Earthquake offshore Tobago

2024, 04/11

A map showing the epicentre (red dot) of the 3.5 magnitude earthquake which occurred off the north-east coast of Tobago, at 4:55 am on 11 April 2024. [Image The UWI Seismic Research Centre]

The UWI Seismic Research Centre is asking the public in Tobago to confirm whether they may have felt an earthquake recorded off the north-east coast of the island at 4:55 am, today, Thursday 11 April 2024.According to preliminary reports from the UWI-SRC, the earthquake registered at 3.5 magnitude with a depth of 10 kilometres. It was located at Latitude 12.01O North and Longitude 60.04O West.

The quake’s epicentre would have been some 120 km north-east of Scarborough, Tobago; 131 km south-west of Bridgetown, Barbados; and 183 km south-east of Kingstown, Saint Vincent and the Grenadines. UWI Seismic is encouraging the public to share experiences of the earthquake via their Feedback webpage,

TOBAGO-no cost yet for spill clean-up

House of Assembly (THA) Chief Secretary Farley Augustine said only seven out of 12 storage compartments have been drilled to capture oil on the leaking Gulfstream barge that polluted Tobago coasts. Augustine said the shipping of that oil was an illegal act, intended to be surreptitious.

“The oil spill clean-up is moving quite vigorously along. We are returning functionality to some public spaces, but we are not finished as yet. Still locked into the vessel might be about 20,000 barrels.”

The focus now was to pump it out and remove it, an exercise that entailed drilling into 12 compartments.

The firm TT Salvage that was brought by the Ministry of Energy has so far drilled seven holes, but there are 12 double-hulled compartments.

“Drilling through one layer and then drilling through another layer to get to the oil and then a third hole to get into that compartment.. is delicate work. It is also tricky work because the surface currents in the area are quite difficult to manage. So safety is of paramount concern even as we do this.”

The financial cost of the oil leak continued to be a moving target.

“If we still have fuel in the vessel to be extracted and still have chambers on the vessel that have not been extracted yet, that will tell you that it is quite difficult to pin that cost down. We are looking, from the THA’s perspective, to see if we can begin treating with some of those (compensation) payments on our own, anticipating as the PM promised that the Government will make the necessary allocations available.”

The Government has been unable to find the barge owner.

“But certainly, we can say firmly that this was an illegal operation of sorts. Certainly from the information I have received, this operation was meant to be disguised and it will be interesting to discover who really was behind it, who this fuel was going to and for what purpose.”

He was keen to establish the oil DNA or fingerprint to discover its origin. although UN-funded CARIRI offers analytical services in its modern Petroleum Testing Laboratory in Trinidad.

CARIRI can determine the type of bunker fuel leaking from the stricken barge.
This may help to identify the source and the owner of the Solo Creed tug, registered in Tanzania, a member of the Commonwealth.

The Foreign Minister in Trinidad can ask his counterpart there to help the agencies meeting to remedy the calamity. The Dominica-born Commonwealth Secretary-General, Rt Hon Patricia Scotland KC, was at the Assembly of the African Union (AU) in Ethiopia from 16 – 20 February 2024. an opportunity for Tanzania leaders to help to identify the owners of the tug and barge, spilling pollution in a major economic disaster. destroying livelihoods.

On February 25-28, Caricom Heads at the 46th Regular Meeting in Guyana to mark CARICOM’s 50th Anniversary, discussed this incident threatening the region. By then, the owners would be known and the barge removed.

No reports on the vessels came from these two events, stoking fears of corruption.
Petroleum scientists wonder why CARIRI was not asked to sample the barge fluid. Government officials and scientists visited Tobago and could have taken samples for CARIRI as well as IMA.

The barge and tug owners have links with Africa where PM Rowley will celebrate reunion with Ghanaians in May and perhaps meet the elusive culprits.

MEEI approves removal of fuel from Gulfstream

The Ministry of Energy and Energy Industries advised that operations to remove the remaining hydrocarbons from the capsized Gulfstream barge, off the coast of the Cove Eco Industrial Park, Tobago, were approved and ready to begin.

On February 7, the vessel was found overturned in the sea and leaking bunker fuel some 200 metres off the coast of the Cove.

Coastal regions along Tobago’s south-western peninsula, including Kilgwyn Bay, Canoe Bay, Petit Trou Lagoon, Rockly Bay and Topaz Beach, were polluted by the spill but crews have since cleaned up much of the shoreline.

On April 13, the ministry said over the past two weeks, TT Salvage and QT Environmental, under its guidance, worked alongside local contractors and stakeholders to prepare both the topside of the wreck and to establish a temporary storage facility at Cove.

The “de-inventory process” will involve the pumping of hydrocarbons from the cargo tanks on the vessel to a temporary storage location to the port of Scarborough where the hydrocarbons will be transferred to a bunkering vessel.

Once the vessel is filled, it will then sail to Pointe-a-Pierre, where the hydrocarbons will be off-loaded and kept in a storage tank.

The ministry engaged with all stakeholders on this exercise, including the Tobago Emergency Management Agency, the Occupational Health and Safety Department attached to the THA, Maritime Services Division, TT Fire Services, Environmental Management Authority, Port Authority of TT and the police service..

The oil spill clean-up was moving vigorously and some public spaces have returned to normal. There is still much work to be to remove about 20,000 barrels of bunker fuel in the vessel.

Tobago- 51,000 barrels of waste removed

2024, 04/09

The Ministry of Planning and Development says over 51,000 barrels of liquid waste and 21,000 cubic yards of solid waste have been removed to date from coastal areas in Tobago affected by the February 7th grounding of the vessel “Gulfstream” in the vicinity of Cove Reef, 200 metres off the shoreline of Cove Bay.

480 individual species of land, freshwater and coastal wildlife were cleaned and returned safely to the wild as part of the recovery exercise. Minister Pennelope Beckles stated that these results to date are testimony to the dedication of organisations working to ensure that the priority of a speedy recovery and clean-up in Tobago is a success.

This was revealed during a tour of the affected coastal areas organised by the Institute of Marine Affairs (IMA) in collaboration with the Ministry of Energy, the Environmental Management Authority (EMA), Tobago House of Assembly (THA); the Tobago Emergency Management Agency (TEMA) and the Ministry of Planning and Development. This tour coincided with day 56 since the occurrence of the vessel’s grounding.

Minister Pennelope Beckles, Tobago West MP and Minister Shamfa Cudjoe-Lewis, Chief Secretary Augustine joined technocrats of the collaborating agencies, IMA, EMA, the THA and TEMA to review the progress of clean-up and recovery exercises.

Tobago Emergency Operations Centre downgrades oil-spill response

The Tobago Emergency Operations Centre (TEOC) has downgraded its activation from orange to yellow in response to the February 7 oil spill by the Gulfstream barge.

The downgrade of Operation Gulfstream went into effect on April 16 and is a positive sign after 15 kilometres of Tobago’s coast was polluted following the overturning of the vessel near Cove.

A media release on April 20 by the Tobago Emergency Management Agency (TEMA) said this downgrade signifies a significant decrease in activity related to the operation. However, TEMA said it is imperative that all personnel on the ground remain on high alert and maintain a state of readiness to respond to any emerging developments.

