NEL loss of $348.7m

Dec 20, 2024

National Enterprises Ltd, NEL, was incorporated on August 27, 1999 and is controlled by the Minister of Finance (Corporation Sole).

NEL was established by the Government in a reorganisation exercise to manage its shareholdings in select State enterprises and facilitate a public offering on the T&T Stock Exchange. NEL holds shares in Trinidad Nitrogen Co Ltd, Pan West Engineers and Constrictors LLC, NEL Power Holdings Ltd, NFM and TSTT. In December 2001, NEL acquired a 20% shareholding in NGC NGL Co Ltd and on December 8, 2003 it acquired a 37.84% shareholding in NGC T&T LNG Ltd.

NGC NGL is a holding company with a 51% stake in Phoenix Park Gas Processors Ltd (PPGPL). The wholly State-owned National Gas Company (NGC) posted an after-tax loss of $1.3 billion for the year ended December 31, 2023, which Energy Minister Stuart Young attributed primarily to a $1.5 billion goodwill impairment related to NGC’s stake in PPGPL. In 2013, NGC acquired Conoco’s 39% interest in PPGPL for $3.8 billion. Young said that transaction was over valued by $2.3 billion.

National Enterprises Ltd reported a total comprehensive loss of $348.7 million for the year ended September 30, 2024, an improvement from the previous year’s loss of $455.1 million. Chair of the majority State-owned NEL, Ingrid Lashley stated,

“This $106.4 million variance underscores our ongoing efforts to navigate challenging market conditions. Operating profit declined by 70% to $120.4 million (FY2023: $391.3 million), influenced primarily by a reduction in dividend income to $113.1 million (FY2023: $382.7 million).”

Total assets are now valued at $2.7 billion, down from $3.3 billion in the previous financial year.

This decline was “in line with fair value adjustments” across investee companies, particularly in the energy sector.

“Despite these headwinds, we remained committed to delivering tangible value to our shareholders. In FY2024, we paid dividends totalling $234 million, building on the $300 million distributed in FY2023. Together, these payments represent over $500 million returned to shareholders over the last two years. With a dividend yield of approximately 5.4%, NEL continues to provide meaningful returns amid persistent global volatility and geopolitical uncertainties.”

At the end of the financial year, NEL maintained a “sound cash balance” of $29.4 million, reflecting “prudent cash management.”

This compares to a cash balance of $242.6 million for the year ended September 30, 2023.

“Our non-energy investee companies delivered notably strong performances, collectively registering a 24% increase in fair value. Telecommunications Services of T&T Ltd and National Flour Mills Ltd both achieved profit growth, expanded their product and service offerings, and enhanced their market positions.

The Power Generation Company of T&T Ltd continued its consistent trajectory, posting a 12% increase in value.

In contrast, our energy portfolio faced ongoing pressures. Trinidad Nitrogen Co Ltd fair value declined 25% to $1.1 billion (from $1.46 billion), while Pan West Engineers Constructors LLC and NGC NGL Co Ltd also recorded decreases of a similar magnitude.

These shifts reflect the volatile energy landscape, shaped by geopolitical factors, climate-related challenges, and ongoing constraints in local gas supply, particularly gas curtailments.”

Notwithstanding this, NEL remains confident in the resilience of its strategic investments.

“These companies are actively pursuing strategies to maximise efficiency, enhance profitability, and strengthen their market offerings to capture new opportunities.

Our non-strategic portfolio, currently valued at $405.7 million, is strategically managed to ensure adequate liquidity for dividend payments and to optimise yields.

In accordance with prevailing accounting standards, we regularly update our book value to reflect the current fair value of our assets. Our latest valuation confirms the fundamental strength of our portfolio, ensuring that the reported value accurately represents the company’s intrinsic worth.”

With “disciplined asset management, adherence to rigorous accounting standards, and a strategic focus on diversification”, NEL is “well-positioned” to confront the challenges ahead and deliver sustained value to all its stakeholders.

 

 

 

NGC reports 100% compliance with integrity filings

21 December

State-owned National Gas Company of TT reported achieving “100 percent compliance” with the statutory filing requirements under the Integrity in Public Life Act. Chairman, Joseph Ishmael Khan, received a certificate from the Integrity Commission on December 19 recognising the company’s adherence to the Act. NGC board of directors completed and filed the required declarations concerning income, assets, liabilities, and registrable interests, as stipulated under Sections 11 (1) and 14 (1) of the Integrity in Public Life Act.

The Integrity Commission’s chairman Hadyn Gittens presented Khan with the certificate in Port of Spain.

This announcement comes as NGC is grappling with a major financial setback. The company recently reported a hefty $1.3 billion loss for the fiscal year, contrasting with positive performance in previous years.

The loss has been attributed to a variety of factors, including a downturn in global energy prices, reduced production levels in the natural gas sector and escalating operational costs.

NGC nevertheless continues to highlight its long-term strategy, focused on sustainability and the transition to renewable energy sources. The company also expressed its commitment to improving operational efficiency.

NGC stated, “For a company such as NGC, where operations are built on transparency, integrity, accountability and corporate social responsibility, complying with the Integrity in Public Life Act is not merely a statutory requirement, but a reflection of adherence to its core values. Furthermore, this commitment is also deeply aligned to NGC’s sustainability goals—where sustainability includes creating long-term value for society through ethical business practices”,

After receiving the certificate, Khan noted the importance of good governance within NGC.

“I am excited to receive the Integrity Commission’s acknowledgement of 100 per cent compliance as good governance is the hallmark of the culture of a solid and forward-thinking organisation. The board of directors and I are committed to, as part of national service, accountability, transparency, and compliance with regulations. It is a consensus of all members, and we are proud of this achievement”.

The Integrity in Public Life Act was established to prevent corruption among public officials, regulate the conduct of persons exercising public functions and preserve the integrity of public institutions.

 

 

 

Lee confronts Young on NGC loss

2024, 12/21

United National Congress (UNC) deputy political leader and shadow energy minister, Dr David Lee warned Minister of Energy Stuart Young to stop playing the blame game and take responsibility for the loss of $1.3 billion by the National Gas Company of T&T. On Thursday, Young told media the chairman and the board of NGC are not to be blamed for the billion-dollar loss incurred by the state-owned natural gas distribution company.

He blamed this on its purchase of the 39 per cent shareholding in Phoenix Park Gas Processors Ltd from US energy giant ConocoPhillips, which he claimed was at an overvalued price in 2013,

“… one of the worst contracts a government entered in any energy sector in 2014/2015 with CGCL, which continues to cost us, the citizens, billions of dollars in losses and will continue the accountants say. And that is the truth as to why NGC has suffered these losses,” said Young, arguing that NGC had been on course to record a profit if these contracts were not in place.

Lee said it was utterly embarrassing that despite being in office for almost a decade, the only answer that Young and the Government have for the energy collapse is “blame the UNC”.

“If we are to believe the deluded proposition put forward by Minister Young that a loss by the NGC in 2023 is due to the UNC decisions in 2013, then are the profits of the NGC for 2016, 2017, 2018, 2019, 2021 & 2022 due to the UNC? That’s the intellectually challenging, bereft of common-sense rationale Minister Young wants the country to digest.”

He bemoaned that governance of a country and of the energy sector is not a game of “snakes and ladders. It is about taking responsibility for all that happens under your leadership, … accepting the crisis that happened under your Government and correcting it. All of which this Government has failed to do in nine years.”

Facts will always be more powerful than Minister Young’s regular fiction, Lee said, noting that the facts show that Minister Young must take responsibility for the lowest oil production in 50 years.

“The facts show that Minister Young must take responsibility for the lowest gas production in over a decade. The facts show that this Government must take responsibility for the most plant closures in our history.

“With a track record lined with significant failure, crisis and closure in the energy sector, emerging from the hatchet job on Petrotrin, numerous failed bid rounds, to the collapse of Niquan, no logical citizen can accept that the NGC’s failings are due to a past Administration. It is simply yet another blunder of this government.”

In his report on the company’s audited 2023 financials, NGC chairman Joseph Ishmael Khan said the $1.3 billion loss for last year

“reflects the impact of a sharp reduction in international energy commodity prices, and a one-time, non-cash impairment of $1.5 billion for goodwill.”

Goodwill is the difference between the purchase price of a company and the fair market value of the target’s assets. Explaining the goodwill impairment, NGC executives told media on December 12, in 2013, the company paid ConocoPhillips $3.8 billion (US$600 million) to acquire the US energy company’s 39 per cent stake in Phoenix Park Gas Processors (PPGPL).

