bp appoints new head of T&T operations

Jul 26 2022

IEC bp today announced the appointment of David Campbell to the role of president of its Trinidad and Tobago business effective October 1, subject to work permit approval. Campbell will be accountable for the safe delivery and growth of the business and joins bp Trinidad and Tobago (bpTT) after eight years as president bp Russia. He has been with bp for 38 years in different commercial, operational and technical leadership roles.

Campbell succeeds Claire Fitzpatrick who has led bpTT’s operations since 2018.  Fitzpatrick will be moving to the UK to take up a new leadership role at bp London headquarters.

 

 

OWTU, Guyana union sign MOU

Having formed an oil and gas branch over the past year, the Guyana Agricultural and General Workers Union (GAWU) engaged the Oilfield Workers’ Trade Union (OWTU) for advice and guidance, drawing on its 85 years’ experience to improve its representation and establish itself as the bona-fide bargaining unit for energy workers and has turned to the OWTU.

Discussions culminated in the signing of a memorandum of understanding (MOU) between the two trade unions by OWTU president general Ancel Roget and president of GAWU Seepaul Narine at the OWTU Paramount Building headquarters, San Fernando

The OWTU will offer its experience and knowledge of health and safety, industrial relations, technical knowledge, relations with multinationals and global corporations and obtaining the best deals for workers.

Roget explained this was an important development between the two unions which had shared a fraternal relationship for many decades. Narine said the MOU would deepen those relations and provide much-needed guidance to its union which would redound to the benefit of its workers.

GAWU is the only union in Guyana, like the OWTU in Trinidad and Tobago that has taken on the responsibility of organising oil and gas workers and shares the philosophy that workers ought to be central to national and regional development and of any sector.

“Therefore it stands to reason that (in) the recent development of the oil and gas sector in Guyana, they would turn to their brother union for advice, counsel, support, direction, training and development and assistance really, in how best to have their workers, their people from Guyana, benefit from the resources of the land.

Roget said he wanted to spare the Guyanese people and those from the region, including Trinidad and Tobago, who, having been retrenched from the sector here and have found employment over there, from exploitation. Workers and people of Guyana have the right to know their value and benefit from resources of their land.

Emphasising TT was developed primarily on the backs, shoulders and strength of workers in the energy sector who risked lives and limbs to be the “breadbasket” of the country, Roget said as the ones turning the wheels of the economy, the OWTU sought to get the best representation and benefits for them.

“It was no easy task. It still is not an easy task, because today, there is an attempt to roll back all of those benefits.”

He said overwhelming support will be given to the Guyanese people in the sector in treating with the multinational companies TT has had experience with, to prevent them from extracting Guyana’s wealth and leaving that country pauperised.

Narine expressed gratitude to the OWTU for agreeing to assist in organising the fast-developing sector, where he said workers were already being denied their rights. Contractors and suppliers of labour have denied workers protective personal equipment, overtime payment, annual leave with pay and other benefits which the laws of that country allow for. He said although the right to union representation is enshrined in Guyana’s constitution, some suppliers of labour are also denying them that right.

“We reached a point where we had to step up our level of representation to workers. Recognising we are not fully knowledgeable of the sector, we turned to the OWTU, which has been doing this for 85 years and would have faced the same problems we are facing now.

“We are thankful for the OWTU reaching this level of collaboration with us. This is a glorious opportunity for workers to have an opportunity to be respected and enjoy decent working conditions.

For the union, “it allows us to extend our many years of militant representation and service to them. We have had a long history of standing up and defending workers and this is just another step. We are prepared and stand up and take on that fight.”

 

Ukraine Deal signed to resume exports from Black Sea

By Flora Drury BBC 22 July

The agreement will allow exports of millions of tonnes of grain in ships trapped in Ukraine by the war. World shortage of Ukrainian grain since Russia’s February invasion left millions at risk of hunger.

Kyiv refused to sign a direct deal with Moscow, and warned “provocations” would be met with “an immediate military response”.

Both sides attended the signing ceremony in Istanbul but did not sit at the same table. Russia’s Defence Minister Sergei Shoigu signed Moscow’s deal first, followed by Ukrainian Infrastructure Minister Oleksandr Kubrakov signing Kyiv’s identical agreement.

The deal – which took two months to reach – is set to last for 120 days, with a co-ordination and monitoring centre to be established in Istanbul, staffed by UN, Turkish, Russian and Ukrainian officials. It can be renewed if both parties agree.

Blockade of Ukraine’s grain and other agricultural products caused a global food crisis with wheat-based bread and pasta, cooking oils and fertiliser becoming more expensive.

The US called on Russia to act quickly, with White House spokesman John Kirby saying it was necessary “to prevent the world’s most vulnerable from sliding into deeper insecurity and malnutrition”.

Mr Shoigu told a news conference earlier the deal might allow “the solutions to start this process in the coming days. I’m talking not only about beginning the export of agricultural products from Ukrainian ports but clearly also work in this direction on the export of agricultural products and fertilisers from Russian ports.”

According to diplomats, under the terms of the deal:

• Russia will not target ports while shipments are in transit
• Ukrainian vessels will guide cargo ships through waters that have been mined
• Turkey , supported by the United Nations will inspect ships, to allay Russian fears of weapons smuggling
• Russian exports of grain and fertiliser via the Black Sea will be facilitated.

UN Secretary General Antonio Guterres told the BBC it was probably the most important thing he had done in his time heading the international body.

“Today, there is a beacon on the Black Sea. A beacon of hope.”

Just the prospect of unblocking over 20 million tonnes of Ukrainian grain led to a 2% drop in wheat prices. President Volodymyr Zelensky confirmed the country had about $10bn (£8.3bh) worth of grain to sell.

He warned Moscow “could engage in provocations, attempts to discredit the Ukrainian and international efforts. But we trust the United Nations”, saying it was up to the UN to guarantee the deal. Mr Guterres admitted that the UN had no means of punishing Russia should it breach the deal but it would be “an absolutely unacceptable scandal and the whole international community would react in a very strong way”.

Mr Shoigu assured reporters after signing the deal that Russia had “taken on the obligations” under the deal, and they would “not take advantage of the fact that the ports will be cleared and opened”.

Russia has always denied blockading Ukraine’s ports – it blames Ukraine for laying mines at sea and Western sanctions for slowing Russia’s own exports.

Foreign Minister Sergei Lavrov blamed the West and Ukraine for “absolutely groundless” allegations. Ukraine, however, says the Russian navy prevents it shipping grain and other exports and accuses Russian occupation forces of stealing grain from Ukrainian farms.

Chart showing countries dependent on Ukrainian grain exports

 

 

Russia admits missile strikes on Odesa despite grain export deal with Ukraine

24 July 2022,   FT, London

Russia has claimed responsibility for a series of missile strikes that hit the key Ukrainian port of Odesa, a day after Moscow signed a deal allowing Kyiv to resume grain exports as part of efforts to alleviate a growing global food crisis.

Two cruise missiles hit the port on Saturday and two others were shot down by Ukrainian air defences, according to Serhiy Bratchuk, a spokesman for Ukraine’s southern military command.

Videos posted on social media showed a plume of smoke billowing from the port. Oleksiy Honcharenko, a Ukrainian MP, wrote on messaging app Telegram that at least six explosions were heard and an unspecified number of people had been wounded.

Maria Zakharova, Russia’s foreign ministry spokesperson, said on Sunday that the missiles “destroyed a military infrastructure target” at the port in a “high-precision strike” that sunk a Ukrainian military vessel.

The strikes came less than 24 hours after Russia’s defence minister signed a deal brokered by the UN and Turkey agreeing to let Kyiv export millions of tonnes of grain from its Black Sea ports.

Ukraine said the rocket attack had violated Russia’s promise not to attack the grain export infrastructure and called the viability of Friday’s deal into question.

 

 

Save St Augustine Farmland

Justice Robin Mohammed in the High Court granted an injunction restraining the Government Housing Development Corporation (HDC) from starting any work on the site for the proposed North Grove Housing Development. He gave permission to environmentalist Dr Wayne Kublalsingh and livestock farmer Shiraz Khan to challenge a decision by the Environmental Management Authority (EMA) to grant a certificate of environmental clearance (CEC) to the HDC.

The judge also granted the temporary injunction to prevent work from starting or continuing on the site until the judicial review application is determined in court. The matter returns for a virtual hearing on September 13. Mohammed allowed the judicial review application, giving permission for the two men to seek an order to quash the September 14, 2018 decision by the EMA to issue the CEC to the HDC to build a 504-unit multi-family residential development at Farm Road, St Joseph, on seven acres of prime farmland. The proposed site is part of the iconic St Augustine nurseries.

The two men will be asking for a declaration that the EMA’s decision is unlawful and a further order to compel the EMA to demand an environmental impact assessment (EIA) be done before the project can move forward.

In his ruling, the judge said, “My primary concern must centre on the decision-making process and not the decision itself. I must consider whether the EMA’s decision was illegal, irrational, or procedurally improper.”

