transportation.”

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Re: If Oil and Natural Gas runs out, does T&T have a Plan B?
« Reply #47 on: October 07, 2020, 04:30:07 PM »
Petroleum dealers feel liberated as State sells gas stations
PAULA LINDO (NEWSDAY).


Petroleum Dealers Association (PDA) president Robin Narayansingh is describing government’s decision to sell the gas stations operated by National Petroleum (NP) as liberation from the total dominance of the state-owned enterprise.

In a phone interview Wednesday, he noted that Government has offered assistance to existing occupiers to purchase the stations. "The dealers needed security of tenure." When NP operated the stations, he said, the title was vested in its name and its executive decided how the operation was run. The dealers, on the other hand, were the ones who made personal and financial sacrifices. "Petroleum dealers now have a vested interest... You have a vested interest when you own something and you can make a proper offering to your community.”

Narayansingh did note, though, that without a supply agreement binding them to NP, dealers would now be in a position to deal with any fuel supplier they want when they purchase the property. "So, we’re not sure how this is going to work out and we want to know if NP wants to engage the PDA in ironing out a supply agreement with the dealers. You want stability in the country so people could get fuel to do their business, you want proper agreements, you want clarity in the way business is done.”

The fuel subsidy ends in January, as announced in the budget on Monday, and dealers will be able to set their own margins. Current margins on fuel are six per cent, which can be challenging to dealers when financing and labour costs are added, Narayansingh said.

“We would have to figure out a proper margin but it wouldn’t be more than ten to 25 cents per litre extra, so there’s nothing to say it would be exorbitant, because people have been talking about price gouging, and this might go down depending on what the wholesale price of fuel is...There are good people and bad people. Even with an agreement to the price, each dealer would set their own price point; competition will benefit the consumer."

Narayansingh said the cost of a gas station would vary depending upon whether it was being built from scratch or was an already existing facility.

“If you’re building one from scratch, you have to look at the value of the land, the age and type of equipment being installed, and labour costs for operationalisation. If it’s an existing facility, there are a lot of tanks that need changing, so those would be cheaper; if tanks were changed it would cost more, depends on where are in value chain, and also the location of the gas station.”

Addressing concerns about cartels being formed to fix gas prices, Narayansingh said under the Petroleum Act, the energy minister is the only person who can grant a license for the operation of a gas station. He said he was sure the ministry would conduct background checks on applicants to decide who was suitable to run a station. The current license fee for the operator of a gas station is $4,000 for a large-volume station, $2,000 for a medium-volume station and $1,000 for a small-volume station.

Narayansingh said liberalising the fuel market will change the landscape of T&T and make dealers more interested in their business.

“They will get more products to offer to the community, it’s a big move for the gas station industry. I want to allay any fears that people may have. Petroleum dealers are responsible people...As long as there is a proper supply of fuel, the gas station dealers will always be there to provide that service to the nation.”

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Re: If Oil and Natural Gas runs out, does T&T have a Plan B?
« Reply #48 on: October 09, 2020, 08:30:45 AM »
Union slams gas-station sale
YVONNE WEBB (NEWSDAY).


THE National Workers Union (NWU) is concerned about government’s decision to sell NP gas stations and remove fixed pricing on petroleum fuels on the domestic market.

In a joint statement, Cecil Paul and Gerry Kangalee said this issue was not raised in the election campaign and the country is owed an explanation.

“This decision is made by a newly elected government facing a pandemic and, like other countries, besieged by economic difficulties.

“Is our government selling the family jewels cheaply to deal with money shortages? These economic difficulties do not justify these decisions.”

Kangalee is the NWU’s education and research officer. Paul is a former first vice president and chief labour relations officer at the Oilfield Workers Trade Union (OWTU).

They said the decision to sell and remove subsidies should be of major concern for the population, particularly with petroleum dealers fixing their own prices at retail outlets.

“Once the fuel subsidy goes, the cost of living will climb ever upward, as will the closure of many small and medium businesses.

“Fuel prices are a major input into the final cost of most products we consume in this country ,as road transport is our only mode of moving goods and all materials purchased both at the wholesale and retail sectors on a daily basis.

“Hence the need to control this major factor of pricing, especially for essential goods and services.”

The trade unionists said the big question is why government is removing this major protective mechanism for a majority working-people population.

