TOUCHSTONE ANNUAL 2022 FINANCIAL AND OPERATING RESULTS

CALGARY, ALBERTA (March 24, 2023)

Touchstone Exploration Inc. (“Touchstone”,”we”, “our”, “us” or the “Company”)(TSX, LSE: TXP)  – reports its operating and financial results for the three months and year ended December 31, 2022. Selected information is outlined below and should be read in conjunction with our December 31, 2022 audited consolidated financial statements, the related Management’s discussion and analysis and our December 31, 2022 Annual Information Form, all of which will be available under our profile on SEDAR (www.sedar.com) and on our website (www.touchstoneexploration.com). Unless otherwise stated, all financial amounts herein are rounded to thousands of United States dollars.

Fourth Quarter 2022 Financial and Operating Highlights

• Achieved initial natural gas production from our Coho-1 well, which produced average net volumes of 5,729 Mcf/d (955 boe/d) in the quarter and contributed $1,114,000 of net natural gas sales.
• Produced quarterly average volumes of 2,229 boe/d, a 67 percent increase relative to the 1,336 boe/d produced in the prior year equivalent quarter.
• Realized petroleum and natural gas sales of $9,919,000 compared to $8,212,000 in the prior year equivalent quarter, reflecting natural gas sales from Coho and a 12 percent increase in average crude oil pricing in the fourth quarter of 2022.
• Generated an operating netback of $4,319,000, representing a 17 percent increase from the prior year equivalent quarter. Operating netbacks were $21.05 per boe, a 30 percent decrease from the $29.96 per boe reported in the fourth quarter of 2021, attributed to natural gas volumes brought online in the quarter.
• Recognized current income tax expenses of $1,092,000 in the quarter compared to $208,000 in the fourth quarter of 2021, driven by $979,000 in supplemental petroleum tax expenses based on our average realized crude oil price exceeding the $75.00 per barrel threshold in the period.
• Reported funds flow from operations of $691,000 in the quarter compared to $1,309,000 in the prior year equivalent quarter, as a $637,000 increase in operating netbacks was offset by increased general and administration, term loan interest and current income tax expenses.
• Recognized a net loss of $1,921,000 ($0.01 per basic share) in the quarter compared to net earnings of $6,514,000 ($0.03 per basic and diluted share) reported in the same period of 2021, principally driven by $6,323,000 of impairment reversals (net of tax) recorded on December 31, 2021.
• Following the December Canadian and United Kingdom private placements that raised net proceeds of $12,269,000, we exited the quarter with a cash balance of $16,335,000, a working capital surplus of $4,992,000 and a principal balance of $27,000,000 remaining on our term credit facility, resulting in a net debt position of $16,008,000.

Annual 2022 Financial and Operating Highlights

• Commissioned and delivered natural gas from the Coho facility on October 10, 2022, representing the first onshore natural gas field to come onstream in Trinidad in 20 years.
• Reported average daily production volumes of 1,581 boe/d, reflecting an 18 percent increase from 2021. Relative to 2021, the 2022 annual increase was attributed to incremental natural gas production from the Coho-1 well, as average 2022 crude oil and liquids production were consistent with 2021 levels.
• Generated funds flow from operations of $3,540,000 (2021 – $4,172,000) and an annual operating netback of $19,281,000 or $33.42 per boe (2021 – $13,031,000 and $26.55 per boe).
• Recognized a net loss of $3,197,000 ($0.01 per basic share) compared to net earnings of $5,719,000 ($0.03 per basic and diluted share) in 2021, primarily attributed to $6,323,000 in impairment reversals (net of tax) recognized in the prior year based on increased forecasted crude oil pricing.
• We executed an incident-free $11,330,000 capital program, primarily focused on completing the Coho natural gas facility and progressing construction of the Cascadura natural gas and liquids facility. Cascadura facility construction operations commenced in October 2022 following receipt of all required regulatory approvals.
• Formally executed an extension of the exploration period of the Ortoire licence to July 31, 2026, allowing us to continue exploration activities on acreage that have not been deemed commercial. The gross 1,317-acre Coho area and the gross 2,377-acre
• Cascadura area were previously approved for commercial development in February 2021 nd March 2022, respectively.
• Responsible operations remained a top priority throughout 2022, as Touchstone had no lost time injuries and released its second sustainability report encompassing the 2021 year. We proactively responded to the June 2022 vandalism incident that resulted in a crude oil spill and are pleased to report that all reclamation efforts were completed in September 2022.

Recent Highlights

• Net average natural gas volumes from Coho-1 were 900 boe/d and 864 boe/d in January 2023 and February 2023, respectively.
• Daily crude oil sales averaged 1,286 bbls/d in January 2023 with a realized price of $66.48 per barrel and averaged 1,341 bbls/d in February 2023 with a realized price of $67.14 per barrel.
• The National Gas Company Of Trinidad and Tobago Limited (“NGC”) notified us that they expect to be ready to receive first natural gas from the Cascadura facility on or about June 30, 2023. We remain on track to complete the Cascadura facility prior to this date to ensure production can commence as soon as NGC is in a position to receive first natural gas.
• We safely reached budgeted total depth of our Royston-1X sidetrack well on the Ortoire block on February 24, 2023. The well has been cased, and we expect to commence production testing in late March 2023.
• In January 2023, we entered into an asset exchange agreement for certain onshore Trinidad assets with a privately held Trinidadian entity. Pursuant to the agreement, we agreed to swap our operated 100 percent working interests in the Fyzabad, San Francique and Barrackpore producing blocks for the counterparty’s working interest in the Rio Claro, Balata East and Balata East Deep Horizons blocks for no cash consideration with the asset exchange becoming effective upon closing. The agreement remains subject to certain closing conditions, including receipt of applicable regulatory approvals and an extension of the Rio Claro licence.

Financial and Operating Results Summary

Touchstone Exploration Inc.

Touchstone Exploration Inc. is a Calgary, Alberta based company engaged in the business of acquiring interests in petroleum and natural gas rights and the exploration, development, production and sale of petroleum and natural gas. Touchstone is currently active in onshore properties located in the Republic of Trinidad and Tobago. The Company’s common shares are traded on the Toronto Stock Exchange and the AIM market of the London Stock Exchange under the symbol “TXP”.

For further information about Touchstone, please visit our website at  http://www.touchstoneexploration.com/  or contact:

Mr. Paul Baay, President and Chief Executive Officer
Mr. Scott Budau, Chief Financial Officer
Mr. James Shipka, Chief Operating Officer
Telephone: 403.750.4487

Advisories

Forward-Looking Statements

Certain information provided in this news release may constitute forward-looking statements and information (collectively, “forward-looking statements”) within the meaning of applicable securities laws. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or are events or conditions that “will”, “would”, “may”, “could” or “should” occur or be achieved. The forward-looking statements contained in this news release speak only as of the date thereof and are expressly qualified by this cautionary statement.

Specifically, this news release includes, but is not limited to, forward-looking statements relating to the Company’s development and exploration plans and strategies, including Cascadura facility construction operations and the expected timing of completion and initial production therefrom, as well as the timing of anticipated Royston-1X well completion and testing operations; the anticipated closing of the asset exchange transaction, including the anticipated future receipt and timing of regulatory approvals including the required licence extension and the timing thereof; and Touchstone’s current and future financial position including the sufficiency of resources to fund future capital expenditures and maintain financial liquidity.

Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Certain of these risks are set out in more detail in the Company’s 2022 Annual Information Form dated March 23, 2023 which will be available under the Company’s profile on SEDAR (www.sedar.com) and on the Company’s website (www.touchstoneexploration.com).

The forward-looking statements contained in this news release are made as of the date hereof, and except as may be required by applicable securities laws, the Company assumes no obligation or intent to update publicly or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

This news release may reference various non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures as such terms are defined in National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure. Such measures are not recognized measures under GAAP and do not have a standardized meaning prescribed by International Financial Reporting Standards (“IFRS” or “GAAP”) and therefore may not be comparable to similar financial measures disclosed by other issuers. Readers are cautioned that the non-GAAP financial measures referred to herein should not be construed as alternatives to, or more meaningful than, measures prescribed by IFRS, and they are not meant to enhance the Company’s reported financial performance or position. These are complementary measures that are commonly used in the oil and natural gas industry and by the Company to provide shareholders and potential investors with additional information regarding the Company’s performance. Below is a description of the non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures disclosed in this news release.

Funds flow from operations

Funds flow from operations is included in the Company’s consolidated statements of cash flows. Touchstone considers funds flow from operations to be a key measure of operating performance as it demonstrates the Company’s ability to generate the funds necessary to finance capital expenditures and repay debt. Management believes that by excluding the temporary impact of changes in non-cash operating working capital, funds flow from operations provides a useful measure of the Company’s ability to generate cash that is not subject to short-term movements in non-cash operating working capital.

Operating netback

Touchstone uses operating netback as a key performance indicator of field results. The Company considers operating netback to be a key measure as it demonstrates Touchstone’s profitability relative to current commodity prices and assists Management and investors with evaluating operating results on a historical basis. Operating netback is a non-GAAP financial measure calculated by deducting royalties and operating expenses from petroleum and natural gas sales. The most directly comparable financial measure to operating netback disclosed in the Company’s consolidated financial statements is petroleum and natural gas revenue net of royalties. Operating netback per boe is a non-GAAP ratio calculated by dividing the operating netback by total production volumes for the period. Presenting operating netback on a per boe basis allows Management to better analyze performance against prior periods on a comparable basis.

Capital expenditures

Capital expenditures is a non-GAAP financial measure that is calculated as the sum of exploration and evaluation asset expenditures and property, plant and equipment expenditures included in the Company’s consolidated statements of cash flows and is most directly comparable to cash used in investing activities. Touchstone considers capital expenditures to be a useful measure of its investment in its existing asset base.

Working capital and net debt

Touchstone closely monitors its capital structure with a goal of maintaining a strong financial position to fund current operations and future growth. Working capital and net debt are capital management measures used by Management to steward the Company’s overall debt position and assess overall financial strength. Working capital is calculated as current assets minus current liabilities as they appear on the consolidated balance sheets. Net debt is calculated by summing the Company’s working capital and the principal (undiscounted) long-term amount of senior secured debt.

Supplementary Financial Measures

Realized commodity price per boe – is comprised of petroleum and natural gas sales as determined in accordance with IFRS, divided by the Company’s total production volumes for the period.

Royalties per boe – is comprised of royalties as determined in accordance with IFRS, divided by the Company’s total production volumes for the period.

Operating expenses per boe – is comprised of operating expenses as determined in accordance with IFRS, divided by the Company’s total production volumes for the period.

For information regarding such measures, including reconciliations to the nearest GAAP measures, please refer to the “Advisories – Non-GAAP Financial Measures” section in the Company’s Management’s discussion and analysis for the year ended December 31, 2022 accompanying our 2022 audited consolidated financial statements which are available on our website (www.touchstoneexploration.com) and under our SEDAR profile (www.sedar.com).

Oil and Natural Gas Measures

Where applicable, natural gas has been converted to barrels of oil equivalent based on six thousand cubic feet to one barrel of oil. The barrel of oil equivalent rate is based on an energy equivalent conversion method primarily applicable at the burner tip, and given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different than the energy equivalency of the 6:1 conversion ratio, utilizing the 6:1 conversion ratio may be misleading as an indication of value.

Product Type Disclosures

This news release includes references to crude oil, NGLs, natural gas, total production and average daily production. Under NI 51-101, disclosure of production volumes should include segmentation by product type as defined in the instrument. In this news release, references to “crude oil” refers to “light crude oil and medium crude oil” and “heavy crude oil” combined product types; references to “NGLs” refers to condensate; and references to “natural gas” refers to the “conventional natural gas” product type, all as defined in the instrument.

The Company’s total and average production for the three months and years ended December 31, 2022 and 2021 and the references to “crude oil”, “NGLs” and “natural gas” disclosed herein consist of the following product types as defined in NI 51-101 using a conversion of 6 Mcf to 1 boe where applicable.

Abbreviations

bbl(s) barrel(s)
bbls/d barrels per day
boe barrels of oil equivalent
boe/d barrels of oil equivalent per day
Mcf thousand cubic feet
Mcf/d thousand cubic feet per day
NGLs natural gas liquids

 

 

Dragon NDA

Mar 15 2023

Energy Minister Stuart Young led a delegation from Trinidad and Tobago during negotiations with PDVSA in Caracas. The Government of T&T and the Government of Venezuela signed a non-disclosure agreement with the Veneuzelan regime in the next step of the ongoing negotiations to activate the Dragon Gas field in Venezuela.

Minister Stuart Young made his third trip to Caracas since February when the (US) Office of Foreign Assets Control (OFAC) granted T&T waiver from sanctions, opening the door to do business with Venezuela.

Young wrote, “We executed a confidentiality agreement (non-disclosure agreement) which governs the negotiations between the parties and the exchange of information as we progress the technical and commercial aspects of the planned development.”

The TT delegation included the Permanent Secretary of the Ministry of Energy, Penelope Bradshaw Niles, president of NGC Mark Loquan, T&T Ambassador to Venezuela Major General (Ret’d) Edmund Dillon and other members from NGC board.
Eugene Okpere, senior vice president of Shell T&T and other Shell staff joined the delegation.

Venezuela’s team was led by President of PDVSA Pedro Rafael Tellechea, supported by vice presidents of PDVSA and other key PDVSA personnel.

Young has been tight lipped about his trips and the state of negotiations. Last month, Young hinted they allayed concerns by the Maduro regime over the lack of cash payments in the deal, . He, said there was nothing in the deal which concerned or worried the government of T&T.

In January, Prime Minister Keith Rowley said T&T expects to gain access to 350 million cubic feet of gas per day from the Dragon field. He applied for the licence in mid-2022 and won approval after discussion with US officials, including President Joe Biden, while keeping open a channel of communication with President Nicolas Maduro.

Venezuela’s State energy company, PDVSA, found reserves of 4.2 trillion cubic feet (TCF) in Dragon, on the Venezuelan side of its maritime border with Trinidad.
T&T is eager to facilitate development of the Dragon gas field to buttress its declining output of natural gas, which has long been the largest source of foreign exchange for the domestic economy.

The licence will allow PDVSA, Shell and Trinidad to jointly plan and develop a gas-exporting project after agreeing to pending details in coming days. A portion of the resulting gas must be exported to Jamaica and the Dominican Republic, according to the two-year licence terms.