NGC said it recorded goodwill of $2.3 billion on the acquisition of the 39 per cent stake, which suggests that the fair value of PPGPL’s assets was $1.5 billion.

 

 

No penalty for NGC $1.3B loss

2024, 12/20

Energy Minister Stuart Young defended the floundering National Gas Company, telling media the current chairman Dr Joseph Ishmael Khan and the board of NGC are not liable for the recent billion dollar loss incurred by the state-owned company.

Earlier, UNC MP David Lee said the public should keep an eye on the chairman after the company reported a loss of $1.3 billion for financial year 2023, following a loss in 2021.

“Absolutely no part of the 2023 losses incurred by NGC group have anything to do with the current board of directors, the current management of NGC, or the current Government of Trinidad. I want to make that point abundantly clear. So this personalised attack, which seems unfortunately to be the modus operandi of those on the other side is completely rejected..”

Young explained that the losses are not related to NGC’s current operations but bad contracts signed over a decade ago. Those contracts included a natural gas supply contract negotiated by the NGC with Caribbean Gas Chemical Ltd (CGCL), majority owned by a consortium of companies of Japan’s giant Mitsubishi Group.

The minister said the losses by NGC in 2023 were primarily attributable to its purchase of the 39 per cent shareholding in Phoenix Park Gas Processors Ltd owned by US energy giant ConocoPhillips, which he said were overvalued in 2013.

“And secondly, one of the worst contracts a government entered into any energy sector in 2014/2015 with CGCL, continues to cost us, the citizens, billions of dollars in losses, and will continue the accountants say. And that is the truth as to why NGC has suffered these losses,” said Young, who claimed the NGC had been on course to record a profit if these contracts were not in place.

“You have the comparative accounts of the first nine months of 2024 for NGC, where they have declared just under a billion dollars were made, in profit after tax. The NGC group has continued to pay all of its taxes,” said Young, who added that the Government and NGC have been working to ensure that the company can continue to generate revenues and profits in the long run.

Young said he was largely satisfied by the performance of state entities in the energy sector, although he wanted Heritage to do more.

“Heritage has done well in terms of stabilising itself. Fortunately, we’ve seen oil production increase a few thousand barrels over the last couple of months. I met the chairman of Heritage and spoke to them about being more aggressive to bring in more oil for Trinidad and Tobago, I’m trying to push them a little harder…. They’ve done well, but you can always keep pushing. So I am satisfied, if I had to grade the energy sector at the end of the year. I’m very satisfied by what has been achieved in securing our future.”

 

 

Loss-prone NGC poised for success

19 December

Although the loss for 2023 was dire, NGC is positioning for continued success in a dynamic industry, achieving substantial progress in the first three quarters of 2024.

Asset goodwill impairment can arise from changes in market conditions, increased competition, regulatory shifts or overall economic downturns. When goodwill is impaired, the company must write down the excess value, leading to a non-cash charge on the income statement.

This reduces the overall value of the assets and affects net income, leading to reported losses, as observed in NGC’s 2023 financial performance.

Goodwill impairment of $1.8 billion is related to acquisition of Conoco shares in (Phoenix Park Gas Processors Ltd and investment in Caribbean Gas Chemicals Ltd in 2012.

PPGPL remains distinguished by its history of innovation, continuous process improvement and commitment to safe operations, while contributing to generation of foreign exchange.

Recent performance is adversely affected by curtailment of gas from which its products are derived but operations should return to full capacity when gas supply improves.

CGCL was initially envisioned as a full-fledged petrochemical complex producing methanol and its downstream derivative dimethyl ether (DME), a clean substitute for diesel fuel but the DME vision has yet to be realised.

NGC revenues fell due to the energy and commodity price shock following the Ukraine conflict. Ammonia and methanol prices declined 58 per cent and 16 per cent respectively, while netback prices from LNG and NGL sales plunged.

Gas sales to the petrochemical sector made up over 60 per cent of the total sales in 2023. NGC’s gas-pricing formula generates significant surpluses during high prices but is vulnerable to market downturns.

Historically, NGC showed resilience and adaptability in its recovery efforts and strategic initiatives as markets adjust. The rebound highlighted in the financial statements for the nine months to September 2024 was expected.

NGC’s strong cash position ensures continued investment and growth. Profit of $500 million is an improvement of $1.8 billion from the loss of 2023.

 

 

Watch NGC

19 December

Raising alarms about a massive NGC loss for 2023 at UNC party headquarters in Chaguanas on December 16, deputy leader David Lee called NGC chairman Joseph Ishmael Khan someone “to keep an eye on” after revelation of the $1.3 billion loss and the way it was announced.

“This is the second time in three years that the NGC has reported a loss of such magnitude.

The same government that claimed to have stabilised the energy sector is responsible for a business model that has historically generated billions in profits, only to now be in a position of vulnerability, having recorded two massive losses in just three years. Those losses total $3.4 billion.”

Lee wasted no time holding the government accountable, impugning the PM and Energy Minister Stuart Young for mismanaging the energy sector and the administration’s handling of the NGC, creating conditions that led to these financial setbacks.

“This government is the same one that boasted about restoring growth to the energy sector . But the truth is, they’ve broken NGC. Only Rowley and Young could turn a successful business model into one that now suffers significant losses.”

Lee’s criticism extended beyond the losses. He also focused on the government’s lack of transparency. He specifically took aim at Khan for the way NGC officials revealed the loss to media behind closed doors in a Port of Spain hotel to announce the 2023 results.

“The timing is suspicious, as we’re nearing the end of 2024, yet they’re only now making this announcement. What else are they hiding at NGC?”

Lee questioned Khan’s reported earnings of about $114,000 a month in board fees and lavishing over $210,000 on overseas travel while the struggling company reports significant losses.

“Can you imagine? The NGC chairman is travelling the world at taxpayers’ expense and yet this company lost $1.3 billion. This government wants to say we’re attacking individuals but the real attack is on every citizen , due to the failed management of NGC.”

Lee queried the delay in naming a new president for NGC, suggesting the current chairman may be stalling due to political motivations.

“Why is the chairman delaying the appointment of a new president? Could it be because the chairman knows the PNM will lose the next election, or is he just trying to collect more board fees? Either way, it’s the taxpayers who are suffering.”

Lee challenged the government’s handling of ongoing projects, specifically the Dragon Gas Project. He doubted the significance of a Barbados trip weeks before a change in the US administration.

“Minister Young has never delivered any results in the energy sector. Yet he continues to act as if he is the sector’s expert. It’s time for accountability and the government needs to stop playing politics with the future of NGC and Trinidad and Tobago’s energy sector.”

Despite its claims, the regime failed to find a molecule of gas. Protests in Venezuela against inauguration of President Maduro imperils the Dragon deal.

 

 

 

NGC delays naming new president

Dec 15, 2024

Chairman Dr Joseph Ishmael Khan believes the president of the State-owned National Gas Company (NGC) company would be among the first to be axed if a new government takes office after the 2025 general election, a situation he does not want to put anybody in. As a result, he will be taking his time filling the position, and the executive recruitment exercise, initially begun, will be restarted.

On Jan­uary 18 2024, NGC announced that Mark Loquan would not be renewing his contract with the organisation, and his eight-year term as its president would end on August 31.

NGC would begin an executive search for a successor to Loquan. In February, Loquan was diagnosed with brain cancer and underwent treatment. In June, when Loquan went on leave, substantive vice-president, Legal and Corporate Affairs, Edmund Subryan was named acting president.

Replying to media requesting an update on the recruitment pro­cess for a substantive pre­sident of NGC , Khan said,

“We actually have to re-­engage the process, so by January or so you will see something happening.”

With Loquan on leave, the plan was for NGC’s four vice-presidents Subryan; Narinejit Pariag, vice-president, Finance, Technology and Risk; Verlier Quan-Vie, vice-president, Commercial; and Ian Walcott, vice-president, Ope­rations. to take turns on a rota. Pariag declined the offer to participate in the acting rotation. Both Quan-Vie and Walcott were interviewed for the substantive post.

“In order to have a degree of stability, we wanted someone who was not part of the process and that is why Mr Subryan has been acting.”

Khan estimated that the new recruitment process could take about six months, as it is “not something to rush”.

This was especially true given that the general election is already on the horizon and NGC has, over the years, become a “political football”. This was why NGC opted to host an embargoed news conference before releasing its financial results, which revealed a $1.3 billion loss for 2023. NGC attributed its $1.3 billion loss for last year primarily to a goodwill impairment of $1.5 billion related to NGC’s stake in Phoenix Park Gas Processors Ltd (PPGPL).

