Trinity operational update

11 Jan 2024

Trinity Exploration & Production, the independent E&P company focused on Trinidad and Tobago, provided an update on operations for the three-month period ended 31 December 2023 (Q4 2023). The information contained herein has not been audited and may be subject to further review and amendment.

Jacobin-1 Operations

Trinity safely perforated two Lower Cruse 1 (LC-1) zones on 28 November 2023. As previously announced on 18 December 2023, initial flowrates were encouraging given the very small choke size, however the flowrates and Wellhead Flowing Pressures have progressively declined over the intervening period whereby in early January the rates were materially below expectations at approximately 20bfpd split 50/50 oil and water.

There continues to be a high volume of gas produced from the well and some traces of sand. A pressure survey has been conducted to assess, inter alia, the reservoir pressures and this data showed that a significant reduction in reservoir pressure had occurred over the period.

The inference from this is that the volumes of hydrocarbons connected to the wellbore are lower than originally anticipated.

The forward plan is to convert the well to pumped production and monitor the performance of the LC-1 zones.

We will assess the potential in the uphole zones and see if a recompletion of either the Upper Cruse, Lower Forest or Upper Forest zones is justified.

Daily production is being collected and sold to Heritage. The data gathered to date on Jacobin will also be of immense value in finessing Trinity’s subsurface models for the other Palo Seco “Hummingbird” prospects and elsewhere in the basin, including Buenos Ayres.

As announced on 18 December 2023, Trinity estimates that the undisputed costs incurred to date thus far to be USD 8.3 million, of which USD 6.2 million (unaudited) has already been paid up to the end of the period. As previously reported, Trinity expects to settle the total cost of this well without recourse to any external finance.

Fiscal Reforms

As announced on 4 January 2024, the Trinidad and Tobago Finance Act 2023 was assented to on 20 December 2023. The Act includes reforms to the to the Supplemental Petroleum Tax (‘SPT’) regime which are of material benefit to Trinity’s ongoing and prospective growth opportunities. The reforms will positively affect the Company’s cashflow throughout 2024 and be beneficial to Trinity’s ongoing projects, in particular the Trintes and wider Galeota developments.

SPT liability for Trinity’s offshore production is estimated at USD 4-5m for 2023 and we expect a similar amount, adjusted for production, to be additional operating cash flow in 2024 and the future, at current long term oil price forecasts, which suggest that the realised price will be below USD 75/bbl.

Q4 2023 Operational Highlights

• Q4 2023 sales volumes averaged 2,736 bopd (Q3 2023: 2,705 bopd).
• Full year 2023 sales volumes averaged 2,790 bopd (2022: 2,975 bopd), marginally below the lower end of previous guidance.

Averaged Annual and Quarterly Sales by Region

	12m 2023	Q1 2023	Q2 2023	Q3 2023	Q4 2023
Onshore	1,495	1,548	1,477	1,493	1,462
East Coast	943	1,038	985	843	908
West Coast	353	314	362	370	365
Total	2,790	2,899	2,824	2,705	2,736

• During Q4 2023:
  • 33 workovers (Q3 2023: 37; Q4 2022: 27) were completed.
  • There were 3 recompletions (“RCPs”) in the Period (Q3 2023: 0; Q4 2022: 1).
  • A total of 6 RCPs and 117 workovers were completed during 2023 (2022: 17 RCPs and 120 workovers).
  • Swabbing operations continued across onshore and West Coast assets

Q4 2023 Financial Highlights

The Group reports its consolidated financial information half yearly, in its Annual Report & Accounts and Interim Results, in accordance with UK adopted International Accounting Standards and the London Stock Exchange’s AIM Rules for Companies. Quarterly, the Company provides unaudited information for guidance.