They said government’s announcement that NP gas stations will be sold to private dealers is in fact transferring major economic assets of the people, held in trust in a state enterprise, to private businesspeople without the people’s consent.

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Re: If Oil and Natural Gas runs out, does T&T have a Plan B?
« Reply #49 on: October 10, 2020, 09:24:47 AM »
bpTT begins work on new natural gas development
By Curtis Williams (Guardian).


In a press release the company said Matapal is a subsea development comprising three wells that tie-back into the existing Juniper platform.

Matapal will deliver gas into the Trinidad gas market from resources discovered by the Savannah exploration well drilled in 2017. The development will have a production capacity of 400 million standard cubic feet per day (mmscfd).

“The drilling operations for Matapal commenced on 8 October and are being undertaken by the Maersk Discoverer, a semi-submersible rig which arrived in Trinidad on 3 September 2020,” the release read.


The Matapal project is located approximately 80km off the south-east coast of Trinidad. The Matapal field is located approximately 8km east of Juniper, in 163 metres of water depth.

According to bpTT the project consists of both greenfield and brownfield activities with the majority of brownfield fabrication being completed locally.

Claire Fitzpatrick, bpTT president said “Matapal is an important part of bpTT’s portfolio to continue to underpin our existing gas contracts. This is bpTT’s second subsea development in Trinidad and the spudding of this well is a key milestone as we work toward first gas in 2022.”

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Re: If Oil and Natural Gas runs out, does T&T have a Plan B?
« Reply #50 on: December 09, 2020, 05:50:35 PM »
Touchstone records significant find at Cascadura
By GEISHA KOWLESSAR-ALONZO (T&T GUARDIAN).


Touchstone Exploration Inc has completed drilling the Cascadura Deep-1 exploration well on the Ortoire exploration block, onshore in T&T, noting that it encountered significant hydrocarbon accumulations based on drilling and wireline log data.

The company said wireline logs indicated natural gas pay totalling approximately 1,315 net feet in four unique thrust sheets in the Herrera sands from a depth of 5,455 feet to total depth.

Drilling was suspended prior to the planned total depth of 10,600 feet due to high pressure gas zones encountered while drilling, the company said.

The Cascadura Deep-1 exploration well was spud on October 27.

Paul R Baay, president and CEO, noted that he was pleased the Ortoire block continues to outperform expectations.

“The Cascadura Deep-1 well is the best well we have drilled on the Ortoire property to date and it has provided three key pieces of information, primarily that the Cascadura field has numerous targets with each one of the thrust sheets providing its own unique opportunity,” Baay said.

He added it has also shown that the system is hydrocarbon charged and that in time the company will require more drilling horsepower to evaluate the deeper zones.

The company’s CEO James Shipk said the Cascadura Deep-1 exploration well confirms that this is a unique structure with tremendous potential.

“Although we were unable to drill to our planned total depth, the information gathered while drilling and the hydrocarbon accumulations encountered are truly exceptional.

“Not only did we encounter a massive section of turbidite deposits nearly 3,000 feet thick, we established the intermediate thrust sheet as a viable reservoir and expanded the known boundaries of the sands tested in the Cascadura-1ST1 well,” Shipk said.

The Cascadura Deep-1 well is the fourth of the amended five well exploration commitment under Touchstone’s Ortoire Exploration and Production Licence.

The company has an 80 per cent working interest in the licence but is responsible for 100 per cent of the drilling, completion and testing costs associated with the initial five exploration wells. Heritage Petroleum Company Ltd holds the remaining 20 per cent working interest.


Touchstone’s Cascadura well in the Ortoire Block which may be one of T&T’s largest onshore gas reservoirs. ...Courtesy Xavier Moonan

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Re: If Oil and Natural Gas runs out, does T&T have a Plan B?
« Reply #51 on: January 20, 2021, 06:11:39 PM »
Heritage signs $100 million deal with Government
RYAN HAMILTON-DAVIS (T&T NEWSDAY).


Heritage Petroleum Company has announced the completion of negotiations with the Government for a new exploration and production licence, which will combine the acreage of two major blocks on the west coast of the Trinidad.

The deal was sealed on Wednesday at the Ministry of Energy and Energy Industries (MEEI), Port of Spain and would see Government benefit from a $100 million payment from Heritage over a six-year period.

