Trinidad asks US permission for Venezuelan gas imports

Trinidad & Tobago asks U.S. to allow Venezuelan gas for LNG

EnergiesNet.com    11 04 2022

The government of Trinidad and Tobago is AGAIN asking the United States to authorize Venezuelan gas imports to restart a liquefaction train four sources close to the talks said. Under U.S. sanctions, companies and governments must obtain authorization from the U.S. Department of Treasury to do business with Venezuelan state-run oil company PDVSA.

Trinidad’s past requests for U.S. approval have gone unanswered but the Biden administration is willing to ease some sanctions on Venezuela if President Nicolas Maduro and the opposition progress in talks for a presidential election, which could provide a new opportunity. Gas is available from Dragon field off Venezuela’s east coast, where PDVSA found reserves of 4.2 trillion cubic feet (TCF). The project was planned for production almost a decade ago but stalled over lack of capital and partners and sanctions.

If approved, Dragon gas could restart a train with a 500 million cubic feet per day (cf/d) capacity at the Trinidad flagship Atlantic LNG plant, a venture including Shell , BP and state-owned National Gas Company of Trinidad and Tobago (NGC).

The gas would mainly come from Venezuela’s Dragon field off the country’s eastern cost, where PDVSA has found reserves of 4.2 trillion cubic feet (TCF). The project was headed for production almost a decade ago, but stalled over lack of capital and partners, and sanctions.

The U.S. Treasury Department declined to comment. Shell and NGC referred questions to the country’s energy ministry, which did not reply to a request for comment. BP did not immediately reply to a request for comment.

“All we need is access to additional natural gas supply, right next door, to immediate proven resources of gas in Venezuela,” said energy minister Stuart Young

Trinidad is Latin America’s largest liquefied natural gas (LNG) exporter, with installed capacity to process 4.2 billion cf/d into LNG, petrochemicals and power. Gas production is just under 3 billion cf/d. Even if Washington granted Trinidad’s request, years of investment and development are required to bring Venezuelan gas to Trinidad and boost LNG to Europe.

“They don’t see Trinidad’s solution as being sufficiently immediate for Europe,” one source said.

Starting the field requires intensive engineering work and subsea inspections to check its wellhead integrity, which have not been made in years, experts said.

Early talks between Trinidad and Venezuela focused on building a 17 kilometer (10.5 mile) long gas line to connect the two nations. A pipeline originally earmarked for transporting Dragon gas was acquired by the Colibri offshore project between Shell and Trinidad’s Heritage Petroleum Co., which delivered first gas in March.

That project follows an amended production sharing contract for the Manatee gas field in Trinidad, which extends to Venezuela’s Loran field. Despite years of effort to reach a deal to jointly develop the gas reservoirs, the Venezuelan fields remain without infrastructure. Maduro in 2020 gave the green light to Trinidad to begin gas output on its side.

Trinidad finance minister Colm Imbert said, “Minister Young is working very hard on it. He has been the liaison between the United States and Venezuela…all in an effort to develop that project and get the United States to go along with getting Venezuela to send gas to us.”

Reuters.com 11 04 2022

 

 

OSHA-contracted report: Both Paria, LMCS at fault

PAULA LINDO

A report by In-Corr-Tech Ltd, the company hired by the Occupational Safety and Health Agency to investigate the accident at Paria Fuel Trading Company (Paria) Ltd berth No 6, says both Paria and Land and Marine Construction Services Ltd (LMCS) Ltd failed to recognise the potential for a latent hazardous differential pressure condition being created by the method used to carry out the operation.

The company said there was a lack of thoroughness of the bid evaluation process on Paria’s part.

In-Corr-Tech reviewed documents and information OSHA presented to it, including Paria’s scope of works (SOW), LMCS’s method statements, job-safety analysis and risk assessment, and relevant work permits, risk analysis, dive plan and schedule.

It inspected the associated equipment used, including compressors, hoses, filter pots, the inflatable pipe plug, the mechanical seal, scuba equipment, and the crane used in the exercise.

It also constructed a scale model to recreate the February 25 incident. It was not able to inspect the hyperbaric chamber, as it remained underwater.

The executive summary of the report said, “The root cause of this accident was the failure by both the client, Paria, and the contractor, LMCS, to recognise that a latent hazardous differential pressure condition, Delta P, would have been created by the methodology used in the execution of the works, with particular reference to the removal of fuel oil from Sea Line SL36. If this Delta P hazard was recognised, then simple mitigation steps and/or change in methodology could have been instituted to eliminate this hazard.”

It said the initial method statement LMCS supplied for installing the flange on the riser was based on removing oil from the line using an air-driven pump, but this procedure was changed to air-blowing, and this change was not addressed in subsequent job safety analyses (JSA) or method statements. It said neither Paria nor LCMS gave a reason for the change.

“Paria’s maintenance department, as recorded by OSHA, stated that line contents were indeed removed by air blowing from No 5 Berth to No 6 Berth. This technique, although not stated in LMCS method statement or in Paria’s SOW, would have definitely removed way in excess of the optimum quantity of oil from the line, thus creating a significant continuous gaseous void between Berth No 5 and Berth No 6 together with empty risers. This condition would have introduced a very dangerous latent differential pressure condition as soon as the inflatable plug and mechanical seal were installed in the line and the habitat placed and pressurised.”

It said the LMCS method statement said the procedure for removing line content between the two berths said “(a) Using air driven pump, pump out approximately 300 barrels of line content, and

(b) “Once level in the riser dropped to 35 feet below sea level, a line plug will be installed.”

The report said “(a) and (b) are contradictory, as removal of line contents to 35 feet below sea level in the riser would have been equivalent to approximately 30 barrels of oil removal, with no gaseous void formation on installation of the mechanical seal and inflatable plug.

On the other hand, as stated by LMCS: ‘(a) Pumping out 300 barrels with an air pump does not equate to dropping level in riser to 35 feet below sea level.’ This discrepancy was not addressed in Paria’s bid evaluation. Further, LMCS project schedule calls for draining of line from day one of job execution, further adding conjecture to this exercise.”

The report said both Paria and LMCS overlooked the creation of the potential for this Delta P hazard.

“LMCS JSA, Paria’s permit to work, LMCS method statement, LMCS risk assessment, LMCS tool box meeting, LMCS dive plan and Paria’s bid evaluation of LMCS proposal all failed to identify this potential Delta P hazard and hence no steps to eliminate the hazard were implemented. This latent hazard existed at the onset of work within the habitat and became active when the divers were attempting to remove the primary seal (inflatable plug) from within the riser.”

In-Corr-Tech noted that during the toolbox meeting on February 25, at which all four of the divers who died and the surviving diver were present, the topics discussed were covid19 protocols, communications, choppy waters, weather, slips and awareness.

“No discussions on the actual work activities planned for the 25/02/2022, the day on which the accident occurred, were recorded. No discussions were held on one of the key activities eg removal of the mechanical seal or removal of the inflatable plug.”

It said appropriate JSAs and risk assessments were not seen for several key activities in the LMCS proposal supplied to OSHA from Paria with respect to safety issues.

It said Paria’s scope of works said the bidder was to supply a detailed method statement identifying elements of the project including safety considerations, lift plan, dive plan, quality assurance, safety analysis and a JSA which showed the contractor’s procedures for “removal of hydrocarbon from line with zero spills.”

“This was not seen in the contractor’s submission and was considered to be a grave oversight in the bid evaluation as it had direct bearing on the accident. This reflected the lack of thoroughness of the bid evaluation by Paria. LMCS Method Statement #116, items 56 and 57, pertaining to the removal of migration barrier and inflatable plug, could have only been applied safely if a Delta P condition was not present. This was also a grave oversight by both Paria and LMCS during this evaluation and subsequent discussions with LMCS.”

It noted that the JSA dated December 10, 2021, did not address key activities in the associated method statement, dated January 4, 2022, such as line content removal, removal and installation of plugs. It said the dates suggest an anomaly, as the method statement usually precedes the development of the JSA, and the JSA should have been rewritten to reflect the requirements of the method statement.

“This work permit focused on too many key activities, and almost covered the majority of works in Section ‘A’ of Paria’s scope of works. Consequently, appropriate, relevant and detailed JSA/risk assessment for key activities were not produced. The said work permit covered six key activities and was accompanied by one JSA that was too generic and not specific to this high-risk job.”

It noted that supply air from the compressor into the habitat speeded up the vortex formation and strengthened its force and suction.

“On his return up the riser, the lone survivor stated that he was approximately five feet from the top of the riser and within the habitat, confirming that the compressor was in operation and supplying air to the habitat. This confirms that when the flow into the riser was stabilised, air supplied by the compressor forced the water back down in the habitat, again creating a ‘dry’ workable environment.”

In-Corr-Tech said the crane, compressors, hoses, air filter pots, scuba gear, inflatable plug, supply air problems, and the hyperbaric chamber were not thought to have contributed to the incident.

Subsea7 awarded BP contract offshore

18 Nov 2022

Subsea 7 announced the award of a contract to Subsea Integration Alliance(1) to support the the bptt Cypre project, an offshore gas development. Scope of the awarded Subsea Integration Alliance contract is substantial(2).

Subsea7’s scope covers the concept and design, engineering, procurement, construction and installation of a two-phase liquid natural gas tieback to the Juniper platform through dual flexible flowlines and a manifold gathering system, along with topside upgrades. Design, engineering, and project management will commence immediately at Subsea7 offices in the USA, with offshore installation planned for 2024.

Craig Broussard, Vice President for Subsea7 US, said: ‘We have been working closely with bp and our suppliers at the earliest possible stage to help develop and deliver an integrated SPS and SURF solution that optimises cost and efficiency, to accelerate first gas.’

Olivier Blaringhem, CEO for Subsea Integration Alliance said: ‘bp’s Cypre project is a prime example of our ability to harness the key strengths of Subsea Integration Alliance; Subsea7 with its expertise in executing complex EPCI projects, and OneSubsea’s fast-track distribution of subsea production systems. Combined, we are delivering a refined solution which enables early first gas.’

(1) Subsea Integration Alliance is a non-incorporated strategic global alliance between Subsea7 and OneSubsea, the subsea technologies, production, and processing business of SLB, bringing together field development planning, project delivery and total lifecycle solutions under an extensive technology and services portfolio. As one team, Subsea Integration Alliance amplifies subsea performance by helping customers to select, design, deliver, and operate the smartest subsea projects. This eliminates costly revisions, avoids delays, and reduces risk across the life of field.