In determining if the men’s argument had a realistic prospect of success, the judge said he found the report submitted by the men’s experts to be useful. One in particular as it related to the shortcomings and inconsistencies in the HDC’s application was referred to by the judge.

“Such (shortcoming and inconsistencies) include the error of HDC that there were no springs or aquifers in or adjacent to the site and that there were no rivers, streams, or drainage as well as its omissions with respect to the assessment and treatment of domestic solid waste.

“In fact, significant doubt was cast on the reliability and accuracy of the scope of works provided by HDC, particularly with respect to its revised plans including drainage site plan and calculations and the stormwater management plan.

“These inconsistencies and contradictions suggest the EMA’s assessment of the information provided by the HDC with respect to the impact on the aquifer and the hydrological system was insufficient. This raises questions as to the rationality of the decision to grant the CEC.”

He said it was submitted by the EMA its role was not to encroach on the HDC’s division of the land, for which it received approval, but to determine if the development would pose a threat to the surrounding environment, including the St Joseph Farm and the St Augustine nurseries.

“I do not consider this argument of the EMA to be relevant.”

Judge: EMA should have asked more questions

He said Kublalsingh and Khan were not challenging the use of the land but questioning the EMA’s failure to enquire from the HDC on the impact of the project on the micro-climate of the farm which borders the proposed development.

He also said the lack of evidence of engagement with the Ministry of Agriculture, which controlled the lands, also cast doubt on whether the EMA had a fulsome picture of the potential adverse short-term and long-term environmental impact on the propagation station contiguous to the development, the potential risks to the St Joseph farm and St Augustine nurseries, and other likely adverse effects.

“There is also no evidence that the EMA engaged the ministry otherwise.”

He also said it was evidence the environmental risks identified by the applicants spoke to long-term impacts of the proposed development and no such impacts were identified by the EMA.

“In fact, limited evidence and detail are provided by the EMA in its assessment of the impact on the nursery. …In the circumstances, I am not satisfied that these grounds have no realistic prospect of success.”

It was proposed that the North Grove development would be located on seven acres of agricultural land being used for experimental crops.

The application said the HDC cited an August 2017 Cabinet Minute #1376 which stated that “although the parcel of land is presently used for agricultural purposes, it is located in a densely built-up urban area, surrounded to the south, north, and east by built development, including commercial and residential uses.”

The men are represented by attorneys Dinesh Rambally, Kiel Taklalsingh, Stefan Ramkissoon, and Arya Mahabir while Ian Benjamin, SC, Tekiyah Jorsling, and Maurice Wishart represented the EMA.

In their application, the two men said the EMA acted illegally and failed in its statutory duty to consider all relevant matters before deciding to issue the CEC.

They accused the HDC of providing false and misleading information to the EMA when it applied for the CEC in October 2017. According to the application, the men alleged the HDC said there were no springs or aquifers at the site or near to it. However, they claim the project site lies over the Valsayn aquifer.

The application also contended that the EMA was aware that the land on the St Augustine nurseries is agricultural land and part of a larger enclosed parcel.

“It failed to request information of the HDC and/or to require a study of and/or require an examination of the impact of an extensive piece of housing infrastructure, namely the construction of twelve high rise buildings, each eight stories high, on the microclimate of the farm upon which the valuable tree and plant stocks of the contiguous St Augustine nurseries rely.”

The application further accused the EMA of failing to ask for information or demand a study be done to determine potential risks or negative impacts on the propagation station which dispenses plant and tree crops to farmers and the general public.

EMA: We did our job correctly

The St Augustine nurseries is part of the St Joseph Farm which was established in the 1930s and was part of an economic plan for the collection, conservation, and dissemination of tropical plant species and products.  The plan included agricultural education and large tracts of land were allocated for research and conservation the lawsuit contends.

“Part of the farm, the St Augustine nurseries collects, conserves, and propagates plant material, germplasm. It keeps integrated a unique bank of plasm and technical expertise developed and preserved over nine decades. The farm also houses a herbarium. Both the nursery and herbarium are directly west of the proposed housing scheme,” the application added.

In resisting the application, the EMA contended Kublalsingh and Khan did not act with promptitude in making its application and cited the delays it would have in the national development of housing. The EMA also argued that the grant of leave would be prejudicial and detrimental to good administration by further delaying a much-needed public project which will benefit middle and low-income families.

It was argued the EMA properly considered the environmental impact of the development and was satisfied that the impact was minimal and could be properly mitigated and its approach was reasonable and consistent with the precautionary principle as it took a hard look at the adverse impacts prior to granting the CEC. It also maintained an EIA was not a mandatory requirement under the EMA Act and in this case, it was not necessary.

Instead of building on fertile farmland on the Caroni Plain, beside ICTA, regeneration of derelict areas and slums and vacant lots can include housing for homeless citizens marginalised by state policies, posturing and paralysis.

 

 

 

US revokes fertiliser tariffs

Reuters.

United States Trade Commission revoked hefty anti-dumping and anti-subsidy duties on urea ammonium nitrate (UAN) fertilisers from Russia and TT , concluding that those imports did not hurt American producers.

The decision cancelled recently-imposed US combined anti-dumping and anti-subsidy duties of up to 132.6 per cent on Russian urea nitrate fertiliser solutions and 113.5 per cent on such imports from TT.

According to the US Commerce Department, in 2021, the US imported $231.1 million worth of urea ammonium nitrate from TT for use in liquid fertilisers. Had the commission found that US fertiliser producers were being negatively affected by the imports from Russia and TT, the duties would have been locked in for five years.

Proman and MHTL (Methanol Holdings (Trinidad) Ltd) welcomed the ruling. Proman, headquartered in Switzerland, is the world’s second largest producer of methanol and has assets in several countries, including TT. MHTL, with a AUM (ammonia, urea ammonium nitrate, melamine) complex in Point Lisas, is part of the Proman group. MHTL is the sole UAN and producer and exporter in TT.

“Fertiliser products like UAN play a vital role in supporting agricultural production and meeting global food supply needs. We believe that today’s judgment reflected testimony from across the US agricultural sector that application of these duties would have resulted in significant supply constrictions in an already concentrated domestic market, particularly during the planting season when imports are essential to meeting fertiliser requirements. As the sole UAN producer and exporter in Trinidad and Tobago, this decision will enable us to resume UAN exports to the United States, providing much-needed relief to supply constraints in that market.”

Energy Minister Stuart Young and Trade and Industry Minister Paula Gopee-Scoon welcomed the ruling to end tariffs on fertilisers from Trinidad and Tobago. Young and the Prime Minister discussed issues involving fertilisers produced in TT with decision makers in Washington DC at different levels and in different quarters over recent months.

“This decision of the US International Trade Commission in favour of Trinidad and Tobago is a welcome one.”

After the Ninth Summit of the Americas in Los Angeles, Dr Rowley said the US President Joe Biden and Vice-President Kamala Harris agreed with Caricom to the formation of joint committees to deal with several issues of mutual interest.

Rowley co-chaired the first meeting of a US/Caribbean energy security committee on July 12 and was nominated by Caricom leaders to be the committee’s co-chairman. The Office of the Prime Minister said Rowley will lead efforts to develop a joint action plan to address identified energy security issues affecting the region.

Young participated in the meeting and will assist its ongoing work. US State Department senior advisor for energy security, Amos Hochstein is the designated US lead representative on the committee.

Gopee-Scoon said, “We are pleased with the outcome and it was a collaborative effort, including the work of the anti-dumping unit of the Ministry of Trade and Industry.”

She also praised the role by TT’s Embassy in Washington DC in support of Rowley and Young’s discussions with US lawmakers in Washington DC to address matters such as this.

Former energy minister Kevin Ramnarine observed, “This is great news for our local producers of UAN. These are ongoing issues that pop up when US companies complain about imports from TT and Russia.”

Energy Chamber president and CEO Dr Thackwray Driver agreed. “The Energy Chamber welcomes the decision. It is good news for our exports of UAN from Point Lisas, as it allows access to the major US market without high tariffs.”

TT Manufacturers Association (TTMA) thanked all technocrats, attorneys and ministerial support that led to this outcome. “It is heartening to note that a small country like TT can be successful in its plea to gain entry into the United States market. This favourable outcome would allow our goods (fertilisers) to be allowed unencumbered entry into the US market, notably one of our largest trading partners.

Former trade minister Vasant Bharath approved the decision.“Whether as a self protection mechanism to protect their own farmers from soaring fertiliser prices or not, the result is that TT can continue to supply the US market without being forced to pay an import duty of 113.6 per cent which would have doubled its price and crippled its ability to compete. Fertiliser prices have increased to record levels driven by supply chain issues, surge in natural gas prices, the Ukrainian crisis and the Chinese ban on export of fertiliser.”

He suggested that Government move swiftly to protect local farmers who are also suffering from significant price hikes in imported chemicals and fertilisers. Government must subsidise the cost of fertiliser in the first instance but also provide nitrogen fixing plants to farmers- black eyed peas, lentils and other legumes- cash crops which add nitrogen to the soil.