 

 

Dragon Field talks

Mar 14 2023

Minister of Energy Stuart Young began discussions with Venezuelan officials on the production of gas from the Dragon Field. He led an official delegation to commence negotiations with an official team of Petroleos de Venezuela (PDVSA) in Caracas.

Minister Stuart Young signed a document with Venezuela.
“We executed a confidentiality agreement (Non Disclosure Agreement) which governs the negotiations between the parties and the exchange of information as we progress the technical and commercial aspects of the planned development.”

In January 2023, Trinidad and Tobago secured a two-year licence from the United States Government to commence development of the long-stalled Dragon project, scheduled to start production over a decade ago. US sanctions and lack of capital delayed the project. The licence allows Trinidad to undertake business related to the Dragon field with Venezuela’s heavily sanctioned state-run oil company PDVSA, which owns Dragon field,holding up to 4.2 trillion cubic feet of natural gas.

 

 

Young at CERA Week

Energy Minister Stuart Young attended the annual CERA Week energy conference in Houston, Texas. Hosted by international ratings agency Standard and Poors (S&P), the event provides a platform for discussion of a wide range of energy-related topics.

Former US president Bill Clinton, Gates Foundation co-chair Bill Gates and Indian Prime Minister Narendra Modi were among the speakers to deliver keynote speeches.

Young said at the conference, he “had a number of important engagements with key stakeholders in the energy industry at the global level to further progress Trinidad and Tobago’s energy sector development.”

One engagement was with Chevron’s managing director (Latin America Business Unit) Eric Dunning. Young said, “Information and ideas were exchanged on matters of mutual interest to TT and Chevron.”

Young met British Petroleum (BP) executive vice-president (regions, corporates and solutions) William Lin.

“We discussed BP’s continued business, hydrocarbon production and development plans in TT as well as the potential for BP and TT to partner in more initiatives in gas development.”

Young was interviewed by the New York Times and HART Energy magazine. National Gas Company president Mark Loquan and Energy Ministry acting permanent secretary Sandra Fraser are accompanying Young at the conference.

Reuters report that Young is planning a third visit to Caracas, Venezuela, in continuing conversations with energy ministers and other officials there on developing the Dragon gas field,  on Thursday said:

“Young told Reuters TT held substantive talks with Venezuela on developing the gas field which holds up to 4.2TSF of natural gas. This comes a little over a month after Young visited Caracas with a TT delegation to discuss matters regarding hydrocarbons and joint projects. Venezuelan state media reported thatvice-president Delcy Rodriguez welcomed the TT delegation which included NGC chairman Mark Loquan and Ambassador to Caracas Edmund Dillon. Young was reported as saying if negotiations continue to go well, both countries could see gas flowing in as little as two years’ time.”

At CERAWeek, Young said along with the ongoing negotiations on the Dragon Gas field, TT expects two other projects, Woodside Energy’s Calypso project and Shell’s Manatee project to be potential feeders into its Atlantic LNG facility. However, it could take years before production starts on these fields.

Young visited CEO of Woodside Energy, Meg O’Neil, at their office in Houston, where they discussed Woodside’s operations in TT as well as the Calypso project.

The billion-dollar Dragon deal could result in an estimated 150 mscf/day in production between Venezuela and TT. The deal however went cold in 2018 after the US imposed sanctions on Venezuela.

In January, the Dragon deal was revived when an waiver of sanctions was granted by the US. The exemptions came with clauses which restricted TT from paying money to Venezuela and limited the exemption to two years instead of the ten-year exemption requested by the TT Government.

 

 

Dragon deal licence

Feb 24 2023

Government is negotiating with Venezuela to comply with the two year licence granted by the United States for T&T to monetise the Dragon Gas field. Shell and the National Gas Company (NGC), investors in the project, agree with the two-year license, Prime Minister Dr Keith Rowley told Parliament virtually, responding to a question from Pointe-a-Pierre MP David Lee about whether the Venezuelan Government agreed with or will facilitate the terms of the US Government licence. Under the arrangement, T&T cannot pay Venezuela in cash.

Following an announcement in January that the licence granted by the US Treasury’s Office of Foreign Assets Control (OFAC) to waive sanctions against Venezuela and allow T&T to develop the gas field, President Nicolas Maduro complained that countries were told of permission to negotiate with Venezuela, yet could pay with only food or products, describing the arrangement as colonialism.

In response to a question from Lee about whether the Venezuelan Government had agreed with the terms of the US license, Rowley referred to Energy Minister Stuart Young’s statement that Government is engaged in discussions with Venezuela which “are progressing well, are on going and a certain amount of confidentiality was required at this very sensitive stage.”

Rowley said he could give no further information other than what had already been made public.

Lee asked if Government will stick strictly to the conditions stipulated by the US Government on the licence.

Rowley replied: “The licence has terms that have been made public and if we are to accept the licence, then the terms of the licence apply and with respect to effecting the operations of access to the field, what I just said is what applies, that we are negotiating with Venezuela with respect to complying with the contents of the licence.”

Asked when negotiations will be completed, Rowley said the negotiations require patience and were between two countries discussing matters of a very sensitive nature.

“And when that time comes and we have something to report, we’ll report it to the national community as we’ve done all along.”

Lee asked whether the two-year period granted by the US will be sufficient to encourage investors to establish the required infrastructure and deliver first gas from the project.

Rowley said that was also answered by Young. The OFAC could only grant up to two years on a licence and having granted T&T the maximum licence, giving an extension wasn’t an obstacle to the development of the negotiations or explorations of the field.

“The fact that a licence has been granted has stimulated the interest of those who are already operating in Trinidad and Tobago and I dare say excitement at the prospect of cross border gas coming to Trinidad and Tobago and all that that means for Trinidad and Tobago.”

In response to Lee’s question about whether the investing companies agree with the two year licence, Rowley said the energy companies involved, Shell and NGC, are “not only in agreement, they’re excited by it.”

Chevron got its first OFAC licence for six months and is producing oil, selling in the US market and was able to expand its operations.

Energy Minister Stuart Young was confident that the deal for TT to receive gas from Dragon gas field would not be stymied by conditions laid down by the US Government for this project, including how TT will pay for the gas and for how long the project would be exempt from US sanctions against the Venezuelan Government, initiated over alleged election rigging.

In 2018, the Prime Minister and President Maduro celebrated at the Miraflores Palace in Caracas after inking a deal for TT to buy Venezuelan gas and monetize it on the world market for the benefit of TT and Venezuela. The project stalled when sanctions hit Maduro’s regime. Invasion of Ukraine a year ago led to a western boycott of Russian oil and gas for which fresh suppliers had to be sourced, after which the US Government partially eased sanctions on Venezuela.

The US Treasury Department’s Office of Foreign Assets Control (OFAC) gave a two-year waiver to allow the Dragon deal. The PM on January 24 welcomed this as “a giant step forward,” despite much work to do on the deal, but Maduro accused the US of colonialism and dictatorship for saying TT must use other means than money to pay for Venezuela’s hydrocarbons. Young said at the Caricom Heads meeting in The Bahamas, the US had reinvigorated its relationship with Caricom, in areas including energy.

He would visit Houston, Texas, for a week to meet US officials on energy.