“We are in this silly season, as you know and the board and the management decided, this could be another football that the Opposition wants to create.

We wanted to make sure that we tell the story truthfully, honestly and transparently and explain this; a $1.3 billion loss, what does it mean, what does impairment mean.

Because you all could write the best story, the most accurate story and somebody is going to take that $1.3 billion and say some foolishness. We will deal with that but at the same time, we wanted to ensure that there is this dialogue.

Now, with respect to recruitment, I personally, as a chairman, don’t want to hire someone in this state of excitement. And I’m just saying, if for some reason there is a change in government, who is the first person that goes in a company? 

Usually, it is a CEO or president because there may be a feeling that this man or this woman is…so hear what is going to happen, I am going to be putting somebody at risk, or their family and their livelihood.

So I prefer not to do that. Now I haven’t…I don’t think my board knows my thinking about that. But you might want to hurry and fill the position but I am not going to do that. We are in a turbulent time politically; we need to settle down; we need to stabilise; and then we will get the right person, the right fit.”

The dynamics of NGC have been changing and, therefore, it wants the right leadership to take it forward. Whoever goes there, they are going to be there for a little while, so we are not rushing the recruitment process. We are following policy, we are following the process, but we have to recognise the sensitivity of the timing, the dispensation that we are in and the political football that NGC can be and I don’t want that,” Khan said.

NGC directors Dan Martineau, Joel Jack and Solange De Souza were present du­ring the news conference.

 

 

NGC Green plans CNG station in La Brea

Point Fortin Taxi Drivers’ Association president John David met NGC Green’s Roger Sant communications manager and Anna-Alisa Goindoo, sales and marketing manager at the proposed new location for the CNG station in La Brea- NGC

NGC Green is spearheading the project to build and operate a new Compressed Natural Gas (CNG) filling station south of the Union Industrial Estate in La Brea, promising significant benefits for the motorists in the southwestern peninsula.

The strategic location between Vessigny and Vance River allows for easy access from the new Point Fortin Archibald-De Leon Highway and the Southern Main Road, enhancing connectivity for drivers. The new facility will operate daily and feature a modern, cashless payment system offering greater convenience for motorists.

“The construction is projected to span at least two years, taking into account the necessary regulatory approvals and construction timelines.”

The announcement follows two months of discussions between NGC Green and the Point Fortin to San Fernando Taxi Drivers Association. Multiple potential sites were evaluated before settling on the current location.

“The site’s proximity to the natural gas pipeline at the Union Industrial Estate and accessibility for vehicular traffic, played a key role in the final decision.”

David said, “This new CNG station is a much-needed development in the south-western peninsula. We appreciate NGC Green listening to our concerns and this decision to provide a CNG supply closer to home. This station will save our drivers time and money and will allow us to serve the public even better.”

The push for CNG as a preferred fuel is driven by its cost-effectiveness and environmental benefits, at just one dollar per litre equivalent. CNG is the most economical vehicular fuel option and emits approximately 30 per cent less harmful emissions compared to traditional fuels.

Since the launch of the CNG initiative in 2014 up to November 2024, an estimated 97,000 tonnes of CO2 emissions have been saved. The new CNG station in La Brea is expected to support the continued shift towards cleaner, cheaper energy alternatives for the motoring public.

 

 

Gas supply sustains 3 of 4 Nutrien ammonia plants

2024, 12/17

Edmond Thompson, vice-president and managing director at Nutrien Trinidad, formerly PCS Nitrogen Trinidad Ltd, says the start of preliminary work on the Dragon Gas project will greatly help the company continue its operations.

“Obviously, gas supply is a challenge for us. Like many of the other producers here in Trinidad and Tobago, we don’t have an abundant supply of gas, so we face certain restrictions in natural gas supply. We’re not able to run our facilities full out. That is a significant challenge for us. We manage within those constraints, but it does continue to be a challenge.”

The percentage of negative impact on Nutrien due to the natural gas shortfall was hard to quantify but he maintained it was significant as Nutrien has not been able to optimise its production processes in T&T.

“In a large scale manufacturing operation like ours, we wish to run our plants 24 hours a day, seven days a week. That’s what they’re designed to do. In some cases, we’re not able to run all our plants all the time. That impacts our overall efficiency. It does impact us in that way. …We have a turnaround on our Train IV ammonia plants. We’re actually not running that plant because we’re doing some investments on it. We have four ammonia plants and a urea plant. We’re able to run three of the four plants comfortably right now. Once we finish the Train IV, we will have to make a decision about how to combine which three of the four plants we will run. We only have gas to run three out of the four ammonia plants.”

Sharing insights on which plants can possibly be combined, Thompson said, “It just depends on which one is available at the time. Sometimes, you can switch depending on if you need to do some maintenance work on one, you can take one down and run the other one. It’s a more dynamic decision than just staying on it. We always try to run the most efficient plants first because that’s the way to responsibly use a limited resource that we have in natural gas… but if we have to take one down for some other reason, we swap it.”

On his recommendations, Thompson said, “Personally, from where I sit, I think we’re really satisfied with the steps being taken…cross-border gas, those initiatives are in place and developing really well.

“We’re expecting those to come on schedule. If those come on schedule, that will be great. There are other activities happening currently, where we expect to have more supply coming on in 2025 and beyond. As long as those supplies continue to come on and we see some easing in some of the restrictions, we’ll be really happy. We’re just continuing to do what we’re doing. We know that they’re working really hard for it. Anything we can do to support them, we’re happy to do,”

The Dragon gas project is expected to export gas from the Dragon field in Venezuelan waters to Shell’s Hibiscus platform off T&T’s North Coast.

On October 11, 2024 Prime Minister Keith Rowley and Energy Minister Stuart Young, along with representatives from Shell and the National Gas Company visited the Dona Jose 2 vessel at Tembladora Port, Chaguaramas. The Dona Jose 2 , chartered by Geohidra, a Venezuelan company contracted by Shell, will undertake a geophysical and geotechnical survey from the Dragon field to the Shell operated Hibiscus platform, to acquire data with the vessel’s side scan sonar, multibeam echo sounder and other survey technology on board.

The ministry noted this first phase of the project is small but critical as it represents the first physical work to be done by Shell on the Dragon field. These subsea surveys will allow Shell to collect technical data to assess the status of existing infrastructure and technical data to support the design of new facilities to be installed.

The surveys will also determine the design and route for the installation of a 22km pipeline from the Dragon subsea field to the Shell operated Hibiscus platform, pending Final Investment Decision.

Looking ahead to 2025, Thompson, a chemical engineer with a Master’s in business administration, said as a large manufacturing facility Nutrien, its key strategy is to keep its people safe.

“Safety for us at Nutrien is a core value. So everything we do is about keeping employees safe. We have really a lot of opportunity to always continue to improve safety because safety is something that if you ever take your eyes off it, somebody can get injured so you never want that to happen.”

In a career spanning over three decades with Nutrien and its predecessor companies,Thompson held a variety of roles in engineering, project management and manufacturing operations. He has worked in T&T, USA and Canada, leading large-scale operations and corporate functions.

He assumed his current role in August of 2024, taking responsibility for Nutrien’s Trinidad business. Prior to this, he held the role of vice-president, engineering, technology and capital, nitrogen and phosphate at the company. In this role he was responsible for deployment and governance of technology and capital in the nitrogen and phosphate business unit at Nutrien, as well as overall responsibility for the corporate process safety, engineering, reliability, project management, and maintenance programs in North America and the Caribbean.

“So it’s great to come back to a place that I’m familiar with. I was part of the startup of the operations of two of the facilities. I worked on some of the expansions of two of the other facilities so I’m really familiar with the operations. I’m familiar with some of the senior leaders.

“I had a range of roles while I was abroad. I spent many years doing operations management. After that, I had similar roles to this where I was responsible for the entire operations of several facilities. One in the US in Augusta, Georgia and another one in Alberta, Canada, in the Calgary area. And then I was the vice-president of engineering, technology and capital for our entire nitrogen and phosphate business.”

In that portfolio, he had a team of about 70 professionals who supported both the capital deployment within the organisation, its liability programmes as well as central engineering programmes.

“We were actually responsible for the strategic direction for what we did with capital to sustain and expand our facilities. So I had a portfolio of about US$1.5 billion that we spent across multiple facilities in North America and Trinidad.”

