Columbus Energy
The oil and gas producer and explorer focused on onshore Trinidad with plans to grow in South America, provided an update about the potential acquisition of a 50% interest in the Icacos field, in the South West Peninsula of Trinidad (‘SWP’).
The Company currently holds a 50% non-operated interest in the Icacos Field, via its subsidiary Leni Trinidad Limited (‘LTL’). The other joint venture partner is Touchstone Exploration, via its subsidiary Primera Oil and Gas, which holds a 50% interest and is operator.
The Company and Touchstone have agreed, in principle, for LTL to acquire Primera’s 50% interest in the Icacos field. Upon completion of the transaction, LTL will be the 100% owner of the Icacos field and Operator.
Whilst the transaction is still subject to a definitive sale and purchase agreement and regulatory approvals, the Company is confident it can work with Touchstone to complete the relevant paperwork and take over operatorship in Q2 2018.
The consideration for the transaction is USD$500,000 (the ‘Minimum Payment’) for Primera’s current net 11 bopd. However, LTL will not pay any upfront consideration for the purchase but will pay the consideration over time until 1 January 2021 through Primera receiving the net revenue it would have received had it retained its interest. Primera will also receive, in the event of increased production, 25% of any net revenue above the current baseline. Should these cumulative payments not exceed the Minimum Payment, LTL will pay the difference between the amount received and the Minimum Payment. LTL shall be entitled to 100% of all revenue from Icacos from 1 January 2021.
Leo Koot, Executive Chairman of Columbus, commented:
‘Today’s news is another step in our strategy to build a core exploration, appraisal, development and potentially significant production hub in the South West Peninsula of Trinidad. Following on from the BOLT transaction, Columbus will shortly have obtained 100% operational control over a large area (approximately 8,700 acres) in the South West Peninsula. The SWP includes multiple prospects of 20-400 million barrels in place, which we intend on exploring, in addition to reactivating and maximising production from the Bonasse oilfield and the Icacos oilfield. In line with our ongoing focus on capital discipline, we are not expecting to pay any upfront payments for the Icacos purchase. The consideration will be deferred and mirror the actual production levels from the Icacos field. All operational activities on Icacos will be funded from existing cash resources.
We look forward to working with Touchstone, the Icacos leaseholders and the Ministry of Energy and Energy Industries to quickly sign and close this transaction so we can fully explore and develop the SWP.’
Source: Columbus Energy
Trinity Exploration & Production
The independent E&P company focused on Trinidad and Tobago, provides an update on its operations for the three-month period ended 31 March 2018.
The s low-cost work programme continued to underpin high margin production and the further strengthening of its balance sheet. The Company commenced onshore drilling with the focus on near and medium-term production and value creation.
Q1 Operational Highlights
Group average production volumes maintained at 2,721 bopd for the three-month period (Q1) ended 31 March 2018 (Q4 2017: 2,777 bopd). Production was largely flat due to a planned reduction in recompletions (“RCPs”) over the period (Q4 2017: 20 vs Q1 2018: 4)
The planned reduction in RCPs undertaken was due to a switching of technical resources to drilling and to the deployment of the Company’s primary workover rig to the completion of the two new development wells, which should contribute to higher production levels from Q2 2018 onwards
The Q1 average production rate was further muted due to reduced sales volumes at the end of March, which coincided with the Easter weekend. As a result, April has benefitted from a higher than usual opening stock position
TGAL Field Development Plan (“FDP”) work continued during the period, focusing on a phased, risk mitigated, low cost FDP
Strong Balance Sheet
Cash balance of US$12.2 million (unaudited) as at 31 March 2018 (31 December 2017: US$11.8 million)
Liabilities continue to reduce ahead of schedule with quarterly repayments to the Board of Inland Revenue (“BIR”) and Ministry of Energy and Energy Industries (“MEEI”)
Outstanding balances payable to the BIR and MEEI of US$4.2 million (unaudited) as at 31 March 2018 (31 December 2017: US$5.9 million)
This represents total repayments of US$3.6 million ahead of the amount envisaged under the ratified repayment plan
Onshore Strategy Delivering
The resurgence in activity levels on our onshore assets has effectively lifted base level production from which to grow. 2017 saw an intense focus on RCPs as well as ongoing preparation for infill drilling operations with dedicated subsurface teams working up incremental locations for future drilling. Trinity’s booked onshore reserves only reflect wells identified and budgeted, as opposed to the full well inventory potential across Trinity’s extensive acreage position, and the benefit of this subsurface work will be reflected in Trinity’s end 2017 reserves. This ability to grow reserves from desktop subsurface work rather than being reliant on exploration drilling, offers a low risk approach to value growth.
The Company will announce its audited full year 2017 results, and its annual internal reserves review, in May.
