Touchstone commences Royston-1x operations

Feb 07 2023

Touchstone Exploration announced that it has begun operations at the Royston-1X sidetrack well located on the onshore Ortoire block/.

Touchstone has an 80 per cent operating working interest in the well, with SOC Heritage Petroleum Company Limited holding the remaining 20 per cent working interest.

Touchstone stated it completed the mobilisation of Star Valley Drilling Rig #25 to the Royston surface location and the drilling rig passed all required pre-drilling inspections.

“Royston-1X is a sidetrack well re-entering the previously drilled Royston-1 well and is expected to be drilled to a measured depth of 11,300 feet, targeting hydrocarbon accumulations in the Middle Miocene Herrera overthrust, intermediate, and subthrust sheets.”

Royston-1 exploration well was drilled in 2021 to a total depth of 10,700 feet and identified over 1,000 feet of Herrera section in the overthrust and intermediate sheets, encountering light, sweet crude oil in both sheets.

“Touchstone is targeting to drill the Royston-1X well through the previously tested Herrera sands to penetrate new sands at the base of the intermediate sheet and into the untested subthrust sheet. The well is anticipated to be drilled and logged within 45 days, and the Company will provide further updates when drilling operations are completed.”

President and Chief Executive Officer Paul Baay said, “The Royston-1 well drilled in 2021 showed tremendous potential, flowing significant volumes of 33-degree API oil from both the overthrust and intermediate sheets; however, mechanical challenges prevented meaningful production from the well. The challenges encountered at Royston-1 and the lessons learnt have helped us to design a drilling plan to optimally evaluate the Herrera Formation. As we target the deeper level, our enhanced understanding of the structure will allow us to assess the full potential of the intermediate sheet, which was not fully penetrated or completed in Royston-1, as well as the subthrust sheet which is a prolific target in offsetting oil pools. Following our recent capital raise, we are excited for 2023 as we commence our latest drilling programme and continue construction of our Cascadura facility with a goal of bringing on production as soon as practicable.”

 

 

Woodside commitment

Feb 02 2023

Country Manager Woodside Energy T&T Juan Vazquez said Woodside Energy is committed to T& T and that commitment is not just about developing T&T’s oil and gas, but its people.

“We are committed to our operations here, operating safely, reliably, and developing people,” Vazquez said at the T&T Energy Conference.

On June 1 last year, BHP merged its Petroleum business with Woodside creating a global top 10 independent energy company by production.   This global US multi-billion dollar merger had a direct impact on T&T. The BHP building at Invaders Bay, Port-of- Spain now has a Woodside sign.

“We have been here for 20-odd years and with Angostura being our anchor and our vision we are committed to continuing to operate and produce the oil and gas the Angostura asset has.”

The Greater Angostura field is an offshore conventional oil and gas field located 38km northeast of Trinidad.  Angostura field was discovered in 1999, with first oil achieved in January 2005 (Phase 1).

Phase 2 established gas sales in 2011. First gas for Angostura Phase 3 was established in September 2016.

Ruby is a conventional offshore oil and gas field located within the Greater Angostura Fields. First oil was achieved in May 2021.

The current development comprises a main central processing platform (CPP), gas export platform (GEP), four wellhead protector platforms (WPP) and onshore terminal. Flowlines connect the Ruby wellhead platform back to the CPP and GEP for processing.

Crude oil from CPP is transported to the Terminal Facility located at the southeastern end of Trinidad.

Woodside is operator with a 45 per cent stake in the Angostura (Block 2(c)) and 68.46 per cent in Ruby (Block 3(a)).

Woodside is focusing on developing Calypso, a deepwater gas discovery in T&T.
“We have the Calypso discovery which has good potential and we understand that it is a strategic resource for the country as well as for us.”

The vision is “How can we make Calypso the best it can be so we can unlock the deep water basin in T&T which is something that looks very interesting.”

The Calypso opportunity is located 217km off the coast of T&T, close to existing LNG infrastructure and downstream petrochemical facilities.
The Calypso appraisal drilling program (consisting of the Bongos-3, Bongos-3X and Bongos-4 wells) concluded on 20 December 2021. All wells encountered hydrocarbons.

Calypso sits within the Deepwater Blocks 23(a) and TTDAA 14 lease blocks.  Woodside is the operator of Calypso with a 70 per cent stake.  While Calypso is currently being appraised it is estimated at approximately 3.2 trillion cubic feet (tcf).  Production from Calypso is expected to begin in 2028 and is forecast to peak in 2032.

The field is expected to reach its economic limit in 2071.
“We are committed to the operations we have now in Angostura and bringing to surface the oil and gas the country needs safely and we have delivered today a very strong safety record and production record so we are very committed to continuing to do that. We are very happy with the human resource that we have in the country and we are working very diligently to make Calypso a viable development and that is something that is very important to us.”

Balancing the clean energy transition is one of the things Woodside will be looking at.
“The way we are looking at the strategy of low carbon, reliable, affordable energy goes in sync with our climate strategy which is two-fold. We have one piece which is lowering and decarbonising our own operations which are scope 1 and scope 2 emissions. The other bid is around scope 3 emissions which is the emissions of our customers.  Woodside committed to investing US$5 billion around the world on products and services that make our customers decarbonised.“

Woodside is a company that is “looking to be nimble and move fast and adapt. I like our company’s strategy because it is very clear about balancing the low carbon with the affordability and the reliability of what we produce. We are biased toward gas. We think gas is going to be a big part of the mix.”

Vazquez came to T&T following the merger but this is not his first stint on our shores.
“My career with BHP started here in T&T. It’s a return home. I was born and raised in Venezuela so I am from across the street. It has been great so far I got here mid-year last year and it has been very exciting we have a lot of things going on.”

His goal is to continue the work that has been done so far.
“The first part of the legacy is to honour what we have done so far so continue to uphold the work of hundreds of our colleagues that have been working at Angostura since 2005-2006,. The second one is to do the best I can to provide both the company and the country with growth options that we can partner with so the best I can to put those options on the table so both company and government can make decisions to pursue them.”

Vazquez hopes to develop this country’s talent.
“I think we have an incredible team. I want to say we have at least 20 T&T nationals that are all around the circuit. I want to continue to build that talent and find the replacements, the next generation of leaders.”

Vazquez lauded Woodside’s Surface Engineering Manager Terrence Doodnath, featured at the Energy Conference.

 

 

bpTT 2023 plans

Jan 31 2023

Minister of Energy Stuart R. Young and Penelope Bradshaw-Niles, Permanent Secretary at the Ministry of Energy, met David Campbell, President bpTT and Giselle Thompson VP Corporate Operations at bpTT at the Ministry to discuss plans for 2023.

The Ministry said bpTT President David Campbell and Vice-President of Corporate Operations Giselle Thompson sought to keep the momentum of the previous year by consulting with the Energy Minister to start building foundations for a successful 2023.
Priorities such as production, investments and lower carbon were discussed,

Minister Young reiterated that the government is open to partnering with its energy stakeholders to identify focus areas and secure Trinidad and Tobago’s energy future.

BP value exceeds £100bn
For the first time in three years, UK supermajor BP is worth over £100bn as shareholders rewarded the British energy titan for its pivot back to fossil fuels. Shares of the oil and gas giant surged 19pc since it announced record profits of £23bn.

When Bernard Looney became chief executive in 2020, he announced plans to cut oil and gas production 40pc by 2030 as part of a push into greener energy. However, BP would now only cut production by 25pc by 2030. It marks a stark readjustment as the business faces what Mr Looney called an “energy trilemma” of challenges. BP led the gainers on the FTSE 100 , up 4.3pc.

 

 

UTT, Point Lisas Chamber sign MOU

 

Mukesh Ramsingh and Professor Prakash Persad signed a memorandum of understanding to grant UTT students scholarships and internships with member companies of the Couva chamber. Chamber secretary Amanda Ramsingh, second vice president Patrick Smith, of the chamber treasurer Amit Dass and instructor Ronnie Bickramdass attended.

Ramsingh, President of the Couva Point Lisas Chamber advised nationals to take jobs for which they are overqualified.

“Whether you study for ten or 15 years, my personal opinion is, go out there and get a job. Get your experience. Being paid $20 an hour is much better than getting $0 an hour. Go out there, get a job and work your way up. Nothing worthwhile in this world comes without sacrifice and hard work.”

Ramsingh made the comments as he signed a memorandum of understanding (MOU) with the University of TT (UTT) to facilitate internships and scholarships for UTT students. UTT president Professor Prakash Persad signed on behalf of the university at the Chamber’s Couva headquarters.

Noting the difficulty students face in transitioning to the workplace on finishing academic studies, Ramsingh said they want to break that mould. From his observation, there are a lot of employment opportunities in Trindad and Tobago, and especially in the Couva district. The drawback is that most nationals who need jobs at present are overqualified for those that are available and filled by non-nationals. Persad said the board and management hope to spread the programme to other chambers for the benefit of his students.