TEMA said work continues in the following areas:

1) Power washing and cleaning of the rocks behind the Scarborough Secondary School, along the Lambeau Bridge at Cemetery Street Lambeau, Milford Road Lambeau and Villas at Magdalena.
2) The de-inventory process continues at the shoreside of Cove with work being done by T&T Salvage and QT Environmental under the guidance of the Ministry of Energy and Energy Industries and assistance with local contractors and stakeholders at the wreck and at the temporary storage facility at Cove.
3) ️Hydrocarbons from the cargo tanks onboard the vessel will be pumped to the temporary storage site in Cove. From there, tanker trucks will transport the hydrocarbons to the Port of Scarborough for transfer to a bunkering vessel. Once filled, the vessel will sail to Pointe-a-Pierre, Trinidad, where the hydrocarbons will be offloaded and stored in a tank.

The TEOC continues to manage overall planning, co-ordination, and communication tools, through Unified Command, supported by the necessary emergency support functions.

Tobago at London investment seminar

CHIEF Secretary Farley Augustine will be the keynote speaker at the Caribbean Council 2024 business and investment seminar, on May 1, at the High Commission of Trinidad and Tobago, London, England.

The seminar will focus on Tobago and the opportunities available for investors.

The Caribbean Council website describes Tobago as largely undeveloped with “many opportunities to develop new projects – whether in the tourism space where there is demand for new hotel room capacity, new resorts and new tourism attractions; in agriculture where there is an appetite to move into agro-processing or agro-tech to improve production; or in other areas such as digitisation and creative industries.”

The council said the island boasts many skilled professionals owing to the free access to tertiary education over decades.

The seminar will be chaired by Lord Bruce of Bennachie.

Leading investors and executives from the public and private sector will be present to share their experiences and advice on doing business in Tobago.

Tobago has won global awards for its hotels, natural environment and travel products including:

1. 1. Caribbean Leading Hotel 2020,
  2. UNESCO biosphere designation,
  3. Caribbean Nature Park of the Year; and
  4. World Travel Market Silver Award.

Also representing the island will be Tobago Gold Chocolate Rum Cream which has been confirmed as the official drinks sponsor for the Caribbean Council’s annual reception at the House of Lords, London, on May 1.

In a media release, the company said this year’s reception promises to be particularly memorable, with the attendance of Augustine. It said his participation underscores the event’s significance in fostering dialogue and partnerships that span the Caribbean, Central America and the United Kingdom, further enhancing the cultural and economic ties between these regions.

Tobago Gold has a special connection to the Caribbean Council, having been a member before stepping into the spotlight as this year’s exclusive rum sponsor.

“We are incredibly honoured to have Tobago Gold Chocolate Rum Cream as the official drinks sponsor for our annual reception,” said Maria Laino, a spokesperson for the Caribbean Council.

The reception will welcome around 250 distinguished guests, including senior business leaders, investors, diplomats, members of parliament, peers, and select members of the press.

“Tobago Gold is thrilled to bring our liquid gold to the lips of the esteemed guests at the Caribbean Council’s annual reception,” said Lars Soderstrom, founder/president of Tobago Gold Group.

“As a brand that prides itself on crafting the most uniquely profiled rum cream that captures the essence of the Caribbean, we see this as a perfect opportunity to share our passion and tradition with a wider audience. We’re looking forward to an evening of meaningful connections and unforgettable experiences.”

The event will also be attended by new chair of the company, Ute Hagen of Germany, an ex Divisional Global Marketing Director, Proctor & Gamble.

Facts, fiction and freedom of information

by Kevin Ramnarine, Former Minister of Energy . 30 March 2024

A range of allegations has flown from the People’s National Movement (PNM) as it relates to the energy sector in the period under my watch as energy minister.

These allegations have gone largely unchecked for the last nine years.

In the face of this onslaught, I chose to remain largely silent in the knowledge that the right people knew the truth. On Friday, March 15, 2024, while he was assailing the former chairman of Republic Bank, Ronald Harford, Stuart Young predictably resuscitated his stock of claims against the People’s Partnership government’s tenure in the energy sector.

The time has come to deal with these allegations. For now, I will deal with the issue of the NGC and its contractual relationships in 2015.

The NGC has contracts with upstream companies that supply it with natural gas, and it has contracts to supply natural gas to its customers. For the last nine years I have heard it said that the PNM, upon coming into office, found all these contracts expired or that there was a failure to renew or re-negotiate any contracts.

This is a vile attack on the dedicated professionals at the NGC. Moreover, it is illogical and betrays either a total lack of understanding of how the sector works or a deliberate attempt to diminish the achievements of the period 2010 to 2015.

It may be surmised that the attack on Ronald Harford was an attempt to deflect from the many woes afflicting the energy sector, including the collapse of natural gas production, the death march of the oil industry, the 56% decline in the number of persons with jobs in the sector, a now-decaying refinery and the pellucid industrial decline of the last nine years.

The facts are that in 2015 the NGC had ten contracts with its suppliers, none of which had expired when I demitted office. This fact was further corroborated by written reply from the NGC to Fishermen and Friends of the Sea (FFOS), dated October 3, 2023, under the Freedom of Information Act (FOIA).The facts are as follows:

1. Of the ten contracts that NGC had with its upstream suppliers, nine were due to expire between 2017 and 2024, with the largest one expiring in 2018. It would be illogical for any of the parties to consider renewing any such contracts which still had years to run. Should the NGC in 2014/2015 have renewed contracts that were expiring in 2017, 2018, 2019, 2020, 2021, etc?

2. One of the aforementioned ten contracts was due to expire in December 2015 but was not renewed because of the failure of the Starfish development.

Furthermore, is Stuart Young saying BP, BG, EOG and BHP (the suppliers of natural gas to the NGC) were content to sit idly by and allow their businesses in Trinidad to collapse?
Is he accusing the vice-presidents and managers at the NGC of simply doing nothing?
Could it be they understood what he failed to appreciate, the contracts still had years before expiring?
Is he saying that in 2015, BP, BG, EOG and BHP conspired with the NGC and me to not renew their own contracts that were expiring from 2017 to 2024?
Do you see how that makes absolutely no sense?

It gets even stranger. At a local government campaign meeting in Tunapuna on July 13, 2023, the Prime Minister, in full hyperbolic flight, said the PNM found in 2015 that “the vast majority of the Point Lisas contracts… had come to the end of their life”.

He further added that many of the Point Lisas companies were on a “month to month” arrangement.

By letter dated August 30, 2023, the NGC indicated to FFOS that on August 31, 2015, there were 20 such contracts, of which only two were on a month-to-month basis. This month-to-month arrangement was put in place for contracts that expired and for which negotiations for renewals were incomplete. Two out of 20 is not a “vast majority”.

With regard to the upstream suppliers, there was no pressure from any of them to renew their contract that early, as this would be tantamount to their making a commitment to supply natural gas for which projects had not yet been fully developed or were being planned.

Additionally, at that time the Ministry of Energy was finalising the Natural Gas Master Plan (completed in August 2015), which would have provided an informed view on the road ahead.

The accelerated capital allowances of 2014 (which the then-PNM opposition voted for) are yet another issue that the PNM does not seem to understand. I have explained the mathematics of capital allowances ad nauseum for the past nine years. In summary, they had no impact on Government revenue.

The low Government revenue in 2016-2017 was due to a collapse in prices and falling production. However, it is incontrovertible that without these incentives there would be no Juniper, Angelin, Matapal and Cypre, and the economy would have long collapsed.

Given the true state of the energy sector, it is reasonable that Mr Harford would question what the plans for natural gas and oil production are.

If there is a plan it isn’t working and by my prediction, and that of the NGC at a seminar last January, natural gas production will continue to struggle, with huge consequences for the inflow of foreign currency.