Outlook
The Company will continue its low-cost production work programme focusing on RCPs, reactivations and workovers with a view to further driving profits and near-term growth. In addition, the recently commenced onshore drilling programme provides near and medium term production growth potential for the Company. Our subsurface team will continue to generate RCP candidates, drilling opportunities and well reactivations to grow our drilling inventory. In the longer term, further value creation is envisaged from the offshore Galeota Licence. This phased and risk mitigated growth strategy provides visibility for future value growth as the Company continues to increase cash generation, strengthen its balance sheet and further reduce its liabilities.
Bruce A. I. Dingwall CBE, Executive Chairman of Trinity, commented:
“The Company continues to focus on carefully managed high margin profitable production. Our proven low-cost production model continues to be highly cash generative, enabling the Company to pay down debt faster than anticipated. We are keen to keep our strategy simple but remain excited by the multiple growth pathways available over the near, medium and long-term from a significant asset base of reserves and resources. The Company has scaled up operations with the recommencement of drilling. This provides further scope for the Company to build on the upward production trajectory and we very much look forward to updating the market further in due course”.
Competent Person’s Statement
The information contained in this announcement has been reviewed and approved by Graham Stuart, the Company’s Technical Advisor who has 35 years of relevant global experience in the oil industry. Mr. Stuart holds a BSC (Hons) in Geology. Reserves and resources in this announcement are based on internal management estimates in accordance with SPE PRMS guidelines (Petroleum Resources Management System 2007 & Revisions).
Trinity shows that its low cost work programme continues to underpin the high margin production along with strengthening of the balance sheet. Production in the quarter was flat as expected, as the company reduced the number of RCP’s in order to switch to drilling using their workover rig for the completion of two development wells which should lead to higher production from 2Q onwards.
Cash is $12.2m and liabilities reduce as debt is paid down at a faster rate than had been anticipated, some $3.6m ahead of the ratified payment plan. Trinity is lifting base production and is at pains to point out that its booked onshore reserves only reflect wells identified and budgeted as opposed to its full work inventory. From this position it can grow high margin, profitable production accompanied by substantial growth in its asset base.
As Trinity continues to concentrate on its existing programme, which has been highly successful in the last year or so, it has also got longer term considerable upside with such potentially substantial assets as in the Galeota licence. This excellently managed business has profitable progress in the short and longer term available to it and within its existing portfolio.
RANGE RESOURCES
Range, an international oil and gas company with assets in Trinidad and Indonesia, and an oilfield services business in Trinidad, provides its quarterly activities report for the period ended 31 March 2018 (Q3 FY18).
Key highlights:
Trinidad
- Average production of 731 bopd, an increase of 16% from the previous quarter;
- Third consecutive quarter of significant growth in production achieved in Trinidad operations;
- Additional water storage facilities installed at the Beach Marcelle field;
- 57 workovers completed;
- Oilfield services business awarded new contract with Shell. Operations successfully completed during April 2018;
Indonesia
- Two offices established and management team in place;
- Preparations to commence field operations are underway;
- The rig is expected to be mobilized to site during the current quarter;
Corporate
- Trinidad operations demonstrated positive operating cashflow from activities during the quarter of US$0.8 million (equivalent to US$12 per barrel of production);
- Strong cash and liquid assets position of US$9.5 million;
- Chief Operating Officer and Trinidad General Manager appointed;
- Legacy issue with Colombia successfully resolved (subsequent to the quarter end);
Outlook - The Company will continue its work programme in Trinidad with production target of 800 bopd during the current quarter and 1,000 bopd prior to the end of 2018 (calendar year);
- Field operations expected to commence in Indonesia, targeting first production in mid-2018 (calendar year);
- It is expected that the planned well reopening and workovers in Indonesia could add up to 200 bopd of production (gross);
- Fully funded current work programme activities;
- Discussions with potential new E&P clients for the provision of oilfield services are ongoing with a view of securing further third-party work and increasing revenues.
Range’s Chief Executive Officer, Yan Liu commented:
“We are pleased to be reporting our third consecutive quarter of significant production and revenue growth. As stated in the report achieving continued growth in production is not without its challenges but we have a clear plan in place to achieve our set targets, and I am fully confident that we can deliver on this goal.
One of the notable achievements during the quarter was a new contract award for our oilfield services business with Shell. The operations were completed safely and successfully during April, which is a testament to the quality of RRDSL’s services, HSSE standards, equipment and personnel. We are aiming to capitalise on the recovering market by securing further contract work and establishing a solid client base.
I am also hugely excited with upcoming field operations in Indonesia, targeting a rapid return to production from this historic field. All preparations for first well reopening are progressing well and on track for commencement during the current quarter. We look forward to updating our shareholders on the progress in due course.”
source site rangeresources.co.uk/investors/regulatory-news/
IOC
Prime Minister Rowley and his team began to strengthen energy sector relations with multinational companies after the delegation arrived in London for Commonwealth Heads of Government meeting. The first round of talks took place at the Shell Center with executives Maarten Wetselaar, Integrated Gas and New Energies Director, M De La Rey Venter, Executive Vice President, Integrated Gas Ventures, Derek Hudson, Vice President and Country Chairman, T&T, and Anders Ekval, Business Opportunity Manager, Atlantic LNG. Minister in the Office of the Prime Minister Stuart Young accompanied Dr Rowley at the talks.