“UTT was set up as a catalyst for economic diversification of TT. For that to happen, clearly we must work with chambers and industries, which also forms part of the plan.”

Initially the pilot project will target engineering students and later include the mechanical, manufacturing and entrepreneurship departments.

“At UTT, we believe in combined research and working together.”

Initially, only one student will benefit from the scholarship. Criteria for selection will be established by both UTT and the company which will accommodate the student.

“It’s free to the company, but it is a win-win situation, as the student will get real-life experience in solving real problems in a real business place or industry.”

On the other hand, the industry would have an opportunity to assess the student to determine if he or she would make a good employee worthy of full-time employment.

Persad said the model they are using was started in 2006 in collaboration with Cambridge University for manufacturing.

“They work heavily in that area in the UK, and we are following a similar example, and to date it has been very successful.”

Persad said through the industry project UTT students have to do for completion of their final degree, they have been working successfully with over 100 companies.

“We did a lot of work for the Port of Port of Spain, improving the efficiency, and will continue with that process. We want to expand it, actually.”

Ramsingh regretted the initiative can only assist one student at this time.

“But this is a building block. This is what we can afford to start with, and hopefully in the following years we can increase it.”

To ensure the expansion of the project, the chamber and board have arranged for part proceeds of all fund-raising activities to be funnelled into an education fund and soon into sports, to help young people transition into their career paths.

 

 

 

Shell, NIHERST launch robotic competition

 The Ministry of Education launched the First Lego League: Superpowered hosted by the National Institute of Higher Education, Research Science and Technology (NIHERST), in collaboration with Shell TT, for 9-16 year- olds to compete for $125,000 in prizes in the Lego and robotics tournament.

Shell Social performance and social investment adviser, Ryssa Brathwaite, remembered playing with the blocks as a child, and like an engineer, designed cities and model cars.

“Now as a mother, I’m always trying to not break my ankle on some of the Lego on the floor.”

The reason Shell has sponsored the competition for five years. was, “not only do the staff love it, but they look forward to working with the students, mentoring them. They ask for it, demand to be referees. But we, at Shell, care a lot about STREAM – science, technology, research, engineering, art and math. Together, with the ministry, we have been able to provide training in STREAM experiences to over 50,000 children at 178 schools between 2019 and 2022. We couldn’t do it without NIHERST. We want children to be motivated to pursue careers related to STEM. Children are not doing as well in the sciences and math as we hope. These are the subjects that help to build a nation. We want to be a part of that journey.”

Education Minister Lisa Morris-Julian said, “Lego education, and the theme of superpower, is well-positioned at a time when the Marvel and DC comics are grabbing our children’s experiences and imagination. The last two years of animation, streaming services, online gaming and 3D graphics have held our children in their grip. So this is our opportunity to bring them back home. This project is guaranteed to spark great creativity and innovative thought among our students.”

Twenty teams registered with NIHERST since November and the national championship will occur in May at the National Cycling Centre in Couva. In the coming months, teams will attend workshops on robotics and must design and build a functional Lego robot.

Physics teacher at East Mucurapo Secondary, Mark Seeram, said, “We now building up the team. Since inception East Mucurapo has been involved, only one year we didn’t really participate. The students build the robot and I just assist. YouTube does have a lot, but the children come with their ideas. I’m a novice myself.”

Asked what he hoped to gain from the competition, Levi Thomas, 12, said, “Well, I really want to learn how to code because I really want to become a software engineer, but at the moment I’m just a beginner, so this is all new to me.”

Form five pupils at Trinity College, Justin Singh and Israel Thomas also have high hopes for the competition. This is their first time in a robotics competition, but their childhoods were filled with Legos. Singh hoped to develop his team-working and problem-solving skills, and to have fun. Thomas said,

“When I was younger, I used to play with Lego a lot but as I came into secondary school I got introduced to different things. We had a STEM club in form one but it was temporarily discontinued, so I lost a bit of interest. But my friend, Justin, builds Lego really well. Every time I see his stuff, it really inspires me. When Justin told me to join the STEM club and about the Lego competition I got excited and I thought if I joined, I could get a new-found love for it. The more I see the stuff, the more interest I have for it. I’m really excited to learn more about the robotics.”

 

 

Heritage refinances debt to US$975 million

 

On behalf of the Minister of Energy, Trade and Industry Minister Paula Gopee-Scoon told the Senate said that Heritage Petroleum Company Ltd   refinanced the debt of Trinidad Petroleum Holdings Ltd (TPHL) to the tune of US$975 million, resulting in an upgrade of the group’s S&P rating from B+ to BB. It remains in the Non-Investment Grade, referred to as Junk.

This was the second refinancing of TPHL debt, with the first instance in 2019.

“Heritage Petroleum Company Ltd, a subsidiary of Trinidad Petroleum Holdings Ltd (TPHL), approached the international financial market in May 2022 to refinance TPHL’s debt, which resulted from Petrotrin’s debt, comprised the US$850 million bullet bond from Petrotrin that was due to mature in August 2019, part of a US$750 million amortising bond, plus certain costs of the restructuring of Petrotrin into the various companies comprising the TPHL group.

“In this current round of refinancing in 2022, Heritage closed a US$500 million senior secured bond transaction, and US$475 million senior secured term loan which enabled it to refinance the debt and implement a comfortable lower cost and longer term debt maturity profile, as well as remove several restrictive loan covenants that were in place since the 2019 refinancing, such as covenants that limited or restricted the disposal of non-core real estate assets of the former Petrotrin.”

A bullet bond is a debt instrument whose entire principal value is paid all at once on the maturity date, as opposed to amortizing the bond over its lifetime. Bullet bonds cannot be redeemed early by an issuer and are thus non-callable.

Questioned by Opposition Senator Wade Mark , Gopee-Scoon was unable to give the rate of interest, maturity date or the financiers. Mark asked Senate President Nigel De Freitas whether Gopee-Scoon should be responding if she could not answer the follow-up questions. De Freitas said they would speak about the matter at another time.

 

 

 

 

MP wants Heritage to replace ageing pipelines

Feb 13 2023

As yet another oil spill pollutes Guayaguayare Oilfields, the Member of Parliament for Mayaro, Rushton Paray is urging Heritage Petroleum to inspect its infrastructure and replace its ageing lines.

This comes after a 10-inch trunk pipeline developed a leak causing thick crude oil to spill into a tributary which connects to the Pilote River in Guayaguayare.

The area where the leak occurred is about two kilometres into the forest, at the back of Ferrier Circular in Guayaguayare. The line has been clamped but a pool of oil remains.

MP Paray said he was concerned that if rain fell and the oil is not mopped up expeditiously, it could spread downstream and cause problems for residents who live near the seawall. The Mayaro MP said this is the second leak which developed in recent times, as another spill was reported in July last year.

He said so far, the oil spill poses no direct impact on communities; however, he called on Heritage to work swiftly to clean up the area.

“Overnight, I understand Heritage responded. The spill is not large but is of concern because of the proximity to the river,” MP Paray said.

The issue of the integrity of assets that fall under Heritage and Paria has been raised in Parliament.

“We are concerned about their ability to manage ageing infrastructure and their assets in terms of health and safety.

“We do not want for bookkeeping purposes these companies are reporting huge profits but then they’re not spending money on safety.”

Several years ago, there was one van and four fire extinguishers for the Guayaguare oilfield and no fire truck, but that issue was later resolved.

“We are hoping that they are not cutting corners when it comes to maintenance, the integrity of pipelines and the integrity of farms. That is the concern to us, and it is a red flag we are raising,” the MP said.

Heritage confirmed it has clamped the leaking line. The identified leak was not close to any populated communities so there was no direct impact.

“Heritage’s Oil Spill Response Team immediately mobilised resources for containment and recovery of the spilt hydrocarbons, and commencement of restoration of the impacted area. Wildlife surveillance and rescue crews were also deployed to survey and assess the area.”

In keeping with its oil spill response protocols, Heritage said it also “continues to undertake intermittent air quality testing within the affected area. So far, the levels continue to read within acceptable parameters.”

Both the Ministry of Energy and Energy Industries (MEEI) and the Environmental Management Authority (EMA) have been informed of the oil spill, and Heritage said it will continue to monitor the incident

 

 

Perenco:  -time to deliver, work on projects

Jan 29 2023

Collaboration between the government and energy sector stakeholders must be sustained to ensure this country gets the best value for money going forward.

These were among some of the key points discussed during the closing session of the T&T Energy Conference titled, Navigating a Complex Energy Future in which varied reflections of the three-day event were brought to the fore.

Shaun Rampersad, chief operating officer, Ramps Logistics, who was on the panel emphasised the importance of energy security, saying that every molecule of hydrogen which sits in the ground remains a diminishing asset.

