99% of Trinity shareholders approve Lease Operators acquisition

October 30

On May 8, 2024, Energy Minister Stuart Young and permanent secretary, Penelope Bradshaw-Niles, met executives of Trinity Exploration and Production PLC, non-executive chairman Nicholas Clayton, CEO Jeremy Bridglalsingh and independent non-executive director Derek Hudson.

SHAREHOLDERS of Trinity Exploration & Production have voted overwhelmingly in favour of a cash acquisition by Lease Operators Ltd, with the transaction set to proceed through a court-sanctioned scheme of arrangement.

At the October 30 meeting, over 99% of voters supported the acquisition offer, expected to become effective on November 5, 2024, pending court approval. This vote marks a potential end to a saga spanning over six months. On May 1 Canada-based Touchstone announced it had reached an agreement with UK company Trinity for an all-share acquisition, expected to unite the two independent companies in T&T, creating an “operator of scale with a significant inventory of onshore and offshore exploration and development assets”.

On the same day, Trinity CEO Jeremy Bridglalsingh endorsed the offer, stating: “I am pleased to be recommending Touchstone’s offer to our shareholders. Our two companies have operated in close proximity over many years. The premium offered demonstrates the value Touchstone sees in Trinity’s team and operations and its confidence in the future potential of the enlarged business.”

However, less than three months later, on July 24, Trinity announced that it received a cash offer of 68.05 pence per share from an “unsolicited, conditional, non-binding, indicative proposal from Lease Operators.”

A member of the Well Services Group, Lease Operators , incorporated in T&T , founded by chairman Charles Brash is currently the largest independent onshore oil producer , ahead of both Trinity and Touchstone. By August 2, Trinity had announced that American investment bank Houlihan Lokey had advised its directors that the Lease Operators offer was “superior” to Touchstone’s. Consequently, on September 18, Trinity sought court permission to withdraw the scheme of arrangement related to Touchstone’s offer, with a court hearing scheduled for September 25.

“In this regard, a court hearing has been scheduled for September 25, 2024 and all relevant documents for the withdrawal have been filed with the court. On the assumption that the court grants its permission at the withdrawal hearing, the withdrawal will take effect immediately following the withdrawal hearing,” it stated.

On September 19, Touchstone announced its intention to let the acquisition lapse.

President and chief executive officer Paul Baay stated: “We are disappointed with the outcome of this process, and the fact that UK takeover rules make it possible for our offer not to complete at such a late stage in the process despite having obtained both shareholder and regulatory approvals. We believe our offer represented compelling value for all stakeholders. However, Touchstone remains committed to maintaining strict discipline in all corporate activities.”

“We will only pursue investments that align with our strategic and financial goals, ensuring they deliver value to our shareholders. As we continue to advance our operations to tie in the Cascadura-2ST1 and Cascadura-3ST1 wells towards their first production, along with our upcoming fourth-quarter drilling programme, we look forward to updating our shareholders on our strategic and operational progress in the coming months. We will soon provide an updated presentation and host an investor forum to share our developments.”

In the weeks leading up to the shareholder vote, Trinity confirmed on October 11 that directors Nicholas Clayton and Jeremy Bridglalsingh intended to vote in favour of the Lease Operators offer.

On October 30, Trinity received over 99% of the votes in favour, securing the “requisite majorities” needed for the acquisition to move forward.

In its most recent bulletin, the Energy Ministry reported that as of July this year, Trinity had produced 3,042 barrels of oil per day (bopd) of crude oil and condensate. Touchstone had produced 257 million standard cubic feet per day (MMSCF/D) of natural gas for the seven months of the year.

 

 

 

PRIMERA, NGC awarded Rio Claro block

2024, 11/05

The Exploration and Production (Public Petroleum Rights) Licence for the Rio Claro block has been granted to National Gas Company of T&T (NGC) E&P Investments Limited and Primera Oil and Gas, wholly owned subsidiary of Touchstone Exploration Inc.

The onshore Rio Claro block is situated in the wards of Charuma, Cocal, Ortoire and Guayaguayare. The block is adjacent to the Cascadura Gas Development in the Ortoire Block, also operated by Primera Oil and Gas Limited and projected to yield significant gas production.

In June 2024, Primera Oil and Gas and NGC E&P Investments Limited were granted the Exploration and Production licences in respect of the Charuma and Cipero Blocks arising out of the 2022 Onshore and Nearshore Competitive Bid Round.   Rio Claro Block is bounded to the north by the Charuma Block and to the south by the Ortoire Block.

The key provisions of the Rio Claro licence are the financial obligations to the State and the work programme to be undertaken by the licensee. Financial obligations include bonuses, minimum payments and annual surface rent.

At the signing ceremony attended by Primera Oil and Gas director Paul Baay, Primera director Joseph Pancham, NGC chairman Dr. Joseph Khan and NGC director Howard Dottin, Energy Minister Stuart Young stated,

“As we engage in ongoing exploration of onshore, shallow, and deep-water regions, we must sustain our partnerships with our upstream operators to advance the development of our hydrocarbon resources and foster a competitive fiscal landscape that encourages investment. The E&P Licence being signed reflects our acknowledgment of the necessity to maintain competitiveness to draw in investment.”

Touchstone Exploration, the Canadian energy company, announced initial production from the Cascadura C well pad. The company commissioned the flowline connecting the Cascadura C surface location to the Cascadura natural gas processing plant, which ties into the Cascadura-2ST1 and Cascadura-3ST1 wells.

A new natural gas separator has been installed and brought online, expanding the plant’s gross natural gas processing capacity to approximately 140 million cubic feet per day.
President and Chief Executive Officer, Paul Baay, said the commencement of production from the Cascadura C pad marked a significant milestone as tested volumes from these wells began generating revenue.

 

 

 

bp completes acquisition of Lightsource bp

 24 October 2024

bp has completed its acquisition of the remaining 50.03% interest in Lightsource bp, one of the world’s leading developers and operators of utility-scale solar and battery storage assets.

In November 2023, bp announced it had agreed to acquire the 50.03% interest it did not already own in Lightsource bp, subject to certain closing conditions. With the transaction now complete, Lightsource bp expands bp’s presence globally in the onshore renewable energy industry, with a 62GW development pipeline and operations spanning 19 global markets.

While bp will take on full ownership, Lightsource bp will retain its standalone operating model and independent brand, delivering renewable and affordable energy to businesses and communities across the world. bp will look to unlock further value by bringing a strategic partner into the business in due course.

“This deal creates an engine for onshore renewable power development at bp – combining wind, solar and batteries to generate the energy flows our traders need to optimise value and the electrons our customers want.”

William Lin, bp’s executive vice president for gas and low carbon energy, said: “This deal creates an engine for onshore renewable power development at bp – combining wind, solar and batteries to generate the energy flows our traders need to optimise value and the electrons our customers want. It also helps us with our own power demand. Ultimately, this capital-light model will help create significant value for bp’s wider operations. We now look forward to welcoming the team into our global business, helping Lightsource bp continue to build on its market-leading position.”

Lightsource bp operates with a develop, engineer, construct and farm-down business model that creates value through selling majority interests in assets it has developed to strategic partners. The acquisition will also help bp meet its own demand for cost competitive, low carbon power, including for power trading, EV charging, biofuels and green hydrogen.

Joaquin Oliveira, Lightsource bp’s group chief executive, added: “I’m excited to begin the next chapter, taking Lightsource bp to a new level of profitability, growth and performance. We will continue to scale this successful business, and also apply its capabilities to support bp’s low carbon energy business.”

Following closure of the transaction, bp has consolidated Lightsource bp’s Finance Debt and eliminated an existing guarantee issued by bp.

Total consideration £0.4bn, of which approximately £0.2bn relates to the pass through of proceeds from pre-completion asset sales. The transaction was priced based on an effective date of 31 December 2022, at which time corporate level debt adjusted for cash was £1.5bn. Following completion, bp has recognised £2.1bn net debt, which is expected to be transitional until a strategic partner is brought alongside. It has also eliminated an existing $900m guarantee.

In April 2023, Lightsource bp marked the beginning of construction of Trinidad and Tobago’s first utility-scale solar project with a sod turning ceremony at Brechin Castle.

 

 

Project Lara

In December 2022, Trinidad and Tobago and the consortium partners, bp Alternative Energy Trinidad and Tobago (bpATT), Shell Renewables Caribbean (Shell), and Lightsource bp, completed negotiations on the development of a 112MWac/148MWp solar project.

Kareen Boutonnat, Lightsource bp’s CEO of Europe, the Middle East and Africa and Asia-Pacific, added: “This consortium is a clear demonstration of how energy companies can combine experience and skill sets to support national decarbonisation targets. We’re proud to apply our development, engineering, finance and new market entry experience to realise Trinidad and Tobago’s large-scale solar ambitions through this partnership and act as an enabler for the country’s energy transition.”

The project was hailed as a significant milestone for the future of Trinidad and Tobago’s energy transition, as the first large-scale solar project. Lightsource bp, brought the project from inception to Final Investment Decision and will provide the construction management services.

The project was originally located across two sites, Brechin Castle (92MWac/122MWp), and Orange Grove (20MWac/26MWp). The Orange Grove aspect of the project is no longer being pursued.