Rowley’s record prompts UNC rebuke

Apr 2, 2024
CRUEL APRIL FOOL’S JOKE

This was how the United National Congress (UNC) reacted to Prime Minister Dr Keith Rowley outlining economic measures he said he was directly involved in to save Trinidad and Tobago.

He was endorsing a statement by Energy Minister Stuart Young criticising an article by former energy minister Kevin Ramnarine headlined “Facts, fiction and freedom of information”, defending the People’s Partnership performance in the gas sector.

Young accused Ramnarine of attempting to shift the blame for non-negotiation of gas supply contracts to the National Gas Company (NGC) and its officers and that he (Ramnarine) “forced” the NGC into the only contract that he negotiated which led to a loss of billions of dollars.

Chiding Ramnarine, Rowley declared ” .., there were a few very weighty matters that required my direct involvement over a protracted period of time in order to have an urgent successful outcome to save the day and the future of Trinidad and Tobago.

These were:

1. 1. resuscitating, revitalising and saving the Energy sector, including the restructuring of Petrotrin;
  2. managing the society and economy during the Covid-19 pandemic; responding to an escalating crisis of violent crime and widespread criminality;
  3. local government reform;
  4. modernisation of the tax-collection systems;
  5. reduction of waste in the budgeting process and elimination of corruption.

We had significant successes in these priority areas, but there is a lot more to be done. Suffice it to say that we identified the main challenges, have engaged them and are on the right track.

This is what is required and not the revisionist lies of those who ignored these problems or simply kicked the can down the road until it fell to this administration to provide the grit and the commitment in the interest of a better future for Trinidad and Tobago.”

The UNC deemed the PM’s statement, headlined “How I saved T&T”, to be the “cruellest prank” on April Fool’s Day “…with Keith Rowley making the unfunny joke that he ‘saved’ Trinidad and Tobago”. Rowley drove Trinidad and Tobago to its highest murder rates in history, the opposite of saving the country.

“Keith Rowley has taken us to a living nightmare, with children and innocent bystanders being victims of murder in broad daylight and young men brazenly killing each other in full public view, in record numbers, while he runs away from crime talks with the Opposition.

Keith Rowley ignores this and, quite puzzlingly, is boasting about the economy. Is taking Trinidad and Tobago’s economy 17 years back to 2005-6 what Keith Rowley calls saving Trinidad and Tobago?”

“Trinidad and Tobago’s economy was largest when the Kamla Persad-Bissessar-led government left office in 2015, peaking in 2014. Trinidad and Tobago’s GDP was at its largest ever in history in 2014, at $188.97 billion, according to the World Bank.”

“According to the Central Bank, during the Kamla Persad-Bissessar administration, we also had our highest foreign reserves in history in 2014 (US$13,263.2 million); highest import cover since 1981 (43 years ago), (13.7 months in 2011); highest inflows of foreign earning and investment since 2005 (US$1,321.3 million in 2014).”

Regime’s ‘seven deadly sins’

The UNC strongly defended former Energy minister Kevin Ramnarine and the party’s handling of the energy sector during the People’s Partnership administration. Pointe-a-Pierre Opposition MP David Lee in a presentation titled the Seven Deadly Sins of this Government against the energy sector led the defence. Lee did a comparative analysis of the energy sector under the People’s Partnership as opposed to its handling today.

Earlier, the Prime Minister, Energy Minister Stuart Young and Ramnarine had public exchanges about the state of the industry.

Young had responded to Ramnarine who published Facts, Fiction and Freedom of Information about the National Gas Company (NGC) and contractual relationships in 2015. Without incentives provided by the ministry and PP Government there would be no Juniper, Angelin, Matapal and Cypre projects and the economy would have collapsed.

Rowley defended Young’s reply to Ramnarine.

Lee began his presentation asking how long TT would allow the Government to say all is well during a crisis in the sector.

“Today, we rebuke and denounce the Government’s misleading, deceitful and fraudulent attempt over the past week to tell you that our energy sector is stable and performing when in fact it has reached a fragile state.”

Lee challenged the Government to disprove his statements.

Despite claims by Young that an energy boom was in TT’s future, it was instead a “tsunami of production declines, the exodus of energy investment and reduced national income if TT continued on this path.”

Seven deadly sins were:

1. 1. driving oil production to the lowest in 60 years;
  2. collapsing gas production to a 25 year low;
  3. drilling for oil and gas down by 58 per cent from 2015-2024;
  4. destroyed ammonia and LNG production;
  5. destabilised the downstream sector like no other;
  6. decimation of energy sector employment and
  7. GDP and failure of renewable energy.

Rowley either lost touch with reality or opted for fiction over facts to hide the administration’s nine-year failing in the energy sector.

“Because no metric, no existing energy review or any analysis could prove that he or his team revitalised or saved the energy sector.”

Lee expanded on each sin and said that the Government drove oil production to the lowest in 60 years and from 2015 to now production had been down by almost 30,000 barrels of oil. The Kamla Persad-Bissessar administration left oil production at 78,656 barrels per day when it ceded control in 2015.

“(Under)this present Government led by Keith Christopher Rowley as Prime Minister and the Minister of Energy Stuart Young, our production as of November 2023, which is on the website of the Ministry of Energy, and total production is approximately 49,000 barrels per day…

“How could they have saved the energy sector when oil production has fallen below 50,000 barrels for the first time since we became an independent nation.”

The Opposition would not allow the narrative that the restructuring of Petrotrin saved TT’s energy sector.

“The shutdown of Petrotrin and the creation of Heritage have single-handedly harmed oil production…,” Lee said.

He urged the Government to clarify what was happening with the Dragon gas deal, following a report of major Shell seeking a long-term licence from the US Government before making a final investment decision in the Dragon gas project.

“One of the most damning failures of this Government’s energy strategy has been its approach of placing all the energy prospects in this Dragon gas deal and the Maduro/Venezuelan regime.

Again we in the Opposition clarify we are not against the Dragon deal. We see the value in all gas. It is on that premise – it is simply beyond reason why this Government has ignored gas within our own borders/waters. Why place all hope in this Dragon gas deal with Maduro?”

The Opposition urged caution on the issues that still require answers. He said Dragon gas was an opportunity but not a “confirmed, executed development.“

“I want the country to understand what that means, when this Government received a licence from the US and then Venezuela, they gave the population an impression all that was needed now was for Shell and the NGC to turn on the tap for gas.”

In reality, however, there were no infrastructure and significant mobilisation of gas . Shell was seeking permission from shareholders to make a final decision to get the funding to invest in the needed infrastructure to produce gas. The party would say a lot more about that.

The UNC asked if any money was invested on the Dragon Gas deal with the Venezuelan Government.

“We have asked that question and we want answers,” he said.

Lee asked Young if he knew the Dragon gas deal was going to take more than two years, why was the country led to believe that the project was going to be executed in the period.

“All we are asking is when are we getting first gas from this Dragon gas deal and we understand if there are no geopolitical issues and everything remains calm with the Maduro Government and US Government, at best, it will be 2028 you will be getting any signs of first gas in this Dragon Gas deal.”

$500,000 a month to preserve mothballed refinery

It is costing $500,000 a month to preserve the former Petrotrin refinery at Pointe-a-Pierre, said Guaracara Refining Company (GRC) chairman Newman George in response to Public Accounts Enterprise Committee (PAEC) vice-chairman Mayaro MP, Rushton Paray, during a public inquiry on April 17.