“The importance of collaboration; us in the private sector the Government, the upstreamers, the downstreamers, the midstreamers… how do we work together to ensure that capital gets to the best projects and how do we ensure that our best prospects in this country whether they lie within Trinidad or on the Venezuelan border, how do we produce these prospects as quickly as possible,” Rampersad explained, emphasising that the longer the molecules remains undiscovered the less value T&T will receive from it.

This country must produce as much as it can, as quickly as it can and then invest those revenues in the industry for the future.

“We spoke a lot about hydrogen and I think that’s the start of the next industry.”

Another key aspect, according to T&T Energy Chamber Chairman Jerome Dookie, is the shortfall in gas supply which continues to be a challenge for the sector.

Dr Joseph Ishmael Khan, chairman of The National Gas Company of T&T Ltd, who echoed similar sentiments noted that T&T is in a state of energy transition and within that there is value creation and value sustainability, and therefore, a need to look at policy reform. “At the level of monetary reform, tax reform, fiscal incentive,”.

Another big takeaway from the conference was the use of technology as an enabler as T&T moves into this period.

This year’s conference recorded 700-plus attendees, covering a vast range of participants across the industry also including those regionally. In this light, social interaction and linkages are important, said Gregoire de Courcelles, general manager, Perenco T&T.

“And it’s how we make things progress through these social interactions.”

Over the last couple of years COVID forced the conference to be held virtually. The role of energy security was also underscored during the event.

Surging temperatures in North America and Europe alongside geopolitical pressures including the ongoing war in Ukraine continue to focus on the need for energy security.

Khan said it’s not only important to manage geopolitics strategically but also to do so with sensitivity.

Earlier, the United States Government granted a licence allowing T&T to develop the Dragon Gas Field in Venezuelan territorial waters. The deal, which involved the development of cross-border gas from Venezuela’s Dragon Gas Field, was signed in August 2018. It was shelved after the Trump administration imposed sanctions on Venezuela’s PDVSA.

Like other entities, de Courcelles described the waiver of the sanction as a very key milestone for T&T, however, he also noted that this will take time to deliver.

“We are not talking about two or three years. It’s probably in the range of ten years. It could be a bit earlier but in any case it shouldn’t slow down the pace of delivering projects in T&T,” Perenco’s GM advised.

He further recommended that this should neither stymie the pace at which projects are approved nor the rate of discovering new resources.

“Because it really happens now. It’s now that the window of available capacity is present when Venezuelan gas is coming into the system…it’s really now that we should deliver projects and work on projects.”

For Perenco as a mainstream producer and for the services industry, the Dragon deal is excellent as it also gives a vision, which is not always available.

“It is something which from time to time, is lacking a bit …and which made a few companies leave the country. It’s very important for us, upstream producers, to have this level of excellence within the service companies and the variety of services provided,” de Courcelles said.

Competition also brings that level of quality to the very top of organisations.

“It’s absolutely essential if you want to properly deliver our project; properly, safely and within the cost so this decision and this news will somehow impact that in the coming two, three, four years. This is what will impact our activity as an upstream producer in T&T for the next years,”

In highlighting the work of the T&T Energy Chamber in speeding up that process for stakeholders, Dookie maintained that talks remain key. Dookie, Managing Director of Methanol Holdings (Trinidad) Ltd, Caribbean Nitrogen Company Ltd and Nitrogen (2000) Unlimited, members of the Proman family of companies, said,

“What we have been doing is we have the conversations with the different ministries, state agencies and regulatory bodies among others…there has to be a coordinated approach to certain things and where we identify the need for several approvals to move a project forward where as traditionally, things would have been done sequentially,”

Getting from a concept to an idea or a first sense that there’s gas-through technology- and bringing it to production; it makes a huge difference if one or two years can be cut off of that project.

“Within our own borders there’s gas we can bring to market a lot faster through the approvals process,” Dookie said, emphasising that the Chamber will continue to advocate and encourage discussions, identify areas which can be approved and continue to build on successes while also examining lessons to be learnt.

He also referenced the time it took to bring the Lightsource BP project to signing.
In December 2022, a Power Purchase Agreement (PPA) between the T&T Electricity Commission (T&TEC) and the consortium partners for the country’s first utility-scale solar photovoltaic (PV) project was signed.

T&TEC and a consortium comprising bpTT, Shell T&T and Lightsource BP signed the agreement to develop two solar power plants at Brechin Castle and Orange Grove, providing 112 megawatts (MW) of power.

The project is located across two sites, Brechin Castle (92MW), and Orange Grove (20MW) and construction is set to commence on both sites in the first quarter of 2023, and is expected to be operational in the third quarter and fourth quarter of 2024.

 

 

Where were the good Samaritans in Paria tragedy?

The trauma of the Paria calamity affected not only the participants, their fellow employees, their families and the companies involved, it also smeared the public perception of governance in TT as well. Four men died. Why did no one go to their aid? Expert professional divers — the best in the country, knowing the risk to their own lives, volunteered to do so. The whole country was traumatised with a combination of shock, shame and sorrow.

In 1980, TT ratified the UN Convention on the Human Rights and the acknowledgement of and respect for that convention was almost automatic. It was as though it were a natural “Trini thing” but hitherto hidden.

Teachers started to discuss it even in primary schools as though it were a natural part of Trini culture. And in a way, it was. As observed in school conflicts, Trini parents can be as fierce in defence of their rights and those of their children as they are in protection of their property rights and we are seeing a healthy and substantial growth in identification with and defence of community rights. If people don’t belong to the community, they find themselves in, they find a community to belong to and to be a part of. It is an instinctive survival mechanism built into human DNA.

The principle is simple: It acknowledges that something good is lodged in our subconscious that impels us to help fellow humans — especially those from our own community that we perceive are in peril. Even if we have no personal connection with them, a lost child alone and crying, an infant heading for a river, a woman in labour, an elderly person confused, bewildered and wandering vaguely into traffic, or any identified member of the community obviously in need of help and not a threat to our personal safety, arouses the humane impulse to help.

As the old saying goes “evil lurks in the minds of man,” so to protect the good Samaritans from those who would take advantage of them, laws have been enacted in a number of countries and in various jurisdictions to protect them from being sued if anything goes awry and although “the road to hell is paved with true, true good intentions,” it all ends in a legal snake pit.

Most people are familiar with France’s good Samaritan Code Pénal, which defines a good Samaritan statute as a law that makes it mandatory for a citizen to come to the aid of another who is exposed to serious physical harm — if there is no danger or risk of injury to the rescuer.

After the death of Princess Diana, when the paparazzi showed no intention of assisting her, it awakened public interest in the concept of good-Samaritan laws. The law exists in Australia, a number of states in America and Canada. What makes it interesting to TT is the relationship between common-law and civil-law systems.

There is a distinction between common law and civil law. Generally, common-law jurisdictions do not pursue a general duty to assist, but civil-law jurisdictions do. Research into the two derivations suggests common law and good-Samaritan law may coexist in the same jurisdiction. The question arising is whether civil liability in tort does recognisably exist for the failure to assist, particularly where there is an industrial accident.

In ancient Egyptian and ancient Indian law, there are traditions which order the punishment of those who refuse or neglect to aid people in danger.

While this has provided a recognisable foundation for such legislation, it was only following World War II that most new criminal codes included a “failure-to-rescue” provision. If such a provision is included in our legislation, it is fair that the question be asked why it was not invoked during the Paria incident. Debate amongst legal analysts will continue over the existence of the general duty to assist in common-law jurisdictions.

Initially, the insertion of the provision into civil legislation was to prevent criminal violence. There is an obligation on the police to understand and accept the duty of protection. To do so may be regarded as dangerous, on the ground that it would give rise to a whole new body of case law in TT — where we do not have a statute that imposes such a duty, other than in the context of familial relationships and, not unsurprisingly, relationships in the industrial relations jurisdiction.

Part of the Civil and Criminal Code of the Northern territory of Australia states: “Any person who, being able to provide rescue, resuscitation, medical treatment, first aid, or relief of any kind, to someone else urgently in need of it and whose life may be in danger, if it’s not provided, callously fails to do so, is guilty of a crime and liable to imprisonment of seven years.” It does not apply an obligation to anyone in TT, but we cannot help but wonder, if we did have such a statute, how it would have affected the Paria tragedy.

 

 

 

 

New NGC Chair looks at value creation

Jan 29 2023

Dr. Joseph Ishmael Khan was appointed Chairman of NGC in September 2022.His initial appointment to the NGC Board was as a Director in February 2022.

He is an international project management practitioner with over 20 years of consulting, facilitating and lecturing experience. He commenced his career as a Mechanical Engineering Technician and Mechanical Inspector with several industrial process plants in the Point Lisas Industrial Estate.