Brechin Castle Solar Farm Project is a solar farm under project management by Lightsource bp, on behalf of the project owners, Shell, bp and National Gas Company. The project forms part of a government initiative for the supply of renewable energy to the domestic market led by the Ministry of Energy. The solar project includes a 92 megawatt (MWac) solar farm split over two sites, totalling 186 hectares (ha) and an overhead 2.8km grid connection line to the existing Brechin Castle Substation.

During his presentation of the budget, Finance Minister Colm Imbert said that it is anticipated that the facility will be operational by 2025 supplying clean power to the National Grid.

The Project is located in the Couva-Tabaquite-Talparo region, 5 km south-east of the industrial area and the port of Point Lisas in Couva. The project comprised two separate land parcels located on a former sugar plantation that is currently owned by the State. Earlier this year work had stalled on the project after gunmen entered the jobsite and threatened workers.

The source of the threats came from the community of Pranz Gardens, a crime hotspot where, in 2010, India-based Essar Steel Caribbean Ltd (ESCL) abandoned a $12 billion project, after sustained resistance from the community.

Alarmed by events, the players pulled their personnel and heavy machinery off the site and sought protection.

They eventually returned and soldiers are said to be located on the site now.

 

 

‘

bpTT completes Seismic acquisition for Manakin-Cocuina field

2024, 10/21

bpTT president David Campbell says the seismic acquisition for the Manakin-Cocuina field was completed and the data collected is now at the processing stage. He provided this and other updates on bpTT’s joint venture, deep water projects (and the divestment of its mature assets to Perenco,)  to Minister of Energy Stuart Young.

With respect to drilling operations, it was reported to the energy minister that drilling at the Cypre development continues and further development drilling opportunities are being evaluated. This is in keeping with the minister’s call to extract all reserves of oil and gas and bpTT’s commitment to accelerate gas production.

With renewable energy also in bpTT’s local energy portfolio, it was reported that the 92.2 megawatts (MW) solar project, ‘Project Lara’ continues apace and is expected to be online by 2025.

At the meeting, Young emphasized that stakeholder relationships are crucial in energy production and that a more resilient and responsible energy sector is fostered through meeting and collaborating with energy sector stakeholders such as bpTT.

 

 

 

BP third quarter 2024 trading statement

14 Oct 2024

BP issued a Trading Statement providing a summary of current estimates and expectations for the third quarter of 2024, including data on the economic environment and group performance during the period.

The information is not comprehensive of all factors which may impact bp’s group results for the third quarter 2024 and is not an estimate of those results. Refer to bp’s second quarter and first half 2024 group results announcement on 30 July 2024 for third quarter and full year 2024 guidance items which continue to apply unless explicitly stated. All information is subject to finalization of bp’s financial reporting processes and actual results may vary.

bp’s group results for the third quarter 2024 are expected to be published on 29 October 2024.

Updated 3Q24 guidance(a)

Upstream production(b) in the third quarter is now expected to be broadly flat compared to the prior quarter, with production broadly flat in oil production & operations and in gas & low carbon energy.

In the gas & low carbon energy segment, realizations(c), compared to the prior quarter, are expected to have a favourable impact of around $0.1 billion, including changes in non-Henry Hub natural gas marker prices. The gas marketing and trading result is expected to be average.

In the oil production & operations segment, realizationsc, compared to the prior quarter, are expected to have an unfavourable impact in the range of $0.1 – 0.3 billion, including the impact of price lags on bp’s production in the Gulf of Mexico and the UAE. There is also expected to be an unfavourable impact in the range of $0.2 – 0.3 billion, compared to the prior quarter, as a result of higher exploration write-offs.

In the customers and products segment, compared to the prior quarter, results are expected to be impacted by the following factors:

customers :– broadly flat fuels margins, seasonally higher volumes partly offset by costs.
products: – weaker realized refining margins in the range of $0.4 – 0.6 billion and the oil trading result is expected to be weak.
Other items: Net debt at the end of the quarter is now expected to be higher, driven primarily by the impact of weaker realized refining margins and by the rephasing of around $1 billion of divestment proceeds into the fourth quarter.

(a) All impacts influence bp’s underlying RC profit before interest and tax, unless stated otherwise.
(b) Includes bp’s share of production of equity-accounted entities.
(c) Realizations are based on sales by consolidated subsidiaries only – this excludes equity-accounted entities.

Trading conditions

1. 1. 1. Brent averaged $80.34/bbl in the third quarter 2024 compared to $84.97/bbl in the second quarter 2024.
      2. US gas Henry Hub first of month index averaged $2.15/mmBtu in the third quarter 2024 compared to $1.89/mmBtu in the second quarter 2024.
      3. The bp RMM* averaged $16.5/bbl in the third quarter 2024 compared to $20.6/bbl in the second quarter 2024.

 

Third quarter 2024 results

https://www.bp.com/en/global/corporate/news-and-insights/press-releases/third-quarter-2024-results.html

29 October 2024

Driving focus and efficiencies; delivering resilient operations

Highlights

• Resilient operations: 3Q24 upstream production 2.4mmboe/d; 3Q24 refining availability 95.6%.
• Focus and efficiencies: in action to deliver at least $2 billion of sustainable cash cost* savings.
• Growth and access: Signed two memorandums of understanding to join SOCAR in two exploration and development blocks offshore Azerbaijan and to negotiate a material integrated redevelopment programme for the Kirkuk region; Completed the bp Bunge Bioenergia and Lightsource bp transactions in 4Q.
• Shareholder distributions: Dividend per ordinary share of 8 cents; $1.75 billion share buyback announced for 3Q24, as part of our commitment to announce $3.5 billion for the second half of 2024.
• 3Q24 underlying replacement cost (RC) profit $2.3 billion
• Underlying RC profit for the quarter was $2.3 billion, compared with $2.8 billion for the previous quarter. Compared with the second quarter 2024, the underlying result reflects weaker realized refining margins, a weak oil trading result and lower liquids realizations, partly offset by higher gas realizations. The gas marketing and trading result was average. The underlying effective tax rate (ETR)* in the quarter was 42%.
• Reported profit for the quarter was $0.2 billion, compared with a loss of $0.1 billion for the second quarter 2024. The reported result for the third quarter is adjusted for inventory holding losses* of $1.2 billion (pre-tax) and a net adverse impact of adjusting items* of $1.6 billion (pre-tax) to derive the underlying RC profit. Adjusting items pre-tax include impairments of $1.7 billion (see Note 3) and favourable fair value accounting effects* of $0.4 billion. See page 27 for more information on adjusting items.

Segment results

Gas & low carbon energy: The RC profit before interest and tax for the third quarter 2024 was $1.0 billion, compared with a loss of $0.3 billion for the previous quarter. After adjusting RC profit before interest and tax for a net adverse impact of adjusting items of $0.7 billion, the underlying RC profit before interest and tax* for the third quarter was $1.8 billion, compared with $1.4 billion in the second quarter 2024. The third quarter underlying result before interest and tax is largely driven by higher gas realizations. The gas marketing and trading result was average.

Oil production & operations: The RC profit before interest and tax for the third quarter 2024 was $1.9 billion, compared with $3.3 billion for the previous quarter. After adjusting RC profit before interest and tax for a net adverse impact of adjusting items of $0.9 billion, the underlying RC profit before interest and tax for the third quarter was $2.8 billion, compared with $3.1 billion in the second quarter 2024. The third quarter underlying result before interest and tax reflects lower liquids realizations and higher exploration write-offs.

Customers & products: The RC profit before interest and tax for the third quarter 2024 was $23 million, compared with a loss of $0.1 billion for the previous quarter. After adjusting RC profit before interest and tax for a net adverse impact of adjusting items of $0.4 billion, the underlying RC profit before interest and tax (underlying result) for the third quarter was $0.4 billion, compared with $1.1 billion in the second quarter 2024. The customers third quarter underlying result was higher by $0.1 billion, reflecting broadly flat fuels margins, seasonally higher volumes partly offset by costs. The products third quarter underlying result was lower by $0.9 billion, mainly reflecting weaker realized refining margins and a weak oil trading contribution which was lower than the second quarter.

Operating cash flow*   $6.8 billion and net debt* $24.3 billion
Operating cash flow in the quarter was $6.8 billion. This includes a working capital* release of $1.4 billion (after adjusting for inventory holding losses, fair value accounting effects and other adjusting items), reflecting the unwind of a working capital build in the first quarter, impact of the price environment and timing of various payments (see page 28). Net debt increased to $24.3 billion compared to the second quarter, primarily driven by lower operating cash flow, higher capital expenditures and lower divestment and other proceeds.

Growing distributions within an unchanged financial frame
A resilient dividend is bp’s first priority within its disciplined financial frame, underpinned by a cash balance point* of around $40 per barrel Brent, $11 per barrel RMM and $3 per mmBtu Henry Hub (all 2021 real). For the third quarter, bp has announced a dividend per ordinary share of 8 cents.

bp is committed to maintaining a strong balance sheet and strong investment grade credit rating. Through the cycle, we are targeting to further improve our credit metrics within an ‘A’ grade credit range.

bp continues to invest with discipline and a returns focused approach in our transition growth* engines and in our oil, gas and refining businesses.

The $1.75 billion share buyback programme announced with the second quarter results was completed on 25 October 2024. Related to the third quarter results, bp intends to execute a $1.75 billion share buyback prior to reporting the fourth quarter results.

Furthermore, bp is committed to announcing $1.75 billion for the fourth quarter of 2024. In addition, our previous guidance for at least $14 billion of share buybacks through 2025 at market conditions around bp’s fourth quarter 2023 results(a) and subject to maintaining a strong investment grade credit rating, is currently unchanged, although as part of the update to our medium term plans in February 2025, we intend to review elements of our financial guidance, including our expectations for 2025 share buybacks.