“This morning I returned from my second visit to Venezuela since the OFAC licence to proceed with development of the Dragon field….without getting into any details at this stage because it’s premature .. I will hopefully be leading a team and a delegation of experts and technical persons in three weeks time, in the second week of March, back to Caracas for us to continue these conversations and negotiations that are a step on the right pathway for us to ..o jointly develop the Dragon gas field and hopefully bring it to production in TT as well as in Venezuela.”

Asked about payment methods, Young said Maduro had not singled out TT in his remarks.

“We have been in constant contact with the President Maduro Government at the highest levels including the President himself. I don’t see there being an issue. There are always ways for us to proceed.”

Young recalled a “very, very encouraging conversation” he had in Caracas.

“I think it paved the way forward to be able to satisfy Venezuela and TT.”

Asked if the two-year allowance was too short a time line to invest in the Dragon field, especially if sanctions are reimposed on Venezuela, Young said the Dragon deal had been long under way and was unrelated to any developments in the Ukraine War.

“OFAC does not grant waivers or licences for more than two years, so that is the longest for which they will grant a licence, for obvious reasons, because it is really a waiver from sanctions. We are in constant conversations with the US Treasury and in particular OFAC and we don’t see that as an issue.  In fact the conversation I had with US Government officials on the morning that they were going to announce the grant of the OFAC licences, this was one of the main discussion points between us and we are entitled to apply for renewals etcetera.

“They said, ‘Do not worry, because this is the longest we can grant. We see that you have applied for a ten year and whilst we are prepared to consider, unfortunately OFAC doesn’t grant for longer than two years.’ “

Young said the two-year limit was not affecting the progress of the dragon deal, although he would not offer any time line as to when that gas would come to market. Up until 2018 “significant work” had been done on the dragon deal, with first-gas having been due by 2020 (although since curbed by the sanctions.)

People did not see the work being done on energy behind the scenes and it had been quite a feat for TT to achieve an OFAC licence.

Recalling energy deals such as the Atlantic LNG restructuring, the Manatee, solar and National Gas Company projects, he said,

“We are accustomed to facing sophisticated persons on the other side in difficult situations and we have always come out on the better end for TT.”

In Venezuela he had met Vice President Delcy Rodrigues, Oil Minister Tariq Al-Asami and the PDVSA president.

“We are having the conversation as to how this thing can be structured.”

Otherwise he was unfazed by current low prices for natural gas at Henry Hub (Louisiana), as TT sells gas at a basket of European and Asian prices.

He had been approached on the mothballed Pointe-a-Pierre refinery at the Guyana energy conference and did not think it would be rivalled by any proposed Guyanese refinery which was expected to be smaller.

’

 

McDermott wins Shell contract for Manatee gas project

28 March 2023

By Fabio Palmigiani in Rio de Janeiro

European supermajor Shell awarded US-based player McDermott International a front-end engineering and design contract for a major natural gas development offshore.

Under the contract scope for the Manatee shallow-water gas project, McDermott will provide comprehensive FEED services for a wellhead platform, export pipeline system, shore approach, midstream pipeline and onshore control room.

The award follows the successful completion of an early contract engagement with Shell. McDermott’s team in the US will lead engineering and execution planning efforts for the Manatee contract with support from Malaysia, China and Mexico.

Manatee field could hold estimated resources of 2.7 trillion cubic feet of natural gas.

McDermott to work for Shell offshore

MARCH 28, 2023, BY NADJA SKOPLJAK

U.S. offshore engineering and construction services firm McDermott has secured a front-end engineering design (FEED) contract with Shell for a gas development project offshore Trinidad.

Under the contract, McDermott will provide comprehensive FEED services for a wellhead platform, export pipeline system, shore approach, midstream pipeline and onshore control room for the Manatee gas development project.

Engineering and execution planning will be led by McDermott’s team in Houston, with support from Kuala Lumpur in Malaysia, Chennai in India, and Altamira in Mexico.

This award follows the completion of an early contract engagement with Shell.

“The award of this next phase of the Manatee project builds on the portfolio of projects that McDermott’s Subsea and Floating Facilities business line is executing for Shell,” said Mahesh Swaminathan, McDermott’s Senior Vice President, Subsea and Floating Facilities.

“McDermott’s comprehensive engineering design expertise and unique fabrication capabilities equip us to perform the required FEED work in-house, reduce costs, ensure quality and maximize time efficiencies.”

The Manatee field is located in water depths of approximately 91 meters. It is said to represent one of Trinidad and Tobago’s largest natural gas reserves discovered to date and is expected to help bolster the country’s gas supply.

On Shell’s other activities in Trinidad and Tobago, the company early last year started production on Block 22 and NCMA-4 in the North Coast Marine Area (NCMA). The start-up of Colibri came after the amendment to the Block 6 Production Sharing Contract for the Manatee field.

The energy giant also recently took a final investment decision (FID) for a deepwater project in the U.S. Gulf of Mexico that is set to be developed as a subsea tie-back to the Appomattox production hub.

 

 

Negotiating skill

Naparima MP Rodney Charles said the PM and Energy Minister Stuart Young should stop negotiating oil deals on behalf of Trinidad and Tobago and, instead, send its best and brightest energy experts to negotiate.

Charles told the UNC mid-week conference “In a real country, Rowley and Young would be banned from carrying out negotiations without on-hand technical support from proven local experts in energy, finance, diplomacy and law.

Both Rowley and Young lack finely tuned nuanced and proven diplomatic skills. They have no known qualifications, expertise and/or track record on energy matters. TT is yet to see their proficiency as accomplished negotiators. Both men are not known to be experts in international law or finance.

Therefore we have to ask, if they have none of these things, what are you going abroad to do? The two men negotiate with highly qualified energy experts from some of the world’s largest Fortune 500 companies, while TT sends two novices unaccompanied by local experts. The experts probably laugh at us behind closed doors.”

He said between October 2015 and September 2022, Rowley racked up $1.8 million in tax-free per diems for official travel, while Young pocketed $809,899 but TT has nothing to show for it. Rowley’s offer of the Petrotrin refinery to the altar of Guyanese-TT energy co-operation cemented an unsavoury perception of the country.

“Of all the things Rowley could announce in Georgetown, to such a distinguished audience, was his willingness to palm off a moribund scrap-iron refinery to global energy experts who understand everything they need to know about refinery operations. According to those present, senior Guyanese officials looked at each other in utter dismay and disbelief on hearing Rowley’s ill-conceived, poorly timed and foolish sales pitch.

“It reinforced an unfortunate narrative taking root in Guyana that Trinis believe they are inherently more intelligent. It played into a false narrative that Trinis are all smartmen and women interested solely in feeding off the Guyanese trough.”

He said the official response was swift, contemptuous and dismissive.

Charles suggested that Rowley could have seized the opportunity to highlight TT’s centuries-old expertise in energy, or deepening collaboration between UWI and the University of Guyana in petroleum engineering, or the willingness to use TT’s expertise to the mutual benefit of both countries and the region.

 

 

Challenger Energy update on Cory Moruga

08 Mar 2023

Challenger Energy, the oil and gas company holds oil production, appraisal, development and exploration assets across the Caribbean and Americas region. Further to entry into a binding term sheet with Predator Oil & Gas Holdings and relevant subsidiary entities as announced on 20 December 2022, Predator has now completed all confirmatory due diligence and the Company and Predator have entered into fully-termed long-form legal documentation.