He presently leads and collaborates on development projects in Trinidad and Tobago, Guyana, Jamaica, Barbados, Belize, Bahamas, Grenada, Suriname and Germany, France and Spain for private and public sector organisations and international agencies including the Inter-American Development Bank Group (IDB), Caribbean Development Bank (CDB) and Organisation of American States (OAS/CICAD) . He is also intimately involved in the evaluation of renewable energy projects relating to geothermal, solar and wind energy sources in the Caribbean Region.

He is an adjunct faculty with the Project Management Department, Faculty of Engineering and Department of Creative and Festival Arts, Faculty of Humanities and Education, University of the West Indies, and the Arthur Lok Jack Global School of Business.

Dr. Khan holds a Doctoral Degree (DBA) in Management from the Australian School of Business, Adelaide, ; a Master of Business Management degree and Post Graduate Diploma from Henley Management College/University of Reading, UK; Certified Associate Welding Inspector (CAWI) with the American Welding Society and the Mechanical Engineering Technician Diploma from the San Fernando Technical Institute. Dr. Khan is a Project Management Professional® (PMP®), Certified Project Consultant, Certified PROSCI Change Management Practitioner, and an active Certified Agile Scrum Master.

Dr Joseph Ishmael Khan assumed the chairmanship of the National Gas Company at an “exciting” time when the NGC has been at the centre of two significant announcements affecting the local energy industry.

The United States government approved a waiver from sanctions for T&T to develop the Dragon Gas field, with NGC having a significant role to play. Khan viewed this waiver as a “positive step” in the overall efforts to secure the future gas supply for the local energy sector which will ultimately benefit the people of T&T.

“Moreover, NGC will work together with both Shell and the GORTT to bring gas from the Dragon Field to T&T in the shortest possible timeframe.”

The Dragon Field update followed agreement by the partners of Atlantic LNG to restructure ownership of the facility to increase NGC equity across the liquefaction trains and create a single commercial structure.

Khan said the restructuring of Atlantic should be viewed in three ways.
“One is the simplification of the commercial arrangement. I think that simplification allows Atlantic to focus on operational excellence. When you had these different arrangements between Trains 1, 2, 3, 4 it had a degree of complexity.

Two is the increase in government’s participation in the trains specifically utilising the NGC because we have built significant experience for example with the marketing of the LNG and so on. We are now better poised to gain that level of participation.

Another benefit is ensuring that there is an incentive for the upstreamers to participate within the gas value chain so anyone now can be able to supply feedstock, natural gas into the arrangement. So now all players can be part of the gas processing arrangement.”.

The bottom line is the trains will have a higher level of sustainability.

“So you open up the market to ensure that there is that constant supply and also the investment. So there is sustainability now in our investment that we would have made and that the country would have made and the people of T&T would have made and of course sustainability in the petrochemical industry.”

“If you look at it in that context I think that is where the win or the accomplishment is with the LNG arrangement. That is how we could benefit.”

Describing this period with two major developments, Khan said “I would say exciting, and a time to focus on value creation.”

Value creation is important. Khan used the term and its derivatives no fewer than ten times in his response.

“For 2023, we will strategically position ourselves to reaffirm our commitment to work closely with the GORTT and other stakeholders in the pursuit of maximising and leveraging opportunities for the energy security and sustainability of T&T’s energy sector that will ultimately serve the national interest.”

One of the ways of ensuring this is the consolidation of the contracts with the downstream and the upstream.

“I think everyone knows, and this is public knowledge, that we have a significant amount of contracts with the upstream and downstream to engage and closeout. So I think one key focus is on now finalising those arrangements but more so having an operationalisation mechanism. We need to operationalise the arrangement. We need to ensure that the asset in its entirety really becomes a value driver to T&T so the focus will be on closing out the contracts and then operationalising the mechanism.”

Khan said NGC also intends on focusing on power efficiency.

“.. the conversation has been the better use of the gas molecules whether we put it to power, whether we put it to petchem and .. we need to be aligned to that and magnify that sort of conversation in this particular landscape.
Keeping in line with power efficiency is the whole question of the green agenda and how do we actually move forward in the green agenda and .. it is important for us to know that the NGC is firstly aligned to the government mandate as it relates to policies related to energy efficiency, renewable energy.. and all those things inside that space.”

NGC is in the process of recreating a green entity.

“Another aspect of our focus for 2023 in NGC -we have seen technology as an enabler and one of the initiatives is that of the S/4 HANA that we are working on within the group and it is really to ensure that there is alignment throughout the group as it relates to the use of technology, ensuring that there is a high level of operational efficiency and effectiveness and so on.”

The challenge :  Khan lauded NGC President Mark Loquan and the entire team at the organisation for significant progress .

“If you get into something that is working you don’t come and dismantle, you come and seek where you can support and .. if we did not have a strong foresighted president and management team and leadership team we would not have been here today. “

One of the achievements was the resolution of “failure to supply gas” claims amounting to over $8 billion.

“We also would have seen significant improvement in areas such as asset integrity. We would have seen improvement in the procurement system, we have now moved towards e-procurement and by doing so there would have been significant value creation and savings and those kinds of things because it allows you to negotiate and renegotiate to get the best price and best quality.”

Khan said the challenge now is how to build on past successes.

“That is our challenge as a group. And building on those successes requires the right resources, the people, the leadership, the culture, the skills, the talents the competencies. One of the things that we are focusing on is data analytics and data science because we want to be an evidence-driven organisation where decisions are made by evidence, and data analytics is something that we are focusing on.”

Another challenge is getting employees with the right resources and green skills.

“So here we are talking about the green agenda and our shift, the energy transition but we will definitely need a cadre of skilled persons within the area of the green space. And very dear to me is the issue of strategy execution so we need to ensure that strategy execution is built, the whole capability is built across the group starting at the level of presidents straight down. For us to maintain and sustain, and for us the reengineer and reposition ourselves in 2023 the successes that we would have embarked on and realised the challenge is now ensuring that we keep it going.”

A husband and father of three girls, Khan, 46, started working at the age of 19. He attended Couva Junior Secondary and then Carapichaima Senior Comprehensive.

“I came out in the mechanical engineering field and I spent about six years in the petrochem industry,” he said.

He begen his career as a Mechanical Engineering Technician and Mechanical Inspector with industrial process plants in the Point Lisas Industrial Estate.

“Call any rotating equipment I have worked on it pumps, compressors, turbines, static equipment such as compressors, heat exchangers, boilers.”

20-year-old Khan began to teach.

“My space over the last 15 years or so has been in the international arena.”

He leads and collaborates on development projects in Guyana, Jamaica, Barbados, Belize, Bahamas, Grenada, Suriname and Germany, France and Spain for private and public sector organisations and international agencies such as the Inter-American Development Bank Group (IDB), Caribbean Development Bank (CDB) and Organisation of American States (OAS/CICAD), among others.

Khan was a director of the Evolving Tecknologies and Enterprise Development Company Limited (eTecK) board and chaired the Magdalena Grand Hotel.

“So you know you take some of those learnings into this but of course, you know the size, and the scope and the complexity are different but fundamentals of governance and effective governance and leadership and management will hold.”

His focus is on supporting the NGC group in becoming a centre of excellence as it relates to strategy, leadership and management.

“We have all the technical experts in the group so I am not going to focus on that I am focusing on ensuring that we build on thematic areas such as ESG (Environmental, Social, and Governance), safety, asset integrity, project management strategy. I should also let you know that we are focusing on asset optimisation.”

Phoenix Park Gas Processors recently acquired Twin Eagles and the Hull terminal in Houston so now the focus is on ensuring that that asset delivers value.

“For value creation to be realised at NGC we need to have stronger group synergies. We need to ensure that there is improved knowledge transfer, there is improved institutional strengthening and capacity building. And I want to leave a legacy where one can say you know there is a stronger focus on people, there is a stronger focus on leadership, and there is a stronger focus on culture. What we call it now at NGC is PLC; People, Leadership and Culture.

“It goes back to operational excellence, leadership, agility, strategy execution, a focus on people, a focus on building a culture that is really toward value creation and not value destruction and fundamentally as a group when this can happen we can go back to that alignment to what our mandate is and to what the government’s policy is as it relates to the whole energy space.”

 

 

 

Atlantic LNG restructuring plans

LNG Prime Staff December 7, 2022

Trinidad and Tobago signed a restructuring deal with the shareholders of LNG producer Atlantic LNG, including Shell and BP.