There was agreement to establish negotiating teams that will meet from the second half of May and work towards securing of the long-term future of the gas industry. Teams will work on a priority basis on various matters, including Atlantic LNG and the socio-economic contribution of the LNG business to T&T, extensions of various upstream production sharing contracts (PSC), Venezuelan initiatives and new domestic gas arrangements. Negotiating teams will report back to principals with agreements by September 2018.
The meeting continued conversations between the government and major energy companies on governing principles for discussions and negotiations going forward.
BP held negotiations and similar discussions with the Government team- NGC President M. Loquan and Energy Ministry advisors L. Mayers, H. Wong and R. Jeremie.
Government and BP identified and discussed outstanding issues and exchanged proposals for resolution.
The delegation at the meeting , which took place at BP London headquarters, included Energy Minister Franklin Khan and Minister in the Office of the Prime Minister Stuart Young.
BP’s delegation was led by Group CEO Bob Dudley and included Chief Executive Upstream Bernard Looney, former Regional President (T&T) Norman Christie, bpTT Regional President Claire Fitzpatrick, Head of Planning and Commercial Finance Richard Eaton and Vice-President, Corporate Operations, Giselle Thompson.
The delegations agreed that over the next few days they will work assiduously towards resolution of identified issues “in a mutually beneficial manner.”
They agreed to meet from the second half of May to start negotiations on issues associated with Atlantic LNG and other LNG matters. BP officials also confirmed their commitment to work with Government to develop and strengthen the long-term future of the gas industry.
Update
One outcome of the talks may be transfer of 1 billion dollars into the country’s coffers.
The discussion over fiscal matters related to the extraction of gas had been under negotiation for some time. Rowley acknowledged weaknesses in the Energy Ministry with respect to sitting around the table with the oil companies. Government hired an expert law firm, White and Case from New York, to guide them with gas negotiations.
“In the next few days we expect to sign off on an agreement where BP would pay Trinidad and Tobago upwards of a $1 billion in these legacy matters which we have made claim of,” Rowley said. BP pointed out that T&T owes them over US$100 million in VAT payments but BP has also agreed to a payment arrangement on this.“So VAT is paid over a period of time and that is why it was important to say we got an agreement from the oil company to work out some manageable arrangement for the VAT refunds. We don’t want the VAT refunds to cancel out the payments of the debt,” Rowley said.
At the recent Spotlight on Energy, the Prime Minister had complained the country was not receiving its fair share from energy companies.
They have engaged Shell on this matter. Shell has indicated a desire to work with the Government and other shareholders at Atlantic LNG and to increase Government’s revenue stream.
UK funding for security
UK funding will assist in dealing with security matters.
This was announced by the Office of the Prime Minister as Prime Minister Keith Rowley continued participation at the Commonwealth Heads of Government conference.
Rowley attended a formal dinner for leaders hosted by Commonwealth head, Queen Elizabeth 11 at Buckingham Palace.
The £15 million fund was recently announced by UK Prime Minister, Theresa May
The UK and T&T are also strengthening security co-operation specifically in the areas of cybercrime and human trafficking. T&T will benefit from the £15 million allocation in this regard.
Rowley attended a leaders’ retreat at Windsor Castle—the main event for leaders on the final CHOGM day. The private meeting allowed for discussions of matters of mutual interest to the Commonwealth. It was chaired by UK PM May and Commonwealth Secretary General Baroness of Asthal (QC), Patricia Scotland.
UNC MP Rodney Charles accused Rowley of “snubbing” May by disregarding an invitation from her for a recent meeting of Caricom leaders in favour of “preparing for meetings” with energy companies. Charles noted the Government’s explanation that Rowley had scheduled prior appointments. “Imagine you’re a guest in another country, the PM of that country invites you to an important, well publicised meeting where she’s about to make an apology to you, and by extension all Caribbean citizens, for an embarrassing historic injustice of global dimensions….. and you send your Foreign Minister. That in any language is a diplomatic snub,” added Charles
The National Gas Company
The National Gas Company (NGC) finalised a commercial agreement with the Global Petroleum Group (GPG) operating in Grenada.
NGC said the agreement marks a major development in the collaboration and energy cooperation among Caricom countries and is an important pillar in growing and strengthening regional economies.
The relationship between the two companies is a result of the Energy Sector Development Framework Agreement signed between the Governments of Trinidad &Tobago and Grenada. GPG is an oil and gas company currently undertaking exploration and appraisal activities off the south coast of Grenada, near the Patao/Dragon fields in Venezuela and North Coast Marine Area (NCMA) fields in Trinidad.