National Flour Mills (NFM) chairman Nigel Romano said, “The removal of tariffs should ease the price pressure on grain originating in the US, and this should have a positive effect on prices in general. We did a review of the crops and planting corn and wheat for later this year and, so far, the indicators look good. Most crops are thriving well, and planting appears to be back on track.” He was optimistic this augured well for grain prices to ease downward.

 

 

[In this centennial year of ICTA, the perilous petrostate plans to grow luxury temperate fruit when native berries like guava and cerise plus iconic soursop, sapodilla, cashew, mango, pomerac, pineapple, pawpaw, pomegranate and citrus, packed with nutrients are cheaper, abundant, easy to grow and prepare.

Cheapest British strawberries cost around £5/kg now. Cost is higher at the start of the season in May and the end in September . Thus 1kg cost TTD40, roughly TTD20 per pound. More expensive Raspberries and blueberries now cost £7-10 per kg. These 3 berries survive only a few days in a refrigerator.

Resumed Ukraine wheat supply may avert a flour shortage but ambitious, entrepreneurial farmers require funds, land, roads, water, security, tools, equipment and other materials to grow native food. Sweet potato can be cooked in 20 minutes to provide carbohydrates. Turning it into flour adds unnecessary costs.  Fake flour from tasteless toxic cassava costs TTD40/pound while staple wheat flour for the bread of life costs TTD9 per pound. Cereals. do not need to be cut and strained.

The region has ample supplies of nutritious, versatile rice and corn which can be milled without aid from PRC where PLA has blood on its hands, backing war in Ukraine and oppressing minorities.

For baby food, mothers can mash fresh fruit, avocado and cooked vegetables without paying for bottling /canning/packaging. Local lettuce is among the best and water cress supplies superior greens.

Generations thrived on local milk, fruit, vegetables and cereal and developed the modern industrial economy. Refrigerated markets and improved hygiene can attract customers and prolong food life. Divestment of all state assets can boost revenue for agriculture to create a prosperous healthy democracy. WASA must improve services, prevent floods and maintain rivers. Overflow from a public building onto a state tent caused evacuation during rain, a signal to functionaries to install water butts on buildings to harvest rain.

WITCO must divest tobacco and invest in food crops. Nestle can be incentivised to invest in water buffalo and in goats for cheese. UWI can divert research from rodent agouti to goat and water buffalo to conserve wetlands and supply protein. Public funds from useless degrees and the Centre for Reparation Research can drive local food output with the Inter-American Institute for Cooperation on Agriculture. This Alliance has a mission to support agriculture with knowledge, technology and scientific solutions.

IICA-TT.Brechin Castle, Couva on state property is in close proximity to the Ministry of Agriculture, Land and Fisheries (MALF) in Chaguanas and to private and public sector development partners, communities and producer organizations in Central and South Trinidad, significant historic centres of agricultural activity. Cunning, chaotic Caricom regimes stymied by precarity, ambiguity, uncertainty and atrocity throw ssand in the eyes of citizens becoming foragers, like primitive ancestors who created a desert in a once lush Sahara. ]

 

 

Moderate M5.7 Earthquake

July 14th, 2022

At 3:16 PM on Thursday, July 14th, 2022, the University of the West Indies Seismic Research Centre (UWI SRC) recorded a moderate magnitude 5.7 (mt) earthquake west/northwest of Trinidad. The earthquake was located at 62.480°W and 10.780°N, approximately 61.4 kilometers west-southwest of Macuro, Venezuela, 30.0 kilometers west-southwest of Güiria, in Sucre state, Venezuela, and 107.8 kilometers west-southwest of Port of Spain, Trinidad and Tobago. The event was located at a depth of 86.0 kilometers below the Paria Peninsula of Venezuela.

Information from the UWI SRC concerning the earthquake west/northwest of Trinidad. UWI SRC records earthquake west/northwest of Trinidad.

This information has been reviewed by an analyst at the UWI SRC, the authority for seismic and volcanological information in the Eastern Caribbean. Light to moderate tremors were reported across Trinidad, with areas across the Paria Peninsula reporting strong tremors. The United States Geological Survey recorded this quake at a magnitude of 5.5, in a similar location to the UWI SRC at 111.5 km depth. Venezuelan Foundation for Seismological Research recorded this quake at a substantially weaker magnitude of 4.9 at a depth of 16.2 kilometers

The minor earthquake was felt throughout Trinidad. In Port of Spaina a short, medium tremor settled and returned at a lesser intensity. Social media reported the quake being felt in northern areas of as Arima, Santa Cruz and St Augustine and in central towns of Chaguanas and Point Lisas. At the towers at the Waterfront Centre, Port of Spain, online observers posted that the quake was unsettling at that height.

 

Sadie Samsoondar in Switzerland

GEOLOGICAL SOCIETY

Dark corridors, narrow winding staircases, and hidden Trinidad treasures lay within the Natural History Museum in Basel (NMB), Switzerland. I am a Trini micropalaeontologist (I study microscopic fossils) researching the Trinidad archives at the NMB.

Since the early 1900s, Swiss (and other international) micropalaeontologists were drawn to Trinidad for the exploration of oil.

Dr Hans Kugler (1893-1986), a Swiss micropalaeontologist and geologist, gained the honoured title as “father of Trinidad’s geology” after working in Trinidad for more than 45 years. In 1959, Hans Kugler retired back to Basel after which he became the honorary head of department at the NMB. At the NMB, he preserved a great amount of Trinidad’s history in the form of maps, documents, literature, photos, and samples. Samples range from rocks, microscopic and macro (can be seen with the naked eye) fossils, cores from oil wells, and thin sections (thin slices of rocks that are examined under the microscope).

I am the first Trinidadian researcher to re-establish a connection with the NMB after more than 25 years of dormancy. I am providing expert insight into the Trinidad archives. Some of my interesting finds include some of the oldest macro fossils found in Trinidad, historical photos of early oil wells and famous microscopic fossils.Photos and material presented here were sourced from the micropalaeontological collections at the NMB1.

Photo 1 shows a fossilised cephalopod found in northern Trinidad. Cephalopods are shelled marine organisms that lived in the world’s oceans between 450 to 66 million years ago.

Interestingly, Trinidad’s Northern Range is of different origin than central and south Trinidad. Around (at least) 22 million years ago, the movement of the Earth’s crust resulted in the translation of the Northern Range land mass from the Venezuela area.

This land mass was subsequently welded onto the land mass of the central and southern Trinidad. As such, fossils found within the Northern Range may not always be found in central and south Trinidad and vice versa. This also explains why oil, found abundantly in south Trinidad, is not found in northern Trinidad.

Photo 2 shows oil well No 2 drilled in Guayaguayare, south Trinidad, in December 1902. The well was completed to 1007 feet in March 1903 and had several oil shows. In 1857, the first documented oil well was drilled in La Brea by Merrimac Company. The well struck oil and was drilled to approximately 280 ft. However, due to low funds it was classified as being unsuccessful.

Kugler Archives at the NMB reported in 1797 the first occurrence of hydrocarbons in Trinidad by Sir Ralph Abercrombey: a gas eruption with bitumen off the coast of Mayaro, south Trinidad. Trinidad plays an outstanding role in the development of micropalaeontology.

Micropalaeontology occupies a central role in modern earth sciences and in the petroleum industry. Microfossils help us date the rocks within which they are found and tell us what the earth was like when the organisms were living.

In the 1960s, a small group of micropalaeontologists working at Trinidad Leaseholds Limited (later Texaco Trinidad), Trinidad, derived a reliable standard for dating and correlating Cretaceous and Tertiary sediments of Trinidad. These micropalaeontologists were HH Renz, RM Stainforth, B Caudri, P Brönnimann, HM Bolli, WH Blow, JP Beckmann and JB Saunders, who worked under the guidance of Hans Kugler. These works in Trinidad subsequently stimulated similar works in other parts of the world.

Photo 3A shows reference slides (7.5 cm x 2.5 cm) for plankton stratigraphy prepared by HM Bolli. These slides provide a global standard used for dating sedimentary rocks based on their microfossil content. Some of HM Bolli´s microfossils were collected along the “Cipero Coast” which is the geological name given to “duck pond” near Kings Wharf in San Fernando, south Trinidad.

Photo 3B shows the Cipero Coast in 1957. This coast is a type section, ie it is the first place (globally) that specific fossils were found and documented. This coast is an international type section and should be protected for its global micropalaeontologic significance.

Photo 3C shows microscopic fossils (less than one millimetre) which I prepared for my PhD thesis, research papers and co-authored e-book. These fossils belong to the same rock layer (the Cipero Formation) as those collected by HM Bolli in Photo 3A1. The fossils belong to a group called foraminifera which are single-celled, calcareous shelled, marine organisms. This group existed since 550 million years ago. Fossils in 3C are approximately 16 million years old.