In setting the dividend per ordinary share and buyback each quarter, the board will continue to take into account factors including the cumulative level of and outlook for surplus cash flow, the cash balance point and maintaining a strong investment grade credit rating.

“We have made significant progress since we laid out our six priorities earlier this year to make bp simpler, more focused and higher value. In oil and gas, we see the potential to grow through the decade with a focus on value over volume. We also have a deep belief in the opportunity afforded by the energy transition – we have established a number of leading positions and will continue high-grading our investments to ensure they compete with the rest of our business. I am absolutely clear that the actions we are taking will grow the value of bp.”

Murray Auchincloss, chief executive officer

 

 

Pereira appointed Atlantic chairman

2024, 10/12

Vincent Pereira has been appointed as the chairman of the Point Fortin-based LNG producer Atlantic, effective October 1.

Atlantic said Pereira is a known leader, with over 41 years of experience in senior positions in the energy sector, including as President of BHP T&T. His strategic insights and guidance will be instrumental as the Atlantic continues to build on its legacy of safety, reliability, and sustainability.
Chairman of Republic Financial Holdings Ltd, Pereira holds an MBA from Houston Baptist University, a postgraduate diploma in petroleum engineering from the University of the West Indies and a Bachelor of Science (Hons) from the University of Guelph, Ontario, Canada.
As he assumes the role, Ian Welch concludes his four-year tenure as chairman of Atlantic. Under his stewardship, Atlantic strengthened its position as a key player in T&T’s energy sector and was instrumental in guiding the company’s journey to world-class operations.

“Atlantic extends its deep gratitude to Ian Welch for his outstanding service and commitment and wishes him all the best as he embarks on his next chapter.”.

The company celebrated the 25th anniversary of its start up in September.
Energy Minister Stuart Young reflected on the challenges of optimising the company’s future amid depleting natural gas reserves. In 2015, when the government entered office, it began work to secure the future of gas production as Atlantic Train 1 licence was due to expire in 2018. Intense discussions with key shareholders, bpTT and Shell, over price restructuring, sought better value for citizens.

“There began the task of how we established and secured an energy future , where Atlantic LNG is arguably one of the single most important pillars for the future of the energy sector. In 2018, when I accompanied the Prime Minister to London for talks with Shell and BP, the future of Atlantic LNG was conceptualised, and the decision was made by the heads to restructure it.”

 

 

UK hosts climate workshop for judiciary

October 31

The British High Commission , in partnership with the Judicial Education Institute of TT (JEITT), hosted a UK-funded workshop on October 30, titled Climate Change: A Sensitisation Session for Judges and Judicial Officers.

Forty local and regional judges and judicial officials attended a workshop aimed at building their capacity to respond to the legal challenges posed by climate change. Participants gained a deeper understanding of the science, policy implications and legal frameworks that govern climate change. The workshop helped judges understand the scientific principles underlying climate change, mechanisms driving it, evidence supporting it and the projected impacts on the environment and society.

Judges learned about the links between global warming, environmental policies and individual lifestyle choices and increased their understanding of climate-justice principles and the diverse stakeholders involved in addressing climate change and the role of law in addressing climate change and ensuring justice for those affected.

“It was hoped the training will empower judges and judicial officers to deliver more informed rulings on climate-related cases, thereby ensuring that the principles of environmental justice and sustainability are upheld.”

Chief Justice Ivor Archie thanked the high commission and the UK International Climate Fund for the partnership and continued investment in the judiciary of TT.

Justice Gillian Lucky said, “The British High Commission has always encouraged the training of judicial officers in fields of legal study that are relevant and cutting edge.

“We are therefore grateful to the British High Commissioner, Harriet Cross, for once again supporting the initiative to provide training in the area of environmental law with a special focus on climate change.”

Cross said climate change was one of the world’s most important issues and everyone had a role to play in combating it.

“With UK funding, we equipped legal professionals in TT with the knowledge and tools to understand the complexities of climate change and their unique role in protecting our environment, communities and generations to come.”

 

 

 

Toni Sirju-Ramnarine joins Agostini’s Ltd

Trinidad and Tobago Stock Exchange announced the appointment of TONI SIRJU-RAMNARINE to the board of directors of Agostini’s Ltd with effect from November 1. Christian Mouttet is chairman of the diversified publicly traded company established in 1925, operating in three primary spheres of pharmaceutical and health care, consumer products and energy and industrial services. Founded in Trinidad and Tobago, the company invests in eight regional markets, exports to another 13 countries and has over 3,000 employees.

Sirju-Ramnarine was recently appointed president of NGC Green Company Ltd, after 18 years at Atlantic LNG Co Ltd, where she rose to be vice president – corporate operations and transformation.

In a pioneering career, she held directorships in the fields of engineering, dispute resolution, finance and at the American Chamber of Commerce of Trinidad and Tobago (Amcham TT), where she also served as president. A UWI graduate in Chemical Engineering, she gained a master’s in international management from King’s College, London University.

 

 

 

Shell profit down to US$6b

UK multinational petroleum giant Shell released financial results for the third quarter of 2024 on October 31. Profit of US$6.02 billion, “despite the lower crude prices and weaker refining margins, reflect strong operational performance in integrated gas, upstream and marketing.”

This is a decline of 3.1 per cent from US$6.22 billion compared to the same period in 2023. Revenue during the three months stood at US$71.08 billion, down from US$76.35 billion in Q3 2023.

Oil and gas production available for sale rose to 2.8 billion barrels of oil equivalent per day (boe/d), from 2.7 billion boe/d in Q3 2023.

Shell declared Q3 2024 dividend of US$0.3440 per share.

Chief executive officer Wael Sawan said, “Shell delivered another set of strong results. We continue to deliver more value with less emissions, whilst enhancing the resilience of our balance sheet. Today, we announce another US$3.5 billion buyback programme for the next three months, making this the 12th consecutive quarter in which we have announced US$3 billion or more in buybacks.”

The company has operated in Trinidad and Tobago for over 100 years.

In July, Shell announced its final investment decision (FID) on the Manatee project – an undeveloped gas field in the East Coast Marine Area (ECMA) in Trinidad and Tobago.

In July, Zoë Yujnovich, Shell’s integrated gas and upstream director, said, “This project will help meet the increasing demand for natural gas globally while also addressing the energy needs of our customers domestically in Trinidad and Tobago. The investment bolsters our world-leading LNG portfolio in line with our commitment to invest in competitive projects that deliver more value with less emissions.”

 

 

 

KBR contract for Manatee project

October 15, 2024 –

KBR has been awarded an engineering and procurement services contract for the Beachfield Manatee upgrade project

Beachfield Manatee is the onshore portion of the Shell-led Manatee gasfield project, located in Trinidad ’s East Coast Marine Area (ECMA). The prolific ECMA licence holds Shell’s largest gas-producing fields in the petrostate including Dolphin, Starfish, Bounty and Endeavour.

KBR’s award follows other recently completed contracts under which KBR delivered the front-end engineering design as part of Shell’s Manatee development team, which also includes McDermott.

Jay Ibrahim, president of sustainable technology solutions, said, “We are thrilled to be a key contributor to Shell’s Manatee project and continue our substantial presence in the LNG market. This win highlights KBR’s strong energy security capabilities that support our clients’ goals of providing reliable and accessible natural resources that meet the world’s long-term energy needs and support the energy transition.”

Shell reached a final investment decision on the Manatee project in July 2024. Scheduled to start production in 2027, the field will boost to Trinidad and Tobago’s LNG production. A portion of Manatee’s gas will be supplied to the Atlantic LNG liquefaction and facility, in which Shell holds a 45% stake with partners BP (45%) and the National Gas Company of Trinidad and Tobago Limited (10%).

 

 

Young meets nitrogen company Nutrien

Minister of Energy Stuart Young met Nutrien executives to discuss the company’s capital expenditure on maintenance, turnaround and upgrades for 2024.

On October 17, Young met executive vice president, nitrogen and phosphate, Trevor Williams; vice president and managing director of Nutrien Trinidad Edmond Thompson and senior director, global and government affairs, Renee Munasifi.

Based at the Point Lisas Industrial Estate, Nutrien invested approximately US$130 million into TT operations in 2024, marking its commitment to the local petrochemical sector. The upgrade, turnaround and maintenance employed over 1,600 local workers.

Young spoke of the critical importance of natural gas feedstock to fertiliser production and the agriculture sector. As a responsible government, TT is prepared to work with everyone to find gas, in the interest of energy and food security.

Nutrien is the third-largest nitrogen producer in the world. It has over seven millions tonnes of gross ammonia capacity and produces over 11 million tonnes of total nitrogen products in the US, Canada and TT.

 

 

 

CEO leaves NP after one year

2024, 11/02

Exactly one year after he joined the State-owned gas company, chief executive officer (CEO) of the Trinidad and Tobago Petroleum Marketing Company (NP) Derek Luk Pat has resigned with immediate effect.

The circular economy specialist, business consultant and entrepreneur joined NP on November 1, 2023.

He replaced John Gormandy, who had been acting as CEO since 2020.
He has been replaced by general manager of Aviation and Marine Fuels Chester Beeput as interim CEO.
Beeput has been employed at NP for 24 years and previously held the role of interim CEO.
Before joining NP, Luk Pat was executive director of the Trinidad and Tobago Bureau of Standards (TTBS).