NGC chairman G. Brooks indicated that with the support of Government, the company will continue to work closely with GPG and the Grenada government as the project progresses.
Brooks articulated his optimism that the framework agreement between the two governments will foster a partnership of mutual benefit and growth opportunities for both countries. The agreement signals NGC’s unwavering resolve to meet the challenge of gas supply in T&T by providing a ready market for the sale of natural gas and natural gas liquids (NGLs). To effectively monetise any gas reserves in the fastest possible time, NGC will utilise existing domestic infrastructure as well as leverage four decades of experience and technical proficiency in pipeline construction and natural gas transportation.
In the fulfilment of its mandate to be “the prime mover in gas-based development,” it has forged strong linkages, both upstream and downstream, and established energy partnerships in foreign jurisdictions. The company facilitated numerous early business development projects which have shaped the local natural gas landscape. It is these capabilities and expertise which NGC will utilise to assist GPG in developing Grenada’s natural gas-based energy sector.
NGC and GPG will continue joint studies to determine the best fit to provide natural gas-based fuel to meet Grenada’s domestic gas requirements as well as, any other areas of mutual benefit relative to the energy sector in the region.
The NGC Group recorded a profit after tax of $989 million for 2017—a 37.3 per cent or $269 million increase above the profit after tax of $721 million for the previous year. Revenue increased by $2.977 billion from $10.903 billion in 2016 to $13.881 billion, driven by higher ammonia and methanol prices of 2 per cent and 61 per cent respectively. The board and management’s agenda to re-engineer the business for sustainable growth improved profitability and continuous industry wide development was successful. Gas curtailment has been stabilised in the short and medium terms with the coming on stream of two major supply projects, Juniper and Trinidad Onshore Compression Project (TROC). Increased network optimization among up-streamers and down-streamers aided in increased reliability of supply. On the issue of marginal field development, NGC said progress in Block 1A with consortium partners will augment supply in the medium to long term. The company signed a commercial agreement in relation to gas resources in Grenada and is cementing strategic partnerships and agreements within other regional and international jurisdictions. Advancements have also been made on “across the border negotiations” for Venezuela’s Dragon Field in conjunction with the Ministry of Energy and the Office of the Prime Minister.
NGC said: “In pursuit of our vision to be a profitable globally integrated organization, growing at 12 per cent compound annual growth rate, our strategy will continue to focus on operating excellence, organic and inorganic growth, the seeds of which were planted in 2016. NGC is continuing its role as aggregator, actively seeking to improve supply from multiple sources and is also working to diversify its revenue streams within the energy sector to build a sustainable business. The work of the board and management has been instrumental in advancing swiftly toward this goal.” The board is cautiously optimistic about the growth prospects of T&T’s energy sector.
TTNGL
T&T NGL Limited is working with Government on payment of dividends in US currency, Chairman Gerry Brooks told shareholders.
The issue was raised by during the company’s third Annual General Meeting (AGM). Last year shareholders voted in favour of a resolution for dividend to be paid in either TT or US currency. Brooks said the measure is being worked out.
“We have had to work through the administrative arrangements to determine what is the most efficient mechanism for the shareholders. We went to a number of banks, we did some tenders, we looked at the cost profiles and then we have been able to come up with what is the most efficient mechanism. That is what I think took the time. We are now going to engage with Corporation Sole to get a final determination.”
Brooks hoping the issue will be resolved this year. In his review of the company’s performance, Brooks said for the year ended 31 December 2017, TTNGL recorded total comprehensive income of $242.2 million. Earnings per share was $1.51 for 2017 compared to $1.16 for the previous year. This represents an improvement of 30.2 per cent.
TTNGL’s share of profits from its 39 per cent shareholding in Phoenix Park Gas Processors Limited (PPGPL) improved significantly by 32.1 per cent from $164 million in 2016 to $216.6 million in 2017.
This improved performance was directly linked to the ongoing, deliberate efforts of the company to rationalise expenses in the face of lower NGL production caused by continued gas supply challenges. This was offset by product prices that were 24.3 per cent higher than in 2016.
TTNGL was incorporated by NGC for the purpose of holding the 39 per cent of the shares of PPGPL. NGC made 49 per cent of its ownership of TTNGL available for sale to citizens of via an initial public offering . On October 19th 2015, TTNGL was listed on the T&T Stock Exchange (TTSE).
LNG
Liquefied Natural Gas production increased ten percent year-on-year in February to 2.2 million cubic meters.
However, when compared to the month before, Atlantic LNG’s Point Fortin facility produced 19.1 percent less of the chilled fuel, according to the data by Trinidad’s Ministry of Energy.
To remind, the plant’s January LNG production hit its highest level since January 2015.
Trinidad’s LNG production started gradually to pick up last year helped by new upstream gas developments such as BP’s Juniper project and the onshore compression project.