The energy ministry signed the deal with the representatives of Shell and BP in Trinidad Tobago and the National Gas Company of Trinidad and Tobago (NGC). The parties signed the amended and restated heads of agreement on the restructuring of the Atlantic LNG facility into a single unitized facility, Prime Minister, Keith Rowley, said during the signing ceremony. Trinidad signed bilateral heads of agreement with BPTT and Shell on the restructuring of Atlantic LNG. These agreements indicate that the government and the shareholders agreed to the commercial terms of a restructured Atlantic LNG. The parties would now work on binding definitive restructuring agreements, projected to be executed by March 31, 2023. The deal follows a heads of agreement agreed earlier between the parties.

The Point Fortin facility features four trains with a total capacity of about 15 million tonnes per annum of LNG but has been experiencing supply issues due to dwindling domestic gas reserves. Shell and BP have the biggest stakes in Atlantic LNG trains, followed by NGC and Chinese Investment Corporation (CIC).  The government and partners in the facility have been in talks for about four years to find solutions to ensure the future supply to the facility and to simplify the shareholding structure. CIC has a stake in the first train, which has been shut since 2020 but the company did not participate in the talks.

New Atlantic LNG structure- a threat of nationalisation ?

The parties agreed on term and conditions of the participation in the new entity, the new shareholding of Atlantic LNG, the commitment to gas supplies for the trains, third party access and other critical commercial arrangements. The new ALNG structure means greater state involvement in the supply and marketing of LNG while NGC grabs a new increased shareholding. According to Reuters, the parties agreed that the first train would remain closed due to a lack of natural gas supply while CIC no longer has a active stake. Shell and BP reduced participation in two trains and NGC now has a shareholding in all four trains, compared to two previously, the agency said. To date the government has not revealed details of the new shareholding structure and how the NGC share would be funded, following the NGC loss of $240 million on Atlantic Train 1 and a historic loss of $2.1 billion in 2020.

The deal bears hallmarks of semi-nationalisation and the spectre of Petrotrin looms.

 

 

 

Croatia gets LNG cargo

By LNG Prime Staff
February 15, 2023

Croatia’s FSRU-based Krk LNG import facility, operated by state-owned LNG Croatia, has received a cargo of liquefied natural gas from Trinidad and Tobago’s Point Fortin LNG plant, according to shipping data.

The 2015-built 170,200-cbm, Kool Boreas, owned by CoolCo and chartered by Shell, arrived at the 140,000-cbm FSRU on February 14, according to a statement by LNG Croatia. This is the 55th shipment for the FSRU since the launch of operations in January 2021.

LNG Croatia did not reveal the source of the new shipment but its AIS data provided by VesselsValue shows that Kool Boreas picked up the cargo at the Point Fortin LNG plant some two weeks ago. Atlantic LNG is the operator of the liquefaction plant in which Shell and BP are the biggest shareholders. This is not the first cargo from Trinidad and Tobago for the Croatian FSRU. The unit received its first cargo from Trinidad in October 2021.

The Croatian FSRU mainly receives LNG volumes from the US but it recently welcomed its first cargo from Mozambique as well. It also received shipments from Egypt, Nigeria, and reloads from European terminals. European LNG demand spiked in the last 12 months as European countries look to boost energy security and replace Russian pipeline gas. Due to high demand, Croatia also decided to further increase the capacity of its FSRU-based LNG import terminal. The capacity of the terminal will rise to 6.1 bcm and the expansion project will cost about 180 million euros ($193 million) and includes the construction of a new pipeline from Zlobin to Bosiljevo.

 

 

 

Sale of Clico Shares

28 January

Attorneys for the CL Financial conglomerate and its subsidiary, Clico, contend that a transaction between Proman Holdings (Barbados) Ltd and CL Financial Jefe Lawrence Duprey for the sale of Clico Energy shares – the crown jewel of the group – cannot be ratified.

In response to Proman’s appeal against a judge’s ruling which voided the sale of the lucrative energy assets in Process Energy (Trinidad) Limited (PETL), made three days after the Government bailed out the companies in early 2009, attorneys for CLF and Clico asked for the 2021 ruling to stand.

They asked the appellate court to make a finding of fraud on Proman’s part.

“Proman’s actions were not only dishonest but fraudulent,” Senior Counsel Fyard Hosein, who leads a legal team for Clico, insisted.

At the time of the deal, CLF controlled 34 per cent, Clico another 17 per cent, with the remaining shares in PETL, which previously operated as Clico Energy Company Limited, being held by Proman. The deal resulted in Proman controlling the entire company, which held a sizeable portion of the group’s stake in Methanol Holdings Trinidad Limited (MHTL) and other minor stakes in profitable energy companies.

In 2014, the International Court of Arbitration ordered Clico to sell its remaining shares in MHTL to Proman’s subsidiary, Consolidated Energy Limited (CEL), for US$1.175 billion (TT$7.485 billion).

In October 2021, Justice Devindra Rampersad ruled that Duprey acted oppressively and unfairly prejudicial to both companies’ interests when he cut the deal to sell CLF and Clico’s 51 per cent stake for a little over US$46.5 million. He also ruled that the company was grossly undervalued, and voided the sale, ordering Proman Holdings to pay CLF the dividends it collected from the shares since 2009, plus interest.

In turn, CLF was ordered to reimburse Proman Holdings for the purchase price, plus interest.

Proman Holdings appealed Rampersad’s decision and Justices Alice Yorke-Soo Hon, Gregory Smith and Vasheist Kokaram reserved their ruling after a full day’s hearing. Proman’s lawyer, Simon Salzedo, KC, said Rampersad’s ruling was erroneous as he failed to address the ratification of the sale by Clico and CLF.

Proman’s appeal centred on the issue of ratification and the exoneration of Proman in the transaction.

During his submissions, Salzedo took the judges through the history of the dispute set out in tens of thousands of pages of statements and other documents forming the evidence in the case. He said the court could not grant the declarations sought by CLF and Clico in its original lawsuit if the sale was not considered valid. In fact, he said the “transaction was and remains valid.” Salzedo said CLF and Clico continued to use the benefits of the proceeds of the transaction years later and it was “too late” now to take issue with it.

However, in response, CLF and Clico’s attorneys maintained that the judge’s findings could not be faulted although admitting he should have gone further to make a finding of fraud since his reasoning could only point to one of “fraud or dishonesty.” Hosein said the “dishonesty” related to the sale of the energy shares at undervalue by parties who had no authority to do so.

That sale, he maintained, exposed CLF to liability and jeopardised the lifeline extended by the government since the transaction was in breach of the memorandum of understanding with CLF in the bailout and threatened to derail that financial arrangement. He said any entity dealing with a company, knowing a director was acting without authority, could not rely on the transaction being a valid one. He said the issue of insolvency was uncontested and where a company was deemed to be insolvent, then its creditors had a direct interest in any transaction which affected them. In this case, he said the sale of Clico Energy’s shares was a loss to CLF and Clico’s creditors and neither CLF nor Clico could ratify the transaction.

On the fraud allegation, Hosein said it was important for it to be settled and pronounced on by the Appeal Court since it can have bearings on recovery efforts by CLF and Clico if they are successful at the appeal.

He said this was even more important given Proman’s assertion that it could not pay the dividends owed to both entities. Hosein also maintained that the judge’s findings on Proman’s third-party liability in the “unauthorised sale” was “plainly correct” and his findings clearly pointed to one of fraud or dishonesty based on the legal authorities on the issue.

“Proman’s state of mind was of the nature that is consistent with what was described…as dishonest.”

“Proman was not an innocent third party in this.”

He said the judge correctly found that Proman knew that Duprey did not have the authority to sell the subject shares and further that he was acting in a manner that was injurious to the interests of the respondents.

Hosein said when the “surreptitious sale” was effected, Clico was hopelessly insolvent and the “wanton act of dishonesty and fraud” was at a time when the country was reeling from the 2008 recession and the Government was trying to resuscitate the economy.

CLF’s attorney, Deborah Peake, SC, focused on the undervaluation of the shares, taking the judges through the evidence. She said the judge’s finding on the issue could not be faulted. She also said there was no basis for sending back the case to another judge for consideration and reiterated that Proman knew there was a breach of fiduciary duty and that the shares were undervalued so the transaction should be set aside.

“We say the appeal (Proman’s) has to fail and be dismissed with costs.”

The hearing ended after Salzedo rebutted the arguments advanced by Hosein and Peake.

 

 

Young leaders navigate energy sector

Six young leaders of energy companies in Trinidad and Tobago are all set to steer the sector’s complex future. Moderator Dr Priya Marajh, Sharista Kalapnat-Kisoensingh, Shawn Garcia, and Barry Nancoo discuss leadership in the energy sector at the TT Energy Conference. They discussed the direction for the country’s energy development during a special young leaders session at the Conference.

On the panel were Tanagna Lessey-Kelly, acting business venture manager of National Energy, Terrence Doodnath, surface engineering manager of Woodside Energy, Barry Nancoo, engineering and maintenance manager of Proman, Shawn Garcia, manager carbon abatement of Atlantic LNG, Sharista Kalapnat-Kisoensingh, team lead, deep-water exploration contract, offshore directorate of Acreage ai Staatsolie, Jenna Boxill-Sooknanan, operations specialist of Methanex, with facilitator Dr Priya Marajh, vice president, advocacy and member engagement of the Energy Chamber.