He worked in several industries across a spectrum of markets including manufacturing, import-distribution, retail, service and quality infrastructure.

Last year, NP praised Luk Pat for bringing extensive experience in business management, strategic planning, and process redesign which created sustainable revenue growth, increased profitability and optimal productivity. The company briefly said he resigned without giving any explanation.

The Petroleum Dealers Association (PDA) believes Luk Pat may have been pressured into leaving.

During his short stint as the head of the gas company, NP was under scrutiny by PDA and the Oilfields Workers’ Trade Union (OWTU) after being accused of withholding audited financials and alleged corruption.

In August, NP admitted that its audited financial statements were late, after PDA president Robin Naraynsingh criticised NP for not publishing its financials in the last three to five years.
NP said consolidated financial statements for 2020 were published on November 10, 2023 and financial statements for 2021 were submitted to the Finance Ministry. Financial statements for 2022 were almost completed at the time while its 2023 statements were still in progress at the end of August this year.

Naraynsingh praised Luk Pat’s good character and suspected he may have been pressured into resigning.
“He is a good man. He’s a focused man. He wanted to do something better for the country because NP is a State enterprise formed for the benefit of the people of Trinidad and Tobago. When he took the position, I asked him, ‘Why would you take on a responsibility at this company? This company has created a culture of wastage. They don’t care whether a gas station has gas, whether communities are out of gas. As long as they could extract money from the company, the workers are corrupted there. If he’s resigned, I think they tried to railroad him. The finance department of that company needs a complete shake-up. People in positions do not know how to run it because they have been misled throughout the last ten years.”

OWTU chief education and research officer/treasurer Ozzi Warwick, said Luk Pat’s immediate resignation as CEO raised more questions about the board.
“The OWTU has been raising concerns about NP for some time now. I think the public is quite aware of that. I think this immediate resignation of the CEO raises more questions now for the board and for the chairman… the CEO falls under the board. If your CEO resigns with immediate effect then what does that mean?”

In July, OWTU, led by president general Ancel Roget, picketed the home of NP chairman Sahid Hosein over alleged nepotism and corruption at the company.
Yesterday, NP thanked Luk Pat for his service and wished him all the best in his future endeavours.

 

 

 

NiQuan Energy appoints receiver

Niquan Energy announced the appointment of a receiver, published in a newspaper notice on October 27. Varune Mungal will manage and control the assets of the cash-strapped company. He was appointed on October 10, over a year after a court ordered NiQuan to pay former vice president David Small over $20.5 million in damages and interest for a breach of contract relating to unpaid sums and a mutual separation agreement with the company when he left in November 2021. Small has since sought the liquidation of the company to enforce the payment order. NiQuan Energy was founded in 2014 by Ainsley Gill and other businessmen and industry veterans. It sought to become a leading producer of low-carbon, synthetic fuels from natural gas and renewable energy.

NiQuan Trinidad, a subsidiary of NiQuan Energy LLC, registered in the US, drew attention and financial backing for its promise to support the country’s energy diversification goals. In 2018, the company acquired the stalled gas-to-liquids (GTL) plant project from the World GTL and Petrotrin joint venture.

However, NiQuan encountered operational disruptions, culminating in an explosion at the plant in April 2021, causing a temporary shutdown and raising concerns about safety practices. Struggling with recurring financial challenges, NiQuan collaborated with PricewaterhouseCoopers to develop a rehabilitation plan to reduce debt and stabilise the business.

Republic Bank, its primary creditor, indicated support for liquidation if rehabilitation efforts are unsuccessful. Mungal’s appointment as receiver may lead creditors to explore liquidating NiQuan assets to recover funds or working with him to stabilise the company financially if a recovery plan appears viable.

Under the terms of specific legal agreements – debentures with lenders established between 2018 and 2023 – NiQuan assets were designated as collateral, enabling the receiver to manage these resources. The recent termination of NiQuan’s gas supply contract with state-owned TT Upstream Downstream Energy Operations Co Ltd (TTUDECOL) compounded uncertainty surrounding NiQuan’s future.

Their praetorian relationship deteriorated because of unpaid gas supply invoices. NiQuan reportedly owed TTUDECOL over US$21 million, leading TTUDECOL to terminate its gas supply contract with NiQuan in August 2023. TTUDECOL sources gas from the state-owned National Gas Company. As a result of NiQuan debt, TTUDECOL also accumulated significant debts to NGC.

NiQuan executives have sought moratoriums and additional funding to sustain operations. Thus the iniquitous, incestuous saga rumbles on in the wake of mercenary machinations of a tainted state.

 

 

 

Energy Chamber

Responding to appointments to the board of the Energy Chamber following the annual general meeting, UNC Leader Kamla Persad-Bissessar lamented, “I am not surprised that again, smaller local energy companies are not getting representation on the board.”

Daniel Devaux, general manager of contracting and procurement at Shell T&T Ltd, and Jean-Andre Celestain, chief executive officer of Atlantic, were new appointments to the board. Chief executive officer of Massy Wood Mala Baliraj, senior associate of operations at Carbon Asset Developer Associates Ltd Tamara Bujhawan, managing director of EOG Resources Ltd George Vieira and Pria Narinesingh, an individual member, were re-elected.

The Executive Committee remains in place until the next Board meeting in December 2024.

Persad-Bissessar said, “The current Energy Chamber is structured to only serve the priorities of the foreign multinationals and select local special interests’ groups. I made my comments in the budget debate after receiving many requests and complaints from our local energy sector micro, small and medium enterprises. I stand by everything I said in the budget debate regarding the Energy Chamber and my plans for the creation of new representative organisations and changes to safety standards.”

In her contribution to the budget debate on October 4, Persad-Bissessar stated that the Energy Chamber is “dominated by large multinationals and local special interest groups and the locally-owned MSMEs in the energy sector are really without an adequate voice”.

Many local business investors stated they are afraid to voice their true opinions for fear of retaliation from multinational companies and local special interests.

Persad-Bissessar said that if elected to office in the upcoming general election, her administration would create and fully finance the formation and operation of a new body to represent local energy service companies and contractors. This body would also advocate for businesses providing goods and services throughout the energy value chain.

“All locally owned MSMEs in the energy sector will be able to join and use this body to make representations directly to the Minister of Energy and Prime Minister without going through the existing Energy Chamber. We will remove all State-owned energy companies from the Energy Chamber and create a new, separate body to represent their interests. I do not believe that the current energy chamber represents and advocates for the best interests of our State-owned companies. State-owned energy companies must make decisions and policies in the best interests of our citizens and not for a private body mainly controlled by multinationals.”

In his contribution to the budget debate, Energy Minister Stuart Young described her comments as a “frontal attack” on the Energy Chamber.

“I heard a frightening submission. We witnessed a frontal attack on the Energy Chamber of T&T. I listened very carefully as the Leader of Opposition, aspiring to an office, said that they will set up a parallel body and they will basically decimate the Energy Chamber, the way they decimated the energy sector between 2010 and 2015. The population needs to take note of that. So the Member for Siparia, declared war not only on the Energy Chamber today, but declared war on bp, Shell, EOG, Perenco, Woodside, NGC, Touchstone, Heritage.”

Persad-Bissessar told media that the local energy sector MSMEs need direct access to the Minister of Energy and Prime Minister so they can truthfully and effectively address their concerns.

“I intend to give them that access because the current chamber and system does not facilitate that. It’s insulting and disrespectful to make MSMEs pay $5,000 for a seat to then be lectured by the Energy Chamber special interest representatives who say nothing to advocate the MSMEs.”

The board of 16, including 3 MSMEs, comprises-

CHAIRMAN: Jerome Dookie—managing director Methanol Holdings (Trinidad) Limited, Caribbean Nitrogen Company Limited & Nitrogen (2000) Unlimited

DEPUTY CHAIRMAN: (Upstream) George Vieira—managing director, EOG Resources Trinidad Ltd
DEPUTY CHAIRMAN: (Mid/downstream) Colin Bain—managing director & president, Methanex Trinidad Ltd

DEPUTY CHAIRMAN: (Energy Services) Shaun Rampersad—chief operating officer, Ramps Logistics Ltd

SECRETARY: Mala Baliraj—chief executive officer, Massy Wood

TREASURER: Hafiz Ali—chief executive officer, Weldfab Ltd

PRESIDENT & CEO: Dr Thackwray Driver—president/chief executive officer, The Energy Chamber of Trinidad and Tobago

BOARD MEMBER: Paul Baay—president and CEO, Touchstone Exploration (Trinidad) Ltd

BOARD MEMBER: Erik Keskula—chief executive officer, Heritage Petroleum Company Ltd

BOARD MEMBER: Verlier Quan Vie—vice president, Commercial, the National Gas Company of Trinidad and Tobago

BOARD MEMBER: Jean Andre Celestain—chief executive officer, Atlantic

BOARD MEMBER: Ricardo Mahadeo—chief executive officer, TOSL Engineering Ltd

BOARD MEMBER: Pria Narinesingh—individual member

BOARD MEMBER: David Campbell—regional president, bp Trinidad and Tobago

BOARD MEMBER: Daniel Devaux—general manager, Contracting & Procurement, Shell Trinidad and Tobago

BOARD MEMBER: Tamara Bujhawan—senior associate, Operations, Carbon Asset Developer Associates Ltd

‘

 

 

 

Business chambers as divisions of TTCIC etc

Instead of regional integration, the Energy Chamber should prioritise pragmatism to represent MSMEs.
Merging 9 business chambers,

Trinidad and Tobago Chamber of Industry and Commerce can represent the MSMEs in a local Energy Division, similar to their Tobago Division.
All state assets should be DIVESTED immediately to eradicate loss-making bureaucracies and create wealth in a share-owning democracy.
European Business Chamber and American Chamber of Commerce may include some MSMEs.
Energy Chamber can create an MSME section.
Greater San Fernando Area Chamber of Commerce can include MSMEs in an Energy Division.
The following can join TTCIC or AMCHAM as MSMEs or Energy divisions –

1.Chaguanas Chamber of Industry and Commerce
2 Couva/Point Lisas Chamber of Commerce
3 Sangre Grande Chamber of Commerce
4 Greater Tunapuna Chamber of Industry & Commerce

 

 

Forex intervention

2024, 10/29

President of the Automobile Dealers Association, Visham Babwah proposed an independent body to deal with the ongoing shortage of foreign exchange, for intervention and clarity.