These new developments are helping Trinidad get back on track in reversing the negative trend in domestic gas production and are boosting LNG production at the country’s sole facility.
LNG sales and deliveries from Atlantic LNG’s 14.8 mtpa export facility came to 50 million MMBtu in the month under review, a rise of 20 percent on year, the ministry’s data showed.
Trinidad’s gas production increased almost 7 percent in February, averaging 3.63 Bcf/d.
A rising trend in the country’s gas production started in July last year and continued to February with the exception of October.
Atlantic produces LNG from natural gas delivered from offshore fields north and east of Trinidad owned and operated by affiliates of the company’s members and others.
The LNG producing company is owned by BP, Shell, China’s sovereign wealth fund CIC unit Summer Soca and Trinidad’s state-owned company NGC.
DeNovo
Aquaterra Energy, a leading global offshore engineering solutions provider, has completed the delivery of a Sea Swift conductor supported platform (CSP) for DeNovo Energy in the Gulf of Paria. The first platform of its kind to be installed in the country, it was completed in ten months.
Located in the Iguana field, the Sea Swift was installed from a jack-up rig in 27 metres water depth, accommodating up to four wells. It includes local power generation, manifolds and a control system. To meet the tight delivery timetable, the design phase of the project overlapped with the fabrication of the Sea Swift, built by Chet Morrison Contractors who also designed and installed the Iguana pipeline to shore.
Drilling of the first of a three-well development campaign has commenced, using the Well Services Rig 110. Aquaterra’s Sea Swift platform has been installed across shallow water locations, including three in West Africa, one in Egypt and one in the Far East. Its deepest deployment is at 65 metres water depth using two subsea structures, offshore Peninsular Malaysia. It is the largest known CSP in terms of topside weight at more than 400 tonnes fully laden.
Stewart Maxwell, Technical Director of Aquaterra Energy said: “The Sea Swift platform is an ideal solution for shallow water field developments, such as Iguana. From concept to completion, this project showcases Aquaterra’s agility and ability to work quickly and efficiently to deadline and budget. The promise of a more efficient and tighter delivery envelope is an attractive option for operators looking to accelerate the journey to first oil and natural gas in marginal field developments. As the price of fabricated steel has fallen, it means the straight cost differential between a conventional jacket and a Sea Swift is also falling. The overall cost savings really come to the fore when using smaller and more agile fabrication yards, and a jack-up for installation ensures simpler project management and reduced risk. This first for the upstream industry in Trinidad and Tobago opens up further opportunities for the country, which has several stranded reserves full of development potential.”
Petrotrin
A Memorandum of Agreement (MOA) has been established to oversee the restructuring of the NOC .At the OWTU’s Public Policy Breakfast Forum at Paramount Building, San Fernando, the president gave an assurance that the restructuring exercise will now be in good hands due to the union’s involvement.
The MOA paves the way for division of Petrotrin into four entities that would form the foundation for a hopeful return to profitability: Land: North and East (LNE), Trinmar Offshore Operations, Exploration and Production and the Augustus Long Hospital.
Following a 13-hour meeting with Petrotrin’s Board of Directors at Paramount Building , an agreement was signed by Robert Riley, advisor to Petrotrin’s Board and OWTU .
Petrotrin and the OWTU agreed to establish a working committee comprising representatives of both parties that will work over the next 18 months to “address, resolve and agree on the four organisational structures, work processes and skills/competencies and manpower requirements which will make the company internationally competitive, thus ensuring its survival, sustainability and profitability.
“The parties agree to a timetable for these meetings commencing in the month of April 2018 with the enhancement of operational efficiencies, reduction of waste and the promotion of the business of the company.”
The audience of trade unionists of the Joint Trade Union Movement, heard the OWTU will ensure the viability, sustainability and profitability of the company.
“We were able to sign a Memorandum of Agreement detailing how this company is going to be divided, the work that is going to be done and the time-frame which we have to complete the reorganising of the company. Rest assured, you the public of T&T, that the Petroleum Company of Trinidad and Tobago is in good hands and we will ensure that this company is here to stay for the benefit of all.”
But while there were high hopes for Petrotrin, OWTU criticised the Government for the state of labour relations and unemployment, for failing at regulating multinational companies, filling positions with foreigners while there were qualified and competent citizens being overlooked. “Our Government stands idly by and allows that to happen like everything else. We have no choice but to understand the environment which we are operating in and to prepare ourselves to call it as we see it and of course, most importantly, take action to defend those assets and to defend our labour and invaluable contributions.”
World Gas to Liquids Plant
Petrotrin did not sign the agreement with Niquan Energy for sale of WGTL at Pointe-a-Pierre, but chairman Wilfred Espinet said they must abide by what was agreed. “If there is a legal agreement between the company and some other entity, the company has to maintain the legal agreement or it will be challenged legally.”