The terms remain unchanged from those previously announced on 20 December 2022, being:

Predator will acquire 100% of the issued share capital of T-Rex Trinidad Limited (“T-Rex”), an indirectly wholly-owned subsidiary of the Company that holds the Company’s 83.8% interest in, and is the operator of, the Cory Moruga licence;

• The Company will retain the option in the future to repurchase 25% of Predator’s share in T-Rex on an agreed basis;
• CEG and Predator have established a collaboration in relation to CO2 enhanced oil recovery (“EOR”) activities and projects in other areas in Trinidad; and
• The Company and Predator have agreed to a mutual settlement and discharge of all disputes and claims in relation to the Inniss-Trinity CO2 EOR pilot project.

Completion of the transaction is conditional on consent of the Trinidadian Ministry of Energy and Energy Industries (“MEEI”) to a revised work programme for the Cory Moruga licence proposed by Predator, as well as agreement of MEEI to a revision of future fees for the Cory Moruga licence and a settlement / cancellation of past claimed dues pertaining to the Cory Moruga licence.

Completion of the Transaction will occur 7 days after satisfaction of this condition. The parties have agreed to work together to secure the required consents and agreements with MEEI and thus achieve completion as soon as reasonably practicable on or before 30 May 2023, with a long stop date of 31 August 2023.

Subject to completion, the Transaction will represent a gross potential value proposition to Challenger Energy of up to US$9 million (as estimated by the parties to the Transaction), comprising:

1. 1. 1. US$2.0 million payable to the Company by Predator in cash, in instalments as follows: (i) US$1 million upon completion of the transaction, and (ii) a further US$1 million on the date that is six months after completion;
      2. a further US$1 million conditional cash payment, payable once the Cory Moruga field production first reaches 100 barrels of oil per day;
      3. the option-value embedded in the retained back-in right;
      4. the removal of all ongoing T-Rex financial obligations, and the elimination of all T-Rex associated liabilities from the Challenger Energy balance sheet, as well as the elimination of all contingent and potential liabilities associated with the Cory Moruga licence, whether crystalised or not;
      5. the settlement of any outstanding loan amounts in respect of the Inniss-Trinity CO2 EOR pilot project (recognising that absent a settlement between the parties, such amounts would be recoverable only from incremental production from the Inniss-Trinity CO2 EOR pilot project area); and
      6. a full and final mutual settlement in respect of all disputes and claims between the parties in relation to the Inniss-Trinity CO2 EOR pilot.

The Transaction, in addition to the transaction involving Caribbean-Rex Limited as announced on 14 February 2023, is in line with the Company’s strategy in Trinidad and Tobago of seeking to monetise assets not in the core area of operation, so as to maximise cash and offset risk and work program commitments, but at the same time retain upside exposure. Further announcements will be made as appropriate.

Source: Challenger Energy

 

 

National Energy

Mar 01 2023

The first low exhaust tug has been added to the fleet of state-owned National Energy Corporation of T&T Ltd.

Energy Minister Stuart Young joined National Energy to officially welcome National Energy Resilience.

A vessel commissioning ceremony was attended by stakeholders from the maritime and energy sectors.

The new 60-tonne bollard-pull tug is being hailed as the “cleanest” tug operating in T&T, and at this time, the second in the region.

National Energy chairman, Dr Joseph Khan, stated that the: “National Energy Resilience is different from any other tug in our fleet. It is International Marine Organisation (IMO) Tier III-certified. This standard was designed to improve air quality and protect public health by controlling emissions from ships and vessels. We are therefore delighted to say that the National Energy Resilience uses technologies that reduce its nitrous oxide emissions by 80 per cent. This is a significant reduction in emissions of a greenhouse gas that is 300 times more potent than carbon dioxide.”

National Energy’s decision to adhere to the IMO-Tier III standard was completely voluntary.

In his feature address, Minister Young stated: “While I regularly, and openly, repeat the importance of natural gas in the energy transition, I want to reassure the people of T&T, that this Government, is also fully committed to climate action through the reduction of our country’s greenhouse gas emissions… “as a country, we are no strangers to being first movers, particularly within the energy sector and therefore commended National Energy for continuing to implement its mandate of developing and facilitating sustainable energy industries” through the implementation of several initiatives that support the government’s efforts to decarbonise the local energy sector.

The National Energy Resilience has secured all documentation required to operate and is now available for immediate hire.

 

 

Blue Economy

An assessment by The Commonwealth Secretariat in partnership with the United Nations Environment Program (UNEP), the Howell Marine Consulting and the University of Portsmouth concluded that T&T is well prepared to pursue the development of a sustainable blue economy.

“In making this transition, countries can draw on ocean resources for economic development, while also effectively protecting the marine environment,” the Commonwealth Secretariat stated.

A new “Rapid Readiness Assessment” (RRA) method was trialled based on UNEP’s Sustainable Blue Economy Transition Framework.  The RRA provides governments with a focussed snapshot of where to go next, informed by desk-based analysis, in-country stakeholder workshops and interviews.

Lead adviser for the Commonwealth Blue Charter programme at the Commonwealth Secretariat, Dr Jeff Ardron said: “The Rapid Readiness Assessment provides a clear picture of a country’s existing policies, legal frameworks, systems and political landscape and how these would facilitate a sustainable blue economy transition. They also identify the gaps and outline recommendations for next steps, including the types of resources required.”

UNEP’s head of marine and freshwater, Leticia Carvalho, commented: “The utility of the Sustainable Blue Economy Transition Framework, and the available assessments, will go a long way in helping countries to take the first steps towards a whole-of-government and whole-of-society approach to mainstreaming biodiversity into comprehensive ocean and coastal policy as a prerequisite for sustainable, resilient and equitable blue economies. This framework can support countries to practically address the critical importance of marine and coastal biodiversity in the implementation of the post-2020 global biodiversity framework.”

T&T’s ocean-based economy is shaped mainly by its oil and gas sector, in addition to tourism and fisheries. The RRA highlighted the need for faster progress in delivering more integrated, cross-sector ocean policies and legislation, in addition to high-level commitment to channel resources.

However, there is a clear understanding within government and among stakeholders of the challenges and opportunities for a sustainable blue economy transition, as well as strong and capable institutions that are ready to act.
Recommendations outlined by the RRA included developing a shared vision for enhanced whole-of-government, inter-ministerial coordination and the gradual phasing out of fossil fuels as a key element of the blue economy.

Dr Rahanna Juman, of the Institute of Marine Affairs, T&T, said:  “I am pleased that the findings of the Rapid Readiness Assessment suggest that T&T is well placed to advance its own transition to a sustainable blue economy. Given the complexity of the process, it is encouraging to know that it is very feasible to overcome the challenges identified, through solutions such as marine spatial planning, centralised data management, and research and innovation in key sectors.”

 

 

Piarco Solar Park

Mar 12 2023

Minister of Planning and Development, Penelope Beckles, says the Piarco Solar Farm project launched in collaboration with the European Union’s Global Climate Change Alliance Plus (GCCA+) is progressing steadily at the Piarco International Airport during February and March.   Several technical tasks have been completed, such as the installation of 25 tonnes of photovoltaic (PV) ground-mounted structures, 960 PV modules, a transformer, and high-voltage cables. Also being installed are fibre optic cables and inverters, as well as a drainage system.