The meeting was held to examine the audited financial statements of Trinidad Petroleum Holdings Ltd (TPHL) for the year ended September 30, 2019

GRC is one of four subsidiary companies under TPHL and its main function is to manage the physical assets of Petrotrin, such as the refinery.

Petrotrin was restructured into TPHL on November 30, 2018, when the refinery was closed .

Paray asked George if the cost of preserving the refinery was in US or TT dollars.

George replied, “I speak in TT (dollars).”

Paray observed that unlike two other TPHL subsidiaries, Heritage Petroleum and Paria Fuel Trading Company, GRC was not classified as a revenue-earning entity in the group. He asked where GRC was obtaining funds to preserve the refinery.

George said this revenue was coming from lease agreements that GRC has with Heritage and Paria for storage facilities.

Paray asked if the cost of preserving the refinery was an incentive for TPHL to find someone to operate it.

TPHL chairman Michael Quamina, SC, said, “There is no greater driving force in trying to get somebody to take it off our hands.”

Outside the cost of preserving the refinery, “There are driving forces even more significant that would want us to get somebody to take it over.”

Quamina said the Houston-based branch of the Bank of Nova Scotia was serving as consultants to TPHL with respect to assessing potential bidders for the refinery.

“We went through a very formal process some time ago. I would think this is the most progress that we have made. We do have some prospects in hand.”

Paray asked how many bidders TPHL was considering.

Paria general manager Mushtaq Mohammed said, “Currently we have had eight expressions of interest (EOIs) for the purchase, lease or restart of the refinery.”

All eight EOIs were unsolicited proposals.

He said TPHL expects the eight entities to submit formal offers by May 10, and those offers will then be reviewed and a decision made in due course.

Paray asked, “In terms of those bidders, can you share how many may be local or a combination of foreign and local?”

Mohammed replied, “I would say at this time, all of them have a composition of local and foreign participation.”

No details were provided of the identities of any of the entities interested in the refinery.

At the launch of an apprenticeship programme by the Youth Development and National Service Ministry in Santa Flora last month, the Prime Minister said two parties were currently interested in the refinery, but it was not yet a sealed deal.

“One looks very promising, one looks very interested. But until the horse begins to drink the water, you don’t know what’s happened at the river.”

Heartless regime throws $500k monthly on refinery

UNC Point-a-Pierre MP David Lee called the government “heartless” after Guaracara Refining Company (GRC) chairman Newman George revealed that $500,000 a month was being spent to preserve the former Petrotrin refinery at a Public Accounts Enterprise Committee (PAEC) meeting on April 17.

The meeting was held to examine the audited financial statements of Trinidad Petroleum Holdings Ltd (TPHL) for the year ended September 30, 2019.

Contacted for a response to the cost of the refinery’s maintenance, Lee said, “It is very heartless of this government when the shut-down of the Petrotrin site has destroyed small business and medium businesses in Marabella.”

Lee estimated $30 million had been spent on its maintenance since the refinery was mothballed in 2018.

“Why are you paying over $30 million to mothball scrap iron, and you have the Paria families who cannot even get a cent? They cannot even get one dollar and cannot even get a book bag for their children to go to school. That is $30 million that could have been spent in purchasing laptops for children going to school. This government does things to suit their own agenda and is not for the greater good of this country.”

He said the figures were not surprising, as he and the Opposition had sought information on the cost of mothballing the refinery through the Freedom of Information Act (FOIA) and the numbers were similar.

The country would have been better off if the government had sold the refinery to the Oilfield Workers’ Trade Union’s Patriotic Energy in 2019.

“It [the refinery’s value] is far less today, because in 2019, it was a few months that it had been shut down, and Patriotic had put up a proposal to this government. If anybody comes to purchase the refinery now, why didn’t you sell it to the OWTU where they would have gotten a better price, I’m sure, back then, than what is being proposed now.”

Petrotrin refinery was mothballed in 2018. At the time, the government had to subsidise its operation with $4 billion to keep it going, as the refinery, which produced 40,000 barrels a day (bpd) at the time, had a capacity of 140,000 bpd. In its last financial statement in 2019, Petrotrin recorded a loss of $2.8 billion. This was an improvement from the year before where it recorded $16.9 billion in losses.

Mora Oil Ventures Limited

Construction company moves to wind up energy firm

2024, 04/19

A High Court Judge is expected to determine a petition to wind up local energy company Mora Oil Ventures Limited over its inability to pay a $2.2 million debt.

In February, Fyzabad-based API Pipeline Construction Company Limited filed an application against the energy company based at Invaders Bay in Port-of-Spain. API sued Mora for trespassing on a parcel of land owned by it.

The case was eventually settled in 2021 with Mora agreeing to pay $2.2 million in compensation on or before April 26, 2022. Mora also agreed to deduct the compensation from the proceeds of the sale of its 460K Snubbing Unit, a hydraulic rig which formed a part of the lawsuit.

In December 2022, API’s lawyers from Freedom Law Chambers registered the judgment debt against Mora’s assets. In April, August and December last year, the law firm sent demand letters to Mora requesting that it clears its debt. Mora did not respond.

In an affidavit attached to the petition, API’s director Fawwaaz Hosein claimed the company also contacted Republic Bank Limited, which has a charge over Mora’s rig through a chattel mortgage, and informed it of the judgment debt.

Hosein said the bank stated it was no longer interested in maintaining its security over the equipment. “I am advised by Senior Counsel and verily believe that there is a real risk that Mora is incapable of paying his debts and liabilities. In these circumstances, I believe it is just and equitable for a winding-up order to be granted as it is just and honest,” Hosein said.

He referred to several other lesser judgment debts against Mora from third parties which also remained unsatisfied. “I verily believe that the financial woes of the appellant company are of such a magnitude that the risk of injustice lies solely with me,” he said.

When the petition came up before High Court Judge Nadia Kangaloo, attorneys for Maritime Preservation Limited and Parad Engineering Limited, two companies also owed monies by Mora, appeared. Justice Kangaloo permitted them to file evidence over their outstanding claims and promised to determine the petition on May 3.

Anand Ramlogan, SC, Natasha Bisram, and Vishaal Siewsaran. represented API. Raphael Morton-Gittens represented Mora. Shiv Sharma and Asif Hosein-Shah represented Maritime Preservation. Christlyn Moore represented Parad.

Geopolitics and Dragon

2024, 04/19

Following the United States’ decision Wednesday to resume sanctions against Venezuela, Prime Minister Dr Keith Rowley clarified that as it stands, the Dragon gas arrangement is unaffected. However, given the geopolitical dynamics involved, that could change.

“The United States does things to Venezuela or about Venezuela, we can’t guarantee that some of these things will not be detrimental to us. It has already been, but we have some things in place which are not directly affected by that. But that doesn’t mean that it wouldn’t be affected sometime in the future, as the goalposts keep changing,” Rowley told media.

The whole idea of getting Venezuela to export gas to T&T is a positive move.
“If it does not happen this year and it happens ten years from now, then that is a good thing. We would love it to happen sooner. The whole idea of us having, out of that agreement, a 30-year arrangement is positive. When it is going to start there are some difficulties there, but it might be influenced by the outcome of the US elections because they are all intertwined. The politics of Florida, the politics of New York.”

The Ministry of Energy said the decision by the US government to reimpose sanctions on Venezuela’s oil and gas sector does not affect the special amended licence that was issued to the Government of T&T on October 17, 2023.