Fossils in 3C once lived in the ocean that was over present-day southern Trinidad 16 million years ago. The ocean was more than 2000 metres deep. Sedimentary rocks deposited here later became a major producing hydrocarbon reservoir in Trinidad.
For more scientific details about my research on Trinidad microscopic fossils, see my e-book Early Neogene Stratigraphy and Palaeoceanography of Trinidad, West Indies: A Fresh Perspective. 4.

My research at the museum shows the importance of specialist investigations into historic documents. Connecting primary literature with the objects stored at institutions restores its usefulness for future scientific investigation.

The Trinidad archives at the NMB also show the importance of preserving our history. Trinidad’s history is rich and full of scientific accomplishments. Learning about our past is key to achieving scientific progress in the future. Hans Kugler’s legacy at the NMB displays synergy between openly published academic research and its application into the oil and gas industry. Industrial micropalaeontology greatly declined in Trinidad and other parts of the world since the 1970s.

I am proud to be a Trinidadian woman in micropalaeontology. It is my hope that local universities and industries financially support more scientific research that will benefit Trinidad it many ways.

References
1 Micropalaeontologic Collections at the NMB. The micropaleontological collections at the NMB (unibas.ch)
2 Hans Kugler Stratigraphic Collection at the NMB.
3 Trinidad Photo Archive at the NMB
4 Samsoondar, Sadie, Wilson, Brent, Farfan, Philip, 2020. Neogene Stratigraphy and Oceanography of Trinidad – A Fresh Perspective. Nova Science Publishers (Hauppauge, New York, United States).

Sadie Samsoondar is a micropalaeontologist specialised in deep-water Miocene benthic foraminifera and the historical development of micropalaeontology in Trinidad. Her past research reconstructed models of ancient environments for south and central Trinidad during the Miocene. Regional inferences across the wider Caribbean area were also drawn. She is now a researcher at the Natural History Museum, Basel, Switzerland working on the project, Digitizing the Kugler Archive:           Link to the collection.

GSTT conference
https://vepimg.b8cdn.com/uploads/vjfnew/3393/content/files/1657536855gstt-7th-conference-proceedings-1-pdf1657536855.pdf

 

 

Raising output to benefit from high prices

Jul 12 2022

At the 7th Geological conference of the Geological Society of T&T (GSTT) in Port-of-Spain, Minister of Energy Stuart Young told companies to move quickly to grow production saying oil and gas output needed to rise for the country to benefit from improved prices.
The best chance for immediate growth in oil production resides with SOC Heritage Petroleum Company Ltd, the country’s leading oil producer and the largest holder of onshore acreage. The company has exploration and production rights onshore, primarily located in the Southern Basin and in its offshore acreage in the West Coast Marine Area.

American energy company EOG Resources, which has a 65 per cent interest in a Block with Heritage, and is the operator, has spudded an exploration well and is expected to complete drilling in one month. The farm-in area comprises of 14,870 hectares over the wider Trinidad northern area E&P Licence comprising approximately 97,000 hectares.

“The first exploration well was spud on June 10, 2022 and drilling is projected to be completed in 30 days. We are looking forward to good results and increased oil production from this venture,” Young told delegates.

On its onshore acreage, Heritage has been securing a joint venture partner for its North West District, located within the western segment of the Southern Basin geologic province. The North West District is covered by a 3D seismic survey of approximately 287 sq. km, currently being reprocessed. In the interim, the process for engaging a joint-venture partner has been deferred pending the completion of the reprocessing exercise.
Natural gas production received a major boost with the start-up of BPTT’s Matapal, Shell’s Barracuda and BHP Ruby-Delaware in 2021. The momentum continued into 2022 with BPTT’s Cassia C Development and Shell’s 8 Colibri project, both of which were negotiated in 2018/ 2019.
Shell’s Country Manager Eugine Okpere told the conference the success of Colibri and Barracuda means for the first time since 2016 Shell is producing more than 850 million standard cubic feet of gas per day.
Over the next five years, projects with gas reserves of 3.0 tcf are earmarked for sanctioning.
Government is pursuing an ambitious exploration programme that commenced with the deep-water bid-round in June and continued with the onshore bid-round. The shallow-water bid round is being finalised for its intended launched before the end of the year.

Energy Ministry launches onshore bid rounds

THE Ministry of Energy launched its 2022 competitive bid rounds for onshore/nearshore blocks at the seventh Conference of the Geological Society at the Hyatt Regency, Port of Spain.

Acting senior geologist Kimberlee London said the bid round would last six months until January 8. Blocks will be awarded three months after the close in April 2023. Oil and gas companies can bid for exploration and production (E&P) on the blocks which extend from central to south-east, south and south-west Trinidad. Eleven blocks are offered- Aripero, Buenos Ayres, Charuma, Cipero, Cory D, Cory F, Guaraguayare Onshore, Southwest Peninsula Onshore, Southwest Peninsula Offshore, St Mary’s and Tulsa.

London read a brief background to each block, such as the names of past occupiers and their reversion to the government for non-exploitation. Acreages were typically 10,000-13,0000 hectares. Each bid must be accompanied by a US$30,000 application fee or its equivalent in TT dollars. Bids will be evaluated by using both a model licence and a point system. Successful bidders shall execute an Exploration and Production License with the state within 30 days of notification of a successful bid.

E&P licences were awarded for six years initially, with an optional extension for 25 years and then five more years. For each year of holding an E&P licence, a company must supply the ministry a work programme for that acreage.

Each bid contains proposals in technical and commercial evaluation of the block, minimum work programme, minimum expenditure obligation and signature bonus.
Bids should be submitted under confidential cover to the Office of the Permanent Secretary, Ministry of Energy and Energy Industries by 12 noon on the deadline date. Clause Five was amended to allow payment in local currency as concerns were raised by some onshore operations.“They indicated that based on the type of companies that we expect to come in and the range of blocks that we have for the onshore that we should be able to allow the process to include payment in TT dollars and we have incorporated that into our bid round.”
This fee entitles the bidder to receive the data package and the right to bid on any or all of the blocks. Bidders are required to deliver an oral presentation in support of their technical and commercial evaluations to the relevant ministry personnel.

The decision proceed with E&P license was made because of legacy licenses and the challenge of having a Production Sharing Contract (PSC) on land.

Bid rounds were conducted under the legal authority given by the Petroleum Act, Petroleum Production Levy and Subsidy Act and the Petroleum Taxes Act. The Petroleum Act lets the line minister grant the E&P licences, subject to competitive bidding.

Also due soon are the shallow water bid rounds. Last month the 2021/2022 deep-water bid round for 17 blocks attracted four bids by a consortium of bpTT and Royal Dutch Shell.

 

 

De Novo finds Zandolie gas

De Novo Energy announced  delivery of first gas from Zandolie field off the west coast of Trinidad. The unmanned minimal facility is the second offshore facility owned by the ProMan subsidiary.

“De Novo has once again proven its commitment to increasing TTs gas supply by developing standard and marginal gas reserves.”

De Novo invested US$52 million to build the Zandolie platform, a single-well, conductor-supported platform with a capacity of 40 mmscfd. It took 31 months to build the platform, the first of its kind, powered by wind and solar energy, fabricated by local personnel. Minister of Energy Stuart Young commended the company on its first gas achievements.

“I am very pleased to witness this successful milestone achieved by De Novo. The story of fabrication, skills and personnel used by Zandolie proves that it can be done.”

 

 

Heritage to lift oil production

Jul 20 2022

* Company plans to drill 10 wells on land this year
* Joint Venture partner exploring for additional reserves
* Will produce more oil in midst of high prices

As crude oil prices exceed US$100 a barrel, SOC Heritage Petroleum has two rigs drilling on land to increase output and another 10 to 12 workover rigs running to maintain its base production.
The plan is to drill ten wells before the end of the year with five already completed. It created over 700 temporary jobs, many in fenceline communities.

“On land, we have been ramping up activity. Two drilling rigs are now executing our Land Forward drilling programme (FDP) with 10 development wells being drilled this fiscal year: five already completed and are being put on production and six and seven near completion.”

This drilling programme is focused primarily in its Palo Seco, Forest Reserve and Point Fortin Central fields. The company continues to build on its success, working to increase production while keeping safety at the core of its operations.

“This is key as Heritage’s production is 60 per cent of T&T oil production. As the ripple effect of the Russia-Ukraine war is felt across the world and commodity prices continue to rise, we are taking stock and revising our strategy to leverage opportunities that support production growth.”

Successive governments have pointed to Heritage and before it Petrotrin as crucial to T&T’s increased oil production, owning most of the land acreage,with significant holdings offshore, South West of the island in the Gulf of Paria.

Energy Minister Stuart Young told a conference of the Geological Society of T&T, “At this juncture, the potential for future oil production, lies with state-owned Heritage Petroleum Company Ltd, which is the country’s largest oil producer and the largest holder of onshore acreage. The company has exploration and production rights onshore, primarily located in the Southern Basin, and in its offshore acreage in the West Coast Marine Area.”