“The aim of this initiative is to increase the availability and use of energy from renewable sources, as well as to increase the efficiency levels in the consumption of energy in Trinidad and Tobago,”

Such ventures will provide ample scope for reductions in greenhouse gas (GHG) emissions locally.

“This contributes to the fulfilment of our goals regarding Sustainable Development Goal 7, Affordable and Clean Energy, as well as our commitment to Trinidad and Tobago’s National Development Strategy, Vision 2030, to Place the Environment at the Centre of Social and Economic Development, articulated in Theme Five.”

Next steps for the project include the completion of electrical wiring, drainage and grounding systems; installation of Inverters, SCADA and CCTV system as well as the pre-commissioning process, expected to commence at the end of March 2023.

 

UNDP, Amcham and Central Bank

… energy sector saved economy but , Trinidad and Tobago must diversify

3 mar

The United Nations Resident Co-ordinator’s Office hosted a public seminar on the global economy and potential impacts on Trinidad and Tobago, in collaboration with the Central Bank and the American Chamber of Commerce of TT (Amcham) which confirmed that energy price rises spared the economy from negative effects of the global economic downturn.

Oil and gas prices remained high throughout 2022 , with West Texas Intermediate (WTI) oil, a benchmark for oil markets, averaging US$95 per barrel and Henry Hub gas averaging US$6 per mmbtu.

The 2022 budget, presented in September 2021, was based on US$65 per barrel and US$3.75 per mmbtu. The recent WTI price reached US$76 per barrel and Henry Hub natural gas price was US$2.74 mmbtu.

Officials said higher energy prices cushioned the potentially damaging economic effect of low rates of foreign investments and high domestic expenditure during, and following the global economic lull triggered by the covid19 pandemic and the invasion of Ukraine.

UNDP Resident Representative in TT Gerardo Noto said these disruptions “led to weaker-than-expected global economic conditions and rising levels of inflation across the globe.”

These conditions created further challenges by disrupting the food, energy and transport sectors, among others. At the UNDP global economic seminar, Noto said global central banks have aggressively revisited policies on interest rates over the past year to tackle high inflation in their economies. There was unison in encouraging public and private sector stakeholders and consumers to participate in opening a new kind of dialogue about the economy, where the rest of the developed world is heading and what is possible for TT.

Noto said, “Despite these efforts, inflation, in relative terms, has remained persistently high and has broadened beyond energy and food commodity prices globally and in the Caribbean. The transmission of high food prices is exacerbating the living costs and conditions for the poor and the most vulnerable in society, through eroding their limited purchasing power and exposing their food insecurity. These effects resonate across the different spheres of their lives, such as leading to nutritional deficiency.”

He said these economic and social shifts are causing major global disruptions, as for the first time in 32 years the Human Development Index (HDI) has declined globally for two years in a row. HDI measures a nation’s health, education, and standard of living.

Central Bank Governor Dr Alvin Hilaire said while TT is well-integrated globally, with inflation being lower than two per cent supporting a healthy financial system in 2019, the Central Bank observed fairly substantial buffers offered a cushion to deal with possible shocks.

“Inflation soared globally on the back of supply shocks. In response, many central banks initially lowered and then sharply increased interest. While domestic output plummeted due to lockdowns, the public finances and exports benefited from higher energy prices.”

The Central Bank, therefore, focused on supporting economic recovery and maintaining financial stability.

“Banks and other financial institutions instituted payment deferrals, rate reductions and waivers of penalty charges and late payment fees, on credit facilities.”

The recent economic scenario saw the emergence of new and improved business approaches through digitisation such as new product offerings, faster delivery times and digital shops and payment methods. TT must continue diversification as the global economic landscape evolves. Diversification becomes more pertinent as:

“Everybody is trying to get out of the shocks of all that has happened in the past two years. There is a vicious fight for market share. Consumers have become more footloose and impatient, so it’s important for economies and businesses to get themselves properly organised.”

Agreeing, Ansa Merchant Bank managing director Gregory Hill said, “The UAE, for example, is diversifying, much like other islands in the region that moved toward tourism versus relying on a single industry. Sustainability will be the new profitability. Green is the new digital.”

Hill highlighted local changes in energy versus non-energy revenues in the past four years. Between the 2019/2020 and 2022/2023 fiscal years, energy revenues have fluctuated between approximately $25 billion, $27 billion and $26 billion. Non-energy revenues, in contrast, have seen a dramatic increase from $7 billion in fiscal 2019/2020 to over $29 billion. However there was no indication of which sectors contributed, and in what part, to the exponential increase over the past few years. While TT and the region experienced some economic growth amid the challenging climate, this came at a cost.

Country economist at the Inter-American Development Bank Victor Gauto said, loans to countries in the Caribbean increased since the pandemic as high as $US1.2 billion in 2022. Purposes varied from supporting the health sectors of islands with infrastructure and technology and aid for small and medium enterprises as part of the IDB’s global response plan.

 

 

 

Petroleum Revenue

Replying to Opposition Senator Wade Mark who queried the energy revenues from modest global oil and gas prices recently, Finance Minister Colm Imbert said new formulas for energy sales have kept the country in a healthy financial position, in a matter on the adjournment of the Senate.

Website oilprice.com indicated the WTI oil price as US$76 per barrel and the Henry Hub natural gas price as US$2.74 per MM BTU.

Mark said, “The motion before us is for the Government to provide this country with the effect of the decline of the price of natural gas prices on the 2023 budget and on TT’s economy.” He claimed “a major economic hurricane is brewing” that could have catastrophic consequences for the economy and society.

“The budget was set in terms of natural gas at US$6 per MM BTU and in the case of crude oil it was set at US$92.50 per barrel.“

Mark said the WTI price was then at US$76.81, Brent Crude at US$83.89 and natural gas at US$2.77. TT oil is sold close to the WTI price.

Mark said TT was now in crisis, with an alleged collapse in oil and gas prices jeopardising the budgeted numbers . The budget was set at $57.8 billion but the Government must say by how much recent low energy prices would worsen this year’s initially predicted budget deficit of $1.5 billion.

Minister Imbert said the Prime Minister’s travel to meet oil and gas companies, supported by Energy Minister Stuart Young, meant TT’s gas was not sold at the Henry Hub price.

“That was the UNC way. What the Government did was immediately negotiate new formulas for the derivation of revenue for the country and the people of TT. So the LNG netback price, for example, is influenced to a significant extent by the price of gas in the UK using a benchmark called NBP and also it is influenced to some extent by a benchmark in the Far East, the JKM, the Japan/Korea benchmark.”

The netback price refers to a price for which the LNG is sold at a specific place minus the cargo’s transport costs for delivery.

“As we speak here today, although Henry Hub is US$2.70, the NBP price for natural gas in the UK is US$16 and the JKM price for natural gas in the Far East is US$16.“

Imbert said Rowley had negotiated a new formula for TT’s gas based on the three benchmarks – Henry Hub, NBP and JKM – which had produced “significant additional revenue from LNG.”

Imbert said Rowley and Young had negotiated so that TT’s natural gas is now sold to local petrochemical manufacturers at a price that reflects the price fetched by ammonia and methanol.

“So if you don’t know and you just go on the internet and see that Henry Hub is US$2.77, you would simply be completely oblivious to the fact that we get revenue in a completely different way.”

Data showed TT was holding its own and nowhere near to the spectre of collapse suggested by Mark, whom he accused of talking nonsense.