Marajh asked Doodnath what his generation would have in terms of leadership in the industry and what changes he would make. Doodnath said the changes that the industry is dealing with now are no different in terms of a need for “total consciousness” and adaptation of technology and learning.

“In terms of the triggers and challenges, it’s probably no different. But I see the advantages we have in utilising the same triggers to address technology to be able to do data analysis, decision-making, and the use of artificial intelligence for example. So I do think the tools that we do have available to support the change process, if effectively used will help us to successfully navigate that change.”

Sooknanan said, “We grew up in an era with information being readily available at our fingertips and what we would prefer is to use technology that is available to maximise our efficiency and to make optimal use of our resources. So I believe that innovation and digitisation are essential to transforming the energy sector in a more decentralised and a more renewable-based economy. I believe our generation is just more connected too. The generation to come will be even more connected and more skilled in the technological world to come.”

Lessey-Kelly said there are sectors that should allow for the current leaders to be more flexible.

“I will bring it straight to the transition, I’ve been waiting for the transition for a number of years and we are at a point now where our scope and time in leadership, we will be implementing those changes. That would call for some differences in how we would handle leadership. We need to focus on visionary leadership or transformational leadership where we would focus on the end game yet also look at transforming the way we interact and deal with our colleagues. We would need to be flexible, agile, to think strategically, to get and implement the changes that are required for the energy transition.”

Asked if he saw a difference in leadership from younger leaders, Garcia said, “As a future leader I think that we have to shift our thinking a bit and sometimes that may mean to challenge ourselves a bit from our traditional paradise. Do we go agile or transformational? Do we look to the former ways of working or embrace hybrid ways of working?”

Garcia said as a future leader, the need to broaden responsibilities is there and so to the need to demonstrate the servant leadership.

Doodnath said the biggest change needed to navigate the change is ensuring that everyone is aligned to a common starting ground.

“We’ve heard some different groups, different government agencies and industries on what does sustainability mean for them and I would argue that sustainable energy is not new, I’ve been in the industry for about ten years and we have been talking sustainable (development) since I’ve been here. But there is a recognition that all the triggers, all the outside influences, the technology available are actually raising the bar of what sustainable means. Making sure that we agree as an industry on the target is the first thing then making sure we agree and prioritise is another key thing.”

Lessey-Kelly said from her experience at NGC and seeing the responsibility it has on the facilitation and development in sustainable energy industries in TT, she said, “One of the key changes that we see that needs to take place is within education and awareness.”

Sooknanan said high capital investments would be needed to develop the technological aspect of the energy industry and the need to carefully develop policies and implement the ones that will strengthen a renewable energy market. Those should “provide incentives to both small and large organisations to want to commit and achieve that net-zero industry.

“With that said, achieving longer-term gas contracts is a way of being incentive to want to commit to that capital to achieve that net zero. Additionally, I believe that more partnerships need to be had with the private sector as well as in collaboration with the public sector.”

She said it would help companies be more efficient as they would be able to share resources to better equip the industry.

 

 

Unipet

Fuel future of service station company in renewable energy

Fuel is not the only item on budgets. Consumers facing higher prices at the pumps since last year are more discerning with their fuel use and more demanding on the level of service. This is why Dexter Riley, CEO of the United Independent Petroleum Company (Unipet) – one of the main local fuel service stations – believes that if you pay higher prices for fuel, then you should get better value for money.

“We have been living with escalation with everything else for many years. Responsible consumers look at fuel the same way as they do everything else. They rationalise it and see if they could get better value.”

Speaking at the Unipet booth during the Energy Chamber conference , Riley said this was one of the factors that contributed to Unipet’s ongoing transition from a service station network to a convenience energy service.

This new and improved Unipet will provide a different experience in how customers consume and interact with fuel by providing a variety of fuel sources – whether it is gas, CNG or electricity, giving customers greater control and leveraging digitalisation.

Leading the charge with renewables

Riley said Unipet made the commitment to lead the charge in utilising renewable energy, continuing their 25-year-old tradition of being catalysts of change.

“In business it is sometimes hard to say when changes would come in and sometimes it is even harder to say the details of how, but what we could say is we have a commitment to this change.“

Unipet installed five charging stations in four locations – Brentwood, Lady Hailes Avenue, Barrackpore and two at its Aranguez head office. Its first station was installed in its Brentwood service station in 2020. The service would be free for the public as long as it continues to be economically viable for the company.

“It’s a small community of EV drivers, but with the potential of growing over the years. So we want to help the country make that change by making that service available free, for as long as we can.”

The chargers are powered by the electricity grid, as solar panels may not have the right load to properly operate them. Solar panels would only work if they had an additional battery or storage capacity so the power could be stored. As the technology evolves Unipet will make the investments.

Unipet uses solar power in other operations in service stations. In Brentwood,, Unipet uses solar panels to power its pumps and lights.

Unipet also powered 42 per cent of the computers in the Faculty of Science and Technology at the University of the West Indies as part of its drive to be more environmentally conscious and socially responsible.

“We did that by incorporating the master’s degree students involved in understanding the technology and then deploying new technology. So they didn’t just get some solar panels but the students got experience and insights and theory behind how it works.”

Unipet engaged customers privately for solar panel installations which power appliances independently through a battery pack. Through the service a customer may be able to power several different appliances such as TVs, microwaves, fridges and AC units.

“If someone requires that service we can do it. Over the next couple of months we are building up our inventory so we could have an on-site location that could be more responsive and give people access to options. What you see happening is that they are switches so you can power up part of your home as an option.”

While the government does not have legislation in place for the use of solar energy on the national grid yet, Riley says the legislation is evolving.

“We really appreciate the government’s pronouncements of our commitment to make that change. And we do recognise that it is not sustainable for subsidies whether it is fuel or electricity.”

Cleaner fuel could be on the way

As solar energy and CNG options continue to diversify the sources of fuel for drivers, Unipet hopes to improve on its carbon footprint by providing even cleaner petroleum. He said that the current petroleum, a double-filtered formula which was introduced in 2010 has already provided customers with cleaner fuel.

Normally each fuel pump has one filter which traps sediment, micro-fine particles and other impurities. With the double-filtered system an additional filter is installed in the pumps to ensure that whatever is missed by the first filter, is trapped by the second. The double filter also removes any moisture in the fuel.

Riley told the energy conference that a new evolution in improving the quality of fuel is being discussed with the regulatory bodies. While he could not say much about these new introductions, Riley said that Unipet is working on options which they plan on rolling out in a responsible way with the approval of the regulator.

All these efforts were part of Unipet’s drive to bring more value to customers.

“We have been asking ourselves how we can go beyond our double filter; how can we improve the quality and experience – because it is not just the quality of a product that people pay for, it is the quality of experience and the control over that experience.”

Unipet is expanding on customer experience through the use of technology. Director and chief operations officer of Brain Station 23 Ltd, MJ Ferdous, said the collaboration between Unipet and Brain Station 23 would result in a transformation in customer experience.

“For example, let’s say you have a car and you are part of a company and you have a fuel allowance. The company can see how much you are withdrawing per month or per week. They can track what your volume of fuel consumption is. They can even forecast the amount of fuel you may use.”

The system could also be used for personal customers instead of corporate customers. With the same technology, customers could buy snacks and food items from Unipet stores, pay for gas and they can do the same monitoring and tracking that corporate bodies may be able to.

“This will radically change the customer experience and it would also improve efficiency.”

Riley said Unipet’s commitment and drive to the future would be beneficial to both the customer and to the company. While Unipet has evolved from a process-driven business to a technology-driven business, the commitment and dedication of the leadership, management and staff at Unipet has not changed. As the company begins to expand toward Guyana, Unipet plans to provide the same service regionally and internationally.

“We are not just talking about better quality fuel and more value in the experience. We want to make our experience available as a best practice to wherever it can add value in the world.”

 

 

 

$800m for energy, $15m for foreign ministries

Finance Minister Colm Imbert piloted the Finance (Supplementary Appropriation) (Financial Year 2022) Bill, which the Senate passed on January 25.

The bill approved the sum of $815,567,165 – $800 million for the Ministry of Energy and Energy Industries (MEEI), and the remaining $15,567,165 to the Ministry of Foreign and Caricom Affairs. The sum for the energy ministry was for an additional fuel subsidy, while the sum for the foreign ministry was for repairs to missions in three US cities, health care, security, housing, and other necessities for mission staff.

Opposition Senator Wade Mark asked why the $800 million was not appropriated in the allocation requested in the mid-year review.