Headquartered in Saskatchewan, Canada, Nutrien is one of the leading manufacturers of fertilisers in the world and the main ammonia producer, with one of the largest nitrogen manufacturing complexes in the world. at Point Lisas. The world’s main provider of crop inputs and services has operations and investments in 14 countries. The business in T&T accounts for over 35 per cent of its global production portfolio.

 

 

Minister meets Nutrien executives

15 December 2024

Energy Minister Stuart Young and VP & Managing Director of Nutrien Trinidad, Edmond Thompson met at an event hosted by Nutrien to welcome Nutrien’s global president and CEO Ken Seitz and executive vice president Trevor Williams, Nitrogen & Phosphate to TT on December 12.

Young reaffirmed the strategic partnership with global fertiliser giant Nutrien in a high-level meeting with Nutrien president and CEO Ken Seitz and executive vice-president for Nutrien Nitrogen and Phosphate, Trevor Williams, visiting to discuss ongoing investment into Nutrien operations at the Point Lisas Industrial Estate.

Young hailed Nutrien’s critical role in the petrochemical sector, noting its reliance on natural gas as a key feedstock for fertiliser production. He stressed the dedication to securing natural gas supplies to ensure energy and food security.

“We are prepared to work with all stakeholders to secure every molecule of gas in the national interest.“

In 2024, Nutrien invested approximately US$130 million in capital expenditure, including maintenance, plant turnarounds and facility upgrades, which supported over 1,600 local jobs.

Edmond Thompson, vice-president and managing director of Nutrien Trinidad, assured its long-term commitment to the region.

“Our investment reflects confidence in TT’s potential as a global petrochemical hub.”

Nutrien is the second-largest fertiliser producer globally, holding over 7 million tonnes of ammonia capacity and producing over 11 million tonnes of nitrogen products annually across plants in the US, Canada and Trinidad.

The visit followed earlier discussions on October 17, when Nutrien executives provided updates on its strategic initiatives. Williams reported then that Nutrien had focused on enhancing its Trinidad operations through targeted upgrades and expansions.

 

 

TOUCHSTONE EXPLORATION ANNOUNCES THE ACQUISITION OF CENTRAL BLOCK

CALGARY, ALBERTA (December 13, 2024)

Touchstone Exploration Inc. (“Touchstone”, “we”, “our” or the “Company”) (TSX, LSE: TXP) is pleased to announce that its wholly owned subsidiary, Touchstone Exploration (Trinidad) Ltd. (“TETL”), has entered into an agreement with BG Overseas Holdings Limited to acquire all the share capital of Shell Trinidad Central Block Limited (“STCBL”) (the “Acquisition”).

Under the terms of the Acquisition, TETL will pay BG Overseas Holdings Limited $23 million consideration in cash prior to closing adjustments. Completion of the Acquisition is subject to customary regulatory and partner approvals, including the approval of the Ministry of Energy and Energy Industries.

Touchstone is in active discussions with its Trinidad-based lender, Republic Bank Limited, to fund the Acquisition upon closing. The Acquisition will have an effective date of January 1, 2025, has a four-month long stop date, and is expected to close during the second quarter of 2025.

STCBL holds a 65 percent operating working interest in the Central block exploration and production licence and gas processing plant in the Republic of Trinidad and Tobago with Heritage Petroleum Company Limited (“HPCL”) holding a 35 percent working interest. Current gross production from the Central block is approximately 18.0 MMcf/d of natural gas and 200 bbls/d of natural gas liquids (approximately 3,200 boe/d).

Acquisition Highlights

1. 1. 1. Access to Atlantic LNG: STCBL is a party to natural gas sales contracts for the Central block asset, providing access to both local and LNG world gas market pricing.
      2. Opportunity for Development: Touchstone has identified numerous infill well locations as well as a deeper Cretaceous prospect at Central block.
      3. Strategic Infrastructure: The midstream assets of STCBL include an 80 MMcf/d gas processing plant (the “Evergreen Facility”), field natural gas and liquids flowlines, and a gas export pipeline to both the domestic market and the Atlantic LNG facility.
      4. Increased Production: The Acquisition increases Touchstone’s base net production by approximately 2,080 boe/d (94 percent natural gas) at current field estimated rates and provides incremental corporate cash flows.

Paul Baay, President and Chief Executive Officer, commented:

“We are pleased to enter into an agreement to purchase the Central block asset. The asset is a strategic fit with Touchstone’s current land base and provides us access to world LNG prices for natural gas. The infrastructure associated with the assets provides processing and takeaway capacity for natural gas in the Herrera fairway. During 2025 we will consider pursuing an infill development drilling program at Central block and look to boost production and LNG sales.”

The Acquisition

The Central block assets include four wells in the Carapal Ridge, Baraka, and Baraka East liquids rich natural gas pools. In addition to existing low decline field production, the Central block asset base has facility optimization potential, infill drilling opportunities and exploration prospects.

STCBL holds three gas marketing contracts: one accessing the Trinidad domestic market, and two contracts accessing the Atlantic LNG facility in Trinidad. The Central block is situated in the Herrera fairway and is contiguous with Touchstone’s Ortoire block, providing strategic potential for natural gas egress and marketing options from future discoveries. Our Coho natural gas production is currently processed at Central block, and the Acquisition provides synergy potential for the field.

The Acquisition is subject to the fulfillment of certain conditions precedent and customary regulatory approvals, including the Company’s ability to receive funding to complete the Acquisition. Hence, no assurances can be given that the Acquisition will ultimately be completed. Due to confidentiality terms in the agreement, Touchstone is not able to provide further information to the market on this Acquisition until the transaction is effectively closed, or terminated, as the case may be.

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 www.touchstoneexploration.com or contact:

Mr. Paul Baay, President and Chief Executive Officer

Mr. Scott Budau, Chief Financial Officer

Mr. Brian Hollingshead, Executive Vice President Engineering and Business Development

Tel: +1 (403) 750-4450

Advisories    (AIM Rule 12 Disclosure)

For the financial year ended December 31, 2023 and for the 11 months ended November 30, 2024, STCBL generated unaudited profits before taxation of $15.2 million and $1.1 million, respectively. STCBL’s unaudited net assets at November 30, 2024 were $30.9 million before any pre-Acquisition closing restructuring.

Currency

Unless otherwise stated, all financial amounts presented herein are stated in United States dollars.

Forward-Looking Statements

The information provided in this news release contains certain 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 “expect”, “believe”, “estimate”, “potential”, “anticipate”, “forecast”, “pursue”, “aim” and similar expressions, or are events or conditions that “will”, “would”, “could” or “should” occur or be achieved. The forward-looking statements contained in this news release speak only as of the date hereof and are expressly qualified by this cautionary statement.

Specifically, this news release, but is not limited to, forward-looking statements relating to: the anticipated purchase price, timing and ultimate completion of the Acquisition; the Company’s expected financing for the Acquisition; the highlights of the Acquisition and its expected benefits and synergies; current field estimated net production rates from the Central block; expectations with regards to the potential for STCBL’s portfolio to create facility optimization potential, infill drilling opportunities and exploration prospects; and the anticipated increase of capital expenditures, cash flows and production resulting from the Acquisition. The Company’s actual decisions, activities, results, performance, or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits that Touchstone will derive from them.

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 2023 Annual Information Form dated March 20, 2024 which is available under the Company’s profile on SEDAR+ (www.sedarplus.ca) 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.

Oil and Natural Gas Measures

To provide a single unit of production for analytical purposes, natural gas production has been converted mathematically to barrels of oil equivalent. We use the industry-accepted standard conversion of six thousand cubic feet of natural gas to one barrel of oil (6 Mcf = 1 bbl). The 6:1 boe ratio is based on an energy equivalent conversion method primarily applicable at the burner tip. It does not represent a value equivalency at the wellhead and is not based on either energy content or current prices. While the boe ratio is useful for comparative measures and observing trends, it does not accurately reflect individual product values and might be misleading, particularly if used in isolation. As well, given that the value ratio, based on the current price of crude oil to natural gas, is significantly different from the 6:1 energy equivalency ratio, using a 6:1 conversion ratio may be misleading as an indication of value.

Product Type Disclosures

This news release includes references to natural gas liquids, natural gas, and average daily field estimated production volumes. Under National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI 51-101”), disclosure of production volumes should include segmentation by product type as defined in the instrument. In this news release, references to “natural gas liquids” refer to condensate; and references to “natural gas” refer to the “conventional natural gas” product type, all as defined in the instrument.