(2) Subsea7 defines a substantial contract as being one where its share of revenue is USD 150 million and USD 300 million

Source: Subsea7

 

BP awards third subsea development contract

production from the facility to begin in 2025

18 November 2022
Fabio Palmigiani in Rio de Janeiro

UK supermajor BP awarded the Subsea Integration Alliance (SIA) – a joint venture between Subsea 7 and OneSubsea – a contract to support the development of its Cypre gas project offshore .

Subsea 7 will handle the concept and design, engineering, procurement, construction and installation of a two-phase liquid natural gas tie-back to the Juniper production platform through dual flexible flowlines and a manifold gathering system, along with topside upgrades.

Subsea 7 labelled the new award as “substantial”, with its part of the SIA contract with BP valued at between $150 million and $300 million.

 

 

TOUCHSTONE REPORTS THIRD QUARTER 2022 FINANCIAL AND OPERATING RESULTS

CALGARY, ALBERTA (November 10, 2022)

Touchstone Exploration Inc. (“Touchstone”, “we”, “our”, “us” or the “Company”) (TSX, LSE: TXP) reports its operating and financial results for the three and nine months ended September 30, 2022. Selected information is outlined below and should be read in conjunction with our September 30, 2022 unaudited interim condensed consolidated financial statements and related Management’s discussion and analysis, both of which will be available under our profile on SEDAR (www.sedar.com) and on our website (www.touchstoneexploration.com). Unless otherwise stated, all financial amounts herein are rounded to thousands of United States dollars.

Third Quarter 2022 Financial and Operational Highlights

• Produced quarterly average crude oil volumes of 1,272 bbls/d, representing a 10 percent decrease relative to the preceding quarter and a 5 percent decrease from the 1,333 bbls/d produced in the third quarter of 2021, as three key wells were down in the quarter.
• Realized petroleum sales of $9,933,000 from an average crude oil price of $84.85 per barrel compared to $7,650,000 from an average realized price of $62.37 per barrel in the comparative quarter of 2021.
• Generated an operating netback of $37.55 per barrel, a 17 percent decrease from the second quarter of 2022 and a 35 percent increase from $27.77 per barrel in the third quarter of 2021, with the variances primarily attributed to movements in realized crude oil pricing.
• Recognized current income tax expenses of $1,381,000 in the quarter compared to $377,000 in the third quarter of 2021, driven by $1,173,000 in supplemental petroleum tax (“SPT”) expenses based on our average realized oil price exceeding the $75.00 per barrel threshold in the period.
• Our funds flow from operations was $290,000 in the quarter compared to $1,073,000 in the prior year equivalent quarter, and our year to date funds flow from operations increased 1 percent from the same period of 2021.
• Recognized a net loss of $778,000 in the quarter compared to a net loss of $51,000 reported in the same period of 2021, principally driven by higher current income tax expenses.
• Capital investments of $2,899,000 primarily focused on facility and pipeline expenditures related to the Coho-1 natural gas facility and investments directed to the Cascadura natural gas and liquids facility.
• Exited the quarter with cash of $8,732,000, a working capital deficit of $4,537,000 and a $28,500,000 term credit facility balance, resulting in a net debt position of $27,037,000.

Recent Highlights

• Delivered first natural gas from the Coho facility on October 10, 2022, with net October sales over 19 operating days averaging 7.3 MMcf/d (1,212 boe/d).
• In conjunction with initial Coho production, we sold the gathering pipeline from our Coho facility to the third party natural gas facility for net proceeds of $1.2 million.
• Daily crude oil sales averaged 1,304 bbls/d in October 2022 with a realized price of $81.32 per barrel.
• Clearing of the surface location expansion area has been completed at the Cascadura facility site.

Paul Baay, President and Chief Executive Officer, commented:  “The focus of the third quarter was the completion of the Coho natural gas facility which is currently on production, providing us with our first natural gas revenues in October. Our base oil production continues to generate positive operating cash flows while we progress on construction of the Cascadura natural gas and liquids facility.

Production from our Cascadura discoveries will mark an inflection point for Touchstone, both from a cash flow and production volume basis. As we plan for our next stage of production growth, we are targeting further expansion of our onshore asset portfolio, through both the Trinidad 2022 onshore bid round and by considering other licence acquisition opportunities to expand our exploration and development acreage in prospective areas in Trinidad.”

Financial and Operating Results Summary

Operational Update 

Coho

• On October 10, 2022, we achieved first natural gas production from our Coho facility located on the Ortoire block, in which we have an 80 percent operating working interest. In conjunction with initial production, we sold the 2.7-kilometre, 6-inch gathering line tying in the Coho facility to the Baraka natural gas facility to The National Gas Company of Trinidad and Tobago Limited for net proceeds of $1,200,000.
• Over 19 operational days in October, the Coho-1 well delivered average net October sales of 7.3 MMcf/d (approximately 1,212 boe/d) on a controlled choke. We will continue to optimize production from the well as conditions stabilize.

Cascadura

• On August 16, 2022, we received a Certificate of Environmental Clearance to conduct development operations within the Cascadura area of the Ortoire block from the Trinidad and Tobago Environmental Management Authority. On September 15, 2022, we received approval from the Forestry Division of the Trinidad and Tobago Ministry of Agriculture, Land and Fisheries to commence lease building operations.
• Work on the surface location is progressing, as the clearing of the lease expansion area has been completed, and we are currently levelling and preparing the area for pouring of the concrete foundation. Components for the facility are currently being fabricated by local contractors or being imported to Trinidad in completed form. Once the concrete foundation has been completed, delivery of the facility equipment will commence. We are currently targeting completion of the facility by the end of the first quarter of 2023.

Licences and work obligations

• Under the terms of our lease operating agreements with Heritage Petroleum Company Limited (“Heritage”), we are required to fulfill minimum work obligations on an annual basis over the specific licence term. With respect to these obligations, we have four development wells and three heavy workover commitments to perform in 2022. Touchstone has notified Heritage its intent to defer the development drilling commitments to 2023.
• We have completed all of our minimum work commitment obligations pursuant to our Ortoire block exploration and production licence. In March 2022, we were notified that the Trinidad and Tobago Ministry of Energy and Energy Industries approved an extension to the exploration period of the licence to July 31, 2026. The licence amendment agreement has been approved by the Trinidad and Tobago government and is awaiting formal execution. Upon execution, we will be required to drill three exploration wells prior to the end of the amended term.

Trinidad fiscal regime

In October 2022, the Trinidad and Tobago government proposed an amendment to the current SPT regime, allowing small onshore liquids producers to access the increased $75.00 SPT threshold incentive post 2022. If enacted, this fiscal measure will potentially reduce the SPT expenses applicable to liquids produced from our two Trinidadian subsidiaries in 2023 and beyond. More importantly, we welcome the news that an energy sector review will be performed and are hopeful that additional measures to support the Trinidad energy sector are considered.

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 , 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. James Shipka, Chief Operating Officer
Telephone: 403.750.4487

Advisories

Non-GAAP Financial Measures

Certain financial measures in this news release do not have a standardized meaning as prescribed by International Financial Reporting Standards (“IFRS” or “GAAP”) and therefore are considered non-GAAP financial measures. These financial measures may not be comparable to similar financial measures disclosed by other issuers. Readers are cautioned that any non-GAAP financial measures referred to herein should not be construed as alternatives to, or more meaningful than, measures prescribed by IFRS and they are not meant to enhance the Company’s reported financial performance or position. These are complementary measures that are commonly used in the oil and natural gas industry and by the Company to provide shareholders and potential investors with additional information regarding the Company’s performance, liquidity and ability to generate funds to finance its operations. Below is a description of the non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures disclosed herein.

Funds flow from operations

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

Operating netback

The Company uses operating netback as a key performance indicator of field results. The Company considers operating netback to be a key measure as it demonstrates Touchstone’s profitability relative to current commodity prices and assists Management and investors with evaluating operating results on a historical basis. Operating netback is a non-GAAP financial measure calculated by deducting royalties and operating expenses from petroleum sales. Operating netback per barrel is a non-GAAP ratio calculated by dividing the operating netback by crude oil and NGL sales volumes for the period.

Capital expenditures

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

Working capital and net debt

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

Supplementary Financial Measures

The following supplementary financial measures are disclosed herein.

Realized commodity price per barrel – is comprised of petroleum sales as determined in accordance with IFRS, divided by the Company’s total production volumes for the period.
Royalties per barrel – is comprised of royalties as determined in accordance with IFRS, divided by the Company’s total production volumes for the period.
Operating expenses per barrel – is comprised of operating expenses as determined in accordance with IFRS, divided by the Company’s total production volumes for the period.
Refer to the “Non-GAAP Financial Measures” advisory section in the Company’s September 30, 2022 Management’s discussion and analysis for reconciliations of non-GAAP financial measures included herein to applicable GAAP measures.

Forward-Looking Statements

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

Forward-looking statements in this news release may include, but are not limited to, statements relating to the Company’s development and exploration plans and strategies, including the number of development and exploration opportunities, anticipated completion of the Cascadura facility and the timing thereof, estimated future Cascadura natural gas and liquids production, the anticipated reduction of future income taxes if proposed fiscal measures are enacted into law, and Touchstone’s current and future financial position including the sufficiency of resources to fund future capital expenditures and maintain financial liquidity. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Certain of these risks are set out in more detail in the Company’s 2021 Annual Information Form dated March 25, 2022 which is available under the Company’s profile on SEDAR (www.sedar.com) and on the Company’s website (www.touchstoneexploration.com). The forward-looking statements contained in this news release are made as of the date hereof, and except as may be required by applicable securities laws, the Company assumes no obligation or intent to update publicly or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.

 

Challenger Energy Q3 2022 update

01 Nov 2022

AIM-listed Challenger Energy, the oil and gas company, with oil production, appraisal, development and exploration assets across the Caribbean and Atlantic-margin, provided an update on operating results of its Trinidad and Tobago business unit for Q3 2022 (1 July 2023 to 30 September 2023):

• Total gross oil production for Q3 2022 was 32,370 barrels, representing an approximately 5% decline on Q2 2022.
• The fall reflects the impact of adverse weather causing grid and field level electrical failures through the quarter (and continuing into the beginning of Q4 2022). These resulted in between three to eight days of production downtime (varying by field) and the need to delay / reschedule much of the production enhancement work that had been planned for the quarter.
• Despite the lower gross oil production, the Company was able to maintain oil sales at a comparatively constant level during Q3 2022, through release of inventory build-up in Q2 2022, with total oil sales in Q3 2022 amounting to 31,267 barrels (marginally higher than Q2 2022 oil sales, by 0.3%).
• Gross realised average price per barrel sold in Q3 2022 was US$85.02, an approximately 13% decrease over Q2 2022. Revenue received by the Company from oil sales (being gross revenues less Government royalties and mandatory source deductions and adjustments applicable under the relevant licences)(1), amounted to approximately US$1.3 million in Q3 2022. This represents average net revenue to the Company of US$40.20 per barrel sold, an approximately 11% decrease on Q2 2022, largely as a consequence of a decline in oil price.
• The Company’s business in Trinidad and Tobago operated on a break-even pre-tax operating profit basis in Q3 2022 (Q2 2022: US$0.2 million). In aggregate during the first nine months of 2022 the business generated field operating profits of approximately US$1.6 million, and a pre-tax operating cash surplus of approximately US$0.6 million (stated after field operating costs, in-country G&A and other Trinidad expenses, but before corporation and other taxes including supplemental petroleum tax where applicable, and noting that, given the extent of carry-forward tax losses, the Company is currently largely shielded from corporation taxes).