“If, as the Finance Minister admitted, oil prices were under constant review, why didn’t government project the subsidy needed and ask for it in the mid-year review, where only $300 million was allocated to the MEEI in 2022? Why didn’t he allocate more money to subsidies in May and July 2022? Why weren’t we told about this beforehand and now coming here to approve it after the fact?”

He also said it was rubbish that government had to allocate money to repair damage to missions in winter storms, as these can be forecast and the buildings should have been adequately prepared. He asked if there were policies in place on maintenance, housing and medical services for staff in missions.

Independent Senator Varma Deyalsingh said there needed to be a breakdown in allocations to fix the residences, the contracts awarded and how procurement was handled. He asked whether it was necessary to pay more for security as he did not think TT was under attack.

Temporary Opposition Senator Dominic Smith said the allocation of this large sum should not be taken lightly and asked why the population was not seeing the material benefits of savings claimed by government. He said since the US was a temperate country there should have been sufficient and proper planning in place for winter.

Independent Senator Amrita Deonarine did not think it was warranted that the allocation requested was drawn from the Treasury deposits. She asked why the supplementation has not been requested in the mid-year review.

Opposition Senator Jayanti Lutchmedial raised the issue of whether the post of an Inspector of Missions had been filled, as this would enable the views of staff at missions to be heard as well as curtailing expenses.

In his response, Imbert said the main reason that only $300 million was requested in the mid-year review was that at the time, the government had a surplus on its hands. He said insurance premiums have been rising in the US, with disaster-prone states having the highest premiums.

“Over the last year the US experienced the second highest number of billion-dollar climate and weather disasters on record, and the highest number of disaster-related deaths. The budget is an estimate, neither the budget division nor I could have predicted it would have been the second worst winter in 100 years.”

Imbert said private security costs were increasing in all world capitals, for reasons such as tensions, turmoil, protests, diplomats being put under pressure and people becoming radicalised. US health care costs have also skyrocketed since 2021, impacted by global inflation, which meant it cost more to supply health care plans for mission staff.

The bill was passed without being sent to a committee of the whole Senate. The Senate was adjourned until January 31 at 1.30 pm.

 

 

 

Avoiding outflow of gas finances

Jan 27 2023

Citizens must eschew expectations of earning significant foreign exchange from processing and selling Venezuelan gas and learn from past experiences with what is known in economic jargon as the “Dutch Disease, ” which takes hold of a country which receives a boom in revenue from energy resources. Its distracting effect is to remove all focus on other sectors of the economy.

Soon enough, when the benefits of the boom dissipate, as it did here, the economy declines, as other productive sectors of the economy are neglected and foreign exchange from energy has been severely depleted.

Symptoms include revenue not being utilised to build manufacturing, tourism, agriculture, finance and other onshore industries. With foreign currency easily available, the economy and consumers are captured by the import sector.

In a spiral of price rises, demands by labour for higher salaries grow more insistent and workers drift to the non-productive sectors. Along with such characteristics comes widespread increases in social welfare, as the government in office seeks to stay there and opposition parties begin to promise “milk and honey.”

The result, foreign exchange leaks out (gushes out really) to foreign producers.

T&T went through that cycle in the immediate past. So notwithstanding Prime Minister Rowley’s prescient warning of not getting ahead of ourselves by salivating for the prospect of another boom, the entire country has to learn from past experiences of when the Dutch Disease infected the economy and society. No one should forget the early 1980s-1990, with the aggressive and demanding political protests which led to July 27th, 1990.

Productive sectors do not emerge overnight; they must be planned to absorb the money circulating in the system; it can be an opportunity for the financial boom to be utilised to ignite the historical ambition of diversification of the economy.

At the level of the private sector, including small and medium-sized producers, they have to begin envisioning and preparing to produce local goods and services to cope with “spendamania.” Banks and finance houses eventually receive savings and investments for re-investment; it’s imperative the funds are utilised to replace imports and to fund innovation. The bank directorship has always argued that they cannot utilise the savings and investments of their clients in greenfield projects. The answer, therefore, is expansion of the non-bank financial sector.

Another responsibility of Government will be to focus on infrastructure for production. The modernisation of the public sector from its retarding bureaucratic logjam, to one which is agile and service-oriented, is a must.. Without getting ahead of ourselves, if the planning does not start now, another dose of the Dutch Disease is due. .

 

 

Sites for wind farms

The Prime Minister told the Energy Conference he seeks coastal locations for wind farms as he pushed a mix of renewable energy, hydrocarbons (oil and gas) and green hydrogen. Noting global uncertainties over energy demand, production and price, he vowed a balanced approach to managing energy resources, declaring, “as a Government we are doing our part.”

He cited the findings of Government’s Roadmap for a Green Economy launched last November with the IDB and National Energy.

“Of all the potential renewable energy sources in TT, offshore wind offers the largest potential for the country with a projected output of approximately 25 gigawatts of levellised energy. The initial goal of the roadmap is the establishment of a wind pilot project, demonstrating visible end-use applications of green hydrogen in TT.”

Green hydrogen burns to produce just water and carbon dioxide as end products and it is “green” if it’s production by the splitting of water molecules (by hydrolysis) is powered by renewable energy such as sunlight, known as solar power.

“Towards this end, the Ministry of Energy in collaboration with National Energy and the European Union will be conducting a National Wind Resource Assessment, to identify potential sites for wind farm development in TT.”

Figures suggest TT as an energy producer had a profitable past year with good production levels of hydrocarbons alongside high global prices for oil, gas and petrochemicals. However the future was more complex with predictions of a high demand for energy, yet at lower prices.

US Government Energy Information Agency (EIA) predicted a 50 per cent rise in global energy use by 2050, largely from Asia. Global energy supply now included 27 per cent liquid fuels (crude oil derivatives), 27 per cent renewables, and 22 per cent natural gas, (with the remainder presumably nuclear power and coal.) The World Bank predicted global growth will fall from 2.9 per cent in 2022 to 1.7 per cent in 2023.

Likewise, the IMF predicted a drop from 3.2 per cent in 2022 to 2.7 per cent in 2023. Global volatility in energy prices reduced energy revenues within TT’s GDP from 46.8 per cent in 2011 to 26.8 per cent in 2021 but expected to rise to 33.7 per cent for 2022 due to new major upstream projects and buoyant prices.

However for 2023, the outlook is not as buoyant as oil and gas prices are predicted to be average to moderate, due to the global economic slowdown, tight hydrocarbon markets and OPEC’s conservative production strategy.

EIA predicted the WTI oil price will fall from US$95 last year to US$77 this year and the Henry Hub gas price will drop from US$7.42 per MMbtu to US$4.90 per MMbtu.

Atlantic LNG has moved away from using Henry Hub and Spanish market prices, to earn more revenue . Government renegotiations of energy contracts across the whole value chain brought higher earnings at the upstream, midstream and downstream.

“Had these negotiations not been successful, given the lower production volumes, and the initial lopsided sharing of benefits then it is easy to calculate the dire consequences for the national revenue streams which we would have been experiencing at this time.”

TT petrochemical producers weathered tough economic conditions but predictions were of falling global prices. Ammonia rose from US$226 per tonne in mid-2020 to US$1,300 in early 2022 but was now predicted to fall from US$995 to US$445 from the first to third quarter this year.

Methanol rose from US$148 per tonne in mid-2020 to US$437 in late 2021 but then fell as supply exceeded demand, now predicted to reach US$298-US$328.

He congratulated NGC for ensuring a gas-supply to downstream producers, via the execution of 29 upstream contracts (gas producers), 97 downstream contracts (gas users) and the resolution of “failure to supply gas” claims amounting to over TT$8 billion.

Even with efficiency, energy demand was expected to rise 50 per cent by 2050. “All sources of energy are needed,” he said, citing predicted global population growth from eight to ten billion people. Cost of producing renewables had risen due to rising commodity, energy and shipping prices.

He said a 112 megawatt solar park would be built from the first quarter 2023 to the fourth quarter in 2024, to supply eight per cent of TT’s power needs, of which 30 per cent were to be renewables.

“It is the Government’s stated objective to increase power from renewables to meet 30 per cent of the country’s requirements.”

He challenged the ministry to get more RE projects on stream.

He said TT power needs will rise from 1400 MW in 2022 to 1600 MW by 2032. “During this period the PPAs (power purchase agreements) of two of the country’s major independent power producers representing 40 per cent of the country’s installed generation capacity are due to expire. We therefore have an opportunity to achieve much of the target of 30 per cent of power from renewables.”

He promised incentives for RE producers, known as a feed-in tariff, where a utility provider guarantees a certain payment for each unit of electricity it gets from the producer.

“In the near future we, in TT will be introducing feed-in tariff legislation as part of our strategy to encourage low carbon power generation technologies and renewable energy generation.”