For further information regarding specific product disclosures in accordance with NI 51-101, please refer to the “Advisories – Product Type Disclosures” section in the Company’s most recent Management’s discussion and analysis for the three and nine months ended September 30, 2024 accompanying our September 30, 2024 unaudited interim condensed consolidated financial statements, both of which are available on our website (www.touchstoneexploration.com) and under our SEDAR+ profile (www.sedarplus.ca).

Abbreviations  The following abbreviations are referenced in this news release:

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

MMcf    million cubic feet

MMcf/d    million cubic feet per day

LNG      liquefied natural gas

bpTT to cut local costs for global efficiency

17 December 2024

Local staff will be informed by May if they will be affected by potential job cuts. However, staff were advised that sick leave will be reduced from 90 days to 15 days. A recent meeting notified staff of the changes and the timeline for action.

After delivering worse than expected profits for the first quarter of this year, chief executive officer Murray Auchincloss said the energy giant will be cutting US$2 billion in costs from its business by the end of 2026.

For the first three months of this year, BP reported underlying profits of US$2.7 billion, down from US$5 billion reported last year, despite an increase in oil and gas production. In response Auchincloss said:

“We are simplifying and reducing complexity across bp and plan to deliver at least $2 billion of cash cost savings by the end of 2026 through high grading our portfolio, digital transformation, supply chain efficiencies and global capability hubs.”

In its latest financial report for the first nine months of 2024 BP reported underlying profits of US$7.7 billion down from US$10.8 billion the previous year. bpTT stated,

“bp is focused on making our business simpler, more focused and higher value and reducing costs globally is one of the key enablers of achieving this goal. In Trinidad, we continue to look for opportunities to improve the efficiency of our existing operations, that includes how we more efficiently deliver our activity and lower our operating costs.”

“We are making significant strides in delivering our strategy which includes maximising production from the Columbus Basin off the east coast while at the same time continuing to invest in developing gas resources that enable growth. We are actively pursuing the development of new acreage such as fields in the deep water and cross border and are continuously investing to bring more gas to the market.”

New area of exploration

Last month bp announced that it has been awarded the NCMA 2 block offshore Trinidad as part of the Shallow Water 2023/24 bid round that closed in May.

NCMA 2, located approximately 30 miles off Trinidad’s north coast, opens a new area of exploration for bp in Trinidad & Tobago, as all current production comes from the Columbus Basin off Trinidad’s east coast.

According to bpTT president David Campbell, “Continued exploration activity is crucial for sustaining our industry and I am very pleased that we have secured this block. The NCMA area is new to bp in T&T and I am looking forward to maximising its potential. Although geographically new to us, we will be able to draw on our 50-plus years of exploration experience in Trinidad and Tobago.

This announcement is the latest demonstration of bp’s Trinidad strategy to access new basins while maximising production in existing acreage. Since the beginning of the year, bpTT has successfully completed its infill drilling programme, announced the divestment of some of its mature assets, entered into a joint venture arrangement with EOG Resources for the Coconut development and is close to completing the Cypre development drilling campaign.”

bp’s key operations are located off Trinidad’s east coast. bpTT currently operates 17 offshore installations and two onshore processing facilities.

In September bpTT entered into an agreement with Perenco T&T to divest its Immortelle, Flamboyant, Amherstia and Cashima offshore gas fields and associated production facilities. The agreement also included the undeveloped resources from the Parang field. Campbell said:

“Divesting these mature assets will high-grade our portfolio in Trinidad and Tobago as we focus on continuing to develop our shallow water gas portfolio and pursuing growth opportunities with both deep water and cross-border gas resources. This is part of our mission to accelerate gas production, create value and unlock the energy future of Trinidad and Tobago. Meanwhile, Perenco will be able to apply their mature asset expertise to extend these fields’ producing life and support maximum recovery of resources.”

Perenco T&T Ltd announced the completion of the acquisition.

Commenting on the announcement, Gregoire de Courcelles, Perenco T&T general manager, said, “Completion of the acquisition of these gas fields is an important milestone for Perenco in Trinidad & Tobago. The acquisition allows us to further strengthen our partnership with bpTT and the Government of Trinidad & Tobago.

Furthermore, it will enable us to play an important & positive role in securing the future of the energy sector in the country, which remains integral to economic and social development. We look forward to deploying our specific mature field knowledge & expertise onto the CAFI asset while ensuring the safety of our people, preservation of the environment and long-lasting gas production from the asset.

I would like to thank the Ministry of Energy and Energy Industries, the team at bpTT, and especially, all of the persons at Perenco who worked diligently & tirelessly to make the transition a success, and finally, I wish to warmly welcome our new colleagues to the Perenco family.”

BP wraps up sale to Perenco

French player’s portfolio boosted by operating four additional gas fields and one gas discovery

Iain Esau – 17 December 2024, 08:01

Privately-owned Perenco wrapped up acquisition of key BP assets in Trinidad & Tobago. In August, the Paris-headquartered player struck a deal to buy 100% stakes in the Cashima, Amherstia, Flamboyant and Immortelle (CAFI) offshore gas fields and linked production facilities, as well as the undeveloped Parang discovery. This acquisition makes Perenco a major gas producer in the petrostate where it already holds assets.

Perenco expands Trinidad and Tobago operations

16 December

Marking a significant expansion of operations in the energy sector, Perenco TT Ltd completed acquisition of gas fields and associated production facilities from bpTT, offshore Trinidad’s east coast . Perenco said the assets include the Cashima, Amherstia, Flamboyant and Immortelle offshore gas fields, collectively referred to as the CAFI asset. These are crucial sources of natural gas – a key component in energy production.

In September, bpTT announced divestment of its four mature fields, undeveloped resources from its Parang field and associated production facilities.

“Divesting these mature assets will high-grade our portfolio in TT as we focus on continuing to develop our shallow water gas portfolio and pursuing growth opportunities with both deep water and cross-border gas resources. Meanwhile, Perenco will be able to apply their mature asset expertise to extend these fields’ producing life and support maximum recovery of resources.”

Perenco TT Ltd, a subsidiary of global oil and gas company Perenco, operates the Teak, Samaan, and Poui (TSP) fields. The latest acquisition reinforces its position as a major natural gas producer.

Gregoire de Courcelles, general manager of Perenco TT, explained the deal’s significance and described it as “an important milestone” that strengthens the company’s partnership with bpTT and the government. The acquisition enables Perenco to contribute to economic and social development by ensuring long-term gas production while prioritising safety and environmental protection.

De Courcelles revealed plans to invest in modernising infrastructure, including constructing a new export pipeline and optimising gas recovery in the existing TSP fields, further enhancing production efficiency.

The newly acquired fields have distinct characteristics: Cashima Field is known for producing natural gas and condensate, a valuable light oil by-product; Amherstia Field is another key gas-producing asset with developed infrastructure; Flamboyant is a smaller field contributing to the region’s gas output; and Immortelle Field is historically one of the country’s prominent offshore gas producers.

Perenco credited its team, the Energy Ministry and bpTT for facilitating a smooth transition. De Courcelles welcomed new staff joining from bpTT, saying,

“We look forward to deploying our specific mature field knowledge and expertise onto the CAFI asset while ensuring the safety of our people, preservation of the environment, and long-lasting gas production from the asset.”

This welcome development paves the way for long-delayed state divestment of loss-making, accident-prone energy assets of NGC, Trinidad Petroleum Holdings Limited, Lake Asphalt and other non-performing state enterprises agencies and bureaucracies consuming and squandering resources instead of creating wealth.

 

 

Young, Perenco discuss energy goals

2 Dec 2024

Energy Minister Stuart Young yesterday met executives of independent producer Perenco to discuss the company’s global and local operations. Young met with Perenco group chief executive Armel Simondin, general manager Gregoire de Courcelles, and business adviser Allan Russel at the Ministry of Energy.

Simondin was appointed Global Group CEO of Perenco in April 2024. Discussions focused on Perenco’s global and local operations, particularly the Teak, Samaan, and Poui (TSP) fields located off Trinidad and Tobago’s east coast, the ministry said in a media release yesterday.

During the meeting, Simondin noted the company’s annual investment of US$2 billion into its global upstream operations, alongside additional investments in midstream projects.

A total of US$300 million has been invested by Perenco in its TSP platform operations in Trinidad and Tobago since it took over in 2016, the Energy Ministry stated.

“Preliminary data indicates that Perenco is currently producing approximately 7,000 barrels of oil per day for the month of November 2024, which ranks the company as second only to Trinidad and Tobago’s largest crude oil producer, Heritage Petroleum Company Ltd. This can be attributed to the company’s expertise which lies in managing mature fields and shallow-water operations,” the ministry stated.