Espinet dismissed claims by the Oilfields Workers Trade Union (OWTU) that the assets of the SOC are being sold out. This board has made no determination about selling assets.
OWTU claims Niquan Energy was formed with the specific aim of acquiring the WGTL, “which they did despite not having any track record.”
Espinet said while the WGTL may have been a bad investment decision for Petrotrin, and the question is whether the agreement for the sale is another bad investment decision, a legal agreement cannot be reversed. In response to the claim that there is an exclusivity agreement where Petrotrin will purchase gas from the National Gas Company, Espinet said: “That is a big question you are asking.”
Niquan’s Vice President of Corporate Affairs Malcolm Wells said NGC will earn revenue for the 25 year economic life of the project. T&T “will get a return on its US$450 million investment without any further cash investment by the government and there will be access to clean, high quality fuel which will benefit the consumer and the environment.”
Espinet said: “To be honest we have asked people to present us with such a narrative to show us where it is we are going to benefit from the agreement but you see we don’t have a right to determine that at this stage. We have to stay with the agreement that is legally in place or push the company into a legal battle costing you more money again.”
Once it begins operations, the GTL plant will produce 80 per cent diesel and 20 per cent Naptha. Wells said Petrotrin will be responsible for marketing those products.
Niquan officials have not revealed details of the commercial deal for acquisition of the plant which it reportedly acquired for US$35 million.
OWTU warns against WGTL sale
Oilfields Workers Trade Union (OWTU) warned that reports of Petrotrin finalising the sale of its failed World Gas to Liquid (WGTL) plant to NiQuan Energy Trinidad Limited could threaten the progress of working on restructuring the SOC.
OWTU raised the issue of an agreement “shrouded in secrecy” just one week after signing a memorandum of agreement to work on the energy company’s future.
OWTU president Ancel Roget said the union got word that Corporation Sole is leading negotiations with Niquan Energy Trinidad Limited for the sale of the WGTL plant at the Pointe-a-Pierre Refinery. He said this validates their claims that Government wants to sell out Petrotrin’s assets.
OWTU was supposed to evaluate Petrotrin’s operations and assets to make recommendations on the restructuring. He urged Government to explain how the sale of assets would benefit Petrotrin and citizens.
Niquan Energy Trinidad Ltd. a subsidiary of the Niquan Energy LLC, based in Washington, US, finalised a sale and purchase agreement in 2015 with Pricewaterhouse Coopers (PwC), receiver of the plant.
Niquan has contracted Black & Veatch, a Kansas based global engineering, procurement and construction company and Oklahoma based Emerging Fuels Technology to assist with implementation of its gas to liquids (GTL) projects.
The company stated on its website: “Upon the commencement of commercial operations, we anticipate having up to 65 high-value permanent positions. In addition, our project is an essential part of further developing the Trinidad and Tobago gas-based industry.
“The project will be another first as the only commercial-scale GTL plant, of this size operating in the Western Hemisphere, a clear demonstration of the country’s technical and operational experience in the global energy business.”
Petrotrin officials have so far not commented on the OWTU’s claims.
ABOUT THE WGTL PROJECT
In 2005, Petrotrin entered an agreement with World Gas to Liquids Inc for construction of a plant which would have seen the State company holding a 49 per cent share. The agreement between both parties was that WGTL would bring the GTL plant, technology, finance and project management while Petrotrin would contribute sufficient gas reserves to assure the it’s operation.
Construction started in 2007 but ran into several cost overruns and it was stopped in 2010. In 2011, World GTL Inc and World GTL St Lucia Ltd sued Petrotrin for damages in excess of US 200 million for breaches of fiduciary duties. Petrotrin filed a counter-claim of breach of contract by WGTL Inc.
In April 2014, the London Court of International Arbitration dismissed WGTL’s claim and ordered the company to bear the costs of arbitration and pay Petrotrin’s legal costs.
The court found that the project was plagued by poor management and project technology.
In 2009, Petrotrin acquired the debt for the WGTL project and appointed PwC as receiver. In 2012, PWC issued a request For proposals for an exclusive arrangement for sale of the plant. Niquan Energy made an offer in October 2014 which was accepted by PWC after consultation with Petrotrin.
Saudi Arabia
President of the T&T Saudi Arabia Chamber of Commerce (TSCC) Shazaad Mohammed is calling for stronger diplomatic and trade ties between this country and the Kingdom of Saudi Arabia.
At the Chamber’s inaugural business forum , Mohammed said: “We believe we can work together to strengthen the diplomatic relations whereby investors would be able to refer to an office from the T&T Government in Saudi Arabia and facilitate the trade missions to come to visit T&T.”
The two countries have oil and gas in common and there are other industries such as tourism which can be further developed.
“In order to establish stronger trade ties, there is a need to strengthen diplomatic ties. That will help in facilitating the visits of trade delegation and special investors.