In a release sent to the media, Heritage said the new deal would combine the total acreage of the two areas into a 96,000-acre block for exploration – the single largest block on the west coast.

The two blocks belonged to Trinmar and North Marine until their licences expired in 2019.

Heritage Petroleum chairman Michael Quamina said in the release that the licence would further unlock the value of the company’s offshore resources.

“The new licence provides the security we need to continue to execute our commercial strategy in the offshore area,” Quamina said.

Energy Minister Franklin Khan congratulated Heritage for their performance over the last two years and lauded them as a flagship state enterprise.

“They have made, in their first year of operation, a profit of $1.4 billion, paying the State in excess of $800 million in taxes and from all indications they will repeat that performance in 2020 when the audited financials are completed,” Khan said.

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Re: If Oil and Natural Gas runs out, does T&T have a Plan B?
« Reply #52 on: January 21, 2021, 10:10:26 AM »
But what is the deal with Patriotic and the govt on the refinery?

http://www.looptt.com/content/govt-gives-patriotic-15-more-days-commit-us500m-petrotrin

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Re: If Oil and Natural Gas runs out, does T&T have a Plan B?
« Reply #53 on: September 20, 2021, 01:05:04 PM »
Exxon moving almost all supply work from T&T to Guyana by 2022
By Joel Julien (T&T Guardian).


As local capacity in Guyana continues to increase, ExxonMobil says more services are being moved from Trinidad and Tobago to the South American country, where it is the operator of the Stabroek, Kaieteur and Canje Blocks, a report from OilNOW has stated.

According to a recent interview with OilNOW at the Saipem Offshore Construction Facility in Georgetown, President of ExxonMobil Guyana, Alistair Routledge, said much has changed in Guyana from the early days when the company started exploration activities and made the world-class Liza discovery.

“In the early days, when we started exploration, there was no infrastructure, no expertise, no history to leverage so we had to utilise the existing capability, the existing facilities in Trinidad,” Routledge said. “Over time, now that we have that line of sight to more development, we can continue this investment journey and move more of that work, the facilities, the capability to Guyana.”

The supply chain capacity in the new oil producing country has been growing exponentially over the years.

A growing number of Guyanese companies have been entering partnerships and starting operations to service the expanding offshore activities where multiple exploration appraisal and development drilling campaigns are underway.

Local fabrication company Guyana Oil and Gas Support Services Inc. (GOGSSI) recently provided the workforce to Saipem for the assembly, testing, coating, and loading of massive subsea jumpers for the second phase of ExxonMobil’s Liza development. This work was previously done in Trinidad.

“I’m really excited to say that by sometime in 2022, virtually all of that supply chain, all of that work will have been moved to Guyana from Trinidad,” Routledge stated, pointing out that this will be a major milestone for the country and a significant step forward for local content development.

Already, GOGSSI and another local company—Industrial Fabrications Inc (InFab), are fabricating equipment for the Prosperity FPSO which is being constructed in Singapore for ExxonMobil’s third development in Guyana.

Additionally, as the largest local shore base facility – Guyana Shore Base Inc., continues to expand its operations and capabilities, other such facilities are also being planned in anticipation of around 10 FPSOs expected to be producing oil off the country’s coast in the coming years.

To date, ExxonMobil has found more than 9 billion barrels of oil equivalent offshore Guyana and is pursuing an aggressive exploration campaign that will see it drilling over 50 wells through 2025.

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Re: If Oil and Natural Gas runs out, does T&T have a Plan B?
« Reply #54 on: January 25, 2023, 12:49:30 AM »
T&T gets access to Venezuela’s Dragon Field
... as US agrees to waive energy sanctions
By Kejan Haynes (T&T Guardian).


Prime Minister Dr Keith Rowley says the United States decision to waive sanctions against Venezuela, clearing the way for Trinidad and Tobago to import natural gas from our neighbours, is “a significant and happy day” for him, his team, the people of Trinidad and Tobago and Caricom.

Rowley made the comment yesterday in response to a question about what the opportunity to develop the Dragon Gas Field would mean for the country financially. Working the math, the Prime Minister said T&T could benefit to the tune of around US$450 million with a “decent profit on the margin.”

“The United States Government has today approved Trinidad and Tobago’s development of the Dragon Field via an OFAC Waiver from sanctions with specific terms to be finalised,” Dr Rowley had read just moments before from a written statement during a press conference at the Diplomatic Centre.