Further, this marks an improvement in the company’s production profile following the successful commissioning of the replacement pipeline from its TSP asset to shore, it stated.

Young expressed appreciation for Perenco’s contributions to the local energy sector, particularly the company’s efforts to maximise production through modern technology and optimise gas recovery.

Young was pleased to be informed that Trinidad and Tobago ranks fourth among the 14 countries within Perenco’s global exploration and production portfolio, the release noted.

Simondin reaffirmed Perenco’s commitment to Trinidad and Tobago, emphasising the company’s long-term vision and strategic alignment with the country’s energy goals, it said.

Heritage success in 2024

2024, 12/14

Chief Executive Officer (CEO) of Heritage Petroleum Company Ltd, Erik Keskula, delivered the keynote address at the Heritage 2024 Inspire Awards ceremony.

The upstream company is cognisant it has “so much more to accomplish in a bigger, bolder, and faster way. We must get the hydrocarbons out of the ground safely and quickly. We must monetise the hydrocarbons to facilitate the further development of Trinidad and Tobago. And we must be a responsible corporate citizen and a source of pride for Trinidad and Tobago.”

Keskula also described 2024 as one of “success and recalibration” for the company but admitted that in this dynamic industry, Heritage also faced challenges.

“We have broken new ground, raised our standards and strengthened our position as a leader in the energy sector.
“Despite this, we stepped up, showing resilience and commitment – demonstrating that working together as one team, we can achieve great things.”

Keskula reaffirmed the company’s commitment to the inspire values, which sets it apart from other state companies.

“They are the foundation of our organisation’s culture and propel us towards success. Every day, our employees aspire to upholding their integrity, being nimble on the job, prioritising safety, constantly monitoring and evaluating performance, implementing innovative solutions, all while respecting one another and striving for excellence.

Team Heritage, you have moved our organisation forward in remarkable ways. What we do is critically important and has an immense impact on the nation’s present as well as its future.”

For the year, the company recognised 51 team projects which translated to 326 nominees straddling the entire organisation. This spoke volumes about the integrated, interconnected and critical value of teamwork and cross-functional teams at Heritage.

 

Green hydrogen project…

Embracing energy transition 4 December

RENEWABLE OPPORTUNITIES: Finance Minister Colm Imbert met principal economist, Directorate of Socioeconomic Research, CAF —Development Bank of Latin America Lian Allub and CAF’s first regional manager for the Caribbean Stacy Richards-Kennedy at the Central Bank.

At the launch of the Development Bank of Latin America and the Caribbean’s (CAF) Report on Economic Development (RED) 2024 at the Central Bank Port of Spain, Energy Minister Stuart Young announced:

“T&T has been granted permission by the Government to build the first green hydrogen pilot project and the CAF bank will be helping us with that project.”

The project will be completed at the Point Lisas Industrial Estate. Though the project has been given the green light, T&T cannot switch from using natural gas to green hydrogen, as the cost is significantly higher.

“Right now, the cheapest cost of production of green hydrogen is between US$10 to US$15 a kilogramme versus US$3 to US$5 a kilogramme for natural gas. The economics are not quite there yet.”

On T&T’s position in terms of renewables: “T&T is the most advanced when it comes to ensuring that we move very quickly to integrate renewables into our generation grid.”

Other renewable energy initiatives include Project Lara, the solar energy grid in Brechin Castle and the wind turbine project which is in its second phase, taking measurements in locations identified for wind turbines.

Incorporating solar power into one of the most modern and sophisticated national grids in Caricom would cost millions.

On installing solar panels on homes, he explained it was “not as simple as that. If every roof in T&T had a solar panel, for it to feed into the national grid it would have to go to substations that then regularise the electricity, because they’re coming in at various voltages and frequencies that you can’t just throw into your grid.”

CAF regional manager for the Caribbean, Dr Stacy Richards-Kennedy said its topic—

“Renewed energies: A just energy transition for sustainable development”—was on reducing greenhouse gas emissions, reducing inequality and poverty, and closing the income gap with the developed world.

“Achieving this requires reversing sluggish growth trends. It will demand political support, robust infrastructure, and innovative financing—where institutions like CAF play a crucial role.”

Latin America and the Caribbean is a region of solutions, with the capacity to lead in the global energy transition by embracing these opportunities and adapting them to our context.

 

TOFCO starts Manatee fabrication next month

2024, 11/29

Shell, Mc Dermott and Trinidad Offshore Fabricators Unlimited (TOFCO) hosted a ceremonial simulation of steel cutting to signal commencement of the local fabrication phase for the Manatee Project, at the TOFCO Yard, La Brea Industrial Estate.

T&T Energy Chamber explained the local fabrication of jackets and piles (legs and supporting frame) for the Manatee platform will proceed in December.

The Manatee jacket is set to be the largest jacket to be built locally at TOFCO’s yard.
In the keynote address at the milestone inauguration ceremony, Energy Minister Stuart Young said,

“This has been my third visit to the TOFCO yard in the last month to view fabrication projects that were a direct outcome of Government policy and strategy coming together. The Government will continue delivering world-class opportunities to La Brea, Point Fortin and other communities .”

In 2019, a government-to-government agreement between the Government of T&T and Venezuela allowed each country to independently develop its respective share of the Loran-Manatee field.

Manatee is expected to start production in 2027 and once online, Manatee is expected to reach peak production of approximately 104,000 barrels of oil equivalent per day (boe/d) (604 MMscf/d).
The projected gas production will boost T&T’s economy and earn foreign exchange through the utilisation of local services and hydrocarbon exports.

Adam Lowmass, senior vice-president and country chair, stated, “At Shell, we are proud to partner with professional organisations like Mc Dermott and TOFCO. We are confident that the Manatee jacket will be completed on time and with high quality of craftsmanship and look forward to bringing this project online for Trinidad and Tobago.”

General manager at TOFCO, Javed Mohammed, acknowledged the work ahead and the positive relationship between the Government and the project’s stakeholders stating, “The journey ahead will be filled with challenges, but it is through our collaboration and perseverance that we will turn these challenges into opportunities for growth and success as we set new standards in offshore construction.”

 

 

 

Shell awards SLB multi-region contracts

January 08, 2025

SLB was awarded a series of major drilling contracts by Shell to support capital-efficient energy development across its deep- and ultra-deepwater assets in the UK North Sea, Trinidad and Tobago, the Gulf of Mexico and others. The projects to be delivered over a three-year timeframe, will combine SLB’s AI-enabled digital drilling capabilities with its expertise in ultra-deepwater environments. This approach will help SLB to repeatably and predictably deliver more consistent wells that improve cost efficiencies. Wallace Pescarini, president, Offshore Atlantic, SLB, said,

“We are proud to continue our long-standing relationship with Shell through the fulfillment of these multi-region deepwater contracts. Over the years, we have worked diligently to provide safe, high-quality services to our customers, including Shell. Drawing on our global expertise in complex deepwater environments and advanced technology solutions, we will align with Shell’s expectations for safe and efficient energy development on these projects.”

The scope of the contracts will include digital directional drilling services and hardware, logging while drilling (LWD), surface logging, cementing, drilling and completions fluids, completions, and wireline services.SLB has already begun providing services to Shell for the contracts. Each project will be managed centrally through SLB’s Performance Live™ centers.

Shell operations in TT include offshore and onshore blocks, operated and non-operated and a majority shareholding in Atlantic LNG. In 2023, Shell, TT and Venezuela signed a licence to operate and exploit the cross-border Dragon gas field. In August 2024, Shell took final investment decision on the Manatee project, a 2.7 tcf (trillion cubic feet) undeveloped natural gas field in the East Coast Marine Area (ECMA) offshore TT, expected to start production in 2027 and reach peak production of about 104,000 boe/d (barrels of oil equivalent per day).

 

 

Energy Chamber

2024, 12/13

Annual Energy Conference, 10-12th February 2025

The Energy Chamber T&T appointed Mala Baliraj as its chair.

Baliraj, CEO at Massy Wood Group Ltd, succeeds Jerome Dookie, managing director of Methanol Holdings (Trinidad) Ltd, Caribbean Nitrogen Company Ltd, and Nitrogen (2000) Unlimited, who is stepping down as chairman after serving for the past two years.

He remains on the board as an ordinary board member until December 31, 2024.   Baliraj is the second woman chair of the Energy Chamber.

Diane Seukeran was the first woman to lead the chamber’s predecessor, the South Trinidad Chamber of Industry and Commerce (STCIC), serving as president from 1994 to 1997.