Eytan Uliel, Chief Executive Officer of Challenger Energy, said:

‘We plan for a certain level of disruption each year during the rainy season, but during the third quarter we experienced considerably more than expected, resulting in production downtime, and it also became necessary to delay much of the routine maintenance and production enhancement activities we had hoped to undertake.

At the same time realised oil prices declined from the highs seen in Q2. Operationally, therefore, the third quarter of 2022 was challenging. Nonetheless, in aggregate the first nine months of 2022 continues to represent an improving overall financial performance for the Trinidad business, with positive field level operating profits (unaudited, before G&A) and a positive unaudited pre-tax operating profit. During the fourth quarter, as weather conditions improve, we expect less production disruption, so we will be able to begin clearing the backlog of delayed field activity, which should benefit production levels further.‘

Note 1: Oil sales are predominantly made to Heritage Petroleum Company Limited, the Trinidadian national oil company, which then apply certain deductions and adjustments before payment of funds to the Company.

These vary between various licences, and include deduction of Government royalties, Heritage overriding royalties, facilitation fees, escrow and mandatory contributions to the abandonment fund, oil impost, and in respect of Goudron and Inniss-Trinity only, deduction of agreed first tranche volume and addition of an agreed handling fee.

Source: Challenger Energy

 

SOC Heritage pays $4.8 billion in tax

Nov 02 2022

State-owned Heritage Petroleum paid $4.8 billion in taxes or 8.85 per cent of all the revenue collected by the state in 2022, buoyed by the high oil prices since 2014.

The performance of what was the exploration and production unit of the now defunct Petrotrin has also been able to pay all of its financing costs in the 2022 fiscal year, including the annual loan commitments on its US $1.2 billion loan.

Preliminary results show that Heritage generated gross revenue of $10.2 billion with an after tax profit of $1.4 billion.

Finance Minister Colm Imbert reported that the Board of Inland Revenue finalised the actual revenue figures for Fiscal 2022. Total revenue in Fiscal 2022 was $54.21 billion, which is $2.57 billion more than the revised estimate announced in September 2022 and $10.88 billion more than the original revenue estimate of $43.33 billion for Fiscal 2022.

Heritage Chairman Michael Quamina said after just four years, Heritage Petroleum Company surpassed expectations on revenue . “We are proud to be a major net earner of foreign exchange and a major contributor to the Government’s tax revenues.

Moreover, based on our ambitious drilling programme in 2022 which saw nine successful wells drilled on land and one quite successful well offshore and with 11 wells carded to be drilled on shore and six offshore in 2023, along with a robust 2023-2025 forward drilling programme with additional prospect leads being matured at this time, the company is on a very healthy path and well placed to meet without assistance, its very significant loan commitments which become due in 2023.”

In fiscal 2022, Heritage executed a ten well forward drilling programme on land which was completed in five months from May to September by operating two rigs (WSL Rig-2 & PCSL Rig-8) simultaneously. This approach accelerated the production contribution to Heritage. Both rigs were fully staffed with local labour.

1. The wells targeted the Cruse and Morne L’Enfer Reservoirs within the Palo Seco, Point Fortin, McKenzie and Forest Reserve Fields. In total over 53,000ft was drilled. Eight wells have been placed on production, with an actual oil production rate of over 500 barrels of oil per day (bopd). The drilling campaign identified possible follow up wells and uphole recompletion opportunities that increased the reserves base, which Heritage is working to quantify.
2. Nine heavy workovers (HWO) on onshore fields targeted existing producing intervals and uphole prospects and 863 well servicing jobs. In total twelve workover rigs and six swabbing rigs were in operation in 2022. An estimated 240 personnel worked daily over 760,000 manhours on these programmes.
3. 10-11 HWO Heavy workovers (HWO) will be completed in 2023 and well servicing will continue to manage base decline.

Heritage developed a  robust forward drilling program for 2023-2025 and drilling is expected to resume early in 2023 with another 10-11 well forward drilling program with 3-4 wells in Palo Seco and 6-7 wells in Forest Reserve and Point Fortin. Land drilling will recommence in January 2023 with 2 land drilling rigs in operation during the year.

1. The first well was drilled in the offshore Soldado field by Heritage in September 2022 after the rig arrived from EOG. This well will be put on production at the beginning of November 2022. Expected Initial Production of the Cruse C/D sands (IP) is 400 bopd.
2. Sixteen heavy offshore workovers were completed and so far, have tested at ~800 bopd. Several wells await testing.
3. In 2023 five wells are planned in offshore Soldado, four wells in East Field and one well in Southwest Soldado. In addition, 10-12 HWO offshore have also been planned.
4. The Subsurface team landed a robust forward drilling program for 2023-2025 of 18 offshore well and 20 land wells and several leads which will be matured as the subsurface and engineering work continues.

Heritage Chairman said this performance would have been impossible without the company’s 400 plus employees, with an estimated 240 employees, all local, involved in the expanded drilling programme.

“We owe these individuals a debt of gratitude for going the extra mile, and getting our production levels to a point where we are able to better take advantage of higher oil prices.I am quite pleased to say that it is not all about revenue, as Heritage has also managed to use its resources to increase its corporate visibility throughout the fence line communities in which it operates, ensuring that our neighbours are aware not just of our presence, but of our positive impact on their daily lives.”

Petrotrin must pay contractor $4.8m
The Privy Council approved an award of $4.8 million for a local contractor for work done for Petrotrin on its platform and block station at its Soldado oilfield in 2004. A&A Mechanical Contractors sued Petrotrin for $9.9 million.

In 2014, Justice Ronnie Boodooingh ruled in favour of the company but this was overturned in the Court of Appeal by Justices of Appeal Allan Mendonca and Gregory Smith. They set aside the money orders and remitted aspects of the case for retrial. Justice of Appeal Judith Jones dissented, not agreeing with the majority ruling.

The company appealed to the Privy Council, which ordered the payment of $4.8 million, setting aside the Appeal Court’s orders while also sending back to the High Court to consider whether interest should be awarded. It also sent four claims by A&A Mechanical back to the court to consider for payment. The issues to be considered by the courts at all three levels involved the classification of “without prejudice” letters which the Appeal Court had found inadmissible.

In its evidence, A&A Mechanical said it tendered to provide steelworks to strengthen Petrotrin’s platform and block station for $26.8 million, It won the bid and began work in 2004. It said the contract allowed Petrotrin to instruct the company to carry out variations to the work, and it did so, but was not paid for them. A&A Mechanical said it was only paid the $26.8 contract sum and not for the “additional work.”

Petrotrin claimed these were not variations but were included in the work. Some of these “variations” were sent back to the High Court by the Privy Council for determination. In his decision, Boodoosingh rejected Petrotrin’s argument that A&A Mechanical’s case was statute-barred and rejected the proposition that a letter – agreeing to variations – was part of “without prejudice” negotiations. He said those were not negotiations for the settlement of a disputed claim but an integral step in finalising payments. The Court of Appeal held that this letter was a “without prejudice” communication and was inadmissible. It ordered the High Court to rehear the claim without the letters.

However, the Privy Council said the letters were admissible and in sending back portions of the claim also sent back for “rehearing” the evidence relating to the meetings between the parties during negotiations for payments and the “without prejudice” letters, since the latter were correspondence forming part of the negotiating process for payment. The Privy Council agreed with the Appeal Court’s finding on other variation claims, sending them back to the High Court to consider the evidence. The Privy Council judges held that Boodoosingh was wrong to find Petrotrin had failed to provide evidence on these claims.

A&A Mechanical was represented by Daniel Feetham, KC, Anand Ramlogan, SC, Rowan Pennington-Benton and Jared Jagroo. Petrotrin’s attorneys were Anneliese Day, KC, Prakash Deonarine and Odette Clarke. Presiding over the appeal in the Privy Council were Lords Lloyd-Jones, Briggs, Leggatt, Burrows and Stephens.

 

HDF lead in green hydrogen

HDF executive vice president Thibault Ménage, from left, French Ambassador Didier, Planning and Development Minister Pennelope Beckles and HDF TT managing director Dale Ramlakhan at the launch of HDF’s operation in TT at the French Embassy on November 4. – ROGER JACOB HDF

TT has a history of being first, especially in energy and energy industries in the region. The first commercial oil well was drilled in Point Fortin in 1907. In the mid-1950s the Energy Chamber, then the South Trinidad Chamber of Industry and Commerce, was formed, the first of its kind – with a focus on energy and energy industries.

 

With the demand for fossil fuels reaching its peak and declining and the world viewing hydrogen as the fuel of the future, TT has an opportunity once again to be first in line in energy in the region, with the help of Hydrogen De France (HDF), which launched its local branch, HDF TT, to begin projects. The window of opportunity to be first in line again is closing fast and with it, the window of opportunity for financing clean-energy projects which could help TT’s transition away from fossil fuels.

Vice- president of HDF Thiabault Ménage and director of HDF TT Dale Ramlakhan said opportunities following establishment of HDF TT should be taken seriously – or that window will close and TT will be left behind.

Be first or fall behind

HDF TT was launched for the newborn company to begin the first of many local hydrogen projects. It acquired 70 per cent of Kenesjay Green Ltd’s NewGen project. When completed, the project, estimated at more than US$200 million, will result in the construction of a clean hydrogen producing electrolysis facility – the largest of its kind in the world.

At the French Embassy in Port of Spain, Ménage said TT is poised to take the lead in the hydrogen industry in the region.

“The Point Lisas estate is looking for more hydrogen. It is short of 400,000 tonnes of hydrogen, which is not being provided at the moment. There is a very urgent need for using TT assets at their maximum capacity. Because it is already a hydrogen hub TT has everything to become a world leader in this area.”

Ramlakhan said that its close cluster of plants makes TT perfect for developing facilities centred around energy transition. TT also has an advantage because there is a market for its petrochemical products, which are used as feedstock for producing fertiliser and manufacturing plastics, pesticides, dyes and other chemicals.