“..if we cannot operate our business and pay our wages, we would have to shut down. People have gone out of business and we face serious challenges. The government must take full responsibility for this.”

Many dealers in the organisation have been forced to turn to the black market. While Exim Bank supports other sectors, foreign used car dealers have to accept the paltry foreign exchange from commercial banks and turn to the black market, where the TT exchange rate is pegged at US$8.

“The black market has foreign exchange where you pay a higher price. My questions are to the government, the Central Bank governor and the commercial banks: Where is the black market getting all this forex from? Is it being enabled by commercial banks? When they get forex, they send it out and then it is sold on the black market. ..there are times you get calls that people have forex to sell US dollars.”

He also took umbrage with a report of an importer of potato, garlic, and onion unable to get forex who claimed that the foreign used car industry can get a large amount of forex to import foreign used cars.

“We have two sectors, the franchise dealers who import a lot more cars than us. I can’t say where they get the USD or how many cars they import, but it’s much more than us. For an anonymous importer to pinpoint the foreign news car dealers , I take offence because we have serious problems acquiring USD .”

Vashti Guyadeen, chief executive officer at Trinidad and Tobago Chamber of Industry and Commerce, said its members are also concerned about the urgent need to access foreign currency.

“Suppliers are refusing to send shipments without receiving payments, which are heavily dependent on the availability of forex. Our understanding is that the current list of essential items under Exim Bank still includes items on the list during the COVID pandemic some of which were no longer considered essential.”

A letter to Minister of Finance Colm Imbert addressed the issue and the Chamber president Kiran Maharaj had a conversation, in which he acknowledged the necessity and advised that a revision of the list is in progress. The Government created a special window at the Exim Bank to provide US dollars for essential imports, such as food and medicine, and with COVID-19 over, that forex window is being reviewed.

MP for Oropouche West and the UNC shadow Minister of Finance, Dave Tancoo said that while the unavailability of foreign exchange is unfortunate, the Opposition has long warned the country about the severity of the forex shortage impact, calling on Imbert to make drastic interventions.

“Those businesses have started to speak out because they are losing money as a result of this unequal competition. Beyond that, we are also in danger of investors closing their doors, adding to the already massive unemployment and underemployment levels. 96.2 per cent of staple foods are covered by imports. As of August last year, our net foreign reserves equated to less than eight months of import cover. Our August 2024 position has not improved. What has the Government been doing to address this?”

 

 

 

OWTU blames bane of Petrotrin for forex famine

2024, 10/31

Oilfields Workers’ Trade Union (OWTU) chief education and research officer Ozzi Warwick blamed the 2018 closure of Petrotrin for foreign exchange woes. He told a panel at Cipriani College of Labour and Co-operative Studies (CCLCS) that the shutdown severely impacted foreign exchange and revenue generation, triggering the ongoing forex shortage.

This week, businessmen complained about accessing foreign exchange to pay for essential goods. The owner of Ramsaran Dairy Products Rajnanan Ramsaran wrote to the IMF and other agencies over the issue.

Warwick claimed the closure was “the worst economic decision of any government,” noting that Petrotrin, a major foreign exchange earner, had not been recommended for closure by any official evaluation committees.

Government, however, maintained that Petrotrin was restructured, withdrawing from the refining business. Trinidad Petroleum Holdings Ltd is negotiating with three bidders interested in the former Petrotrin refinery at Pointe-a-Pierre.

Warwick highlighted the production decline since the closure, which has been detrimental to the oil and gas industries and the broader economy. Oil output fell by 18.2 percent from January to December 2023 and gas production slid from 2.7 billion cubic feet (BCF) per day in January 2023 to 2.5 BCF in December.

By June, natural gas production had sunk below two BCF per day for the first time in over two decades, a statistic he attributed to “a failed energy policy and lax regulatory oversight. These losses, unfortunately, are now being borne by ordinary people, who are treated with contempt and disdain.”.

Petrotrin’s exit exacerbated the foreign exchange crisis, now one of the biggest issues impacting the working class. Minister of Finance Colm Imbert’s recent $54.2 billion fiscal presentation conveyed a dismissive tone towards State services, as though citizens should feel privileged to receive government assistance.

“This is the Government’s mentality. They do not believe that ordinary people should benefit from the country’s resources.”

CCLCS lecturer Trevor Johnson criticised the Government’s recent five per cent wage proposal for public sector workers, noting that many are surviving on 2013 wages. He noted a few settlements extending as far back as 2019. With 2025 approaching, workers faced prices from 2024 markets with outdated salaries.

“We are expecting those workers to find money to come to work, pay their bills and afford government charges that have increased over the years.”

The Joint Trade Union Movement (JTUM) criticised the rise in the minimum wage for public sector workers. A $2 per hour hike means a worker now earns $3,600 monthly, which barely covers rent for single parents with multiple children.

 

 

 

Ex-Petrotrin workers protest pension pressure

2024, 10/29

The Oilfield Workers’ Trade Union demands urgent action to prevent a financial crisis for 7,000 Petrotrin retirees due to the Government’s alleged failure to inject funds into the Petrotrin Employees Pension Plan (PEPP). OWTU Pointe-a-Pierre branch president Christopher Jackman said retirees are concerned that the PEPP is losing $400 million annually, even as they continue to receive their disbursements, to which they are entitled until they die.

He warned that if this trend continues, international investments in equities could be depleted by next year, while local equities might be exhausted by 2036. For the fund to survive, it needs a substantial annual investment of between US$100 million and US$250 million to address the growing deficit.

“We cannot treat this as an issue that we can just ignore and wind up the plan because not only will it affect Trinidad and Tobago’s economy when the local equities are dissolved, this will now put 8,100 families in a position of becoming destitute,.”

He led retirees in a two-part mission to advocate for the pension plan. The group first gathered outside Republic Bank Limited Park Street head office to deliver a letter to the trustee of the PEPP, seeking the establishment of a management committee. They then proceeded to the Central Bank at the Eric Williams Financial Complex to deliver a letter demanding an update on the fund from the supervisor of pensions.

Before Petrotrin’s closure in November 2018, employees retired between ages 50 and 55 and expected to receive their pension.

In July 2021, OWTU president general Ancel Roget reported a $1.6 billion deficit in the PEPP and said actuary Bacon Woodrow and De Souza Ltd had advised then-Petrotrin chairman Wilfred Espinet that an initial injection of $250 million was necessary, followed by annual payments of $135 million for the next decade. To date, the union claimed no funds have been injected into the pension plan.

“We have been talking and trying to negotiate for the last six years and we have had enough. Now is the time for our voices to be heard. Now is time to ensure that if they don’t resolve this, they will face the penalties of this in the polls.”

Petrotrin workers were also guaranteed life-long healthcare for themselves and their dependents but when the refinery closed, they were given the option to voluntarily join an insurance plan at Sagicor which the Government contributed to for two years. Once that subvention was discontinued, members were required to cover their bills in full.

One aged 73, who retired in 2011 after 39 years at Petrotrin said his wife suffered the consequences of giving up his insurance and she died in hospital.

Dhanraj Goolcharan, 76, who retired in 2008 after 41 years with the company, said: “My pension is my only source of income and if I lose that then I will be facing stark poverty.”

Jackman suggested Energy Minister Stuart Young should ensure that Government contribute to the plan through Heritage Petroleum Company Limited, one of the companies that succeeded Petrotrin.

“Let Heritage cover the debt. They (Trinidad Petroleum Holdings Limited) are legally entitled to cover the debt in the plan according to the trust deed and rules. Live up to your responsibility and stop us having to fight all these matters in court.”

 

 

 

Politics of arithmetic

2024, 10/26

Economist and a former deputy governor of the Central Bank Dr Terrence Farrell rejects data used in the budget for fiscal year 2025 and the way it was presented to the public. Suspicious data suggests economists at the Ministry of Finance are not up to the task of preparing the technical data that was produced. Decades after he started monitoring budget presentations, little has changed…He told a post-budget webinar hosted by the Trade and Economic Development Unit of the University of the West Indies (UWI), St. Augustine.

“I have seen budgets for over 40 years with little change.. the same documents, desk thumping in Parliament, irrelevant and ineffective speeches, ritual budget commentaries, some of which were enlightening.”

A budget should reflect policy and is much more than computing statistics in a “bookkeeping” manner.