Significant challenges include operating in mature fields, most decades old. Heritage knows it is in areas that has produced and can continue to produce oil but extraction and maintaining production require constant investment. The company noted that 11 to 12 workover rigs are in operation continuously in the land business unit, to ensure it maintains base production by running well servicing jobs, while growing production with 20 heavy workovers for fiscal 2022.

“Six Swab wells are also working in the fields doing over 40 jobs per day. In the offshore Soldado fields, one workover rig is currently in operation with a plan to complete 15 heavy workovers this year.”  The forward drilling programme will extend to its offshore acreage with wells in is East Soldado field.

“A robust FDP for offshore has been completed with a plan to drilling the first two development wells in East Soldado fields starting in August 2022. The rig that is now drilling the exploration well CP1 in our joint venture partnership with EOG in Southwest Soldado will be moved to the spud the locations in East Soldado in the Heritage acreage after completion of the CP1 well.”

Young also alluded to the exploration well which he hoped would be successful.
“As regards its offshore acreage, Heritage signed a farmout agreement and joint operating agreement with EOG Resources Ltd for exploration and development of its East Field in its Trinidad Northern Area. Heritage also invited proposals for the joint development of its Jubilee field in the Soldado Block off Trinidad West Coast Marine Area. Following an extensive and globally focused EOI and RFP process, Heritage has entered in negotiations with the preferred bidder on a joint venture arrangement to develop the Jubilee area, including the redevelopment of the existing brownfield acreage.”

Young mandated Heritage and the Ministry of Energy and Energy Industries to work with lease out, farm out and work over companies to increase oil productio. He is prepared to take hard and difficult decisions, including, relinquishment of acreage from block holders who are not producing and fulfilling obligations.

Heritage is continuing to build local sustainability throughr land and offshore drilling and workover programmes, with the majority of the over 700 people employed by over 15 contractor companies supporting these operations, providing services coming from fence line/neighbouring communities.

The company was also committed the reduction of its carbon footprint and operating sustainably.  “Heritage continues to shape our sustainability agenda and has published our first Environmental, Social and Governance (ESG) Report on July 5, on our corporate website. This report tells the narrative of our journey highlighting our key achievements and our commitment to continuous improvement, our monitoring and reporting of greenhouse gas emissions and our people agenda. It will provide a baseline for measuring future progress and as we move ahead, we will provide updates on our programmes, policies and initiatives as well as an evaluation of key ESG risks and opportunities via this medium.”

 

 

Early budget

The Prime Minister announced that Finance Minister Colm Imbert will present a review of the economy and lay the appropriation bill for the financial year 2022-2023 in Parliament. After presenting two budgets amid a pandemic and a global economic crisis, the government will in two months deliver its third budget in its second term, earlier than its usual time in October.

As the business community braces for the early budget, responses expressed concern or preference.  Amid mixed reactions to news of an early budget and financial review, Charles Pashley, president of the Trinidad and Tobago Chamber of Industry and Commerce said it is better to know early whether the news is good or bad.

“When you have potential challenges, it is better you plan ahead of these challenges. So having an early budget is a positive indication that we are taking our challenges seriously and therefore want to put plans in place to grow out of the challenges. Whether it is good news or bad news, it is better to face it early. If it is bad news you can plan for it and if there is good news, well, then we have more time to go and build on that good news.”

Pashley highlighted the reality that the world is still battling a pandemic on both public health and economic fronts which has made things difficult the world over.
“When you talk about debt and the debt to revenue side of things, that will continue to be a plague for the world for the foreseeable future. Inflation and supply of goods and services will continue to be a challenge over the next 24 months or so in those areas, so we expect that there will be some discussion around that.”

Some promises materialised after the 2021-2022 budget was laid in October, based on assumed oil and gas prices of US$ 65 a barrel and US$3.75 per MMBtu respectively. Total revenue based on the assumed prices was $43.3 billion and total expenditure was $52.42 billion, leaving a fiscal deficit of about $9.096 billion. Of the total revenue, it was expected that $12.6 billion would be revenue from oil.

Out of revenue, government planned to provide a supportive environment for growth in the private sector, entrepreneurs, domestic businesses and foreign investment and further build the manufacturing sector. Government planned to continue paying VAT returns to businesses to help them with a better cash flow.

As a result of worldwide shocks and uncertainty, oil prices soared past predicted prices. WTI Crude oil prices on July 20 stood at US$102.6 a barrel and Brent crude was US$107 a barrel.

According to the mid-year review presented on May 16, the additional revenue from higher oil prices stood at about $3.081 billion. It proposed that government use revenue waterfall to clear arrears, pay outstanding gratuities, subsidise fuel, fund demands for social welfare and pay increased wages for public servants on completion of negotiations.

On VAT returns, government wll pay out a total of $4 billion to businesses this year with an increase of $1.6 billion from extraordinary oil revenue. Pashley appreciated government plans to address the slow flow of VAT returns which hurt businesses.

“VAT refunds are a significant drag in terms of companies’ cash availability.”

Cash flow is a critical factor for the success of any business, and VAT refunds, or rather, the delay in payment of VAT refunds for local businesses have become a drag on the economy.

“It also increases the cost of doing business because businesses then have to take heavy debt financing to keep them afloat. We feel that improving the refund system and improving efficiency in the VAT system will significantly help the efficiency of businesses where they will be able to utilise the investment funds in growing the business instead of securing capital.”

TT Chamber looks forward to the positives following rises in energy prices and what would be done with the additional revenue.
“We hope the government utilises it to push diversification of the economy faster, improve the ease of doing business and support SMEs that have the opportunity to create employment in the country quicker.”

He suggested that government prioritise opportunities for export markets that would either secure more foreign exchange or save whatever forex TT already has.
“We have the global push for food security which we believe a well-constructed agro and agro processing drive will redound to the benefit of the country. With enhanced revenue you are going to get the benefit of having more cash available for the diversification of the economy.”

Arima Business Association president Christian Rampersad is worried. “An early budget is not a good thing. If you are having an early budget that could mean that you have run out of money early. You have to look at running a country like running a household. If in the middle of the month or before pay day, you say I need a tax injection or I am going to see what I have to do and I am going to plan early for that, that means that something is either wrong or something very good has happened. But usually it is because something is wrong.”

Government made promises and even came through on some. In Arima, maintenance is now being done on infrastructure which leads to greater activity and a relief on businesses.

“You will see some pot holes being patched and general maintenance being done. A lot of these things were neglected while government was focused on battling the pandemic. This will result in greater activity. Once you start doing things like maintenance there is a trickle-down effect, where the money will go into the hands of people in lower to middle income families, they will spend and when they spend it would start the wheel turning for the economy.”

Chambers urged government to follow a strategy to ensure that VAT returns are paid consistently and on time. VAT returns are appreciated but San Juan Business Association President shared the view that any additional revenue to alleviate the problem is always a good thing.

“You have to understand that when a business doesn’t get its VAT returns in a consistent and timely manner, they have people that they have to account to. You have to be able to protect the cash flow.

Windfall revenue could be a temporary fix to a permanent problem, because of the volatility of the price of oil, which in 2020 sank to a low of US$3 a barrel.

“This is an issue that has been stifling businesses for a very long time. When you are unable to predict your cash flow in terms of money and money out and you are waiting on a return for two to three years, it does not augur well for the relationship with the bank and it impacts your credibility. I welcome the additional resources to rectify the problem, but obviously more has to be done.”

A better system for payment of income tax refunds is urged for employees who file their income tax but do not get the returns in a timely manner. The association looks forward to hear what would be done about pandemic stimulus packages for businesses and people alike.

“We want to see what plans the government have with fiscal policies to bolster the economy from the ravages of the pandemic.”

 

 

Oil down but not for long

Fuel was cheaper than bottled water in the oil-rich United Arab Emirates. Oil once cost less than milk in Britain. Now, long queues snake outside gas stations amid price hikes. For the first time since April, the price of oil sank below $100 a barrel, because global shocks reduce demand . Crude oil fell to US$99.64 (Brent) and US$96.30 (WTI) from highs in February of US$105.79 (Brent) and US$100.54 (WTI); highs not seen since 2014.
Kevin Ramnarine, former energy minister said that the price will not stay below $100 for very long, as the colder months will see a spike in demand for oil and gas to keep temperate countries warm.

Trinidad and Tobago’s role in the oil, gas and petrochemical sectors may soon be greater than it was before. It will benefit from higher prices and higher demand as countries around the world face energy crises and possible recessions. Reduction in demand because of high fuel prices, strict PRC regulations on covid19, Russia/Ukraine war and concerns over the state of European economies all contributed to the overall price of oil going down. The ripple effect the high price of oil earlier in the year had on other commodities such as fuel and transport caused demand to dwindle as consumers began managing and reducing costs.

“There comes a point where an increase in price leads to ‘demand destruction’ where consumers makes a decision that they are not going to consume as much as they used to. That demand destruction is beginning to set in around the world.”

China’s harsh stance on covid19 also negatively affected its ability to recover after one of the more stringent policies in the world.