The US government action is to punish President Nicolás Maduro’s attempts to consolidate his rule just six months after the US eased restrictions in a bid to support now fading hopes for a democratic opening in the OPEC founder.

A senior US official, discussing the decision with reporters in Washington DC, said any US company investing in Venezuela would have 45 days to wind down operations to avoid adding uncertainty to global energy markets. The official spoke on the condition of anonymity to discuss US policy deliberations.

CDB

Asked if he agreed that the leadership of the Caribbean Development Bank (CDB) is an internal matter to the institution, the Prime Minister said he did not agree that regional heads of government should not be involved. Rowley indicated that the CDB, as a regional institution, should be looked at by the regional leaders.

“When I was in Guyana, at the last heads of government meeting, a significant part of our discussion had to do with the carryings-on at the CDB and if there is anybody that is indicating that the regional heads have no business in being concern or being moved, by what is happening with the CDB, then they are very wrong.”

The CDB has remained mum on the circumstances surrounding the decision to send the CDB president, Hyginus Leon, on administrative leave in January.

Acting CDB president Isaac Solomon, confirmed at a Bank news conference in February that “there is an internal administrative process involving the president. The bank is extremely focused on preserving the independence, confidentiality, and integrity of the process and as you can well appreciate for us to maintain the integrity and confidentiality of the process, we are unable to provide any other details at this time.”

Mid-year review budget
When asked about the date for the mid-year review budget, Rowley said Finance Minister, Colm Imbert, has not indicated the date to him as yet, but he said it looks like it would be sometime in early May. The last mid-year budget was held on May 16, 2023.

Dragon deal
David Lee Pointe-a-Pierre MP, was downbeat on the prospects of the Dragon deal for TT to access natural gas from a Venezuelan gas field, saying the arrangement was now under pressure from legalities posed by both the US and Venezuela.

He also suggested splits within Cabinet on the prospects for this deal and suggested that oil firm Shell might be having second thoughts about the deal, in which it is licensed to extract the gas.

The uncertainty arose last week when the US Treasury’s Office of Foreign Assets Control (OFAC) said it would not extend OFAC General License 44 beyond expiration on April 18, and all entities operating under it have until May 31 to wind down all oil and gas operations in Venezuela.

The Ministry of Energy said that would not affect a separate OFAC licence granted to TT for Shell, the National Gas Company (NGC) and contractors to work on the Dragon field.

“The specific amended OFAC Licence issued to TT on October 17, 2023, is valid until October 31, 2025, and permits Shell, NGC and contractors to continue the works being undertaken to explore, produce and export natural gas from the Venezuelan Dragon Gas Field.”

Energy Minister Stuart Young said TT has a 30-year exploration and production licence from the Venezuelan government on December 21, 2023 for the Dragon gas field, upon which work to “explore, produce and export” was continuing. However, the Prime Minister later said TT was not immune to US/Venezuela dynamics.

Lee said last Friday his supplemental question in the House of Representatives had asked Dr Rowley if he was confident in the deal, but Speaker Bridgid Annisette-George had disallowed it. He was shocked when his main question revealed no physical work has been done on the Dragon field yet, even as the PM said the project has long gestation times.

Lee, however, said the Dragon deal was “no ordinary project” but that “investors want some certainty before they go forward.“

Shell was seeking a long-term licence for 15 years before investing hundreds of millions of dollars in the project. Shell would not wait until October 2025 to see if the Dragon field OFAC licence is renewed, saying Shell’s global portfolio was under some pressure.

Can Dragon survive this latest uncertainty?

The Venezuelan Government, in the official gazette of an unstated date, had published article 66 of the TT/Venezuela Dragon field licence, which stated that any non-compliance with licence obligations caused by sanctions would result in an exceptional and singular extension of six months to the licence after which it would be terminated.

“We call on the Minister of Energy and Prime Minister to give us some clarity, and to Shell.”

Lee said, “The Government has placed all its eggs in the Dragon gas deal, to the extent of not doing any incentivisation within our own borders.”

NGC, Shell working on Dragon gas field
Responding to Pointe-a-Pierre MP David Lee, the Prime Minister told the House of Representatives on April 19, the necessary work to access natural gas from Venezuela’s Dragon gas field is being actively pursued at this time. Government received a 30-year exploration and production licence from the Venezuelan government on December 21, 2023 for the Dragon gas field, and the work to develop the field is continuing.

“The National Gas Company (NGC) and Shell have been looking at the elements necessary to get the project done.”

Gestation periods for projects of this period are lengthy and involve different components. These include getting vessels to survey the reserves in the Dragon field and doing the designs for any pipeline infrastructure needed to extract the natural gas there. These were necessary precursors for the successful undertaking of the relevant physical activity to come.

Speaker Bridgid Annisette-George told Lee a subsequent question about the licence awarded to Government for the Dragon field was inadmissible, given his original question, the answer Rowley gave to that question and the House’s standing orders.

On April 18, UNC activist Ravi Balgobin-Maharaj claimed a statement made on the same day by the Office of Foreign Assets Control (OFAC), which falls under the US Treasury, meant the Dragon deal was in jeopardy

“As was expected, the US is making good on their promise to not extend the life of OFAC General License 44 when it expires on April 18, 2024. As such, it was just announced by OFAC that all entities operating under General License 44 will be given until May 31, 2024, to wind down all oil and gas operations in Venezuela.”

The Energy Ministry said Balgobin-Maharaj’s assessment of the development was wrong.

“This amendment to the OFAC General Licence 44 does not affect the specific amended OFAC licence that was issued to the Government of the Republic of Trinidad and Tobago on October 17, 2023, which authorised the Government of Trinidad and Tobago, the National Gas Company of Trinidad and Tobago Ltd (NGC), Shell PLC and their affiliates to conduct business with the Government of Venezuela and Petroleos de Venezuela (PDVSA) with respect to the Dragon Gas Field in Venezuela.“

“The specific amended OFAC Licence issued to Trinidad and Tobago on October 17, 2023 is valid until October 31, 2025 and permits Shell, NGC and contractors to continue the works being undertaken to explore, produce and export natural gas from the Venezuelan Dragon Gas Field.”

TT and Venezuela signed the US$1 billion deal in August 2018. Those involved included energy giant Shell, Venezuela’s state oil company PDVSA, and the NGC. The Dragon deal will see TT developing the field, which it is estimated will produce approximately 150 million standard cubic feet of gas a day.

The gas will be imported through a billion-dollar pipeline to the Hibiscus platform off the northwest coast of TT. The platform is jointly owned by the Government, NGC and Shell. The deal was left in limbo after the US imposed sanctions on Venezuela in 2019.

On January 24, Rowley announced that the US had lifted the sanctions to allow TT to extract gas from Venezuela. This waiver came after almost four years of lobbying led by Rowley and supported by other Caricom leaders.

The waiver came with stipulations, one being a two-year licence with an optimistic view of an extension and priority given to Caribbean countries, except Cuba. In October, OFAC offered an extension of the licence to TT to access natural gas from the Dragon gas field and the ability to pay for that gas in different ways.Young announced the extension of the licence to October 31, 2025 on October 17.

The extension also allows Government to pay for gas from the field in “fiat currency, US dollars, (Venezuelan bolivares), as well as via humanitarian measures.”

NiQuan Challenges Government

Asha Javeed
2024, 04/28

NiQuan founder Ainsley Gill is focusing on suing the Government, through a bilateral investment treaty claim. as the failed gas-to-liquids plant is scheduled to be mothballed.