“The budget is not mere bookkeeping…at its core the budget is a serious piece of professional economic work, not only about numbers, revenue and expenditure and making these add up. It is supposed to reflect the stance of macroeconomic policy and whether current spending and taxation promote development.

“The bookkeeping has to be there, documents and review of estimates and all that stuff is there and the budget division of the Ministry continues with these thick books when what we need are the Excel spreadsheets to do the work as you cannot do anything with those documents out of the budget division. It makes life difficult for those who want to do analysis on the budget numbers.”

He questioned if the economists at the Ministry have the ability to generate forecasts in technical areas.

“The first thing I do as an economist is I look at the Review of the Economy, I do not read the budget speech, I go to the Review of the Economy and look for the numbers and I am puzzled by the numbers there. The first thing I noticed is that the numbers for the budget were being prepared by Ministry economists, not by the Central Statistical Office (CSO) and I don’t know that the Ministry economists have any expertise in economics statistics to be able to generate the estimates for Gross Domestic Product (GDP) and to produce the forecasts for 2024.

“The numbers are not adding up , based on my arithmetic. They do not seem to be making sense and nobody has commented on that. We have forecasts produced in the Review of the Economy with blank cells in there and my mind goes back to Frank Rampersad and Frank Barsotti who would have been the permanent secretaries in the Ministry in the 1970s and 1980s. They have to be rolling in their graves when they see this is the kind of output being produced by the Ministry of Finance.”

Other “suspicious data” in the budget speech and in the budget contribution include the growth in manufacturing exports.

“We cannot find those anywhere to substantiate what is in the budget speech.  Some numbers are simply not there. How can we talk about growth in the economy if we are not talking about investments? There is no investment rate, what is the type of investment in the economy, where is that investment going? How much of it is foreign and how much is local? We talk about employment and unemployment, you have to start with your population number. The number in the Review of the Economy is 1.3 million, the number the CSO has consistently produced. The International Monetary Fund (IMF) publication on T&T put our population at 1.5 million. What is it? So if the population number is wrong, then your labour force number is wrong, your unemployment numbers are wrong.”

All of this shows a need for independent statistical agencies to review these budget numbers.

“I am not blaming the Minister of Finance, who is not an economist. He is a civil engineer but where the data is demonstrably wrong, it casts doubt on all the numbers that are presented in the budget.”

Three “imperatives” going forward are adjustment, diversification, and transformation.

“Diversification and transformation are what together constitute our development strategy. None of these feature in the budget in any coherent, professional manner.”

Government and country must adopt a new way of viewing how energy resources are used.

“The assumptions are that oil and gas reserves are consumption goods not capital goods. This is critically important . The Government certainly thinks that the gas in the ground….when . monetised and they go into the fiscal revenues that they are to be consumed. However,countries like Norway, why is their Heritage and Stabilisation Fund like this?…Because the Norwegians understand that the gas coming out of the ground and monetised is still capital. Our view is that it is consumption, to be consumed as quickly as possible.”

 

 

 

Falling revenue

Former Planning Minister Dr Bhoe Tewarie, in a presentation at the forum, warned that if oil and gas production is not raised and there is little revenue then, he does not expect there to be any significant contribution to the HSF any time soon.

“You look at the HSF numbers and the only point I want to make is that at the current level of production and prices, it is unlikely that we will ever contribute that again for a long time. On the issue of debt, I simply want to make the point that unless we manage the income, expenditure and deficit, we may have to borrow more. I simply alert the population of the country to that.”

Foreign reserves are falling and there seems nothing on the horizon to change T&T’s fortunes.

“The numbers for the foreign reserves are half of what they used to be about 10 years ago. And what we need to understand is that foreign reserves are not likely to increase because the balance of trade is not in favour and if we continue at the same trajectory, it is not likely to change anytime soon.”

 

 

 

Let energy companies pay 100% in US$

Piloting the budget on October 21, Finance Minister Colm Imbert told the Senate he wants energy firms to pay the country for their products fully in US dollars, not just 50 per cent as now obtains.

“There is a nuance I intend to deal with in fiscal 2025.”

He said that even though all energy exports from TT were sold internationally for US dollars, he learnt in a detailed analysis that only 50 per cent of the tax paid was in US dollars, with the other 50 percent paid in TT dollars.

“This is despite the fact that 100 per cent of the exports of oil, (natural) gas and petrochemicals are (paid) in US dollars.”

Imbert hoped for a greater inflow of US dollars coming into the Treasury to boost foreign reserves.

“There are many questions as to why (despite) being an oil-producing country, we have difficulty with our foreign reserves. This is the reason why. The energy sector companies do not pay all their taxes in US dollars, it was just thought it was so. I would encourage energy companies to pay all in US dollars.”

Imbert announced more tax breaks in agriculture and health sectors. While much of the agriculture sector was now tax-free, certain lacunae or gaps exist. He promised to meet Agriculture Minister Kazim Hosein and Minister Avinash Singh to remove any ambiguities to make the sector fully tax-free.

Under the rubric of health, he would exempt all sporting equipment from tax. Exemption would not apply to sports clothing as items like sneakers could be used as fashion items. This will be the last time the Government has a tax amnesty. He said the Revenue Authority comes into effect in 2025.

The minister made a plug for electric cars (whose charging devices will become tax-exempt), revealing he had bought one by which he drove to Blanchisseuse for one-tenth the cost of petrol.

Generally, Imbert touted the strengths of the TT economy although the country was now in a difficult place. The Heritage and Stabilisation Fund has rebounded from US$4.7 billion in 2022 to US$6.1 billion now, due to prudent management. Imbert hailed three years of economic growth of 1.5 per cent in 2022, 1.3 per cent in 2023 and a projected 1.9 per cent in 2024.

He praised a recent 28 per cent increase across three sub-sectors, accommodation and food services, trade and repair and transportation and storage. He expected a boost in tourism, citing a 91 per cent hike or near doubling of cruise-ship passenger arrivals in the 2023-2024 season.

He pondered the current low level of global oil prices. He predicated his budget on oil at US$77.80 per barrel of crude, but the latest prices were US$70.56 (WTI) and US$74.13 (Brent). Despite current tensions in the Middle East, the US has large stockpiles of oil which it is releasing onto the market to keep prices down. Imbert said TT was currently in “a very difficult situation” economically but despite that has not increased taxes and has kept paying every public servant.

 

 

 

US$ energy sector tax legislation

Plans for legislation encouraging energy companies to remit taxes to the Government in US dollars reflects how far “our misguided foreign exchange management policy has led us”,economist Dr Terrence Farrell told post-budget analysts at the Trade and Economic Development Unit of The University of the West Indies Farrell said that after witnessing budget speeches for over 40 years, little has changed.

“Certainly, very little has been improved. We see the same documents, the same chest-thumping and desk-thumping in Parliament, the same irrelevant contribution,” Farrell said.“As an economist my attention was drawn to what was lacking or deficient or missing in the budget. As a lawyer, I am intrigued by the notion of the legislation to compel the energy sector companies to pay all their taxes in US dollars, and my view as an economist is that the very fact this arises as a possible policy reflects the debt of which our misguided foreign exchange management policy has led .”

Delivering the national budget on September 30, Finance Minister Colm Imbert said:

“In 2025, to further bolster our reserves, we plan to introduce legislation to encourage energy sector companies to remit all their taxes to the Government in US dollars. Currently, only 50% of energy sector taxes are paid in US dollars, although 100% of oil, processed gas and petrochemicals are exported.”

Of three economic imperatives: adjustment, diversification, and transformation, Farrel believes that diversification and transformation together constitute the development strategy, noting

“none of these featured in the budget in any coherent, professional manner, irrespective of the politics in the budget and the ensuing antics in the Parliament.”

Former UWI pro-vice chancellor and former minister of planning Dr Bhoendradatt Tewarie warned that the country may have to borrow more.

“On the issue of debt, unless we manage income, expenditure and deficit, we may have to borrow more and I alert the population and the country to that.”

Focusing on current reality, Tewarie said:

“If we examine the historical record of government, Parliament, budgets, income, expenditures, measures of achievement, we can figure where we are, what we did right, what we did wrong or did not do well—and therefore, what we need to build upon, abandon, correct, and how we might need to change.”

The country is becoming poorer and less creative where it matters in terms of support for productivity, competitiveness and innovation.

“In a world where sustainable development is being pursued and never achieved at any time in history and trying to be achieved for the first time, perpetual innovation is the only way to get there. ..we have a problem.”

Tewarie said while not a “basket case, we have not done well enough and have not just fallen—we have fallen back. Of 180 countries…only 81 countries are less corrupt…98 are more corrupt. Legatum Prosperity index—(we are) 56 out of 167 countries. Ease of doing business—105, our lowest ever out of 141 countries—we have fallen from a high in 2015. We must be doing something wrong and it is possible to do something right and the growth scenario is not good . I don’t see how we are going to get out of this 20% decline and change GDP and per capita in a positive way.”

Tewarie pointed out two fundamental problems: the structure of production and the results of development.

“We are dependent on oil; the balance of payment is dependent on that, and the forex, and the result of development is inequality. The Human Development Atlas of 2012 basically shows you how inequality is spread throughout the country, Mayaro being the worst point; Point Fortin being pretty bad. We have high unemployment and nothing in the raw numbers, either for inflation or for unemployment given by the Minister of Finance could be correct.”

The solution to these concerns lies in diversifying into renewable energy, expanding production investments, exports, and markets,

“So the problem is not what is;    it’s how and when.”