“We have methanol plants next to ammonia plants, next to steel plants, next to gas and power infrastructure. We have a lot of benefits that we can extract from the existing elements that would make this project work.”

HDF TT, in its business strategy, plans to use project financing to deliver the project. Project financing allows for capital expenditure intensive projects to be financed with a high portion of debt and therefore makes it more competitive.

“In this case, what the project has to do is show that it has the strength of contracts for the supply of power and off take of hydrogen and with this lenders would say that it is a sound contract, there is little chance that people would renege on the contract and they would finance the project.”

Ménage at the launch of HDF TT, San Fernando . M HAMILTON

If TT does not act quickly, opportunities for financing that would come out of being first will go to other countries.

“Hydrogen is now a buzzword. The European energy plan going forward heavily features hydrogen. The US plan also features hydrogen. But they are taking the approach in terms of grants to support the development of equipment, to support developers, to support subsidising the cost of production so that it gets off the ground.”

“If we miss the opportunity, all the production of equipment, all the developers, all the capital for these projects will go into these markets, and we could struggle to attract investors. You will have to play catch-up. If we lose that over time to these other projects, there is no guarantee that we will recapture these markets.”

Green fuel of the future

Although hydrogen as a fuel is clean and could be considered the fuel of the future, about 96 per cent of world hydrogen is made through the use of fossil fuels. In most cases hydrogen is acquired through steam-methane reforming, which uses high-temperature steam to produce hydrogen from natural gas. In this method the methane reacts with steam under high pressure in the presence of a catalyst to produce hydrogen, carbon monoxide and carbon dioxide.

In Point Lisas, plants which produce ammonia and methanol use natural gas to break apart the molecules and separate the hydrogen.

HDF, a hydrogen production and storage company at its core, uses electrolysis to acquire hydrogen. This process uses water as the source material instead of fossil fuels to generate its hydrogen content.

“That is what the electrolyser does, it uses electricity to split the water molecules into hydrogen and oxygen.”

Coming from a water source which has little to no carbon footprint, green hydrogen is considered “clean,” with only a small percentage of CO2 per kilogramme of hydrogen produced. Ménage explained that HDF usually uses a hydrogen-to-power module which accrues hydrogen for generating clean power and storage for a steady supply of electricity. This module is being used in an HDF facility in French Guiana. The project uses a combination of solar power and hydrogen fuel cells to deliver a consistent and clean electricity source for power grids.

Solar energy generates electricity during the day and some of that electricity is stored in hydrogen fuels cells to be used at night. This way, the power grid is decarbonised but does not have any intermittency problems.

“The project in French Guiana is the first of its kind worldwide. It is the largest green-hydrogen storage in the world under construction, and it is the first hydrogen project financed through project financing. This model, we are duplicating it in every part of the world. Suriname is one of them, but it is not the only one. There is one in Sumatra and there is one in Barbados – which will be even more advanced than Namibia.”

For the NewGen project, HDF TT will embark on another first in its application of the green, clean hydrogen. Ramlakhan said HDF TT’s NewGen project would be focusing on a “hydrogen to (X)” module – in this case, “X” would be an industrial application. The NewGen project will use a combination of solar and energy-efficient power sources to generate carbon-free hydrogen to meet about 20 per cent of the hydrogen requirements of an ammonia plant in the petrochemical hub in Point Lisas.

HDF, with its expertise in developing hydrogen systems, will guide TT through the process of constructing the system, which will then supplement the usage of hydrogen downstream, in this case in ammonia plants, which use natural gas to create commodities. That additional supply of hydrogen would allow the ammonia plants to reduce the use of natural gas for hydrogen production, saving on natural gas and making the process much cleaner.

Ramlakhan said TT also has the benefits of having excess capacity of electricity and a generation grid that could be modernised to make it more efficient, thus providing a source of electricity without having to increase natural gas. The project, when completed, would be the benchmark for many other countries on cleaner production of commodities

“This project is leading on quite a few fronts. It is close to leading on being certified clean in terms of the low-carbon footprint and clean hydrogen, it is leading in the environmental process, it is close to leading in the technological aspects – so there is no comparison.”

“This project is going to be setting the example. A lot of the contractors that we spoke to are interested in the project because it gives them the capacity to understand how to install it and replicate it elsewhere. So traditionally we could try to compare it and ask what it would look like in other places; in this case, people would be looking at TT and saying, ‘What does it look like in TT and how can we replicate it?’”

Hydrogen pioneers

Ménage described HDF not as a power company or a hydrogen supplier, but as hydrogen pioneers. Established in 2012, HDF is a project-developer of hydrogen infrastructure as well as a provider of hydrogen-based technology such as fuel cells.

“The market response for providing fuel cells at the speed that we need it for our project was simply not there. So we decided to also become a technology provider for our own projects. It is a unique positioning. You don’t see that a lot on the market, being a developer and also a technology provider for a specific part of the project.”

Ménage said while HDF is passionate about clean energy and the benefits to the planet, it is also a private company which understands that it has to grow as a business to continue to have an impact on the world.

“In order for an entity such as ours to be attract the best talent, we need to be able to pay them as well. We need to be able to make money and grow and have more impact. So we have a realistic approach, but a pioneering one. If we have invested in NewGen, that means that we think it is profitable and competitive. The renewable and new green sector is large, but it is not as large as the oil and gas sector.

“But we are more aligned and coming from the renewable-energy world. A lot of our expertise comes from the renewable-energy world. Hydrogen is potentially the oil of the future. We are not losing track of what makes a company profitable, but we are passionate about what we do.

“Companies such as HDF and HDF TT show they have the know-how and the technology to transition the TT energy sector and poise it to lead the industries of the future with innovation and an interest in investing in TT. As a nation we now have to ask ourselves: are we satisfied with playing catch-up in clean-energy industries, or do we want to be first?”

 

 

Caribbean Investment Forum

Opportunities for green energy projects abound in the West Indies. Surrounding seas, high winds and clear weather make the region perfect for clean energy ventures such as hydrogen, solar, wind, biofuel and geothermal projects, which could end dependence on fossil fuels.

However, the area is still far behind in the renewables race. While clean energy is expected to top US$1.4 trillion according to the World Economic Forum, developing regions, such as the Caribbean, remain at levels of investment comparable to that in 2015, when a few hundreds of millions were spent on clean energy.

Investors are eyeing potential to generate clean energy and begin slowing carbon emissions but several critical elements are needed. At the Caribbean Investment Forum, in Port of Spain it was agreed that chief among these is the need for a culture change, so that people, not companies, see the value of clean energy.

The panel included National Energy Corporation president Vernon Paltoo, Republic Bank manager of investment banking Michael Mcquilkin, Private Financing Advisory Network, regional coordinator of Latin America and the Caribbean, Frederico Fische and Boom Cluster manager Jari Aaltonen. All spoke on making projects viable to people at the ground level.

Paltoo said it was a critical component of making the region attractive to investors, especially in TT, which was in a unique position because cost of power is the lowest in the region, which makes it less competitive in renewable energy. However, there is demand for green projects, due to its high output of 40 million tonnes of CO2 annually and its commitments to energy transition in the Paris accord and other agreements.

People need to recognise the significance of energy transition.

“That is one of the most important aspects for us as a country. We have to recognise why this is needed and not just do it for the sake of doing it. This becomes an issue of ensuring the continuity of life as we know it.”

If TT adapts education to include energy and climate , it will change the attitude toward going green.

Solar PVs at the Preysal Service Station.   National Energy.

National Energy partnered with the educational NGO Pennacool for its renewable minds project. The Pennacool portal provides information to help children understand energy sources and the impact on the environment. The project was a success, reaching thousands of pupils and increased awareness of how people can contribute to a low carbon future.

“We have realised that it has reached its target audience, understanding the importance to the extent that we won a national award – the Amcham TT HSE award – in terms of education for environmental awareness.”

Curriculum change was an important aspect of changing the culture toward clean energy.

“We are working with the education minister and the Ministry of Energy to change the curriculum in primary and secondary schools toward a shifting away from traditional sources of power toward more sustainable ones. It has to be a holistic intervention in terms of education, from the primary level to the tertiary level.”

The panellists said legislation, infrastructure, access for small-scale use, employment and coaching opportunities in clean energy projects are also needed to attract investors.

Mcquilkin said political stability and supportive policies are also key.

“That could be in the form of removing tariffs. Of course investors need to have the confidence that the overall financial structure will be long-term, so with that comes a strong need for political stability so that these things would not be reversed in five years.”

There was a need to incentivise small-scale use of clean energy. Large companies see the value of energy efficiency and are more amenable to adopting clean energy policies and products. Small-scale users should also receive benefit from various incentive profiles. Manufacturing is an avenue to attract investors and that businesses need to ask what manufacturing in the clean energy sector would look like for the region.

“Are there opportunities to nearshore some of these facilities – be it nearshore or offshore? But it has to create employment opportunities. We have to create training and coaching development opportunities for our local populations to participate. That has to happen.”

Fische pointed out that a regulatory framework is also necessary to create a supportive environment for clean energy.

“Sometimes the regulatory framework is proper on paper, but then there are issues of discrepancies between the use of the plans and what the regulators can do.”

The panel agreed that although investment in clean energy in the region is not as high as the rest of the world, it is still going in the right direction, Trinidad’s Orange Grove solar PV project is expected to generate 50,417 MWh of electricity – a power supply that could provide clean energy to about 7,000 households and offset 27,500 tonnes of CO2 a year. Paradise Park solar project in Jamaica could save it US$250 million in fossil-fuel purchases over the life of the project. Herradura 1 wind project in Cuba would generate 51 MWh of electricity.. All are prime examples of regional development in the clean energy sector.

Mcquilkin said, “I think we see every island talking about energy transition and trying to advance it in its own way. I think that it is happening through conferences like this. There are a lot of projects coming forward and it is a step in the right direction,”

Paltoo said to meet TT’s energy demands about 25 gigawatts of electricity would have to be generated.

“In order to harness that quantity of power we have determined that offshore wind would be the most feasible, in light of that studies will be done.”

Other renewable energy options such as geothermal, hydropower and waste water are also being examined. National Energy is seeking partners in other countries to develop these projects.

“Solar alone would not be able to provide our energy needs. So we are working with Caricom in order to determine how best we can work to harnessing energy from these sources.”

 

 

T&T Iron and Steel returns to Point Lisas

Nov 09 2022

The Iron and Steel Plant at Point Lisas Industrial Estate will resume production under new owners, creating hundreds of lucrative jobs. Documents that show that all is in place for the restart of the plant, pending final approval from the Cabinet. The proposers hope that Public Utilities Minister Marvin Gonzales will take the note to Cabinet so that T&TEC can proceed to negotiate a power purchase agreement with T&T Iron and Steel.