“What this means is that the restrictions on the Dragon Gas Field development are now relieved and all relevant parties can progress the plans to result in natural gas from Venezuela.”

The United States, during the Trump administration, had placed strict economic sanctions on the Nicolas Maduro-led Venezuelan government in 2019 because it claimed the government was suppressing human rights in the country.

However, the terms of the waiver are still to be worked out, as the Prime Minister said there is still significant work to be done, but he noted it was “a giant step forward.”

The license has been granted for two years with the option to extend, although the T&T Government originally asked for a ten-year license, Rowley said. The exact start date of the license is also yet to be worked out.

He acknowledged the US could easily update its sanctions against Venezuela, which could impact the deal. However, the Prime Minister is choosing to remain optimistic, adding there is nothing in the terms so far that the Government could not meet.

Rowley declined to say what the US was getting out of the deal.

The US, however, imports $231 million worth of urea ammonium nitrate fertilisers from T&T and stands to benefit from clean fuel and fertilisers if the deal goes through.

Explaining some of the particulars of the deal, Energy Minister Stuart Young said the license was granted to T&T.

“NGC will be the body that will be used to transact the deal working along with Shell, and this is for the Dragon Field.”

Rowley said there are a lot of terms to be finalised between T&T, Venezuela and Shell but said the highest hurdle has been crossed and the development can be accelerated.

The fields will still be owned and run by Venezuela’s stated-owned Petróleos de Venezuela (PDVSA), but Shell will be the operator in the field, Rowley clarified.

“The field is a PDVSA field,” Rowley said.

“Whatever license we get from Venezuela to operate the field, Venezuela would be involved in that.”

Development will not be immediate though, as Rowley could not give a time frame for first gas, saying he would have to be advised by Shell and the Venezuela government. He said it needs to be soon, however, because the market needs the products.

“We’ll be going full speed ahead to get it to market at the earliest opportunity,” Rowley said.

“It’s not going to be tomorrow. It’s not going to be 2023 because there’s a lot of work to be done, a lot of lead time, and a lot of engineering work to be done.”

One of the major caveats of the deal is the requirement T&T shares the spoils with Caricom nations.

“One of the main conditions is that we give priority to supplying our Caribbean neighbours who need it,” Rowley said.

He thanked the Dominican Republic President Luis Rodolfo Abinader, saying he was instrumental in the discussion of energy security in the region, and adding that country looks to T&T for energy supplies. Jamaica will also be a major beneficiary under the agreement.

Rowley specifically thanked Guyana President Irfaan Ali, Suriname President Chan Santokhi, Barbados Prime Minister Mia Mottley and Antigua and Barbuda Prime Minister Gaston Browne and Prime Minister of The Bahamas Phillip Davis.

“All of whom have been in Trinidad and Tobago’s corner pushing us to this point of encouraging the United States to do this,” Rowley said.

He said the cost to the country would be minimal, namely legal fees “very small” in comparison to what can come out of it.

When asked if Venezuela could not receive cash payments, he said that wasn’t a problem because it’s been dealt with before, saying it could be paid for in many ways.

Told that he had warned on Sunday of “difficult days” ahead in the energy sector and asked if the deal changes his mood, the PM said, “A little bit.”

“The infrastructure to handle these kinds of resources to bring to the world market usually needs a horizon of 20-25 years if you’re going to make new investment. So, if your reserves are only dribbling along with a five or ten-year horizon, you can’t look to any new investment. So, having access to gas fields outside of our border, this is a seminal development because it’s the first time we have had this opportunity,” Rowley said.

Following the announcement, US Ambassador to T&T Candace Bond said it reinforced the relationship between T&T and the US.

“Today, we reinforce the closeness, strength, and depth of our over 200 years of friendship and cooperation. Upon my arrival, I promised to work to further strengthen our countries’ unique bond, to deepen and grow our already close relationship, and to ensure that our cooperation continues to yield positive results for both of our countries,” Bond said.

“We share Trinidad and Tobago’s urgency in contributing to global energy and food security. We have listened to the Government of the Republic of Trinidad and Tobago’s message that it has the capacity and willingness to ameliorate economic and humanitarian crises around the region and the world.”

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

 

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