In the mid-2000s, the STCIC rebranded and refocussed its mission exclusively on the oil, gas, petrochemical and renewable energy sectors, evolving into the Energy Chamber as it is known today.

The Chamber said Baliraj was selected as chair for her extensive expertise and accomplishments and her proven ability to lead in a dynamic and challenging industry.
Her appointment was confirmed during a board meeting earlier this week.

She now leads a 17-member board of directors responsible for the strategic direction of the Energy Chamber, which represents a membership base of 400 companies.

This includes the majority of energy services companies and contractors, all major upstream and downstream entities (local and multinational), as well as prominent organisations in banking, finance and the broader business sectors

 

 

 

Optimise natural gas use

Robert Le Hunte,   2024, 12/17

A recent analysis noted that 11 per cent of current natural gas production is used for domestic electricity generation, an increase from 8 per cent, despite a sharp decline in overall gas production from 4.2 bcfd in 2013 to 2.4 bcfd in 2024.

This indicates minimal progress in energy conservation or efficiency within the electricity sector, despite declining resources. To optimise natural gas revenue, set a hypothetical target: replace 50 per cent of natural gas used in electricity generation with renewable energy, redirecting the saved gas to the petrochemical sector and LNG plants.

This could generate an estimated US$200 million in additional foreign exchange annually, stimulate the renewable energy sector and lay the groundwork for a green hydrogen industry.

However, while much attention has been given to production, there is untapped potential on the demand side. Optimising natural gas usage requires a dual approach—addressing both supply and demand. In this commentary, I would like to build on the theme of optimising the use of our natural gas by delving deeper into the demand side, via energy conservation and energy efficiency initiatives.

Energy efficiency and energy conservation are buzzwords used by many , but what exactly do they mean?

• • Energy conservation involves behavioural changes to reduce energy use, such as switching off lights and unplugging appliances.
  • Energy efficiency, on the other hand, focusses on using advanced technology to perform the same functions with less energy—for example, replacing incandescent bulbs with LED lighting or upgrading to energy-efficient appliances.

Successive governments maintained a policy of subsidising electricity prices, in an attempt to distribute the wealth generated by our natural resource to every citizen and to stimulate the manufacturing and industrial sectors.

As a result, T&T’s rates are among the lowest in Latin America and the Caribbean. The long-term sustainability of these subsidies is now under review by the Regulated Industries Commission (RIC).

I expect that the government, in its wisdom, will consider multiple factors in taking any decisions to adjust the policy and rates.

Apart from political expediency, the government will consider the competitiveness of T&T’s rates versus the increasing natural resource output of Guyana, which could affect T&T’s status as a low-cost energy destination. Whatever the outcome of that policy decision, implementing energy efficiency and conservation measures could significantly benefit this country.

Government ministries and state enterprises spend approximately $1.2 billion annually on electricity, with a debt to T&TEC of $2 billion, as reported in Parliament. Using simple arithmetic, the age of the accounts receivable from government to T&TEC is approximately one year, eight months. By adopting conservation and efficiency initiatives, the government could reduce this financial burden, free up resources for critical infrastructure and redirect natural gas for export, thereby generating foreign exchange.

Additionally, energy efficiency and energy conservation initiatives could jumpstart and stimulate a new industry in T&T, generating meaningful employment for recent graduates and the population at large.

Energy efficiency and energy conservation initiatives also play a significant role in reducing CO2 emissions.

In a recent study conducted on one of the waterfront towers, it was estimated that the electricity usage by the tower at its lowest point during the night, when unoccupied, was equivalent to the energy used by a similar building in Jamaica at peak capacity during midday. That report illustrated that the potential for energy conservation and energy efficiency in T&T is indeed substantial.

Another report by a highly diverse team of professionals with backgrounds ranging from academia to the energy sector, it was estimated that a comprehensive focus on these initiatives could result in a targeted reduction in energy demand in the vicinity of 2954GWh in the first five years and 8864GWh over 10 years.

This could result in savings of 29 billion to 89 billion cubic feet of natural gas over a 5-to-10-year period, which, if redirected to the market, has the potential to generate $2.5 billion or US$350 million in gas revenue. It was also estimated that this industry could potentially generate 4,000 new highly skilled jobs and reduce our CO2 impact on the environment by 6 to 18 million metric tons over a 5 to 10-year period.

At a time when we are exploring both adaptive and mitigating initiatives to deal with the effects of climate change, in keeping with our commitment to the Paris Accord agreement to reduce CO2 emissions by approximately 100 metric tonnes by 2030, this initiative alone takes us to almost two per cent of that target.

In business you seldom arrive at a win-win situation. In this scenario however, investing in energy efficiency and conservation can deliver a rare “win-win-win” scenario—economic savings, job creation and environmental benefits. The countrywide benefits in adopting energy conservation and energy efficiency initiatives are tremendous. Like all other initiatives recommended in the aforementioned report however, significant investment and commitment are also necessary.

The estimated cost of implementing these initiatives ranges from $1.4 billion to $2.7 billion. While substantial, this investment is justified by the projected returns in natural gas revenues, job creation and environmental benefits.

This expenditure is not expected to be shouldered by the government alone but by a combination of government incentives, private sector contributions, the Green Fund, concessionary financing and leveraging international grants designed for countries pursuing sustainable energy transitions.

Energy efficiency and conservation offers tremendous potential for Trinidad and Tobago—not just as a solution to resource constraints, but as a pathway to economic diversification and environmental responsibility.

With strategic investment and commitment, our country can maximise its natural gas resources while laying the foundation for a sustainable energy future.

As with all impactful initiatives however, there is a gestation period and we need to move now to derive optimal benefits in the short to medium term.

 

 

 

UTT waste management report for Labidco

2024, 12/04

The La Brea Industrial Development Company Limited (Labidco) officially received the Waste Management Plan Report for the La Brea Industrial Estate and the Port of Brighton from The University of Trinidad and Tobago (UTT) at UTT Agora Campus Chaguanas.

Part of a 10-month collaboration between the two organisations, the report gave insight and a roadmap for the efficient, cost-effective and sustainable treatment of waste generated on the La Brea Industrial Estate and the Port of Brighton.

It included a thorough assessment of waste volumes, opportunities for recycling, reuse and reduction and explores innovative ways to convert waste into value-added materials and income-generating opportunities.

The project highlighted the environmental and economic benefits of implementing the recommendations, including reducing final waste by an estimated 60 per cent—equivalent to 10,000 tonnes annually.

Labidco said, “Action plans for each recommendation were developed in detail, outlining specific strategies for waste diversion and reinforcing Labidco’s commitment to environmental stewardship and sustainable industrial development.”

Labidco general manager, Dr Vernon Paltoo said that the completion of this waste management plan “underscores Labidco’s dedication to sustainability and our broader strategic goals. It is a critical step in realising our near-term vision of becoming a certified Green Port, promoting eco-friendly practices that positively impact the environment, our stakeholders, and the broader community.”

 

 

 

IDB Report Significant productivity growth

Jan 7, 2025

Productivity levels in Trinidad and Tobago grew significantly over the last four years, according to a recent report on Caribbean Economics by the Inter-American Development Bank.

The report is titled “Innovation for Faster Economic Growth in the Caribbean: Are We There Yet?”

“A key factor determining growth is productivity, the measure of efficiency by which firms can produce more with the same amount of resources. Productivity levels of firms in Trinidad and Tobago have significantly improved since 2021.”

The Central Statistical Office (CSO) produces an Index of Productivity, defined as the volume of production divided by hours worked.

“The index shows significant gains over time, especially beginning in 2023, when the index for the non-energy sector increased from 4,129 in the first quarter of 2023 to 17,674 in the second quarter of 2024.

Similarly, the Index of Productivity for the whole economy increased from 1,302 in the first quarter of 2023 to 5,230 in the second quarter of 2024.

These trends suggest that productivity improvement in the non-energy sector is outpacing the energy sector. Some sectors with relatively high productivity levels in Trinidad and Tobago include food processing, textiles and garments and metal-related production.”

In terms of GDP growth, the non-energy sector has consistently outpaced the energy sector in growth since the start of the Covid-19 pandemic recovery in 2021, reflecting the higher productivity levels in the non-energy sector.

“GDP grew by 1.4% in 2023, with the energy sector contracting by 5.4% and non-energy sector, driving growth, expanding by 2.5%.”

The largest non-energy sector, wholesale and retail, which accounts for 21% of the economy, grew at an average quarterly rate of 8.1% from the first quarter of 2022 to the second quarter of 2024.