Liquidator Christopher Kelshall gave his approval for the plant to be transferred to the new owners T&T Iron and Steel, the company signed a term sheet agreement with the National Gas Company Ltd for an initial nine million standard cubic feet of natural gas per day (mmscf/d) starting in 2023 and increasing to 55 mmscf/d when it is into full operations by 2025/2026.

The plan is to start with the Melt shop and produce billets and coils, using scrap iron, both locally sourced and imported. The use of scrap iron could resolve the present quandary as there will be no need to export scrap iron, as it could be now used in the steel plant.

Plans include refurbishing the DR 3 plant in time for 2024 when additional natural gas is expected to be made available to the steel plant. In 2024 the plan is to make Direct Reduced Iron (DRI) and phase out the use of scrap iron. DRI is a cleaner process and will producer a higher grade of Steel and fetch better international prices as well. Following the 2024 start up of the DRI 3 plant, the plan is to refurbish DR 2 plant for start up early 2026.

It is expected that the steel plant will have fewer employees than the Arcelor Mittal plant that employed on a daily basis up to 2,000 workers, mainly contract employees. The proponents of T&T Iron and Steel expect to employ between 700 and 1,000 people. Initially it proposed to create 250 permanent jobs.

Government will benefit from high quality jobs being created, and significantly more electricity being sold, with an estimated total power requirements of 240 mega watts a day or 17 per cent of what the country uses at present. This would boost T&TEC finances. National Energy will earn more fees for port services and Plipdeco will collect significant rent.

The regime was condemned for the initial closure of the plant and the failure to protect workers. Originally built by the government , the iron and steel plant, like other state assets, waxed and waned until Arcelor Mittal’s chairman and CEO, Lakshmi Mittal in 1994 purchased the plant for US$70 million.In 2016 after he was denied natural gas and electricity rates at prices he wanted, Mittal closed the plant and left. 600 plus permanent workers who lost their jobs without separation benefits.

President of the Steel Workers Union of T&T, Timothy Bailey blamed current Attorney General Reginald Armour for helping Mittal leave the country without paying workers benefits by finding loopholes in the legislation, which remain.

“A portion of the workforce has gone on in terms of retirement and some have died, and something that has never been addressed, and I hope that this is touched on, is although a new entity is coming to reopen, and I will have a lot to say about that, not that I don’t want any entity to reopen, because it is good for the country, it is good for the economy, it will be good for the workers, my issue is people tend to believe that because time has past things are forgotten.

The same legislation that existed in 2016 that allowed Mittal to leave this country without paying workers any separation benefits, the Attorney General today, Reginald Armour is the person that guided Mittal to find the loopholes in our legislation to allow workers to go home after 36 years without any money.”

He claimed this propelled more deaths of workers overcome by stress.

‘All kinds of diseases people never had before come up, because you home, no assistance from the government, no assistance anywhere, you have mortgages, you have family to support you have wives basically, and you have demands at the end of the day, and you can’t fulfil it because you have invested your whole life in a company which was allowed to get up, leave our shores and is currently facilitating a liquidation process. If that not criminal, I want somebody tell me what is criminal.”

Reopening of the plant will require significant retraining of workers.

“Definitely retraining and reskilling will be needed, even for those who have gone outside of the establishment, because you have to remember the plant has been closed since 2016, so definitely we will need some reskilling, you are going to need retraining.”

On the question of whether the union expects to represent workers once the steel plant reopens, Bailey said he expects a level of pushback but assures his union is ready to represent the workers.

“The recognition certificate never expires. There is another notion that they could do certain things and make it more difficult, case in point Petrotrin to Heritage, they may attempt to do the same thing, get multiple companies involved to break from the recognition certificate covering workers, but we will be ready and willing to assist the company, if the company has good intentions and obviously, we are ready, willing and able to represent our members.”

 

 

Lake Asphalt bitumen supply

Works and Transport Minister Rohan Sinanan told parliament that government is developing and implementing initiatives to end the current shortage of bitumen, in response to a question from Mayaro MP Rushton Paray, who asked for specific plans with measurable outcomes to end the bitumen shortage.

Sinanan said one measure had been implemented, while another was being developed.

“Funding has been made available to Lake Asphalt Ltd by the government to purchase bitumen for the local market so that local contractors could have the opportunity to purchase directly from Lake Asphalt without having to acquire foreign exchange. However, they will still have the option to import directly from foreign suppliers to suit their unique needs. Since adopting this approach, we have seen an increase in the supply of bitumen on the market.”

His ministry is developing a policy to utilise Trinidad Lake Asphalt (TLA) in most of its paving works.

“This initiative has the potential to reduce by about 25 per cent the amount of bitumen that needs to be imported. The ministry is also working closely with Lake Asphalt to ensure that the operation of the blend of TLA can meet the demand for the local market.”

Lake Asphalt claims that TLA is a unique bituminous, naturally occurring material, which provides performance-enhancing properties to binders and hot mix asphalts in the asphalt.

(Privatisation of this and other non-performing state assets can raise revenue for flood alleviation and rainwater harvesting, instead of dependence on aid from former imperial masters.)

 

 

Woodside Energy

Over 200 primary school pupils from the North-East Education District were empowered through Arrow literacy training funded by Woodside Energy (formerly BHP Petroleum). Approved by the Ministry of Education, this initiative focused on the creation of a homework centre at the Toco Regional Complex offering Arrow remedial literacy training to standard one and two pupils from all 13 schools spanning Toco to Matura.

Sheldon Narine, corporate advisor, Woodside Energy, said, “This programme demonstrates our commitment to sustainability and investing in developing the greatest natural resource that any nation has – young people. Through these students, we will transform the educational landscape while nurturing future leaders. Apart from the environment, agriculture and safety, education is another facet of our investment in this community, but in our opinion, it is the most important. We look forward to working with the Arrow Foundation and seeing these students achieve their full potential.”

Narine and Christopher Bonterre, managing director of the Arrow Foundation launched the Homework Centre
The literacy programme was hosted over the vacation and each pupil received at least eight contact hours. The Arrow software provides a multi-sensory technological approach to help pupils with reading, spelling and writing skills. Pre- and post-assessments were also measured to track the pupils’ progress along the course of the training.

Darrin Parkes, a standard five teacher at Matura Government Primary School, said, “We were privileged to have the Arrow programme at our school this year and the expansion of this programme will only build on the progress made. We are thankful for this intervention by Woodside Energy and we hope that this training becomes a permanent fixture in our community as it helps teach critical literacy skills.”

The Arrow support will continue until the pupils reach standard five. It is also anticipated that going forward, other centres will be created across the community to better facilitate the pupils.

The creation of the homework centre represents a continuation of the company’s partnership with the Arrow Foundation. The centre is free to pupils, who will benefit from special care and attention from the Arrow tutors in the areas of reading, writing and remedial education. Through this programme, pupils will develop oratory, listening and understanding skills, together with marked improvements in their confidence, concentration, self-esteem and behaviour.

Earlier this year, the partnership provided remedial training for 100 standard five pupils ahead of the Secondary Entrance Assessment (SEA) examination and resulted in pupils showing a significant increase in their reading ages.

Kelani Matthew of Matura Government Primary School, who took part in the programme, said, “The Arrow literacy programme really helped me to fast track my learning and I quickly improved my reading and spelling. The training also helped me to make progress in all subjects, even maths. Arrow, together with the support of my teachers and parents, helped me to perform at a higher level in the SEA exams.”

Bonterre lauded the results of the programme. “A recent United Nations’ report stated that the learning losses for children because of covid19 is ‘the largest disruption to education in history.’ Our programme seeks to reverse this statistic by enhancing basic learning skills including communication, concentration, writing and oral fluency. Over the years, we have seen incredible results with students, not only in terms of their academics, but also marked improvement in terms of their overall attitudes and self-esteem.

“This partnership with Woodside Energy is critical and the benefits will extend far into the future. The Arrow Foundation is strategically poised to help these students and the energy shown by the schools and parents will only serve to enhance the results.”

Developed over 50 years ago in the United Kingdom, Arrow stands for aural, read, respond, oral, write. It focuses on remedial work in reading, spelling, dictation, speech and listening skills and assists pupils who experience academic challenges by transforming their entire approach to learning. The computer-based learning applies use of the self-voice – a recording of the learner’s own voice while reading – which forms the basis of the multi-sensory learning approach.

 

 

Republic Bank profits up

Nov 08 2022

Chairman of Republic Financial Holdings Ltd (RFHL) Vincent Pereira announced an after tax profit of $1.526 billion for the year ended September 30, 2022.

This represents an increase of $218 million or 16.7 per cent over the 2021 reported profits of $1.308 billion, and $55 million or 3.5 per cent below the 2019 reported profits of $1.581 billion.

RFHL said this performance reflects the impact of the Group’s expansion, revenue diversification and cost management strategies, the uptick in economic activity as well as the increase in yields in the US dollar denominated financial instruments held across the Group.

“Over the past financial year, the countries in which RFHL operates continued to relax their COVID-19 protocols. Borders and schools were re-opened, restrictions on gatherings and public mask mandates were removed and almost all commercial activities resumed. The resulting resurgence of economic activity, especially in the tourism dependent economies, augured well for the group,” Pereira said.

Throughout this period RFHL continued to serve its stakeholders, providing support to customers as they navigated new challenges to their business model. The organisation also improvde its customer experience through increased investment in its digital offerings.

“During 2022 we strengthened our sustainability focus, adding capacity and execution capability to the group through the creation of an Office of Sustainability. Additionally, through our group flagship Power to Make a Difference Programme we are forging new, valued partnerships with NGOs and groups whose specific focus aligns to the pillars of our sustainability and Environmental, Social and Governance (ESG) effort. By continuing our focus on responsible banking and sustainability, our goal is to actively shape a more sustainable future for all.”

The board has declared a final dividend of $3.45 (2021: $3.00) per share, which brings the total dividend to $735.8 million or $4.50 (2021: $4.00) per share for the fiscal year, an increase of 12.5 per cent in total dividend payment over 2021, and in line with the 2019 dividend payment.

At a closing share price of $140.01, this dividend represents a dividend yield of 3.21 per cent as 2021 was 2.93 per cent. Pereira reiterated that within an environment that presented both “challenges and uncertainty” the group has delivered a good performance for the year ending September 30, 2022. Success could not have been realised without the talented, resilient and dedicated staff across each of the 14 countries in which the group operates.

 

 

EU Ambassador confident of blacklist removal

Nov 05 2022

Economist Marla Dukharan

Peter Christopher

 

Members of the European Council will visit Trinidad and Tobago for . talks to move this country and other Caribbean states from the revised EU list of non-cooperative jurisdictions for tax purpose.