“In China, entire cities are shut down because of a few cases. So because of that approach China’s economy has not yet returned to pre-covid state and their demand for oil has not yet returned to pre-covid levels.” Millions of Chinese were sent back inside and businesses forced to shutter their doors after clusters of cases sparked restrictions.

Health authorities reported over 300 infections in Xian and new clusters in Shanghai, Beijing and other provinces. China’s low demand coupled with the Russian conflict’s effect on European economies also weighed down the price of oil.

“There is an increasing fear in the marketplace that the economies of the world and Europe in particular are in serious trouble. The Euro zone has some of the largest economies in the world, with Germany, France and other countries being considerably large. There is a concern that Europe could dip into recession and the United States (is) also showing similar signs. I am not saying that it will happen, I am saying that there is a fear of it happening. That fear is being reflected in the market.”

The colder months when Europe and the US will need heat will see its usual increase in demand for oil, thereby raising the price above US$100 once again.

“To coin the phrase from the popular TV show, winter is coming. When winter comes there is an increase in demand for oil and natural gas for heating. Oil prices tend to increase closer to winter.”

Because of sanctions levied against Russia and Russia limiting the gas supply to Europe, many European countries are now even resorting to coal to maintain a power supply to the region.

“The price is still high and it will stay that way – between US$80 to US$130 – for some time.”

Because of the high prices of oil gas and petrochemicals, the country is benefiting but not as much as it could be. Because TT is not producing as much as it should – averaging at about 55,685 barrels a day – it is not benefiting from the current oil boom as in the past.

“Usually when TT experiences an oil boom it is when oil is at a high price, and there are high levels of production. We have had two oil booms since independence. The first was in 1973 to 1982, the second was between 2003 and 2008. Now, there is a high price, but there is not enough production.”

Ramnarine said TT will have more opportunities to cash in on Europe’s demand for oil and gas, especially as the Russian invasion drove the region into an energy crisis.

“Europe is facing an energy crisis of their own making because they allowed themselves to be too dependent on Russia for gas. To switch from Russia to other sources of natural gas is not something that could be done overnight. It could take years to change that. TT is providing Europe with much needed energy security through our shipments. LNG shipments go as far as Lithuania, which took a decision years ago to not be dependent on Russian gas.
“Our role in what is happening in the world is by no means inconsequential. But it would be preferable if we had more cargo to send.”

 

Cap fuel subsidy at TTD1billion

THE Prime Minister said Cabinet might cap government subsidy to the price at the pump paid by drivers to $1 billion. The subsidy was still in place, despite claims by detractors. On the subsidy of LPG sold, he dared listeners to contact relatives in other Caribbean countries to see what they were paying for a tankful of cooking gas. If the world market price rises to exceed this $1 billion cap, the consumer will have to pay the difference.

Finance Minister Colm Imbert would address the nation on the country’s economic situation in early September. He welcomed inflation at five per cent, lower than US at nine per cent and European countries at seven-ten per cent. The PM warned the population not to take for granted the current windfall in revenues caused by world events such as Russia’s invasion of Ukraine.

On wage negotiations, he urged unions to return to the National Tripartite Advisory Committee (NTAC). Legislating NTAC’s existence and operation would not be feasible.

Rowley considered how to allocate the extraordinary $8.14 billion in energy revenues recently earned. Mulling the Government recent allocation of $2.6 billion to adjust the national budget, he said if this sum was subtracted from the $8.14 billion in extra energy revenues, the remaining sum would be $5.5 billion. Government’s latest offer of a four per cent wage rise to public servants alone would cost a lump sum of $2.4 billion in back pay plus an extra yearly commitment of $490 million. If the pay-hike was extended to all public sector workers, it would cost a lump sum of $4 billion in back pay, with a yearly increase in the wage bill by $800 million.

The PM asked if the country should commit to these wage-hikes when it was likely the current high energy revenues would prove to be temporary. The US Government recently acted to successfully force down the gasoline price to US$4 per gallon, which had pushed down crude oil prices. He said those prices could fall further.

He warned a scenario of a ten per cent wage hike could push back pay owed to public servants up to $5.8 billion plus a recurrent cost $1.1 billion per year. If this rise was applied to all public sector workers, the back pay owed would be $11.6 billion and the annual increase in the wage bill would be $2.2 billion. Labour leaders were seeking an overall 20 per cent hike, which TT could not afford at current levels of energy earnings.

Guyanese President Irfaan Ali will visit TT on August 18,. Jamaican Prime Minister Andrew Holness will visit for TT’s 60th independence celebration with Independence Day on August 31.

 

TT Dollar makes petrostate uncompetitive

The current value of the Trinidad and Tobago dollar is having a negative impact on the country’s ability to trade and attract foreign investment outside the energy sector.

Ernst & Young Caribbean executive chairman, Wade George told the TT Chamber of Industry and Commerce business outlook meeting Navigating the Way Forward, TT was losing ground against its natural trade competitors, with the US dollar at a 20-year high,

“I think it is important, I’ve seen a lot with foreign investors and I think I understand the logical reasons why the Government wishes to keep the current trading rate. I think the tradeoff is very simple. We are subsidising imports while we are penalising exports. The US dollar is at a 20-year high, therefore we are less and less competitive against our natural competitors.

“You create a system where you have a lot of haves and have nots in the trading area. Some have better access than others. And of course, when you think about a foreign investor bringing in hard currency in TT, outside of the energy sector, they have to ask themselves the most fundamental questions how do I get my money back?”

A high-ranking executive at a leading accounting firm, George explained that the global economic situation was quite troubling and, as a response to the covid19 pandemic, there were unprecedented monetary and fiscal policies unleashed in magnitudes that were never seen in history. Global commodity markets were in serious slowdown and with petroleum prices drawing down over the past month, TT needed to consider the long-term structural concerns which remained deeply rooted in the oil and gas sector.

“I think it’s no surprise that our economy remains highly levered to the petroleum sector, and this is not necessarily a bad thing. It is what it is. Production volumes have been declining and they have not performed in accordance with forecasts. We are consistently spending more than we are earning. And we are depleting our reserves of foreign currency.”

Areas for Government-led transformations included fixing the energy sector for ramped up production, investments in renewables and current currency trading. In March, an IMF report said the TT dollar was overvalued by 20 per cent, hinting that floating the dollar might be a good option.

“Looking to the future, exchange rate flexibility, if properly utilised, would reduce the need for fiscal tightening to achieve external balance and create room for countercyclical monetary policy.”

IMF urged the Exim Bank to replace its hybrid exchange-rate system and special-purpose windows by “modernising FX and money market infrastructures.”

Minister of Finance Colm Imbert said Government was not considering the IMF recommendation .

“We intend to maintain the status quo with respect to our exchange-rate regime. We do not intend to devalue the currency. There is absolutely no reason to do so.”

 

 

Touchstone projects high gas flow from Cascadura

Touchstone Exploration (Trinidad) Ltd expects Cascadura Field to produce up to 200 million standard cubic feet per day (mmscf/d) of natural gas with the aid of new separators by 2023.

The company revealed the equipment housed at its Forest Reserve Road, Fyzabad office. The large CAS-1 ST1 and CAS DEEP-1 horizontal separators and the vertical flash separator were shipped from Stettler Alberta, Canada, while the vapour recovery units were shipped from Midland Texas, USA.

When Cascadura starts production, it is expected to produce 60 mmscf/d and then ramp up to 90 mmscf/d by end of 2022 from the two existing wells. Exploration manager Xavier Moonan said,

“The Cascadura field, from getting all that data from these two wells, we were able to establish that there’s potentially 700 billion cubic feet in place. That’s impressive in onshore gas fields. That makes it actually the largest onshore gas field ever discovered in Trinidad. Natural gas will go to Point Lisas but there are also liquids (condensate) which will go via a pipeline, that we will construct southward and that’s where we will be able to add oil production to the country as well.”

To boost current natural gas supply, the National Gas Company (NGC) will build a 20-inch 1.6km long gas pipeline which will tie the Cascadura facility to their 30-inch Beachfield-Phoenix Park gas pipeline to supply gas to downstream plants at Point Lisas.

General manager of operations Christopher George said Touchstone was awaiting relevant approvals, such as its certificate of environmental clearance (CEC) and environmental impact assessment (EIA) from the Environmental Management Authority (EMA) before the separators were installed.

“Initially the determination time would have been June 30. However, we would have had review assessment reports that the EMA will get back to us with if there are any additional questions or things that needed to be addressed. We would have had to have those that came from the EMA and as a result of that the termination period from the end would have been shifted. We are hoping to have a very quick turnaround in terms of having that approved. We’re just preparing our final review assessment report to be sent back to the EMA and then they will have their review done. Only then will we be able to know what the determination regarding the EIA is.”

The magnitude of the production from the Cascadura field, once maintained, can be enough to run one of Atlantic’s LNG plants, thereby tremendously benefiting TT. The equipment was brought in by Ramps Logistics and its vice president of shared services, Javed Razack said with the challenges in freight and shipping, the cost of bringing in the equipment was hefty.