“Saudi is spending billions of dollars every year on tourism and Trinidad and Tobago would definitely be a main area that could be a destination,” he said
F. Seignoret of the Trade Ministry, said over the last six years this country earned $8.7 million from goods exported to Saudi Arabia, including plastics and cosmetics. T&T is also an importer of Saudi goods such as machinery, nuts and citrus peel.
Seignoret said the two countries have a long history in hydrocarbon development and are both now at crossroads.
“There is an urgent need to transform our economies to meet the challenges of today and tomorrow. This requires a major shift in our relationship with technology, with one another and with our environment and ultimately will shape our future well being.”
Attorney Ebraheem Abdul Majeed Alabbady said Saudi Arabia is diversifying and will no longer be dependent on oil and gas. In years to come revenue from Saudi’s energy industry will represent about ten per cent of GDP.
Laws in the Middle Eastern country are being amended, opening the doors for foreign investment and more international opportunities.
Ghana
Local entrepreneurs are being encouraged to seize business opportunities in the growing economy where there will be no problems moving US currency out once investments are made there.
General manager of the Ghana National Petroleum Corporation Dr Kwame Amoah Baah-Nuakoh, is hoping T&T investors will assist in building Ghana’s oil and gas industry.
There is a free flow of foreign currency in the West African nation he said, adding: “There is a healthy investment climate and a stable economy in Ghana, as well as strong legal and regulatory framework for the oil and gas sector.”
Local content is important so any company investing in the country must pass on knowledge and technical expertise and there must be collaboration with universities and training institutions.
“We are looking at getting foreign capital to invest in upstream, midstream and downstream projects. We have huge hydrocarbon deposits on shore and offshore and we are crawling when it comes to the gas sector.
“Trinidad and Tobago is an old industry and we want to be able to harness our natural resources for the mutual benefit of the Ghanaian people,” Baah-Nuakoh said.
Ghana experienced 8.5 per cent economic growth in 2017, compared with 2.5 per cent in 2016. Baah-Nuakoh and his delegation will be meeting business associations and government agencies to discuss opportunities.
“We are especially interested in setting up fertilizer and ammonia industries. We spend a lot of money importing fertilizers. If we can convert gas into fertilizer we won’t have to fly the gas or import the fertilizer,” he said
Ghana has 36,000 kilometres squared and 103, 600 km2 of open offshore and onshore acreages and in June the country is expecting its first gas from those fields.
Chief Executive Officer of the Energy Chamber Dr Thackwray “Dax” Driver said he was happy about the business prospects in Ghana.
“We have Republic bank there and there is a wide range of opportunities for Trinidadian businesses to develop exports in service. Ghana is a good opportunity that should be explored.”.
US$180m loan CAF
Finance Minister Colm Imbert, right, and Joel Branski, director, Country Office, CAF, signing the loan agreement. PICTURE SUZANNE SHEPPARD
Finance Minister Colm Imbert has signed the first tranche of a policy-based loan agreement in the sum of US$180 million with the Corporación Andina De Fomento (CAF) Development Bank.
The total loan of US$300 million will be used for the implementation of the programme to support Government’s Medium-term Fiscal Consolidation Strategy—Phase II, to boost potential growth and reduce the economy’s vulnerability to external fluctuations and volatility of external terms of trade.
The programme aims to increase fiscal revenues; improve public expenditure efficiency and accountability; strengthen public debt management and promote fiscal policy sustainability.
Policy actions supported under the loan agreement include:
• Tax policy reform for the energy sector
• Corporation tax reform
• Implementation of an environmental tax
• Improve public procurement mechanisms
• Strengthening of the Central Audit Committee of the Ministry of Finance
• Review of the public debt legislation
• Improvement of the bond market
• Establishment and operationalisation of the National Investment Fund
• Monitoring fiscal consolidation progress
The loan is being pursued under the International Financial Organisations (Corporación Andina De Fomento) Act No 5 of 2017.
Heritage and Stabilisation Fund at US$5,888.6m
The Heritage and Stabilisation Fund
HSF composite portfolio returned 2.24 per cent in the three months to December 2017, outperforming its Strategic Asset Allocation benchmark, which gained 1.83 per cent.
The HSF’s Quarterly Investment Report for October to December 2017, which has just been released by the Ministry of Finance, says the return was driven by the performance of the equity portion of Fund which contributed approximately 95 per cent of the total return, amounting to 2.13 per cent, while the fixed income portfolios added the remaining 0.11 per cent.
All the mandates with the exception of the US Short Duration Fixed Income portfolio generated positive returns, while the US Core Domestic equity portfolio was the only mandate that underperformed its benchmark.
The report stated: “The total net asset value of the Fund as at the end of December 2017 was US$5,888.6 million, compared with US$5,762.5 million at the end of the previous quarter. Of this total, the investment portfolio was valued at US$5,887.6 million, while the remaining portion (US$1.0 million) was held in cash to meet the day-to-day expenses that arise from the management of the Fund.”