“For the first time in history, on the 17th and 18th of November, we shall have the European Council officials here. The people who represent their governments at the European level, who are co-decision-makers in the legislative process. We’ll visit Trinidad and Tobago for the first time in history,” said EU Ambassador to Trinidad and Tobago Peter Cavendish at his Queen’s Park East, Port-of-Spain office.

The Council will visit Barbados and St Lucia before Trinidad and Tobago. During these visits, the current listing of Caribbean banks on non-cooperative lists is set to be on the agenda and the Ambassador is certain positive strides can be made on the matter.

“I do think that the upcoming visit will allow people to express that view. I do think smaller countries have capacity issues in moving quickly to change legislation, there are big demands on smaller civil services and in terms of what we’re trying to do to help as I said we will have technical expertise made available but it has to be requested,” said Cavendish

Trinidad and Tobago has been on the list since it came into effect in 2017 and as recently as September 2022, the EU reaffirmed this country’s placement on the list stating,”

Trinidad and Tobago does not apply any automatic exchange of financial information, does not have a rating of at least “Largely Compliant” by the Global Forum on Transparency and Exchange of Information for Tax Purposes for Exchange of Information on Request, has not signed and ratified the OECD Multilateral Convention on Mutual Administrative Assistance as amended, has harmful preferential tax regimes (Free Zones), and has not resolved these issues yet. Trinidad and Tobago committed to address the BEPS IF’s recommendations with regard to the implementation of criterion 3.2 on country-by-country reporting (CbCR) in due time, so that this is reflected in the BEPS IF Action 13 Peer Review Report in the autumn of 2023.”

The continued black listing has been criticised, notably from Barbados-based Trinidadian economist Marla Dukharan, who described the listing of Caribbean states including Barbados and Trinidad and Tobago as unfair and lacking transparency as well as ineffective in combatting money laundering and fraud. Dukharan also questioned the limit sanctions imposed on EU member states who run afoul of the very guidelines used to blacklist the Caribbean states.

Cavendish  explained that EU member states do face legal consequences for these breaches when they occur. The list was only created as a means to curb financial mischief in jurisdictions where the EU cannot take legal action.

“We are applying these rules to ourselves which some people are not aware of. These rules are always applied, and there are legal procedures taken against member states. It is because we can’t take legal procedures against countries outside of Europe, that we have these lists. So it’s a secondary measure. But the objective is to get criminality. And that’s what we’re fighting against. I think all decent citizens want these people to have as hard a life as possible and not to get away with what they’re doing.”

He explained if a member state was not respecting the rules, then an infringement procedure can be commenced against it and that could even go to a court proceeding.

“Yes, we do have court procedures in Europe against member states. However, we have a legal tradition. I’m not talking about matters that are going to court or have been in court or recently decided upon except for specialist persons who may be representing the institutions.”

Cavendish said this was not a case of the EU hiding these matters, as he assured that information could be easily accessed via an internet search. He did admit that the listing created challenges for many seeking to do business within Caribbean states including complications for his financial transactions in this country.

“In terms of the implications for Trinidad companies, and even for myself here because if I’m moving money, I get asked extra questions about why am I moving the money to this country, There is an additional cost imposed upon (businesses) in terms of the information and time they have to devote to answering questions for legitimate business. “

The ambassador however felt that Trinidad and Tobago had been doing well in terms of putting measures in place to be removed from the list. He believed it was not a situation related to compliance but capacity in terms of getting the required changes done at a legislative level.

“I’m an economist. I’m not a lawyer. But I think legal speeds are the issue. And as I said, the country is a small country. So perhaps you don’t have the capacities that larger countries have to move into the act. I understand that we’ve had excellent exchanges with the Attorney General’s office. We’ve had the technical people on both sides know each other now by name. It’s not a question of just the things are going between the two heads of respective organizations, the technical people who do deal with these issues, know each other and have been exchanging as well. So I’m hoping in that way to accelerate matters. I think that we have to recognize that there’s great goodwill in this great willingness to resolve this, that’s not disputed. And we are looking forward to this wish to put this behind us,” he said when asked about the major hindrance towards Trinidad and Tobago’s removal from the listing.

“There has been progress over the recent years. We have a lot of exchanges, but with the political. I mean, talking about people at senior levels and institutions and senior members in the administration here, those are the technical levels. So we would very much like to put these matters behind us and have wider deeper relations on financial and other areas.”

Cavendish also addressed another concern raised by Dukharan that EU grants often lead to a further dependency relationships being created by EU and these smaller countries.

“The European Union only gives money we give grants. The European Investment Bank which is the world’s oldest development bank. It’s owned by the European Union member states and the European investment bank is able to borrow at Triple-A plus rates. It is not for profit, we try to avoid that way to have distressed debt,” he said.

The EU was eager to develop trade routes in the Caribbean and several industries could be developed in Trinidad and Tobago for these purposes.

 

 

Improved balance of payments

Nov 16 2022

T&T trade performance rose from a visible trade balance of $12.5 billion (US$1.84 billion) in 2017 to $19.3 billion (US$2.84 Billion) in 2021. With the escalation in commodity prices in 2022, the latest data shows a projected increase in a balance of trade in 2022 to $36 billion (US$5.3 billion), an increase of 86 per cent.

Results from trade agreements have been modest, said Finance Minister Colm Imbert during the presentation of CAF’s Flagship Report “RED 2021” in the Caribbean titled, “Pathways to Integration: Trade Facilitation, Infrastructure, and Global Value Chains” at the Central Bank.

Over the period 2017 to 2021, the trade balance with the Dominican Republic decreased by 44 per cent, from US$71.8 million in 2017 to US$40.0 million in 2021. Similarly, the trade balance with Costa Rica, over the same period, showed exports increasing marginally by 1.8 per cent from approximately US$10.1 million in 2017 to US$10.2 million in 2021. These are the two countries with which Caricom has free trade agreements and it is in this light that increasing trade facilitation is critical to the region.

“The advantages of trade facilitation experienced by the business community are vast and trickle down to the citizenry in several, if not all cases.”

Through trade facilitation, the business community profits from lower trade related costs and reduced delays in the delivery of their raw materials, which allows them to better serve consumers by providing goods on time and at a more economical cost. There is also enhanced competitiveness which forces businesses to maintain and provide goods of the highest quality.

“This benefits the citizenry as high-quality goods are made available to consumers at close to international market prices.”

Simplified and modernised trade processes allow governments to enhance controls, not in terms of imposing trade restrictions but through greater awareness of items transmitted to and through their countries.

“This strengthens national security systems of countries which is especially important in small island states, such as those of the Caribbean, which have experienced rising crime rates due to cracks in outdated customs processes and systems.”

CAF is a multilateral banking institution that has a different approach – agile, flexible and client-oriented – to development finance. Since completing its incorporation (full membership) process in 2016, T&T received financing from CAF for more than US$1.3 billion to support macroeconomic reforms, infrastructure development, digital transformation, as well as emergency support in the pandemic. This country also received valuable technical assistance (US$2 million in non-reimbursable resources) for strategic projects to prevent flooding, improve urban transport and digitalise the tax payment system.

The bank is ready to expand its operations and is willing to offer support to all Caricom nations who may need access to development financing from its new regional hub in Port-of-Spain.

 

 

Minister announces another surplus

Government intends to spend more money, over the next two years, on improving lives of citizens as the economy is on an upward trajectory. Finance Minister Colm Imbert says,

“After seven years of hardship, we can now spend some money. We can now improve the standard of living of our people. We can now help those most in need. And that is what this PNM government intends to do over the next two and a half years.”

Initially, government believed TT had earned an additional $8.3 billion in revenue for the financial year 2022, which ended on September 30.

Predictions showed TT would earn $43.3 billion, but Imbert realised the country earned $51.6 billion when he read the estimates presented to him just before the 2022/2023 budget presentation. The outturn was better than expected: instead of $51.6 billion, the country banked $54.2 billion – an $11-billion rise.

Government estimated $5.5 billion in revenue from oil companies but earned $11.4 billion. Estimating $6.5 billion from the rest of the economy, the state earned $11.4 billion there as well.

“TT’s economy is doing extremely well. It is not just oil and gas. It is the non-oil sector. And we’ve seen improvement in virtually every area in the non-oil sector.”

He said the overdraft now stood at 39 per cent.

“When the overdraft is 39 per cent, it means there are things that we can do.”

This overdraft also means government has $6 billion readily available if an emergency arises.

 

 

TT’s debt-to-GDP ratio dropped from 90 to 70.

“One of the good things that has happened to us, because the economy has done so well, our GDP has moved from $140 billion in 2020 to $190 billion in 2022. We have an increase in our GDP of $50 billion in just two years…And since our GDP has increased that much, by $50 billion in two years, it means our debt-to-GDP ratio has gone down. We haven’t borrowed any money for central government since December of 2021.”

A chunk of that money will go towards constructing new housing units.

“We are providing the Ministry of Housing with $1.5 billion in cash between now and December. The ministry has already received $500 million. And that’s the kind of money that we need in this country to build houses.”

With this surplus government could finance road repairs, road rehabilitation and community projects.

“And because we have no fiscal space, because our debt-to-GDP ratio is now down at an acceptable level, we can borrow to finance state enterprise work, because that’s where we get the most efficiency. We also can use our own cash flow.”

Once revenues continue to increase, government can pump more into the construction and capital development.

“That’s the fastest way to create jobs. So that’s one of the things we’re going to do with this extra money that we have received. Another thing we have to look very closely at – helping the poor and vulnerable.

“We’re not going to focus on make-work programmes. We need to give people permanent, long-term sustainable jobs. So that is what that extra money is going to be spent on.”

This benefit arose through sacrifices and proper management of the economy.

“The only thing they (UNC) could see is that things are hard. Well, things are not going to be so hard in the very, very near future.”

(Priority must be given to flood relief, irrigation channels, rainwater harvesting and tree planting.)

 

 

COP27

Nov 07 2022

In late October 2022, Valsayn South floods marooned residents with over five feet of water for several days.

Climate reparations, dominated COP27 as developing nations demanded “Loss and Damage” payments to recover from the fallout of disasters. “Loss and Damage” refers to the irreversible economic and non-economic costs of extreme weather events, sea-level rise and melting glaciers. The “loss” refers to things that are irreversibly lost, while “damage” refers to things that cannot be repaired or recovered.

Economic costs include lives, jobs, property, food systems, and territory irreversibly lost. The harder-to-quantify non-economic costs refer to the loss of culture, identity, sovereignty, human dignity, biodiversity, and psychological well-being.

Ultimately, these funds are meant to be used for shelter for those displaced by catastrophic hurricanes like s Dorian in the Bahamas, Irma in Barbuda, or Maria in Dominica and Puerto Rico. It is also meant for relocating coastal communities that are underwater because of rising seas. However, subsidence, underwater volcanoes and tsunamis can cause sea level rise.