Imbert promised a mid-year review in April when all figures and facts would be presented, so the country would know TT’s fiscal position.

“I looked at the overdraft percentage this morning and instead of the 90 and 95 per cent I used to see in 2017 and 2018 and 2019, the overdraft this morning was 43 per cent.”

 

 

Woodside reports record profit

Australia’s largest oil and gas producer, Woodside Energy Group, will review potential acquisitions in the Gulf of Mexico after reporting its highest-ever profit. Underlying earnings more than tripled to US$5.2bn (£4.3bn) in 2022 amid soaring energy prices and output that rose more than 70pc after the purchase of BHP Group’s energy unit, the company said.

The result follows a run of bumper profits for global oil and gas producers, including BP, Shell and Australia’s Santos.

Acquisition of BHP assets increased Woodside’s presence in the Gulf of Mexico and the firm will “continue to be looking for opportunities there. The location is a “very attractive basin” that has “all the right ingredient for success,” chief executive Meg O’Neill said.

Woodside is focusing on further growth with industry investment in oil needed to meet medium-term demand.

Work is taking place this year to prepare options including the Trion oil project in the Gulf of Mexico and a liquid hydrogen project in the US for a final investment decision.

Heritage

March 9

Heritage Petroleum Company Ltd is assuring residents of Guayaguayare that it is working proactively to address the effects of a recent oil spill in the area.  Heritage said the assurance was given at a meeting with residents on March 9 at the Ferrier Road Community Centre in Guayaguayare. The spill was first reported on February 11. Heritage reiterated that it immediately isolated and repaired the leaking pipeline.

The company hired specialist contractors and 85 residents for clean-up and rehabilitation.

“Thus far, over 7,000 barrels of fluids comprising 95 per cent water and five per cent hydrocarbons were removed from five collection points along the riverbank and transported to the Guayaguayare Tank Farm.”

Heritage said the exercise is 60 per cent completed and clean-up work is continuing apace.

Company CEO Arlene Chow led a Heritage team of officials at the meeting with residents on March 9.

Mayaro MP Rushton Paray and representatives of the Guayaguayare Village Council and Guayaguayare, Ortoire, Mayaro Fisherfolk Association (GOMFA) attended the meeting.

Chow and Heritage officials expressed their regret for the spill and promised to clean up and rehabilitate the affected areas as best as possible. Heritage said most of the concerns raised by residents were about health, safety and wellbeing and environmental impact as a result of the spill. Compensation for damages caused by the spill and future community social programmes were also discussed at the meeting.

With respect to health and well-being of residents, Heritage said its officials restated the company’s commitment to rehabilitate the affected areas and continue with post-clean-up monitoring.

The company will continue air and noise quality testing in the affected areas. Heritage will also facilitate ongoing periodic medical checks for residents who helped in clean-up operations and other affected members of the community. The company promised to offer health safety and environment (HSE) to members of the community in the near future and hold a follow-up meeting with community representatives to discuss the development and roll-out of social sustainability programs that meet the unique needs of the people of Guayaguayare.

Heritage said these discussions were taking placed before the spill occurred. On compensation, the company said, “The process for claiming compensation was also shared with the attendees.”

Paray said residents raised concerns about the spill with Heritage on March 9.

“There were several areas raised by the residents which Heritage has addressed and a few that they have agreed to address.“

He was not certain whether or not residents were satisfied with the assurances given to them by Heritage.

“The community is willing to work with Heritage to bring a quick resolution to the issue.”

 

 

7000 barrels of oily fluid removed

Mar 09 2023

The oil spill clean-up in the Guayaguayare forest is now 60 per cent complete and affected forest animals are being rehabilitated.   Heritage Petroleum said 85 residents are assisting with the clean up.  The spill emanated from a ruptured 10-inch pipeline which runs along Ferrier Road in a heavily forested area.   An inland watercourse used by forest animals was affected. However, the company managed to keep the oil from contaminating the rivers and the sea.

“Heritage immediately isolated and repaired the leak before starting cleanup and rehabilitation works. A contractor from the local community was also hired to provide additional staffing, and 85 residents were hired. Because the area was so densely forested, initial access to the affected area was only possible by foot. Heritage has now cleared roads to provide access to tractors and heavy equipment. This has slowed the early clean-up efforts. So far, over 7,000 barrels of fluid comprising 95 per cent water and five per cent hydrocarbons have been removed from five collection points along the riverbank and transported to the Guayaguayare Tank Farm.”

Heritage onsite team concentrated efforts near the village to reduce any inconvenience to residents.

 

Guayaguayare spill

Heritage is currently engaged in a clean-up of an oil spill in Guayaguayare.

After assurance from Heritage Petroleum the day after an oil spill on February 11, at the Ferrier Circular, Guayaguayare operations, that the situation was under control, , Mayaro MP Rushton Paray said residents are complaining about a strong odor of hydrogen sulphide in the atmosphere.

Paray met residents who expressed concerns about the potential medical, environmental, and economic implications of the oil spill.

“They want to know whether the air quality is safe to breathe.”

Residents are demanding a single point contact for damage reports, “and an estimated date of the end of clean-up operations when their lives can return to normal.”

Paray told villagers he was advised Heritage Oil Spill Response Team was dispatched to contain and recover the spilled hydrocarbons and several concerns were being addressed. However, the actual clean-up is being hampered, as there is no access road to the spill. Heritage has to create a path for vehicles.

Paray was also concerned about the possibility of hydrocarbon contamination of nearby groundwater and soil and the potential of H2S gas emissions from exposed condensate. He emphasised the need for a comprehensive clean-up strategy that takes into account the environmental impact of the spill and how best to mitigate it. He also called for regulations and protocols to prevent future spills.

Paray urged Heritage to provide a completed air quality report and an environmental report from the EMA on the impact on the watercourse of spill-over. He requested the repurposing of the Guayaguayare Health Facility to a 24-hour accident and emergency unit, to facilitate any health effect to residents until the situation is resolved and astandby ambulance service to Mayaro/Sangre Grande Hospital.

“Oil spills are an unfortunate and unavoidable fact of life in our society, but we must have provisions in place to deal with them when they do happen,” he said.

In a February 23 release, Heritage said the clean-up was ongoing. The sole source of the leak, located in a heavily forested area, was quickly identified and repaired on February 12. It said subsequent checks of the line revealed no further leaks. Nevertheless, on February 19, Heritage said it was notified of complaints of an odour affecting a nearby community.

“Heritage health, safety and environment representatives were immediately dispatched to conduct air quality tests, in the vicinity of the spill and surrounding environs. No harmful emissions were detected, and Heritage continues to monitor the air quality of the area. Heritage and its contractors are working assiduously to remove the residual oil from the forested area. Members of the community have been hired by the contractor to help expedite the clean-up and restoration work. Moreover, the Ministry of Energy and Energy Industries (MEEI) and the Environmental Management Authority (EMA) continue to be updated on an ongoing basis.”

 

 

NGC green agenda

The earth breathes in forests: trees take in carbon dioxide and release oxygen; they slow the water running off the land, lifting it to the clouds.
–
The earth breathes in forests: trees take in carbon dioxide and release oxygen; they slow the water running off the land, lifting it to the clouds.   Beyond 315 is the National Gas Company’s (NGC) vision for its reforestation programme to replant trees in areas cleared for its pipelines.