“In the current global supply chain environment, we understand that moving things around is quite difficult, it has been like that since covid19 and it continues to be quite difficult given the war in Ukraine. The cost factor for the logistics alone would be in the vicinity of US$250,000. Freight has exponentially increased its cost in the last couple of years. Unfortunately, the logistics costs have increased project costs by quite a lot. We’ve done our best to try to keep it down and work with our partners to minimise costs on this project.”

Touchstone said the separators were a major milestone towards establishing the Cascadura facility which was TT’s first onshore liquids-rich natural gas project in 20 years and a significant leap for the development of the oil and gas industry.

 

 

bpTT flagship Cassia C approaches first gas

 bpTT reported Cassia C development is progressing and will achieve first gas in the fourth quarter of 2022.  The IOC giant said development of the platform is in the commissioning phase, the final phase before first gas, after mechanical completion in April. All components, including the stand, built by Trinidad Offshore Fabricators in 2020 and the topside built in Altimara, Mexico and installed in 2020, are in place and ready to begin production.

Project general manager, Trinidad, Michael Daniel expressed pleasure at progress of the platform.

“It is great to see Cassia C progressing through this last phase of delivery. Natural gas from the Cassia compression project is important to bpTT and TT and our business is working hard to bring the facility online. Offshore compression represents a new challenge for our business in TT and it’s exciting to be able to use this approach to access more of our gas resources.”

The Cassia C platform will be bpTT’s first compression platform and its biggest facility to date. It will give bpTT the ability to access and produce low pressure gas resources from the greater Cassia area off the south-east coast of Trinidad. Cassia C will be bpTT’s 16th offshore facility and will connect to the Cassia hub, 35 miles off TT’s south-east coast. It is expected to produce between 200 and 300 mmscfd which will go toward meeting the company’s gas supply commitments.

 

 

Trinity Exploration & Production plc

(“Trinity” or “the Group” or “the Company”)

Drilling commenced on six well onshore campaign

Trinity Exploration & Production plc (AIM: TRIN), the independent E&P company focused on Trinidad and Tobago, announces that drilling operations have commenced for the first well of its 2022 six well programme.

As previously outlined, the fully-funded drilling programme, which includes conventional infill wells, a horizontal well and a deeper appraisal well, is targeting an aggregate 450 – 1,100mbbls of reserves at a cost of US$14m – US$17m. These are significantly higher volumes per dollar of capital invested, that in a success case, would generate materially increased cash returns compared with previous drilling programmes.

Management believes that the potential returns from the proposed horizontal and deeper appraisal wells could underpin a material increase in production rates and potentially unlock previously untapped deeper pools of hydrocarbons. If successful, the horizontal well could yield production rates and returns c.3x those achievable from conventional infill wells, with the wider programme also benefiting from the mapping and integration of the 3D seismic acquired in 2020, enabling a more targeted and de-risked approach to the Company’s drilling activities.

Overall, management is confident the Company can support a multi-year onshore drilling programme from the prospects and leads identified from the evaluation of the 3D seismic. The 3D seismic interpretation has, to date, identified a “hopper” of c.40 infill opportunities, which includes c.35 conventional wells and c.5 high angle/horizontal wells. The successful drilling of the deeper appraisal prospect would add more highly attractive prospects to the hopper, giving greater line of sight on the Company’s ability to deliver on its stated ambition to double production by 2024.

While the Company has a firm timetable in place, inclement weather conditions could have an impact on workflow. Noting the current orange-level tropical storm warning in Trinidad, management will move to ensure the health and safety of its workforce and contractors – and if necessary, may opt to briefly pause drilling operations.

Jeremy Bridglalsingh, Chief Executive Officer commented: “We are delighted to have recommenced our drilling activities. We have a significantly improved our understanding of our acreage through the 3D data acquired, underpinning our confidence in the current programme while also positioning the Company to take advantage of future opportunities. We have set ambitious drilling targets as we focus on a step change in production, which could be further augmented by potential developments at our Trintes, Galeota and Brighton assets.”

Enquiries:

Trinity Exploration & Production plc Nick Clayton, Non- Executive Chairman Jeremy Bridglalsingh, Chief Executive Officer	Via Walbrook
SPARK Advisory Partners Limited (Nominated Adviser and Financial Adviser) Mark Brady James Keeshan	Tel: +44 (0)20 3368 3550
Cenkos Securities PLC (Broker) Leif Powis Neil McDonald	Tel: +44 (0)20 7397 8900 +44(0)131 220 6939
Walbrook PR Limited Nick Rome /Tom Cooper	Tel: +44 (0)20 7933 8780 trinityexploration@walbrookpr.com

 

 

Atlantic LNG in TT until 2200?

Jul 06 2022

. In 2021, during a pandemic and a global economic downturn, the first Trinidad and Tobago citizen was appointed Chief Executive Officer of Atlantic LNG. Ronald Adams described the last year as “challenging, interesting and rewarding.” Adams said he has always looked to a challenge and saw the Atlantic appointment as no different. In his first media interview, Adams discussed a wide range of topics including his role as CEO, the energy transition, strategy and Train 1. In the wake of the recent energy conference, Adams, with over 30 years’ experience, is cognisant of the transitions taking place in the sector, particularly toward clean energy.

The International Energy Agency forecast the world’s total renewable-based power capacity to increase to 50 per cent between 2019 and 2024. Many major oil and gas companies are accelerating spending on and diversifying into renewable and low carbon energy in response to growing concerns over climate change.

In 2016, Trinidad and Tobago, with 174 other countries, signed the Paris Climate Change Agreement. In 2018, TT deposited its Instrument of Ratification, signalling the formal commitment to reduce Greenhouse Gas (GHG) emissions. T&T’s Nationally Determined Contribution (NDC) under the United Nations Framework Convention on Climate Change (UNFCCC) is based on its Carbon Reduction Strategy. The Carbon Reduction Strategy was developed for the major emitting sectors, namely power generation, transportation and industrial sectors. It is consistent with implementing the provisions of the National Climate Change Policy. The aim of Trinidad & Tobago is to achieve a reduction in overall emissions from the three (3) sectors by 15 per cent by 2030 from Business as Usual (BAU), which in absolute terms is an equivalent of one hundred and three million tonnes (103,000,000) of carbon dioxide equivalent (CO2e).

Adams observed “Trinidad and Tobago has been a global player in the energy business for many decades. There is a new wave going through the energy business globally by way of the energy transition. The world is seeking more and more energy, but they are requiring that energy be as clean as possible.”

He admitted that transitioning to a reduced carbon footprint is key to remaining competitive and shareholders understand that but it can’t happen with the flick of a switch. Significant investments have been made over the years into traditional hydrocarbons. The sector must demonstrate to key stakeholders, new and existing markets, that they are transitioning, and changing the carbon footprint through plans and projects.

In relation to Atlantic LNG, Adams said, “We have been working on making infrastructure and equipment more efficient and changing the technology of the operations to reduce emissions, we are seeing a gradual but deliberate reduction in our carbon footprint.”

Atlantic has identified where 20-30 per cent of the emissions are generated and is committed to a 20 per cent reduction in emissions over the next four to five years. It is a multi-phased project over the next 5 to 10 years and the second phase will consists of electrification.

A 2021 report titled, Making Clean Electrification Possible: 30 Years to Electrify the Global Economy, issued by the Energy Transitions Commission estimated that electricity could represent up to 70 per cent of final energy demand by 2050, versus 20 per cent today.

Atlantic will continue to succeed and his confidence is built upon what he has described as a “Refreshed and evolved strategy.”
The strategy is built on several components including—safety, people, environment, sustainability projects and gas availability. He recognised the gas supply challenges of the past but identified the goal of creating a plant, that is capable and ready to receive and process every molecule of gas.

“We have set up ourselves, our equipment and our people in a manner to achieve this.”

To ensure the strategies are aligned to international best practices, Adams, identified global benchmarking and key metrics, as paramount to ensuring maximum return. Adams is confident Atlantic staff are capable of attaining these global metrics.

“There are core things that would remain constant—the front-line workers, the folks sitting in front of the console and operating the facilities, they are critical, and we have some of the best in the world, our workers have always been sought after. But with this transition, we have found ourselves in a position where we need now to work with our people to sharpen those new skills that allow us to change our mode of operations and to remain competitive.”

From inception, the Atlantic employee base demonstrated they can compete and hold their own. He has been asked to build on that solid base and get the organisation ready for a challenging future.

Five to ten years ago the future of the energy business became clear “the drive toward renewables was going to be key for continuity and sustainability of operations. That topped with a pandemic and global economic downturn, asked all in the business to think deeply on how to remain competitive.

Adams, an employee of Shell, has been seconded to the role of CEO and will return to Shell at the end of the period. On the appointment, Adams said it is a “great honour to be the first local CEO to lead such an important organisation.”

He gave credit to the locals who have walked into leadership roles before him in the energy sector and have paved the way for him.