The manufacturing sector (excluding energy), making up about 7% of the economy, grew at an average rate of 9.6% over the same period, while the finance and construction sectors, making up almost 7% and 5% of the economy, recorded average contractions of 1.2% and 1.8%, respectively.

The energy sector contracted by an average quarterly rate of 2.5% from the first quarter of 2022 to the first quarter of 2024.”

The report stated that a major contributing factor supporting productivity is human capital, as high levels of human capital contribute to greater creativity and innovation.

“In Trinidad and Tobago, levels of educational attainment are relatively high and surpass Caribbean averages.

In 2022, Trinidad and Tobago was ranked 60th worldwide on the United Nations Development Programme’s Human Development Index with a score of 0.814, above the Latin America and the Caribbean average of 0.76 (UNDP, 2024).

In fact, of the Trinidad and Tobago nationals in the United States, 56% have at least some college education compared to the Caribbean average of 52.3% (Figure 3).

At the national level, in 2022, about 86% of men and 82% of women over the age of 25 in Trinidad and Tobago had at least some secondary education, compared to the Caribbean average of 74.6% for men and 70.6% for women (UNDP, 2024).”

However, the IDB said according to 180 firms that responded to the Compete Caribbean Partnership Facility’s Innovation, Firm Performance, and Gender (IFPG) 2020 Survey, human capital remains one of the most important challenges to doing business.

“The top six obstacles, rated as ‘very severe’ or a ‘major obstacle,’ were access to finance in the form of collateral requirements (65% of respondents), an inadequately educated labour force (63%), customs and trade regulations (54%), corruption (44%), the macroeconomic environment (43%), and tax administration (42%),” it stated.

The same survey has information on firms in the region that have taken measures to improve productivity.

“Some of the main forms of innovation analysed in the Regional Overview of this report include ‘general innovation’ (new or improved services or methods), ‘digital innovation’ (information technology), and ‘green innovation’ (energy efficiency and environmental sustainability).

In fact, in the 13 countries surveyed in the Caribbean 40.5% engage in general innovation, 7.8% in digital innovation, and 50% in green innovation. In Trinidad and Tobago, the respective shares are 44.7%, 8.8%, and 47.4%.”

In Trinidad and Tobago, some indicators related to technology and innovation improved between 2014 and 2020.

“For example, the share of firms reporting that they have groups of professionals dedicated to innovation increased from 5.3% in 2014 to 8.8% in 2020, while this trended in the opposite direction for the Caribbean a whole, falling from 10.2% in 2014 to 4.3%, which is of concern considering the gains that technology is making throughout.     

On another measure of productivity and innovation, the share of firms in Trinidad and Tobago filing patents increased from 7.1% in 2014 to 11.4% in 2020, while this measure also improved across the Caribbean from 6.9% to 8.8% over the same period,.”

It highlighted the creation of the Ministry of Digital Transformation in July 2021, tasked with facilitating the delivery and consumption of goods and services through digital technology.

“Some of its main goals include increasing access to information and communications technology, improving digital literacy, achieving greater efficiency in governance, and supporting more opportunities for developers and entrepreneurs. The ministry launched the National Strategy for a DigitalTT: 2023–2026, built on the pillars of a digital society, economy, and government, with the objective of achieving a digital nation.”

“Some specific programs include the Developers’ Hub (D’Hub), which aims to support local software development by providing training and development opportunities; and AccessTT, which expands access to devices and technologies in underserved communities, among other objectives.

Other initiatives include developing a Government Data Centre, which will centralise critical data, software, and digital infrastructure, and the E-Commerce Strategy 2024–2029, which will promote e-commerce nationally and internationally.”

Contractors urged to scrutinise contracts

2024, 12/14

Solicitor Richard Langley, left, attorney Om Lalla, attorney Ramesh Lawrence Maharaj, SC, barrister Robert Strang and David Thomas, KC, chatted at the Construction Contracts Management Seminar hosted by Lalla at Veritas PR on St Vincent Street, Port-of-Spain, yesterday.

A conference on the management of construction contracts at KR Lalla & Company advised local contractors and employers to heed terms of contracts and keep accurate records.

It was sponsored by contractor Junior Sammy following his landmark legal victory in October, for over $83 million in outstanding fees from a contract, against the Estate Management and Business Development Company Limited (EMBD). Core responsibilities of this corrupt State Enterprise.are embodied in three major outcomes required by the Government-

1. 1. 1. Institute transparent and efficient management of lands formerly owned by Caroni (1975) Limited, which will be vested in the State.
      2. Optimize use of the land assets to generate economic activity through the establishment of new business – Industrial Light, Manufacturing Commercial, Complexes/Residential Estates and Agricultural Estates
      3. Facilitate the development of new industries, for meaningful and sustainable employment.

Since its establishment, the initial mandate in 2002 has been expanded extensively.

Contractors, employers, bankers and officials from state companies, focused on issues with FIDIC contracts which are frequently used for local and international construction projects.

British King’s Counsel David Thomas, who led Sammy’s legal team alongside Senior Counsel Ramesh Lawrence Maharaj, noted that numerous issues arise when specific terms of a contract are not shared with staff on the site of the project.

“It is actually quite astonishing,” Thomas said.

He advised that keeping accurate records would assist contractors in ensuring that they are not underpaid or held liable for delays and variations contemplated under a contract.

Thomas suggested that contractors could negotiate to exclude arbitration clauses in contracts, especially by the State or state agencies as employer, before entering into contracts.

“It is not mandatory,” Thomas said.

Dealing specifically with Sammy’s claim, upheld by the local courts and the United Kingdom Privy Council, Thomas described it as a “great win”, which set a major legal precedent in local construction litigation.

“It was a very much deserved win. You were badly treated by your employer under that contract and it was a fair and just result we managed to get for you.”

Thomas commended Sammy for being present throughout the litigation that ended in his favour and advised fellow contractors to follow his example.

“It is always a good idea to go to the hearing and not leave it up to your lawyers. If you go, you are saying to the tribunal or judge, whoever it is, this matters to me. It makes a real impact, I can tell you.”

Sammy’s other lawyer Robert Strang warned contractors about ensuring engineers appointed to certify work and approve interim payments are independent and competent.

“The engineer, although selected and paid for by the employer, is expected to be non-partisan, to be independent and to make fair determinations,” he said.

He stated that he was involved in several local cases in which employers nominated their employees to fulfil the important role.

“To my mind, it raises a serious doubt whether the engineer can make an independent and fair determination.”

Like Thomas, Strang advised that parties pay close attention to the terms of their contracts and meet deadlines as they may be unable to raise issues in subsequent litigation if prior notification is not given.

“Predictably and certainty are favoured over flexibility,” Strang said. “You need to give prompt notice of a claim. If you are not careful, you can lose your entitlement to claim.”

Attorney Om Lalla, whose law chambers hosted the event, expressed hope that it would assist contractors going forward. Stating that a lack of knowledge is a constant issue, Lalla said,

“Contractors can’t afford losses in terms of time and delay; the expenses are far too great. The more we are empowered in terms of having this kind of knowledge, it allows contracts to be more efficiently run.”

 

 

 

 

First Citizens bursaries for UWI, UTT

19 December 2024

Tamara Ramlogan, assistant branch manager of First Citizens Tunapuna presented a bursary to Prof Derek Chadee, campus deputy principal UWI St Augustine.

First Citizens reaffirmed its support for higher education through its annual bursary programme, awarding deserving students from University of West Indies (UWI) and University of TT (UTT).

“The bursaries, which are granted to students based on academic merit and financial need, reflect First Citizens’ commitment to empowering the next generation of leaders across diverse fields.”

First Citizens said this year’s presentation marked a significant milestone, with over 15 years of support for UWI and a growing partnership with UTT, now in its second year. 12 bursaries were awarded to four UWI students and eight UTT students.

UWI recipients were selected from the Faculty of Social Sciences, with an emphasis on management and finance—two critical areas that are vital to the sustainable growth and development of the economy.

At UTT, students from the engineering, sports, education and arts faculties received bursaries.

“This balanced distribution ensures continued support for key sectors while addressing the needs of students in other essential disciplines. By focusing on a wide range of academic fields, First Citizens fosters an inclusive approach to education, helping to build well-rounded, forward-thinking communities.

“By supporting both universities, First Citizens continues to align its corporate social responsibility efforts with its strategic goals of fostering education, innovation and sustainable development.”

ECO is a proud patron of both universities and welcome the student grants from business.