On the performance of the investment portfolio, the US Core Domestic Equity mandate earned 6.24 per cent during the fourth quarter of 2017 compared to a return of 6.32 per cent for the Russell 3,000 ex Energy index.
“The relative underperformance was primarily due to the mandate’s overweight exposure to sectors that posted lower returns than the index, in particular, the information technology, health care and materials and processing sectors,” the report said.
“On the other hand, the mandate had an underweight allocation to the sectors that generated relatively better returns. The outperformance from these stocks was insufficient to offset the underperformance made on other holdings in the portfolio.”
The Non-US International Equity mandate returned 4.11 per cent versus a gain of 3.92 per cent for its benchmark, the MSCI EAFE ex Energy index. This outperformance was attributed to the external managers’ stock selection decisions. Stock selection was positive in the euro area and Asia (excluding Japan). These positive contributions sufficiently outweighed unfavourable country selection decisions.
The report continued: “The US Short Duration Fixed Income mandate generated a return of -0.32 per cent in the fourth quarter of 2017 as US Treasury yields at the short to medium portion of the curve increased over the period resulting in a decline in bond prices.
“Nonetheless, the mandate outperformed its benchmark, the Bank of America Merrill Lynch US Treasury 1-5 year index which lost 38 basis points.
“The shorter duration of the mandate relative to the benchmark contributed to the better performance of the portfolio given the upward movement in US Treasury yields. Additionally, exposure to spread sectors also benefited the mandate since most of the sectors outperformed US Treasury securities.”
NGC and CNC sign Gas Sales Agreement
The National Gas Company of Trinidad and Tobago Limited (NGC) and Caribbean Nitrogen Company Limited (CNC) wish to announce that a new gas sales agreement has been signed, which will allow the resumption of gas to the CNC Plant.
The parties have resolved all outstanding issues and reached agreement on the key commercial terms of a new gas sales contract, that are beneficial to both parties and to Trinidad and Tobago.
Further to our previous joint release we would again like to thank the Honourable Minister of Energy and Energy Industries Franklin Khan and the Honourable Minister in the Office of the Prime Minister Stuart Young for their respective roles in helping to bring these negotiations to a successful conclusion.
The parties look forward to working cooperatively in the best interest of all stakeholders and that of Trinidad and Tobago.
Obituary
COLIN LAIRD 1924-2018
Architect Laird was born in England. Enlisting in the Royal Navy on the eve of his 18th birthday during the Second World War, he was sent to the British colony of Trinidad to train as a navigator.
He married Jeanette Butler and was ordered back to England by military command. After the war, in which two of his pilots were killed, the architecture student completed his studies in hospital in London. He worked with an architectural firm, rebuilding the city.
In 1950/51 he won the prestigious Soane Medallion of the Royal Institute of British Architects for his design of a church. He worked on the Festival of Britain, a socialist townscape on the banks of the Thames.
He and his family returned to Trinidad in 1952, crossing the Atlantic with £50, the maximum the government permitted. His architect’s private practice grew with the Trinidad Cement Limited office in Claxton Bay and Bishop’s High School Tobago. The design of a Multi-purpose Community Centre Concert Hall launched his local reputation.
The competition for the design of Queen’s Hall, the country’s foremost performance space for decades, was open to West Indian architects in 1957. Laird won with his radical design of an inverted catenary roof. The signature roof, two to four inch-thick concrete reinforced by steel mesh was designed with engineer David Key.
The hall opened in June 1959. Laird was an advocate of West Indian Federation. His home at #9 St Clair Avenue was frequented by leaders. Laird designed hotels and government buildings in Dominica and St Kitts.
His socialist sympathies made him proud of public housing designs in Grenada. He sailed solo and did site visits by boat. The Trinidad government commissioned designs for a stadium in Mucurapo, which Laird produced with engineer and colleague, S. Vidal.
The Jean Pierre Complex was completed in time for the World Netball Tournament when Laird protested advertising of alcohol and cigarettes. Brian Lara Promenade, his Independence Square Revitalization Project,envisioned the transformation of a parking lot to a “grassed swathe planted in local forest trees shading an elegant Central Promenade.”
He considered the National Library in Port of Spain his magnum opus, adopting the principles of green architecture into energy — and water-efficient design, with rooftop gardens and a grey water supply that tapped into the aquifer below the building. The project took almost ten years, undergoing a re-design and enlargement with a change of government.
Laird was a modernist by training, an admirer of German architects of the Bauhaus movement, adapting his designs to tropical conditions and natural ventilation in the pre-air conditioning era. He incorporated elements of local architecture into his designs and his use of corrugated Aluzinc (galvanize) has been debated.
Laird received the Chaconia Gold medal in 2001 and was named one of the country’s 50 Icons during 50th independence celebrations in 2013.