“If you look at dynamic local leadership, the dynamic of Trinidadian leadership, I can think of folks like Robert Riley and Derek Hudson. I have benefited from being able to have discussions, to talk about the energy business, to talk about the nuances of being a local leader in a global space. I’ve been able to talk about what it represents.”.

The experience during a transitional period in the company and sector’s history has been important to his development. He remains committed to the ideals of hard work, resilience and a serious dose of humility while embracing every day as an opportunity to learn.

Adams said the regional conversations around Guyana and Suriname can benefit all.
“I look at this as a region, with what is happening in Guyana and Suriname and other islands pursuing a similar agenda, it is good for the region.”

If you look at the TT agenda, “we are leading in the space of gas, we have a long history of transitioning from oil to gas….We have the experience and infrastructure that is largely a depreciated asset, and that for the investors is a competitive advantage when you consider the cost of building a new plant. We already have infrastructure and capacity here.”

With the focus on generating new sources of gas, Adams said he can think of some of the projects that will come on in the later part of this decade, that will bring incremental gas, that will find its way through Atlantic and the downstream petrochemical sector. He is confident that if conversations continue to take place, it will allow for enhanced opportunities.

“If we are able to unlock that and deal with the geopolitics surrounding that then we have essentially a well run, well supported infrastructure that allows our shareholders to get to their global markets in a competitive manner , that is significant advantage.”

Adams said it is understandable that Train 1 discussion generated such interest and that a conversation is taking place which is not an easy one among the shareholders of Atlantic LNG , the government and interested parties.

“Those discussions, as I am aware are progressing quite well ,and they are important for a couple of reasons. In an environment where we have constrained gas resources- any decisions that are made to simplify the commercial and governance structures of Atlantic LNG as it is today, is going to help us all, to put ourselves in a position to process all available gas, and to process it as efficiently as possible.”

Atlantic LNG comprises four LNG Trains, with different shareholder structures and commercial arrangements

Train One: Shell 46 &, BP 34 per cent, NGC ten per cent, CIC ten per cent.

1. Train Two: Shell 57.5 per cent, BP 42.5 per cent.
2. Train Three: Shell 57.5 per cent, BP 42.5 per cent.
3. Train Four: Shell 51.11 per cent, BP 37.78 per cent, NGC 11.11 per cent.

Adams said the original structure is a complex one.

“The reality is conversations are taking place and in the fullness of time we will land an arrangement that would seek to ensure that Atlantic is sustainable not only for the next 5 years. But my understanding is that we are putting this arrangement in place so that we can have a competitive arrangement that is producing LNG in a sustainable, competitive and efficient manner for enhanced success for the 20 to 30, of even 40 years.”

Adams is confident that the right conversations are happening and is confident where Atlantic input is sought that it is heading the direction. He steered clear of divulging a timeline for the completion of those talks

“It would be difficult to put a timeline on this conversation, the discussions are happening, its high on everyone’s agenda.

Atlantic LNGcan remain relevant if Shell invests in Guyana to secure gas from the Gas-to-Shore project. It can acquire the assets of CNOOC in Stabroek Block to guarantee clean energy from a regional economic powerhouse for another century.

 

 

Renewable energy

3 jul

With more focus on renewables, the Oxford Business Group is advising that financial institutions will be central to T&T’s transition from traditional energy sources. In its latest report Is Trinidad and Tobago prepared for its green energy transition?  it emphasised that this country’s clean energy goal will only be successful with the support of financial institutions with climate finance lending and broader investment in green infrastructure.

Citing T&T’s framework of climate funds, green bonds and additional multilateral support, the report said banks and international organisations also have a role in setting the rules of the game.

Marc Jardine, Vice-President of Business Banking, T&T and Lead of RBC’s Caribbean Environment, Social and Governance (ESG) Committee noted that while many individuals and businesses are interested in bringing clean energy solutions to the Caribbean market at both the domestic and the international level, in most instances, infrastructure and national agendas are not yet where they need to be.

Jardine who evaluated the push to achieve net-zero carbon emissions in the report said to bring many of these solutions to fruition at the industrial and commercial level, amendments are required from a macroeconomic perspective by governments with regards to interconnectivity and access to grids.

He suggested there’s an opportunity to explore subsidies other than duty-free classifications and machinery imports that are exempt from value-added tax. Tangible tax credits to green energy producers should be considered.

“The transition to net zero must be orderly and inclusive to be successful, recognising the changes that need to occur in our daily lives and economies in terms of how energy and resources are consumed. We believe that how we get there is just as important as the destination. In reality, because sufficient energy sources are essential for life and work, we cannot simply flip the switch to clean energy. That is why partnerships and collaboration throughout the industry are essential.”

Many types of energy solutions are needed to meet growing global energy demand and the reliance on traditional sources of energy will realistically continue for some time to satisfy those needs.

Sustainable financing can help the transition by supporting clients that are involved in clean energy and other innovative projects that reduce carbon emissions or enhance resilience against severe weather events.

What ways can domestic businesses apply ESG principles to support the renewable energy transition in T&T? Jardine said it is imperative for businesses to consider long-term value creation and sustainability.  In the current context, this cannot happen without examining the impact of social and environmental factors on a wider group of stakeholders.

“There needs to be a long-term focus on customers, employees, communities, suppliers and shareholders, and a more inclusive approach to decision-making. ESG principles set a path for an organisation to do that, not least by identifying environmental guidelines that a business can incorporate into its policies, practices and products.”

The consideration of push and pull factors is critical when embedding ESG policies in a company’s operating ecosystem.  Businesses should understand that—in most cases—consumers gravitate towards sustainable products and services when they have a choice.

“As there currently are not many green energy sources available in T&T, local businesses must work towards developing their own and place additional emphasis on energy efficiency and conservation. ESG standards help set responsible lending practices for project funding, as well as aid in the development of product- specific initiatives such as personal and commercial solar power installations. “

The report noted that some progress has already been made regarding financing as Members of Parliament and CEOs of major banks in the country highlighted the pressing need for loans that encourage the promotion of sustainable energy, as well as a period of mergers and acquisitions activity to restructure and create entities fit for a new energy landscape.

According to the report, globally, financial institutions and capital markets have already incorporated climate-change-related risks into their lending practices. These can be leveraged in T&T to accelerate the move away from hydrocarbons, while still ensuring the buoyancy of the existing mature energy sector.

“A top-down policy focused on sustainable energy is set to have substantial benefits for other sectors, as the economy looks to diversify away from oil and gas into fast-growing, more marginal industries,” the Oxford Business Group further advised.

It also suggested that a balanced approach between maintaining energy security and driving the sustainable energy transition forward offers a wealth of opportunities for the this country, which has explored solar and wind energy sources but has yet to implement a comprehensive renewable energy roadmap.

Where does this country stand in solar energy compared to other Caribbean countries?

Electricity generation mix in T&T is still dominated by fossil fuels, the report said, adding that there has also been a “significant lack of investment by foreign and domestic companies” in the country’s renewable energy sector, which has hampered the development of utility-size solar projects.

However, increasing demand for clean and stable energy, in tandem with wider finance initiatives, is expected to be the primary driver for the solar power generation market in the country.

“Trinidad & Tobago has been one of the most active countries in the region in terms of designing and prioritising policies for solar energy,” the report said.

In highlighting key developments of T&T’s solar energy progress the report noted that the country’s installed capacity for solar energy is forecast to register a Compound Annual Growth Rate (CAGR) of 109 per cent between 2022 and 2027.
In February 2020 the Government floated a tender for 130 MW of solar power to attract foreign investors.

 

Wind energy is still in its infancy in T&T.

“Despite the fact that many companies are now active in the renewable energy sector, many of these firms are not yet focused on wind, and for those that are, their wind-related activities are often marginal.”

Offshore wind energy offers a promising alternative for islands like T&T which has limited land resources and expansive territorial waters.
While citing that in 2013 the Government- approved National Wind Resource Assessment Programme outlined five candidate sites for wind farm development across the islands, the report said there has been little concrete progress since.

Moreso, the report underscored that this country must incorporate a balanced approach to energy security and its economic diversification strategies which underpin the islands’ economic potential.

“Though the country’s fiscal situation before and during the COVID-19 pandemic was not optimal, economic growth prospects are positive and investment inflows are improving.”

While T&T relies on hydrocarbons for electricity, it can emulate other island nations’ experience in transitioning to clean energy.  Lessons from neighbouring island nations’ experiences in renewable energy, particularly wind, can be integrated into the local energy mix.

This would allow this country to export more of its natural gas to further fund energy transition efforts and wider ESG goals.  The country relies heavily on natural gas for electricity generation and missed its target of meeting 10 per cent of energy needs with renewable sources by 2021.

It maintained that lessons on how to increase its renewable energy capacity can be drawn from other countries and territories in the region, notably Barbados and Guadeloupe, with the former having committed to 100 per cent renewable energy use and carbon neutrality by 2030.

“Tapping into T&T’s vast wind and solar resources for domestic electricity consumption would allow it to export more natural gas and use the extra revenue to finance its broader, long-term energy transition plans.”