Last week, NiQuan terminated its 75 employees pending the wind-up action which will appoint a liquidator if successful. The hearing on the wind-up action is listed for Friday. The subsidiary of NiQuan Energy LLC, a US-registered limited liability company, owes investors and contractors hundreds of millions of dollars, with exposure to local financial institutions , including sums outstanding from legal judgments of about US$400 million.

Gill is basing his defence on the “‘favourable” outcome from mediation between NiQuan and the Trinidad and Tobago Upstream Downstream Energy Operations Company Ltd (TTUDEOCL) at the International Criminal Court (ICC), delivered by Lord Neuberger of Abottsbury on January 24, 2024.

Abottsbury had said the gas agreement was not terminated and that TTUDEOCL was obliged to supply gas to the plant. On January 23, 2024, attorneys of TTUDEOCL said they did not accept that the contract had not been terminated and that it had an obligation to supply gas in accordance with that contract.

Gill has been using that preliminary “favourable” outcome in his legal defences. to keep hope alive in the plant to investors. NiQuan is proceeding with its claims against TTUDEOCL under ICC Arbitration rules for significant loss, cost and damage for breach of contract, as opposed to specific performance of the gas supply contract.

In his defence, filed against former Niquan vice president David Small’s wind-up action, Gill had disclosed that in parallel with the ICC arbitration proceedings, NiQuan and its parent entity, NiQuan Energy LLC, would also be pursuing its claim against the Government under International Centre for the Settlement of Investment Disputes (ICSID) arbitration rules for breach by the Government of the extant Bilateral Investment Treaty between Trinidad and Tobago and the United States.

“These parallel legal proceedings are supported by NiQuan’s lead financial arranger and noteholders, shareholders and other stakeholders. In the interim, the NiQuan gas-to-liquids (GTL) plant is under preservation of assets in silent mode.

Further, the earlier legal proceedings initiated by NiQuan in the Trinidad courts seeking injunctive and declaratory reliefs against TTUDEOCL and the GORTT to compel the provision of the contracted guaranteed gas supply for NiQuan’s GTL plant to restart operations have been discontinued,” he said in court documents.

Gill advised staff that NiQuan did not get the financial support it expected from its financiers and investors and had run out of money keeping the plant operational.

“Further, it is likely that a winding-up order will be made by the High Court pursuant to a winding-up petition brought against the company by two unsecured creditors. The next hearing before the court is scheduled for the 3rd May, 2024.

As a result of this, pending appointment of a liquidator by the court, the company is unable to extend the current furlough past the date of the 30th of April 2024. Therefore, at 5 pm on the 30th of April 2024, your Contract of Employment will be terminated and the Company will issue individual formal termination letters”

Employees have been furloughed since September 2023, after the plant was closed following the death of Massy Energy employee Allanlane Ramkissoon on June 15, 2023, and the termination of the gas supply contract by the TTUDEOCL over a US$21 million debt.

Employees said that their National Insurance (NIS) payments and Pay As You Earn (PAYE) were also not paid up to date by the company but were deducted from their salaries. NiQuan did not make contributions to their pension plan, which was part of their employment package with the Guardian Group.

Employees still do not know who will ultimately be held responsible for this breach of duty.

Collateral agent of NiQuan, Republic Bank, argued that an order to wind up the company could jeopardise the initiative to the detriment of secured and unsecured creditors.In making its case to the court,

Republic Bank argued that should the company become operational, Small would be repaid. On November 7, 2023, Republic Bank, along with other noteholders, passed a resolution to appoint a steering committee among noteholders to establish a plan for the now defunct plant moving forward.

The committee engaged PricewaterhouseCoopers to develop a plan to rehabilitate the company, with a view to starting operations to settle its obligations to its creditor groups.

NiQuan terminates 75 staff

2024, 04/24

NiQuan yesterday terminated its 75 employees and will now mothball its Pointe-a-Pierre plant, which had been in “sleep” mode. Founder and director Ainsley Gill said the company had run out of money trying to keep the plant operational. But it is a wind-up petition filed by its former vice president David Small last month which was the final blow for the troubled Gas to Liquids (GTL) plant.

As a result of this pending appointment of a liquidator by the court, the company is unable to extend the current furlough past the date of the 30th of April 2024. Therefore, at 5 pm on the 30th of April 2024, your contract of employment will be terminated and the company will issue individual formal termination letters,” Gill said in the letter to employees.

Employees have been furloughed since September 2023, after the plant was shut down following the death of Massy Energy employee Allanlane Ramkissoon on June 15, 2023, and the termination of the gas supply contract by the Trinidad and Tobago Upstream Downstream Company (TTUDEOCL) over a US$21 million debt.

Employees said that their National Insurance (NIS) payments and Pay As You Earn (PAYE) are also not paid up to date by the company, although they had been deducted from their salaries.

In addition, NiQuan did not make contributions to their pension plan, which was part of their employment package with the Guardian Group.

In an email shared by the employees, which was sent by the Human Resources team last year when they queried the matter, it said, “The company has, and always has had, every intention to pay and resolve this matter fully with the Inland Revenue and the National Insurance Board and has been liaising with them continuously. For information, in no way would any employee be personally held responsible to settle any shortfalls owning Inland Revenue, that onus is on the company through the PAYE system, as are incurred penalties.”

However, the letter noted that the outstanding debt was supposed to be settled on the attainment of the commercial operations date (COD), which has not been yet achieved.

Gill said the company has no other option now but to mothball its Pointe-a-Pierre plant.

“During these last few months, the company has been preserving the plant in a wet layup in anticipation of an amicable solution and the return of gas. However, following the disproportionate curtailment of gas supply suffered by the company, followed by the wrongful termination of the Gas Supply Contract (GSC), it is with disappointment and frustration that the company has no other alternative, but to now place the plant into a dry layup and mothballed status.

“As a direct consequence of the difficulties mentioned above, it is with deep regret that the company’s senior secured mortgage noteholders have been unable to fund the company as we reasonably expected, and as a further direct consequence, the company is now unable to continue to preserve the GTL plant.”.

On February 1, Small, who was awarded a $20,647,017 million judgment by the courts five months ago for breach of contract by NiQuan initiated a wind-up petition due to non-payment of the amount.

Small was NiQuan’s vice president of Global Energy Services since 2015 and exited the company in November 2021. His judgment in September 2023, came amid financial problems plaguing the company. Its debt had ballooned and it had gone offline after not getting permission to operate by the Ministry of Energy and Energy Industries (MEEI), before it lost the natural gas contract for the plant.

In his wind-up petition, Small wrote to all the financial institutions that NiQuan does business with – Republic Bank Limited, Scotiabank Trinidad and Tobago Limited, First Citizens Bank Limited, RBC Royal Bank (Trinidad & Tobago) Limited, PECU Credit Union Cooperative Society, JMMB Group Trinidad and Tobago, Firstline Securities Limited and the Central Finance Facility Cooperative Society – with notice of the judgment and his intention to petition to wind-up the company.

However, all the financial institutions, through their lawyers, sought to have a hearing on Small’s matter adjourned until their clients could make representations and be allowed to participate in the proceedings.

Republic Bank argued that an order to wind-up the company could jeopardise the initiative to the detriment of secured and unsecured creditors. In making its case to the court, Republic Bank argued that should the company become operational, Small would be repaid.

Gill, in his application on March 5 to dismiss the wind-up petition, described Small’s action as “oppressive and unfair”.

“There are other more appropriate remedies available to Mr Small in order to recover any indebtedness owed to him,” he said in his affidavit.