Wealthy nations resist these claims as they avoid becoming legally or financially responsible for the climate impacts. Small islands formed the Alliance of Small Island States (AOSIS) in 1990 at the Second World Climate Conference in Geneva. Trinidad and Tobago was a founding member and AOSIS, a l negotiating alliance at COP, is now 39 members strong.

“Loss and Damage” entered the negotiations in 1991 with a proposal from AOSIS for the UN Framework Convention on Climate Change (UNFCCC). It included a request for “industrialized” nations to pay for the “loss and damage” that would harm vulnerable small island nations due to rising sea levels.

In 2015 at COP21 “Loss and Damage” was formalized within Article 8 of the Paris Agreement, distinct from previous references to adaptation. Successive COPs included more debates, negotiations and work plans, but there was little progress on providing financing for “Loss and Damage.” At COP26 in Glasgowr, G77 plus China, a negotiating block at the United Nations, urged countries with the largest greenhouse gas emissions to pledge money for loss and damage. It was opposed by the USA, the European Union, Australia, and others. Instead, the Glasgow Climate Pact and the Glasgow Dialogue were formed to move forward on a path and process for “Loss and Damage” financing.

55 countries estimated their combined climate-linked losses over the last two decades totalled about $525 billion, or about 20% of their collective GDP, based on a report in June 2022. Some research suggests that by 2030 such losses could reach $580 billion per year.

After three decades of making the first call for “Loss and Damage,” U N parties agreed at Egypt to include it in the formal COP27 agenda. World leaders and representatives discussed the “funding arrangements responding to loss and damage associated with the adverse effects of climate change.”

AOSIS, with a renewed proposal this year, renewed calls to close the existing loss and damage financing gaps. AOSIS adds that these funds should also be used for health and education relief, culture, heritage, and ecosystem restoration, debt relief, insurance, and catastrophe bond support with long-term capacity building, systematic observation and data collection.

Racquel Moses, the CEO of the Caribbean Climate-Smart Accelerator, US $20 million has been pledged to date for Loss and Damage. The scale of disasters, however, pales compared to the current total pledge.

“If you’re looking at US $20 million, Hurricane Ian just passed. That was US $60 billion.”

There is no proper facility to administer the funding.
AOSIS and the G77 plus China are attempting to solve this problem. AOSIS says their leaders, chaired by Antigua and Barbuda until the end of 2022, endorsed an agreement to establish and operationalize a new, fit-for-purpose multilateral fund for Loss and Damage. It will be designated as an operating entity of the UNFCCC Financial Mechanism. AOSIS hope the fund’s design and operationalization will be completed by COP28 in 2023.

The proposed fund “will enjoy multilateral, consensus-based legitimacy as an operating entity; and be required to have an equitable and balanced representation of all Parties within a transparent system of governance, which is not guaranteed outside of the UNFCCC.”

T&T’s Position on Loss and Damage

Though absent at COP27, Minister of Foreign and CARICOM Affairs, Senator Dr Amery Browne, reaffirmed the Secretary-General’s statement at the 77th session of the United Nations General Assembly, earlier this year:

“Droughts, wildfires, floods, and cataclysmic hurricanes and typhoons are realities that small island states know all too well. At the same time, slow-onset events such as the deterioration of coral reefs and the influx of sargassum seaweed threaten our fragile ecosystems and the livelihoods of our people, especially our fisherfolk and those dependent on tourism.”

Minister Browne added: “Accordingly, Trinidad and Tobago calls for the full and effective implementation of the Paris Agreement. A dedicated facility to address Loss and Damage under the UNFCCC Financial Mechanism is an absolute necessity. These actions must be prioritized because what is at stake is the very existence and viability of small island States.”

This story was produced as part of the 2022 Climate Change Media Partnership, a journalism fellowship organized by Internews’ Earth Journalism Network and the Stanley Center for Peace and Security.

Tagged in:
EnvironmentUnited NationsClimate Change COP27

Glasgow–Sharm El-Sheikh Work Programme on the Global Goal on Adaptation:

Informal consultations, co-facilitated by Kishan Kumarsingh (Trinidad and Tobago), first heard comments on work in 2022 and on the 2023 work programme. Considering time, Kumarsingh noted some parties had submitted conference room papers (CRPs) but urged parties to engage on the co-facilitators’ draft joint SB conclusions and elements for a draft CMA decision.

A developing country group, opposed by some developed countries, sought to include its entire CRP as a bracketed option for the draft CMA decision. Some parties shared views on the co-facilitators’ drafts.

On the draft CMA decision, parties commented on: an optional section entitled “Framework” capturing developing country groups’ proposals; the timing, themes, and concept notes for the 2023 workshops; engagement of the Intergovernmental Panel on Climate Change; and inputs to the GST. Several developed countries reiterated their opposition to including a framework in the draft decision, citing insufficient time during this SB session to find agreement on such substantive text.

Informal informals convened in the evening.

Matters Relating to the Work programme for Urgently Scaling up Mitigation Ambition and Implementation: Co-Facilitators Carlos Fuller (Belize) and Kay Harrison (New Zealand) invited parties to continue to comment on the draft text, following informal informals the previous night.

Parties provided their preferences on elements of the work programme, such as: length, organization, and frequency of workshops; submissions; selection of thematic areas; and outcomes.

One developing country group, supported by others, opposed attempts to create a new category of developing countries, such as “major emitters,” pointing out that the work programme is under the Convention which has clearly set out and agreed principles.

They stated that if the new iteration of text includes such reference, it would not engage further in discussions and would rather defer consideration of the agenda item under Rule 16 of the UNFCCC draft Rules of Procedure. In response to calls to base action on science, some countries suggested that action should be based on the science of historical emissions.

Several countries underlined that the text must maintain the nationally determined nature of countries’ NDCs and must not facilitate introduction of new targets. Many developed countries opposed including a “principles” section and suggested alternatively simply referring to the Paris Agreement.

Several developing countries, opposed by developed countries, supported retaining reference to the need for a fair and equitable distribution of the remaining carbon budget in line with the principles of equity and common but differentiated responsibilities (CDBR), and calling for developed country parties to take the lead in implementing the work programme.

The co-facilitators urged parties to focus on technical, not political, issues.

Matters Relating to the Forum on the Impact of the Implementation of Response Measures: In informal consultations in the morning, Co-Facilitators Andrei Marcu (Papua New Guinea) and Daniel Waterschoot (EU) invited views on a draft decision text. Parties debated the mode of work, with developing countries urging discussing the workplan of the forum to inform its review and requesting additional time for discussions on the agenda item. Several developed countries suggested going through the draft decision and taking up paragraphs linked to the midterm review at the end, with one noting the review serves to assess progress to date, not add new activities. Some noted more time had already been allocated for this agenda item than for many others. Discussions continued in the afternoon.

Matters Related to the Global Stocktake: Contact group Co-Chairs Alison Campbell (UK) and Hana Al-Hashimi (United Arab Emirates) introduced draft conclusions and noted the objective to agree on a plan for 2023 to achieve the desired outcomes of the first GST. They urged parties to raise only red lines.

Responding to the G-77/CHINA, the Co-Chairs clarified that time zones would be considered in planning intersessional consultations in hybrid format, and developing countries could seek financial support to attend in person. Noting this clarification, Trinidad and Tobago, for ALLIANCE OF SMALL ISLAND STATES (AOSIS), supported the text.

CANADA, COLOMBIA, the EU, and Brazil, for ARGENTINA, BRAZIL, and URUGUAY (ABU), commented on two paragraphs, on: parties’ submission of views on the approach to “the consideration of outputs” component of the first GST for consideration at SB 58; and the preparation of an information note and the holding of an intersessional consultation and intersessional in-person workshop, and their associated timelines. Considering diverging views, the Co-Chairs invited interested parties to a huddle.

The Co-Chairs indicated they will revise the text based on discussions held in the huddle and aim to identify a supplementary time slot to reconvene the contact group.

 

 

Egypt and Fossils

Oct 31 2022

Energy Minister Stuart Young joined other energy-producers at the Ministerial Meeting of the Gas Exporting Countries Forum (GECF) to discuss the future of gas in Egypt where world leaders met for the United Nations Climate Change Conference (COP 27) that seeks to reduce energy outputs and funding towards its production.

T&T has long been trying to please both sides even though the gap between environment and energy advocates widens. T&T once championed climate change efforts in 2009 by hosting the Commonwealth Heads of Government Meeting as a forerunner to the Copenhagen Accord that year. To show our strong position, the government welcomed France’s President Nicholas Sarkozy who urged leaders to embrace climate change discussions, as Copenhagen was about to prepare the world for the Paris Agreement a few years later.

From such a strong position, T&T now sends mixed messages.

At  the climate conference in Glasgow, Prime Minister Dr Keith Rowley warned about the impact of rising temperatures and sea levels on small islands and committed T&T to 30 per cent renewable energy by 2030.

On  his return, he also warned of the dangers of what was being asked, including for major banks to significantly cut funding for energy exploration and production investments, for nations to commit to reduced energy imports and for penalties to go along with them. It was a caution in the interest of T&T’s economy that continues today.

Weeks ago Dr Rowley was again warning that if T&T’s natural gas prospects do not improve in the next few years, it will have far-reaching consequences for Government revenues and for the quality of life of all citizens.

The government is actively seeking more exploration and production. T&T’s pro-fossil fuel stance was echoed by Young at the GECF , telling them that “natural gas must continue to play a role in energy and food security which are top priorities globally.”

Seeking middle ground, he also urged the GECF to “responsibly carry the narrative globally, especially with COP 27 approaching, as to how we can use technology and responsibly continue to develop the natural resources.”

The GECF later issued a statement that included a rejection of “misguided calls to stop investing in natural gas projects”.
It said when COP 28 is held next year in a GECF country, the United Arab Emirates, it will “present a great opportunity to make a case for gas in the energy transition as well as to meet UN Sustainable Development Goals.”

CARICOM speaks a different language. After a meeting of environment ministers, it complained that little was being done to tackle the fossil fuel problem.

“There is emergent information that fossil fuel subsidies have continued to increase amongst the Group of 20 as a whole and that the Group of Seven is considering new investments in coal and gas which represent a reversal of commitments under the Pact.”

It expressed serious concern that halving emissions by 2030 will be compromised to the detriment of regional countries and the world. T&T, therefore, is on a sticky wicket.

While the views of the GECF are more aligned with our economic future, we are part of an island grouping that is more vulnerable to the effects of climate change than most of the world. Finding the right balance will require tough decisions. The government, therefore, will find increased pressure to be clearer on which of these two Egypt conferences truly defines us and path the best way forward, accordingly.