[DIVESTMENT OF ALL STATE ASSETS IS THE ONLY HOPE FOR PROGRESS.]

Scotiabank invests CAD$950k in Tobago climate resilience

70 years after the Canadian Bank of Nova Scotia returned to Trinidad, locally controlled Scotiabank committed investment of CAD$950,000 in ScotiaRISE, its CAD$500 million social impact strategy, for the Tobago climate project. On October 24, Scotiabank TT said the initiative targets the climate resilience and sustainable development of vulnerable communities in Tobago.

In partnership with Habitat for Humanity TT, the project aims to uplift the communities of Charlotteville and Louis d’Or by addressing climate change vulnerabilities and promoting long-term sustainability. The project will assist over 4,000 beneficiaries

“Over the next two years, the project will focus on implementing climate-smart agricultural strategies and delivering empowerment programmes to residents. The project’s core activities include training in rainwater harvesting, establishing a community greenhouse, disaster risk reduction and tourism enhancement initiatives.”

Jennifer Massiah, national director of Habitat for Humanity TT, said collaboration is crucial to fostering resilience and inclusivity.

“We are proud to partner with Scotiabank on a project centred around resilience, innovation, social cohesion and enterprise.”

Senior vice-president and managing director of Scotiabank TT, Gayle Pazos said the bank’s commitment to empowering communities is about removing barriers that hinder the full participation of disadvantaged individuals and communities in the economy.

“Through this collaboration with Habitat for Humanity, we aim to equip communities with the tools, knowledge and opportunities to build economic resilience. This project is an opportunity for us to deepen our commitment to the people of Tobago. We’ve worked with Habitat for Humanity before and look forward to expanding our efforts.”

 

 

 

PNM pain and calamity

In the Senate budget debate on October 21, Opposition senator Damian Lyder accused the government of crashing the economy, citing economic indicators, deploring declines in at least four sub-sectors and rejecting the theme, Steadfast and Resolute: Forging a Pathway to Prosperity.

“Instead of steadfast and resolute, we have a Government that is indecisive and weak. Instead of a pathway to prosperity, TT has been on a PNM pathway to pain and calamity. People are fed up with the PNM because of devastating economic decline and suffering, a decade of destruction.”

Lyder wondered why Finance Minister Colm Imbert had only referred to growth for 2022-2024, scoffing that this simply reflected TT’s emergence from the pandemic lockdown.

“The CSO (Central Statistical Office) reporting of real GDP gives us an actual measure of our economy. Real GDP in 2015 was $187.5 billion. The last reading after almost a decade of the PNM is $150.3 billion. That is an economic collapse of 20 per cent.”

Lyder said the CSO reported 64,000 jobs lost since 2015. Total government debt doubled from $78 billion in 2015 under the People’s Partnership to $141 billion in July under this Government.

The debt-to-GDP ratio worsened from 44 per cent in 2015 to 76 per cent now. Lyder said the figure would be even worse if the government paid VAT refunds, contractor debts and capital loan payments. Debt is a burden on citizens, hurts small business and pushes TT to “failed state” status.

Lyder said based on constant 2012 prices, manufacturing sector GDP sank from $30 billion in 2015 to $25 billion now. Reiterating opposition rejection of the property tax, he said evaluations were flawed and chaotic, with not one field evaluator being properly qualified. He dubbed the government “elitist” for not starting valuation of commercial and industrial properties but only residential.

He vowed, “We will axe this tax!”

Regarding manufacturing, he accused the government of being disconnected from reality and simply rehashing old promises such as special economic zones. .

“Mr President, every business in this country can attest to today that it is more difficult than ever not only to grow a business in this declining economy but simply to survive in this environment.” He attributed the growth in the non-energy sector not to any Government initiative but to “the tenacity and struggle of the business men and women who continue to fight, even against the PNM economic conditions.”

He complained that from 2015 to 2020, TT fell from position 79 to 105 in the World Bank’s ease of doing business ranking of countries. Lyder denounced four crises hitting business – the port, foreign exchange, VAT refund and crime.

TT lost US$3 billion in foreign direct investment (FDI) over three years, namely US$935 million in 2021, US$913 million in 2022 and US$1.1 billion in 2023.

Saying FDI had vanished under this government, he claimed “Lever Brothers, ArcelorMittal, Point Lisas downstreamers, all gone, taking their billions of foreign direct investment with them. In 2021, we were the worst in the Caribbean when it comes to FDI generation.“

With a budget allocation of $2.5 billion to the Ministry of Tourism, Culture and the Arts, he rued a 30 per cent drop in tourism since 2015 from 442,167 arrivals under the UNC to 310,237 in 2023.

Government’s allocation to Agriculture fell since the last budget from $1.44 billion to $1.18 billion this year. Allocation to the Agricultural Development Bank sank from an initial estimate last year of $88 million to an actual allocation of just $20 million. He named six food crops for which production had drastically fallen since 2015 including lettuce (down 66 per cent), celery (down 72 per cent) and chive (down 73 per cent.)

“This government is failing to address the biggest problem facing farmers today, praedial larceny. In places like Carlsen Field, criminal gangs coordinate their strikes on farmers, who work hard to supply this nation with food, victims of multiple hits in the same week.”

Lyder said that Carlsen Field Praedial Larceny Station was shut, while government was tardy to staff and fund the Praedial Larceny Unit.

“This country has been witness and victim to over four thousand murders in these PNM years. Businesses and businesspersons are literally under attack. We have bandits with police gear and vehicles kidnapping businessmen while the Minister of National Security doesn’t know what ‘a working vessel’ means.”

 

 

 

Insurance Policyholders reject CCJ ruling

2024, 10/26

The British American Insurance Co. Ltd and Colonial Life Insurance Co. Ltd. Policy Holders Group (BACOL) thanked policyholders for “their patience and their support ”as it disagreed with the ruling by the Caribbean Court of Justice (CCJ) to dismiss its lawsuit brought against the government.

BACOL said in a statement signed by the chairman of its board of directors, Dr. Patrick Antoine.

“We deeply, but respectfully, disagree with the result. While the judgment represents a significant setback, we shall not relent in the quest for economic justice for BAICO and Clico policyholders. In the coming weeks and months, the judgment will be subjected to keen analysis so as to assess whether it leaves any further avenue open for judicial redress.”

Trinidad-based Caribbean CCJ dismissed the lawsuit brought against the Trinidad and Tobago government over the 2009 collapse of British American Insurance Co. Ltd and Colonial Life Insurance Co. Ltd.

“The claim is dismissed and the parties were ordered to bear their own costs,” CCJ President, Justice Adrian Saunders said in the summary of the judgement.

BACOL brought the lawsuit, claiming that after 15 years of perseverance, it has “significantly advanced the pursuit of financial justice” for policyholders in Antigua and Barbuda, Dominica, Grenada, Montserrat, St. Kitts and Nevis, St. Lucia and St. Vincent and the Grenadines who have “suffered extreme financial loss and hardship” after the collapse of the British American Insurance Co. Ltd. (BAICO). The collapse resulted in losses of over EC$800,000,000 (One EC dollar=US$0.37 cents) to businesses and individuals.

In April, the matter of Ellis Richards and others versus Trinidad and Tobago was heard by the CCJ, with the lawyers for the policyholders arguing that the TT government breached the Revised Treaty of Chaguaramas (RTC), which established the Caribbean Single Market and Economy (CSME), by bailing out certain local CL Financial (CLF) subsidiaries such as CLICO and British American Trinidad (BAT) and not regional subsidiaries such as BAICO.

The lawyers, including former St. Lucia prime minister, Dr. Kenny Anthony, said that while local policyholders were protected and essentially guaranteed their full investments, Eastern Caribbean policyholders were only able to recoup approximately 14 per cent of their investments through liquidation of the regional subsidiary.

“It is with profound disappointment that we inform the policyholders of British American Insurance Company (BAICO) who lost hundreds of millions of dollars when the CL Financial Group (CLF) collapsed, that the Caribbean Court of Justice (CCJ) has dismissed the claims brought on their behalf against Trinidad & Tobago,” Antoine wrote in the statement.

(CMC).

 

 

 

Divers sue Paria and LMCS for negligence

2024, 10/27

Lawyers for survivor Christopher Boodram and relatives of Rishi Nagassar filed negligence lawsuits against the State-owned energy company Paria and their former employer Land and Marine Contracting Services Limited, almost three years after a diving tragedy at Paria Fuel Trading Company Pointe-a-Pierre facility,

On October 14, attorneys from Freedom Law Chambers led by Senior Counsel Anand Ramlogan, filed the cases over events in February 2022. They identified 29 grounds on which they claimed Paria’s negligence led to the fatal incident and also raised 25 grounds in relation to LMCS as their employer.

They are seeking significant compensation for Nagassar’s death and Boodram’s long-lasting physical and mental injuries, largely based on what they endured in the incident and their lack of earnings since then.

Attorney Prakash Ramdhar, who is leading the legal team for the families of two of the other divers, Fyzal Kurban and Yusuf Henry, said similar cases will be soon filed. He said he attempted to settle the cases with Paria and avoid litigation but discussions with the company proved futile. Ramadhar said,

“They took a decision that they were not going to be reasonable and fair in all of the circumstances so we were left with no choice but to proceed to file actions,”

In their statement of case, the lawyers gave a synopsis of the incident as recounted by Boodram.