Gill’s defence is that while “NiQuan is experiencing cash flow difficulties, on a balance sheet analysis, its total assets exceed the value of the debt claimed by Mr Small and the aggregate value of all of its debts owed to its other creditors.”

On November 7, 2023, Republic Bank, along with other noteholders, passed a resolution to appoint a steering committee among noteholders to establish a plan for the now defunct plant moving forward.

To this end, the steering committee has engaged PricewaterhouseCoopers to develop a plan to rehabilitate the company with a view to making operations to settle its obligations to its various creditor groups. That timeline is between eight to 12 months.

NiQuan at terminal end

2024, 04/25

With a history going back to 2005, the gas-to-liquids plant located on the compound of the mothballed Petrotrin refinery compound in Pointe-a-Pierre, has had a troubled and controversial past.

Tuesday’s email from NiQuan founder and CEO, Ainsley Gill, informing the company’s 75 workers that their contracts of employment were being terminated, effective April 30, 2024, may turn out to be the beginning of the end for the project.

Given the comment by Gill in the email that the company has run out of money to continue operations, it is this group of employees who will be hardest hit. It is quite unlikely they would receive any money from the company on Tuesday, their last day. That comes on top of the fact that the salaries of these workers have been inconsistently paid since August last year and an indication from employees that NiQuan has not been remitting National Insurance or tax payments on their behalf for some time.

These 75 NiQuan employees, most of whom have dependents, face a very uncertain future, as it is likely they would have accumulated debt in the period of inconsistent income.

They are not the only ones to be impacted by NiQuan’s fate.
Dozens of individuals invested millions of mostly US dollars in the company. A large number of big and small financial institutions would have lent the company tens of millions of US dollars to fund its start-up and operations over the last six years.

Apart from the investors and lenders, NiQuan has many suppliers who are owed millions of dollars for providing goods and services to the beleaguered company. Most visible among NiQuan’s suppliers is Trinidad and Tobago Upstream Downstream Energy Operations Company, the special-purpose state enterprise, which was established to supply natural gas to Niquan. That company has claims of over US$21 million for natural gas it says was supplied to Niquan, but for which no payment was received.

The State also invested a total of US$25 million in preference shares in Niquan. Investors, lenders and suppliers all face the possibility of receiving a fraction of the money they are owed by NiQuan.

That is because the announcement of the termination of the employees followed a winding-up petition filed by former NiQuan vice president, David Small, who already has a judgment against the company of over $20 million.

As was the case with the CL Financial group in 2017, winding-up petitions often lead to the appointment of liquidators, whose exclusive responsibility is to sell the assets and pay creditors.

The question now is: Given the years that it has taken to attempt to bring the gas-to-liquids facility to commercial start up, is there any company that would be willing to take the risk of acquiring the NiQuan assets.?

That risk would be amplified by the fact that an external contractor was killed while working on the plant in June last year. The Pointe-a-Pierre facility was also rocked by a huge explosion in April 2021.

Both of these incidents may point to underlying technical issues with the plant. Also, the first incarnation of the gas-to-liquids project was plagued by delays and cost overruns almost from inception 19 years ago.

When the last employee leaves the plant next week, the plant’s future would be in significant doubt.

NIF receives $324.1M in dividend income

2024, 04/25

The National Investment Fund Holding Company (NIF) recorded dividend income of $324.1 million of investee companies’ for the financial year ended December 31, 2023. NIF chair Jennifer Lutchman, said this represented an increase by $20.8 million or 6.9 per cent from the $303.3 million earned in the prior year.

The NIF bond was first issued in 2018 in three tranches—five years, 12 years and 20 years—had a face value of $4 billion, offered fixed-rate returns, and was backed by five assets worth about $8 billion.

These assets included the 100 per cent state-owned electricity generation company, TGU, and assets acquired from Clico and Clico Investment Bank (in liquidation) as a result of the bailout of the CL Financial group in 2009.

In the 2019 budget presentation Finance Minister Imbert confirmed the NIF bond issuance received 8,103 applications valued at $7.349 billion.

In NIF’s annual report for the year ended December 31 2023, published on the Trinidad and Tobago Stock Exchange , Lutchman said, “The performance of the investee companies remain healthy and the dividend inflows received in 2023 exemplify the robust portfolio collated in 2018.”

She broke down the dividend payments in the report as follows:

“a) Republic Financial Holding Ltd (RFHL) paid out overall dividends of $5.20 per share which was an increase of 15.5 per cent over the 2022 dividends of $4.50 per share;
b) Angostura Holdings Limited paid dividends of $0.35 per share, matching its payout in 2022;
c) Trinidad Generation Unlimited of $0.31 per share, matching 2022;
d) One Caribbean Media paid out $0.20 per share compared with $0.17 per share received during 2022
e) West Indian Tobacco distributed $0.78 per share in 2023 compared with $1.42 during 2022.”

Lutchman said, “We ended the year with a portfolio of $8.66 billion which reflected an increase of $0.6 billion, since our establishment in mid-2018. The portfolio consists of shares from the five companies:

1. 1. • RFHL with 29.95 per cent shareholding, which accounted for 66 per cent of the portfolio;
  2. • Trinidad Generation Unlimited with 100 per cent comprising 17 per cent of the portfolio.
  3. • Angostura Holdings Ltd with 29.9 per cent, comprising 15 per cent of the portfolio;
  4. • West Indian Tobacco Company with 5.4 per cent comprising 1 per cent of the portfolio;
  5. • One Caribbean Media Limited with 23 per cent comprising one per cent of the portfolio.

In delivering the 2020 budget, on October 7, 2019, Imbert introduced the notion of an NIF 2.

“Barring unforeseen circumstances, I propose to introduce in fiscal 2020 a second National Investment Fund Bond Issue which will be based, among other things, on the proceeds from the sale of certain shares held by Clico that are currently valued at $2.6 billion. We will maintain the current ratio of two to one relating to the assets and the corporate bonds issued by the first National Investment Fund.”

In January, the Finance Ministry explained that in the wake of the winding up in 2023 of the Clico Investment Fund (CIF), which was backed by 25 per cent of the issued shares in RFHL, NIF acquired 6,546,417 RFHL shares (representing approximately four per cent of the bank’s share from the Government on November 20 2023. These additional shares in RFHL were the basis for NIF2.

In the annual report, Lutchman also hailed the positive public response to the NIF2 bond which was launched earlier this year.

She said, “NIF is also pleased to advise that its NIF2 Bond which was launched on January 22 2024 for $400 million at 4.5 per cent with a term of five years was oversubscribed by 267 per cent when it closed on February 9 2024.”

$10 M for PM flights

2024, 04/13

Parliament heard that frequent flyer Prime Minister Dr Keith Rowley made 19 official overseas trips between September 20, 2020, and February 29, 2024, at a cost of $10,652,878.67, after a request by the Opposition. They requested the cost of each trip inclusive of hotel accommodation, meals, ground transport for the Prime Minister and his entourage and any other related costs incurred.

The written reply stated that the Prime Minister, during the past three years, “has honoured his commitment as the elected representative of the people of T&T.”

Rowley attended meetings with Caricom and other world leaders “to continue to foster good relations with our allies through representation and partnerships.”

Other related costs include flight insurance by the Ministry of Finance and the payment for one return air travel ticket by Caribbean Airlines. Actual expenditure ranged from a maximum of $1,291, 405.87 for a trip on September 3 to 10, 2023, for a briefing session with Proman in Switzerland and meetings with BP in London and Shell Oil Company in Amsterdam.