 

 

Energy Minister at GECF

Oct 26 2022

Minister of Energy and Energy Industries Stuart Young addressed the GECF Ministerial Meeting in Cairo, Egypt, saying natural gas must continue to play a role in energy and food security responsibly through the use of technology. The following is a press release from the Ministry:

“Natural gas must continue to play a role in energy and food security which are top priorities globally. There is a need for LNG and gas produced products such as fertilizers and ammonia in particular, and its by products.

We are also conscious of the negative effects of climate change in particular on small island states and other CARICOM islands, as well as in countries on the African continent, as we all feel the ill effects of climate change.” These words were part of the address by the Minister of Energy and Energy Industries on October 25th.

Minister Young continued – “It is up to us as GECF members to responsibly carry the narrative globally, especially with COP 27 approaching, as to how we can use technology and responsibly continue to develop the natural resources we all have of natural gas and to recognize the need globally to get the balance correct”.

Minister Young and Permanent Secretary of the Ministry of Energy Penelope Bradshaw-Niles, who attended as the Chairman of the GECF’s Executive Board, with a delegation from Trinidad and Tobago, attended the 24th GECF Ministerial meeting.

Minister Young extended greetings on behalf of Trinidad and Tobago and thanked the GECF for the hospitality both him and his delegation received and commended the GECF Secretariat on their continuing efforts and policy support.

He highlighted two important points –

1) The need for the GECF to stand with, and to responsibly advocate for the proper development of natural gas resources on the continent of Africa in a responsible manner and to assist African countries to develop their hydrocarbon resources. He said that African countries with hydrocarbon resources must not be left behind.

2) Trinidad and Tobago has immediate available capacity in both LNG and Petrochemical products like ammonia and fertilizers which are needed by the world as we face a global crisis in energy and food security.

Minister Young indicated that Trinidad and Tobago is prepared to develop neighbouring proven gas reserves so as to assist with energy security in CARICOM, Latin America and others countries and that Trinidad and Tobago will continue to develop its hydrocarbon resources in a responsible manner whilst also developing cleaner energy.

 

VESSELS

Proman Stena Bulk’s first methanol-fuelled tanker christened

November 24, 2022, by Fatima Bahtić

Shipping joint venture Proman Stena Bulk has held a christening ceremony for the first methanol-powered, low-emission tanker Stena Pro Patria.

As informed, the christening ceremony took place on 23 November in Trinidad and Tobago. The vessel is the first of six 49,900 DWT methanol-powered dual-fuel medium-range tankers being built by Guangzhou Shipyard International Co Ltd (GSI) in China.

“This naming ceremony for Stena Pro Patria in Trinidad and Tobago is another important milestone for Proman Stena Bulk,” Erik Hånell, President and CEO of Stena Bulk, said.

“Every step our joint venture takes proves the viability of methanol as a marine fuel and underlines that it is technically feasible, with the right knowledge and backing, to be used in-operation today. We are honoured to lead methanol’s development and scaling within the industry and to be working closely with Proman on our shared vision for methanol.”

“Finally, we must also recognise the role that Trinidad and Tobago has played in making this naming ceremony a reality. As an important methanol shipping hub, there was no better place to hold this important event for Stena Pro Patria and our joint venture.”

“We share a commitment to accelerating the clean shipping transition, via our methanol-fuelled newbuilds and other initiatives, so it was particularly valuable to tour our methanol production facilities and reaffirm the low-carbon pathway for the maritime market,” David Cassidy, Chief Executive of Proman, added.

The tanker was launched in autumn 2021 and delivered this June.

 

Methanol-fuelled ships promise economic turnaround

 25 november

LESS than a week after the world gathered at the COP27 in Egypt to discuss the effects of climate change and steps to resolve it, the Prime Minister on Thursday afternoon told the world this country is a producer of clean gas and is ready to serve.

Dr Rowley spoke at the naming ceremony for the first of six methanol-fuelled vessels, the Stena Pro Patria, at the Waterfront, Hyatt Regency Hotel. The vessel is the product of a joint venture between energy company Proman Group and tanker operator Stena Bulk. It was named after the late Dennis Patrick, former CEO of Methanol Holdings (Trinidad) Ltd, a subsidiary of Proman companies.

Rowley said now the world is finally accepting that natural gas is the cleaner fuel and this country is one of the world’s leaders in methanol production, he invited shipping companies to think of TT, because of its proximity to the Panama Canal, as a refuelling hub, should they decide to “go clean.”

“We in TT know that there is an opportunity here for us if we get up and take that opportunity. We are one of the largest producers and exporters of methanol in the world, and we happen to be placed at the tip of South America and east of Panama, where all these vessels are being encouraged to change their fuel consumption from dirty fuel to clean fuel, and that fuel is available in TT.”

He said the government and Proman had the same thoughts on that issue and deepened their partnership to transform the country into a refuelling hub for vessels using methanol. This, he said, encouraged Proman to go a step further and build vessels that use methanol.

“Bunkering in TT is to be a major part of our economic development, because we have something that we normally sell to the world thousands of miles away that we can sell to passers-by. This will be a major, a major development with respect to the response in fighting climate-change issues as well as expanding the economy.”

He said methanol is not the fuel of the future but the fuel of the present, as he reminded Proman that while the company’s headquarters is in Zurich, Switzerland, its navel string is buried in TT.

Continuing the discussion of economic growth with methanol fuel, David Cassidy, chief executive of the Proman Group, told those gathered that the first group of cadets who will man the ship were trained at the University of Trinidad and Tobago.

“We will help to drive the decarbonisation of shipping, which must meet and exceed local and regional regulations, exceeding the demands of our customers in their transition and exceeding personal expectations. Methanol will play a leading role in energy transition. It is the only alternative marine fuel currently available to cut greenhouse-gas emissions.”

He said as TT is the largest producer and exporter of methanol, there is a huge opportunity for both the company and the country to benefit both economically and through its skill set. Cassidy said with this country’s reputation for its management of petrochemical, operational and plant management expertise, it is poised to develop the next generation of low-carbon renewable-methanol plants.

 

 

Proman partners with UTT Maritime Navigation Programme

Nov 16 2022

Methanol and ammonia producer Proman and The University of T&T (UTT) launched the Deck Cadets Apprenticeship Training for students completing their diploma certification in Maritime Operations, Navigation Programme.

Through this initiative, UTT Deck Cadets enrolled in practical training for one year on-board the new Proman Stena Bulk fleet of methanol fuelled vessels. To date, four Deck Cadets have commenced assignments.
Proman said Deck Cadets Jared Odain Samaroo and Dylan Williams have been assigned to the Stena Pro Patria while assigned to the Stena Pro Marine are Deck Cadets Eric O’Neal and Justyn Kantap.

“Proman is committed to creating opportunities to develop young people’s skills and expand T&T’s marine industry expertise. The experiential learning delivered by the programme will position the Deck Cadets to acquire the skills needed to navigate the maritime sector into a more sustainable future for shipping.”

It noted the launch of the apprenticeship programme comes when Proman is preparing to host in Trinidad the naming ceremony for the Stena Pro Patria, the first in Proman Stena Bulk’s fleet of six next generation low-emission methanol-powered vessels.

“Proman is extremely proud to be launching this exciting new Apprenticeship Programme with UTT. Our Deck Cadets will have the unique experience of joining Proman’s first methanol powered state-of-the-art vessels, and over the coming months will have the opportunity to develop their professional expertise supporting the long-term growth of T&T’s local maritime industry,” Claus Cronberger, Managing Director of Proman Trinidad said.

He noted this is an important milestone for Proman combining its commitment to developing youth skills, while also supporting the maritime industry’s drive to accelerate the transition to a sustainable and cleaner shipping future.

Vivian Rambarath-Parasram, UTT’s Assistant Professor, Director and Head of the MTCC Caribbean, Centre for Maritime and Ocean Studies who was also pleased about the partnership said he looks forward to Proman playing a leading role in providing alternative marine fuels in the region thereby, facilitating implementation of the IMO’s strategy for reducing GHG emissions from ships.

 

UTT award posthumous PhD to Zephaniah

Nov 03 2022

Zephaniah Harripaul, who was kidnapped from his workplace and murdered earlier this year, received a posthumous PhD in Energy Studies from the University of Trinidad and Tobago during the graduation ceremony at the National Academy of Performing Arts in Port-of-Spain and his family received his certificate.

Harripaul’s brother, Stephen, said his family is very happy because he knows that his brother was working very hard to achieve his goal.

“We were happy for it because he did work hard and it was his goal to obtain his PhD and though the memory of what happened to him has us a bit sad, it was something we could have rejoiced about in this situation.”

Since his brother was found dead, he believes their forgiveness of his brother’s attackers helped them heal.

“The main thing that gave us hope is knowing that there is another life after this and our decision to forgive whoever did whatever and draw closer to God is what allowed us to receive healing in the way we have.”

Harripaul, a shift supervisor at Tucker Energy Services Limited in Chaguaramas, was abducted while at his workplace on February 17, 2022. His decomposing body was found 400 feet in a precipice in Maracas weeks after, on March 17. Harripaul held a Master of Science (M.Sc.) in Public Sector Management from the University of the West Indies (UWI), a Bachelor of Science (B.Sc.) in Business Computing from the London Metropolitan University facilitated by the School of Accounting and Management (SAMS) Trinidad, and a National Engineering Technician Diploma (NETD) in Petroleum Engineering from the University of Trinidad and Tobago (UTT).

According to information on UTT’s 2022 graduation booklet, the period 2015-2021 marked his six years of experience in the oil and gas industry, specialising in drilling fluids engineering. During this time, Harripaul was assigned as a supervisor and provided technical support with designing fluids for top operators locally and internationally, performing quality analysis and quality control of drilling fluids.

“Zephaniah excelled tremendously within this short time and was considered a junior expert in the field of drilling fluids engineering. Zephaniah’s educational background was diverse and not limited to technical duties but he was assigned managerial responsibilities within this period. Prior to this, he performed duties as a Business Operations Assistant Within the Ministry of Education for seven years.

Mr Harripaul’s doctoral research investigated and optimised drilling fluids performance using nano particles (nanotechnology) for better rheology, sag resistivity, fluid loss at higher temperatures, pressures and high angle drilling to achieve deeper oil reserves. He also published academic pieces of management and drilling fluids in peer-reviewed journals and other local forums.”

The booklet noted that Harripaul was also an experienced musician. He learned to play the piano at the age of seven and played the instrument at his church for 18 years. He also taught music for ten years. His interests were Research and Development, particularly in Drilling Fluids and Petroleum Engineering, Data Interpretation and Analysis and Presentation.