On February 25, 2022, Boodram, Nagassar, Henry, Kurban, and Kazim Ali Junior, whose father is a director of LMCS, were doing maintenance work on an underwater offshore pipeline off Berth #6 on Paria’s compound when the incident occurred.

They said the group were performing work following the scope of works issued by Paria and the project execution plan developed by LMCS when the hyperbaric chamber flooded and they were sucked in. Although the men were injured, they managed to find each other in an air pocket.

When the men reached the end of the air pocket, Boodram went ahead through a mixture of crude oil and water and met a chain block hanging near the end of the pipe. They claimed that just as Boodram was about to give up hope, he heard a response from someone outside.

He was eventually pulled out of the pipe by his colleague Ronald Ramoutar, whom he later learned had been warned by Paria officials against intervening.

Before being taken to the San Fernando General Hospital, Boodram reportedly told officials of the condition of his colleagues and pleaded with them to rescue them. The men were not rescued and their bodies were recovered days later.

Summarising the negligence claims against the companies, the lawyers claimed they failed to identify the potential hazards associated with the job and implement measures to ensure an effective emergency response. The lawyers alleged that Paria failed to ensure that LMCS had proper health and safety equipment for their staff and could safely and competently complete the job.

They further claimed that Paria and LMCS failed to properly clear the pipeline before the divers were allowed to commence work.

“Failure, in all circumstances, to adhere to industry safety standards by taking steps to ensure the safety of the Claimant and other workers,” they said.

They also criticised Paria for preventing a rescue operation and quoted some of the findings of the Commission of Enquiry (CoE) appointed by the government to probe the incident following public furore over the tragedy.

Of the loss and damage suffered by Boodram, his lawyers claimed he still suffers mental anguish and “continues to be haunted by the memories of his friends’ suffering and the inability to help them despite promising them that he will get assistance.”

They said he has been unable to return to work as he suffers from post-traumatic stress disorder (PTSD).

“The haunting memories of the incident, coupled with the ongoing emotional distress, make it challenging for him to concentrate, engage with colleagues, or function effectively in a work environment at present, and for the foreseeable future,” they said.

They claimed that Boodram has suffered from neuropsychiatric disorders, including amnesia, since the incident.

“He frequently misplaces items and forgets his scheduled medical appointments for example,” they said, adding that he also suffers from linguistic difficulties.
“He relives the nightmare on a daily basis and is unable to get a good night’s sleep.”

They claimed that he lost out on more than $400,000 in income since the incident as he previously worked on a freelance basis with other dive companies and as a fisherman in his free time.   Boodram’s lawyers also claimed that he will require weekly therapeutic support for the next decade and the medical bills will be approximately $312,000.

Nagassar’s lawyers are claiming compensation for the pain and suffering he endured, $25,000 for loss of expectation of life and loss of earnings for the 46-year-old based on the $9,800 monthly salary he received from LMCS as well as private work.   They are also seeking $53,350, which represents the money expended by his family for his funeral.

Nagassar was the sole breadwinner in his family and his lawyers are claiming compensation for his common-law wife and five-year-old daughter estimated at an annual rate of $85,000 until he would have retired.

The duo is also being represented by Kent Samlal, Robert Abdool-Mitchell, Sue Ann Deosaran, and Natasha Bisram.

After the tragedy, the Cabinet initially appointed a five-member team to investigate but the move was scrapped due to public criticism and a CoE was appointed.

In its report, the commission chaired by King’s Counsel Jerome Lynch, presented several dozen recommendations, including occupational safety and health charges.

It also recommended that Director of Public Prosecutions (DPP) Roger Gaspard, SC, consider prosecuting Paria for gross negligence manslaughter.    In July, DPP Gaspard wrote to Police Commissioner Erla Harewood-Christopher to initiate an investigation to determine whether there was sufficient evidence to prosecute any person or entity.

Around the same time, Paria issued a release claiming that the LMCS and the legal representatives of the victims’ families were frustrating its attempts to settle compensation claims.

Ramadhar denied the claims and called on Paria to pay each of the men’s families $5 million in compensation.

Last month, LMCS’s legal team wrote to Ramadhar and Ramlogan suggesting they direct their legal action to Paria and not their client. The company’s lawyers dismissed any imputation of culpability attached to it by the commission and claimed Paria should be held solely liable for what transpired. They suggested that even if their clients were partially responsible for the initial accident as alleged, Paria’s handling of the response absolved it.

After being served with pre-action protocol letters threatening the lawsuits, Paria reportedly claimed that only LMCS should be held liable. LMCS did admit that they owed their workers’ families and Boodram compensation under the Workmen’s Compensation Act but claimed payments could not be made until its claim to its insurer was determined. The company claimed it pursued litigation when it made a claim shortly after the incident but did not receive a response.

Earlier this year, the Occupational Safety and Health Authority and Agency (OSHA) brought 15 charges against the companies, Paria’s general manager Mushtaq Mohammed, its terminal operations manager Collin Piper and LMCS director Kazim Ali Snr.

Mohammed is facing four charges for facilitating a breach of the OSH Act by failing to prepare an emergency plan based on a risk assessment and by failing to ensure the divers were not exposed to a safety risk.

Paria is charged with four offences for failing to ensure that the divers were not exposed to risk, for failing to implement an emergency plan based on a risk assessment, for failing to revise the emergency plan through consultation with worker representatives and failing to conduct an annual assessment of the potential risks to employees of third party contractors such as the divers.

Piper is accused of allegedly failing to ensure that employees of the third-party contractors were not exposed to health and safety risks.

Ali is facing three charges for neglecting to ensure the health, safety and welfare of his employees, failing to perform annual risk assessments and neglecting to provide training, instructions and supervision to ensure the safety of the workers. His company was charged with failing to perform a risk assessment, failing to ensure its workers’ safety, and failing to provide them with proper training and supervision.

The three officials and the two companies denied any wrongdoing when they reappeared in court last month.

The outcome of the charges might be affected by a landmark case over the laying of charges under the OSH Act which is currently being considered by the United Kingdom-based Privy Council.

In that case, a decision by the Court of Appeal over the time limit for bringing charges under the legislation is being challenged. The Appeal Court ruled that health and safety charges and criminal charges had to be filed six months after the conduct occurred, while civil claims could be brought within two years.

 

 

 

 

 

HERITAGE

Heritage Petroleum Ltd is cleaning up an oil spill along the Cedros coastline on October 16, when the SOC was alerted and deployed its incident management team and spill response team. Three contractors responded and began clean-up.

Regulators including the Ministry of Energy, Environmental Management Authority, the Occupational Safety and Health Agency and marine stakeholders were notified. Company officials are engaging with the community.

Cedros councillor Shankar Teelucksingh commended Heritage for its speedy response.   “When it was reported last night, they did come down and checked the other beaches. However, we are still monitoring the other areas like Granville, Bonasse and Lower Fullarton/Columbus Bay.

“I’m happy to know they are dealing with the spill.”

He said at least 40 boats have been grounded. Vessels, anchor ropes and other apparatus are contaminated, so assistance for the replacement of these is needed. He was not aware if Heritage would compensate affected fishermen. The company did not say whether arrangements were made to do so either.

 

 

Fullerton fisherfolk seek more from Heritage

2024, 10/22

Fisherfolk on oil-stained pirogues at Fullerton Beach, Cedros urged more compensation from Heritage following the oil spill, despite receiving the all-clear from Heritage to return to sea following an oil spill. Activity at the Fullerton Fishing Port in Cedros remained at a standstill.

The spill grounded over 30 boats and over 100 fishermen. Oil-stained and ropes lined the shoreline where disgruntled fisherfolk said they rejected the company’s compensation package. Describing the offer as unfair and insufficient, boat owner Vijay Hajarie complained that the SOC offered them $12,000 per boat for four days, but they had requested $15,000.

Unable to work with boats and ropes stained with oil, Hajarie said the company increased the first offer of $2,000 per boat for four days, to $3,000 per day.after protests. He said the amount was still insufficient.

“That is unfair because the contractor come and take the same workers to work on the beach to clean up the oil earning $400 a day and we should get a better payment.”

Complaining that the compensation was less than they earned, he said they needed supplies to clean their vessels and to get new ropes.

“Every day we stay home, who paying us ? We still asking for this little $15,000 and they don’t want to agree.”

He said they were also sseking additional compensation for any other day they did not work.

Mother of three Christina Ramsaran, wife of boat owner Rakesh Ramdass, complained that they have had no income for days, and have no choice but to borrow money.

“We depend on this sea work for daily money to send the children to school, for groceries and since Wednesday , no income. Children can’t go to school.”

Fullerton Fishing Association said the fisherfolk were considering their legal options to settle the matter expeditiously. They waited six months for compensation when the previous oil spill occurred.   With no fish from Fullerton port, fish vendors had to go to other ports and compete with others for fish.

The whole fishing village is affected. Heritage said they continued to liaise with fisherfolk and were reviewing claims submitted by those affected. With the fisherfolk’s cooperation, the company was prepared to expeditiously conclude the compensation process.

Fisherfolk were provided with cleaning materials and ropes and given the all-clear to return to sea. The company was expected to complete the restoration of the impacted coastline area yesterday.

On July 30, fishermen discovered an oil slick approximately three miles long in the waters between Bonasse and Bamboo Village. 40 boats were affected in St Marie, Bonasse and Bamboo Village. In July 2023 an oil spill in Cedros affected dozens of fishermen