It signed over 80 of 315 hectares of land to the Forestry Division of the Ministry of Agriculture, Land and Fisheries under its programme at the San Fernando Hill.

This move was part of the NGC’s environmental clearance certificate requirements. Its reforestation programme ensured that the company replanted the number of trees it cleared to install pipelines from Guayaguayare to Point Lisas.

Though 315 is more than what they cleared, the project was still completed to offset carbon dioxide emissions. NGC said in 2021, 10,373 tonnes of carbon have been sequestered as a result of the reforestation efforts.

The first phase involved rehabilitation of 105 hectares on the south-eastern forest conservancies. The second phase resulted in reforestation of 210 hectares in the Morne L’Enfer Forest Reserve. The 315 hectares are filled with cedar, mahogany, balata, mahoe, poui among others.

NGC director Dr Donnie Boodlal said, “What began in 2005 as an initiative to restore forest acreage cleared during pipeline construction activities quickly became a signature sustainability project for NGC. We have aligned our operations, processes, strategies and vision to the targets of the UN Sustainable Development Goals (SDGs).”

Former head of the department of life sciences at UWI, professor emeritus John Agard said he was the principal investigator of these hectares and took his students to cover the project. He used roots of trees that were removed by NGC to give his class a hands-on learning experience.

Boodlal said the company continued to focus on building industries around arts and culture, sport and community development, but had now introduced “an extensive green agenda portfolio, which is largely concerned with climate action.”

“We are intent on reducing the carbon footprint of our business and wider industry, through energy-efficiency mechanisms, clean-energy technologies, a heavy focus on methane mitigation, advocacy and public-education programmes.”

The handover took place on the International Day of Forests, proclaimed by the United Nations in 2012 to celebrate and bring awareness to the importance of all types of forests. It is also meant to encourage countries to undertake local, national and international efforts to organise activities involving forests and trees like that of the initiative by NGC.

This year’s theme was Forests and Health and conservator of forests Denny Dipchansingh summarised the benefits of plants.

, “It provides the water, captures the carbon which helps mitigate climate change. It supports agriculture, food security, it provides jobs unlike deforestation. It provides medical purposes, flood control, regulates microclimates, and the list goes on.”

NGC director Dr Donnie Boodlal presented a plant to Avinash Singh, Minister in the Ministry of Agriculture, alongside forests conservator Denny Dipchansingh at San Fernando Hill, on Tuesday.

Boodlal said forests are explicitly tied to one of the UN’s SDGs, but “can support other sustainability targets linked to health, food security and economic diversification. This is why we at NGC are now looking at how we can integrate agroforestry and eco-tourism components into a sequel to our reforestation programme that we are calling: Beyond 315.”

NGC’s Beyond 315 programme will teach farmers and artisans how they can sustainably leverage the forests to support their livelihoods. Boodlal said the company also wants to promote these areas as retreats for both sanctuary and adventure. This comes in the form of education as with consultation from the Forestry Division, community reforestation groups were introduced to the fundamentals of setting up plant nurseries, spread of seedlings, beekeeping and key business skills.

Boodlal added, “This next chapter is above all an avenue for us to connect people with our forests – to help our children build the kinds of relationships and attachments that we had with trees in our childhood days. While they may not take kindly to the guava whip, they can certainly share our joy in eating fruit off a tree or picnicking under a poui, if we can rekindle the connection between mankind and nature, revive that reverence and respect of days gone by and seed an enduring appreciation for the value of our forests.”

The first phase of Beyond 315 was a five-day beekeeping workshop which introduced the Rio Claro Reforestation Group to aspects of setting up a functioning apiary. NGC’s next step is to plan and coordinate with the Apiary Unit and Forestry Division to identify lands near Union Village, Rio Claro, for an apiary for the group to potentially turn into a business.

Minister in the Ministry of Agriculture, Land and Fisheries Avinash Singh said, “Other corporate entities should seek to emulate the move of the NGC to achieve its goals. The task of protecting our forests is not to be a solitary initiative by the government. I want to encourage all of us to reflect on activities undertaken, reassess the approaches are utilised and renew our commitment to the cause of forest conservation. Let us work together to ensure that our forests continue to provide essential benefits for communities for generations to come.”

Singh told media that petroleum companies have the option of buying CO2 carbon sequestration which will offset what is emitted in the environment. In this process, carbon-dioxide emissions are captured from power plants. Captured emissions can then be injected into depleting oil reserves which increase recovery through an enhanced oil recovery process.

At the ceremony were parents, students and teachers from the Rio Claro Presbyterian School.

 

 

 

Lake Asphalt- time to divest state assets

Financially troubled state enterprise Lake Asphalt confirmed a fire at No 2 STILL but production was not affected at its Brighton, La Brea facility. Corporate Communications Coordinator Marsha Marchan said the fire occurred during planned maintenance in the production facility. LATT’s Emergency Response mechanism was triggered and with the Point Fortin Fire Services, quickly contained and extinguished the fire. There were no injuries or casualties and in accordance with its HSE Policy, LATT is conducting an internal investigation into the cause of the incident.

The company is collaborating with the Fire Services Prevention Unit in the conduct of their independent investigations. Marchan explained that the STILL is not a building, but rather a large piece of equipment… a big boiling pot where raw asphalt is processed for the removal of water or other foreign objects. The process takes between 16 to 17 hours, following which it is then decanted, strained and placed into the oil drums.

While this is in operation, no one is around it.

No one was close enough to be injured. The LATT property was never in any danger as the STILL, while located on the compound, is situated away from the offices and other buildings. It is not LATT’s only STILL and would therefore, not significantly affect the operation of the plant.

The main revenue stream ended with the closure of Petrotrin, on which it heavily depended to sell its major product, bitumen. Workers engaged in protests, as salaries were not paid to 240 employees on its pay roll.

In April 2022, the Prime Minister announced the transfer of the wholly-State-owned company from the portfolio of the Ministry of Energy and Energy Industries to Works and Transport. Since then, the company has been receiving a monthly subvention of $2.5 million to keep it afloat.

Government plans to restructure the company as the subvention is not sustainable. The National Infrastructure Development Company (NIDCO), was tasked with creating a new business model to make LATT profitable.

Once one of largest earners of foreign exchange., LATT is charged with the commercial development of the Pitch Lake of Trinidad and Tobago, the world’s largest deposit of natural asphalt. In 2020 TT imported asphalt from Italy, USA, Canada and UK.. Like other loss-making state enterprises, LATT assets should be divested to create a shareholding democracy and supply material for maintaining crumbling infrastructure.

 

 

 

Minister meets Jupiter

March 3

Minister of Foreign and Caricom Affairs Dr Amery Browne met Prof Andrew Jupiter at the ministry in Port of Spain.   Jupiter presented Browne with a copy of his recent book, Red, White and Black Gold which details Jupiter’s experiences in the energy sector since 1971.

Jupiter is the former co-ordinator of the Petroleum Studies Unit at the UWI St Augustine campus. He directly oversaw the MSc petroleum engineering and MSc and postgraduate diploma in petroleum engineering and management programmes. He was awarded the Chaconia Medal (Gold) in 2016 (Public Service) and was appointed a distinguished fellow in 2013 and Professor of Practice by UWI. Browne congratulated Jupiter on his book and contributions to the development of the energy sector.