The shift to carbon neutrality “was not a spontaneous event” due to challenges such as the cost, reliability and stability of renewables, even as fossil fuels remain cheaper. Many countries, including TT, pursue an energy mix.

“In the current global energy scenario our policy is to take a measured approach to the energy transition. .. we will be pursuing the accelerated exploration and development of our hydrocarbon resources as we transition to a lower carbon economy.”

He noted the past deepwater, ongoing onshore and pending shallow-water bid rounds for hydrocarbon exploitation. “The success of the recent bid-round is a testimony to policies introduced by Government, including constant engagement with stakeholders, to encourage upstream investment both onshore and offshore and the confidence of industry participants in the geological prospects of the TT provenance.” He hoped to maintain the momentum of exploration by improved fiscal incentives and acreage availability.

“Accordingly, we will continue the dialogue with upstream companies on the incentives required to stimulate activity for the exploration of upstream resources.“

The PM surmised the global energy sector was undergoing transformational change.

“The combination of price volatility, the uncertainty for future oil and gas markets and the push for de-carbonisation and other climate control efforts has created a complex energy future. It is a challenging period which will require a clear vision, astute management and the seamless integration of mixed fuel systems. “

Saying “transformation is not a single event but a journey,” he said it was best managed by stakeholder collaboration.

 

 

 

Fix poor governance

Jan 22 2023

T&T must fix its governance framework for the sector, by updating the laws and regulations and making the Ministry of Energy and Energy Industries more transparent and accountable, says Anthony Paul, consultant at the Association of Caribbean Energy Specialists (ACES) Ltd, a leading oil, natural gas and power advisory firm.

Unfortunately, those responsible for making the changes are the same ones comfortable with the status quo in which they can do whatever they want without consequence.

T&T Energy Chamber will host its signature event, the T&T Energy Conference titled, “Navigating a complex energy future.” Among the attendees will be the President of Guyana Dr Mohamed Irfaan Ali.

Paul, who worked in Africa, the Middle East, Asia, Latin America and the Caribbean, claims T&T’s energy sector is very poorly governed, with the mechanisms used for decision-making and acting fundamentally flawed in many ways, for more than a decade . There seems to be no desire, far less intention to fix the root cause of the industry’s decline – the collapse of its governance system.

Both elements of the system (legislative and administrative) are outdated and lacking in basic requirements.

Petroleum Act of 1969 and the Regulations of 1971 have never been updated, only having minimal amendments, and fail to close gaps, such as the glaring absence of Regulations for the Natural Gas segment.

Key parts of the law and regulations are not being implemented or adhered to by the industry, leaving T&T in a perilous state, unbeknownst to most of the population. The law requires all operators in the sector and their contractors or agents to be licensed but not a single operator in Pt Lisas nor any of the contractors or agents is licensed, resulting in the ministry being unable to regulate them (due to the nature of the legislation) or properly determine their tax liability.

One consequence of these failings is that senior executives in the State sector and Government spend many days and weeks negotiating terms that are routinely part of the regulatory framework in natural gas production, distribution and sales around the world.

Regulations provide for a transparent, consistent and predictable operating environment, which investors always ask for, while negotiations are always won by those with more and better resources.

Another challenge was the Ministry, as regulator, is operating with systems designed in the 1960’s and early 70’s and inadequate for the modern world, managed with “many square pegs in round holes, with no accountability to the population.”

It used to be said that Trinidad was a graveyard for geologists. The Ministry of Energy is now a graveyard for young, bright talent. There is no succession planning and little or no evidence of transfer of knowledge or responsibility to a younger generation.”

At both the technical and political levels transparency and accountability are almost non-existent and ministers depend on advice from friends in the multinational companies more than their own technocrats, by-passing the checks and balances built into the legislative framework.

Declining reserves
Impediments around declining reserves, production, value-addition, revenue and confidence are not a function of what is under the ground and/or economically recoverable or even the fiscal regime that is in place to incentivise increasing each of these.

“No matter how good these might be, we won’t get the benefits due to us if we continue to manage the resources like novices or lack self-confidence or the will to determine our own destiny,” Paul said.

Across the spectra of the value and decision chains—from attracting investors, through negotiating and contracting them, overseeing their operations and maximising and securing the benefits available to T&T,

“We are making rookie mistakes and hiding them behind a false curtain of confidentiality.”

While the country has a rich history of fantastic performance,

“those in charge seem disconnected from the lessons those experiences should be teaching us.”

Capitalising deep water and shallow water

Success in exploration has always been driven by collecting, processing, analysing and interpreting as much data as possible, using the best technology, process and people available. Most data is currently in the hands of three companies who have held it for over 50 years, in some cases. This means that new investors (and the country) are going about their business with one hand tied behind their backs.

The former hydrocarbons senior adviser, at the National Directorate of Hydrocarbons and Fuels (DNHC)/Ministry of Mineral Resources and Energy (MIREME), Mozambique said this does not have to be the case as the Ministry has legal and contractual mechanisms, applied as the norm in other jurisdictions, to make data accessible to those who want to analyse T&T for new investment in exploration and production (potential licence bidder, for example) and licensees in areas adjacent to those where valuable information is available, but not accessible.

This situation impacts both shallow and deep-water areas, Paul who was also a member, of the Advisory Panel on Local Content to the Government of Guyana said.

The Energy Ministry has on several occasions from the 1990s to recently when licences were renewed, allowed companies to hold on to valuable exploration and production acreage that they are either unable or unwilling to explore or develop, while they are attractive for other investors. New investors are unable to economically monetise any natural gas they may find by using existing infrastructure, such as LNG plants and pipelines.

Such access will make the many small fields that lie fallow off the east and south coasts to be developed and monetised,. Open access to excess capacity is a basic feature of Natural Gas Regulations around the world.

There are provisions in the T&T Petroleum Act that can be triggered to institute this, but the political will seems to be absent.

Other challenges
Geologist Dr Krishna Persad advised Government to swiftly implement Enhanced Oil Recovery (EOR) particularly Carbon Capture and Carbon Dioxide (Co2) EOR and sequestration.

“They are putting legislation in place but that will take months. The pace is too slow. They need to bring it (legislation) forward and push it through in two weeks.”

On February 18, 2021, the Cabinet agreed to establish a Co2 Enhanced Oil Recovery Steering Committee.  The mandate is to manage the implementation of a large-scale CO2 EOR project to increase T&T’s oil revenue and to address the reduction of carbon dioxide emissions, carbon capture and carbon sequestration.

This country ratified the Paris Change Climate Agreement in February 2018, which signalled its commitment to reduce its greenhouse gas emissions. Carbon capture, utilisation and sequestration are seen as integral to a net zero future by international agencies such as the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC), while being cost-effective and commercial.

Government must ensure old field installations and wells are not abandoned or neglected but kept in good condition for future EOR. Heritage needs expert advice to access its resource potential.

“They need to bring in people who are equipped and who have deep pockets to do so because Heritage will not have the money.”.

Using funds to diversify into green investments and switching to 100 per cent renewables as soon as possible are other factors which ought to be put in place. Persad suggested that a minimum of 10 per cent of gross revenues be credited every year to the Heritage Fund to built up resources.

“We need to make sure we are putting money into it and we need to treat it like a pension. We cannot say if we get oil then we will forecast.”

Collaboration

bpTT said collaboration is essential to develop the industry as within the past few months it has seen the value of Government and industry working together.

“And we need to continue along that path.”

With 15 offshore production platforms, bpttt is the country’s largest hydrocarbon producer, accounting for about 55 per cent of the nation’s gas production.

“We’ve had quite a busy 2022. We continued to deliver many critical gas projects and activities and reached agreements on very important commercial matters that now pave the way for continued investments. We see our purpose as partnering with Government and other stakeholders to unlock T&T’s energy future.”

 

 

NP

National Petroleum Marketing Company Ltd (NP) rebranded its fleet of trucks for its LPG distributors.

The newly branded trucks showcase “the NP Gas brand, promoting its quality and reliability as the leading LPG distributor in Trinidad and Tobago.

“The blue seal of quality, present on all NP Gas cylinders, is a key feature of the new branding. This seal represents NP’s commitment to providing its customers with safe, reliable, and high-quality LPG products. The branded trucks will serve as mobile advertisements for the NP Gas brand, increasing visibility and awareness of the company’s products and services.”

This rebranding effort will reinforce its position as the leading provider of LPG in TT and will also benefit customers by providing easy identification of NP gas trucks. The company was committed to delivering safe, reliable, and high-quality LPG products and services and rebranding of its fleet was one of many initiatives to enhance the customer experience.

“NP views the rebranding of its LPG truck fleet as reinforcing the company’s commitment to providing its customers with the best possible products and services, and as a testament to its ongoing efforts to continuously improve. The newly branded LPG trucks are now in operation, delivering LPG to customers across the country.”