The minimum cost was $75,319 for a December 14, 2023, trip to St Vincent for the dialogue between the Presidents of Guyana and Venezuela. This resulted in a defiance of the agreement by Venezuela.
Costs of four trips ranged between $1,291,405.87 and $1,012, 021.62.

Economists

With the 2024 mid-year budget review expected next month, economists examined the current state of the economy, considering key factors such as crime, energy, non-energy exports and the TT dollar.

Dr Marlene Attzs and Dr Vaalmikki Arjoon opposed a move to devalue. While a devalued currency will make exports more competitive, the more significant impact will make imports more expensive.

“We import practically everything we consume. The immediate impact of a devalued TT dollar, therefore, would be a further increase in the cost of living including essentials such as medicines and food. Many citizens are barely making ends meet now so a devaluation would be close to the final straw Businesses will pass on higher costs (from spending more for foreign exchange) to consumers,”

Arjoon said avoiding a TT dollar devaluation is prudent, despite the low inflation, to prevent further price escalation, especially amid prospects of higher prices from international suppliers in the short term.

Many external and internal risk factors that can impact performance. A more useful approach would be to assess performance on the basis of economic indicators such as economic growth, unemployment and factors that impact quality of life.

Government did not deliver on, or demonstrated a commitment to deliver on, promises in the budget for fiscal 2024. Ability to deliver on its budget commitments is based, among other things, on revenues , primarily from the energy sector.

The revenue challenge is real – natural gas production declined and there generally is lower output from the energy sector which translates into lower revenues.

Specific budget measures that should be reported on during the mid-year review should include foreign exchange, which the business community and citizens continue to face challenges to obtain.

Repatriation of foreign exchange earned overseas by businesses operating in T&T, is key to an increased local supply of foreign exchange. Government spoke of a “…new SME forex facility within the next six months, which should reduce the demand for sales of foreign exchange using credit cards…”

With a daily diet of multiple murders, the psychosocial and economic impact of doing business is more onerous.

Little progress has been made on enhanced crime-fighting tools, including tripling of police recruits.

How much of the ‘additional allocation of $80 million …2024 for new vehicles and equipment for the police, over and above the allocations in 2023…’ has been allocated to date?

There has been little improvement in detection, reduction of crime given these measures, if they have been implemented. What is the return on investment?”

Clarity is needed on the current status of property tax because after much public pushback, the residential tax rate moved from three per cent to two per cent.

Arjoon cited that despite growth at 1.48 per cent in 2022 and 2.56 per cent in 2023, the economy is still 6.4 per cent short of pre-pandemic levels and continues to be financially stressed.

Fiscal health has weakened, with a six-year expenditure of $37 billion above revenues, pushing debt to $137 billion. Lower hydrocarbon exports, capital flight and reduced foreign direct investment have helped shrink forex reserves to US$5.6 billion, artificially propped up by external borrowing and HSF withdrawals.

This underscores the importance of developing sectors with stable, sustainable revenues unaffected by global geopolitical and economic fluctuations, which will create added productive job opportunities, limit the need for aggressive taxation that inhibit economic activities, create more jobs and lower inequality levels.

“We earned a surplus of $416 million for the first four months of this fiscal year. For the same period last year, the surplus was $793 million – this is $376 million higher than this year. Indeed, this is largely because of last year’s extraordinary price hikes for oil and gas, but more so for LNG, due to the Russia-Ukraine war. That led to energy revenues of $10.6 billion for the first four months of fiscal 2022/2023, significantly surpassing the $5.1 billion earned for the corresponding period this year. Declining production in oil and gas of approximately 7,400 bpd and 166 mcf/d respectively also accounts for some of these lower revenues.”

Despite the lower surplus, significant reductions in spending, particularly in capital expenditure, are unlikely.

Government is keen to avoid undermining further economic activity, a stance that becomes even more pertinent as the country nears an election year.

Instead of cutting spending, to compensate for some revenue shortfalls, it’s likely additional debt tapping into both domestic and international markets will be needed to fulfil its fiscal commitments.

The local market may offer more attractive borrowing rates, while any funds borrowed internationally will artificially prop up the foreign reserves.

Inflation has now slowed to 0.8 per cent from a high of 8.3 per cent a year ago but food prices remain high.

“This high inflation last year was not due to aggressive private sector activities and consumer spending, but due to high international prices of raw materials used for manufacturing and goods imported for resale in the retail market. The February 2024 low rate of 0.8 per cent is not reflective of any meaningful policy to slow inflation but largely due to sluggish economic activities locally.”

Dr Ronald Ramkissoon agreed that devaluation in “some sense” would help T&T become more competitive well as bring remunerative benefits to small businesses.

However, “If we going to continue to import at the current rate and preference then we must also think about how we are going to earn the foreign exchange to pay for those imports. And if we are not earning that in the short term then what do we as households have to do?

I think there are benefits to be derived from a devaluation that we cannot neglect. I understand the Government’s position…I know the Government has indicated time and time again that it wants to avoid the increased pressures especially on those less able to afford, however, it is more a short-term consideration.

The fact that we have not devalued has not prevented a fair amount of suffering in the economy.“

Ramkissoon urged greater investments to generate the overall economy.
He scored Government at either a C plus or B minus for its economic performance thus far.

NIF income includes dividends from unethical alcohol and tobacco which Government can divest to invest in food crops, offering more land to farmers, including farmland being offered for a second cricket academy on the Caroni Plain.

Huawei, CTU sign MoU despite risks

At the 21st Caribbean Ministerial Strategic ICT Seminar, in Belize on April 11, Huawei TT Ltd, part of the Huawei global information and communication technology (ICT) powerhouse, signed a memorandum of understanding (MoU) with the Caribbean Telecommunications Union (CTU) to strengthen the region’s capacity to go fully digital.

Huawei TT said the MoU aligns with CTU’s key strategies of driving digital transformation efforts among its member states.

“Huawei aims to strengthen partnerships such as the one with CTU to accelerate such digital transformation in the region.”

The agreement seeks to exchange information and ideas on ICT policies and regulations, undertake joint research on network security, data protection, digital inclusion policies and emerging technologies like 5G and green energy, as well as organise important capacity-building activities through meetings, workshops and training interventions.

“The MoU between the CTU and Huawei marks a pivotal advancement in the CTU’s mission to drive digital transformation across the Caribbean. The agreement will enhance the CTU’s collaborative efforts to address key ICT challenges in the region and symbolises its shared commitment with Huawei to foster a digitally empowered Caribbean that benefits every citizen across its 20 member states,” said Rodney Taylor, secretary-general of CTU.

Huawei said this event marks its first as an official private sector member of the CTU, as its membership was approved by the CTU’s executive council.

“Huawei is very happy to work together with the CTU to accelerate ICT development in the region. We have been working with important stakeholders in our industry to build a healthy ecosystem to realise our vision of bringing digital to every home and organisation to build a better-connected and intelligent world. We believe that with the combined efforts of Huawei and the CTU, more people in this region will be able to benefit from the growth catalysed and made possible by ICT development,” said Daniel Ding, Huawei’s VP of public affairs and communications in Central America and the Caribbean.

In July 2020 the U.K. banned telecoms firms from using Huawei equipment in the deployment of 5G networks over concerns that use of Huawei gear posed a risk to national security. All existing Huawei equipment must be fully removed from 5G networks by 2027. As tension with PRC rises Caricom must beware espionage.

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