• • Average realisation of USD 71.6/bbl for Q4 2023 (Q3 2023: USD 72.5/bbl, Q4 2022: USD 75.4/bbl).
  • EBITDA, pre-hedging(1), in Q4 2023 of USD 4.1 million (unaudited) (Q3 2023: USD 4.6 million (unaudited); Q4 2022 USD 7.0 million).
  • Operating break-even(2), pre-hedging(1), Q4 2023 of USD 39.79/bbl (Q3 2023: 42.27bbl and USD 38.61 /bbl (unaudited) for the full year 2023 (2022: USD 32.1/bbl).

(1) The Company had no hedging in place in 2023.

(2) Operating break-even is the realised price/bbl where the adjusted EBITDA/bbl for the Group is equal to zero.

• Cash balance of USD 9.8 million (unaudited) at 31 December 2023 versus USD 11.3 million (unaudited) at 30 June 2023 and USD 8.4 million (unaudited) at 30 September 2023.
• The Group had drawn borrowings (overdraft) of USD 4.0 million at 31 December 2023 (USD 2.0 million at 30 September 2023), which reflect the value of outstanding VAT refunds due.
• Completion of first dividend payment on 26 October 2023, consistent with our Capital Allocation Policy.

Jeremy Bridglalsingh, Chief Executive Officer , commented:

‘During the period, we continued to progress our work at the Jacobin well. Our ongoing data collection work is important for us to develop our understanding of the area and its potential for the Buenos Ayres licence. We also continue to invest in our wider asset base to offset natural decline and underpin its strong cash generation potential. ‘

We welcomed the Government’s fiscal reforms to the SPT regime in Trinidad and Tobago which should have a significant impact on our 2024 cashflow and facilitate strengthening of the balance sheet. ‘I look forward to updating shareholders on our progress throughout the upcoming quarter.’

Source: Trinity Exploration

 

 

 

 

Perenco upgrading TSP fields

2024, 01/18

Perenco Ltd executives Eric d’Argentre, group director, Gregoire de Courcelles, general manager,; and Allan Russell, business advisor, gave an update to Energy Minister Stuart Young and his team on the Teak, Samaan, and Poui (TSP) fields offshore east coast of Trinidad and Tobago, where it has been modernising and electrifying its operations.

The Minister met the executives at the ministry’s Head Office, Port-of-Spain.
Perenco is currently investing in a new export pipeline which it will be able to significantly maximize upon its planned field production outputs, as well as working on optimising the gas recovery of the fields.

Minister Young encouraged the company to continue its strategy of harnessing technology to optimise the reserves at (TSP) and to monetize the gas immediately.

The Ministry of Energy and Energy Industries’ Shallow Water Bid Round was also highlighted as an opportunity for the company to further invest in T&T’s energy sector.
Discussions also entailed future drilling and appraisal of Onyx.

Perenco Group director Eric d’Argentre reaffirmed Perenco’s commitment to T&T and its continued investment in the country as they plan to increase their oil and gas production.
Perenco is a leading international independent hydrocarbon company with operations in Brazil, West Africa, Mexico, the United Kingdom, and Trinidad and Tobago.

 

 

 

NGC records $2 billion profit

2024,  01/08

Announcing a profit of $2.38 billion, the NGC Group maintained a position of profitability for the year ended 31 December 2022. According to the 2022 summary consolidated financial statements, this solid performance is just 5.2% lower than the $2.51 billion after-tax profit recorded in 2021.

Chairman, Dr. Joseph Ishmael Khan reported the Group’s profitability was driven by high energy commodity prices, boosted by the upward trend of market prices for ammonia and natural gas liquids (NGLs) in 2022. As an integrated energy company, the Group was able to capture value across the natural gas value chain.

“On the upstream side of the energy value chain, parent company NGC advanced its growth strategies through the completion of key gas supply contract negotiations, including a milestone Gas Supply Contract (GSC) with bpTT. The company worked collaboratively with Shell to progress the Manatee project and a Heads of Agreement (HOA) was signed to commence joint modification of NGC’s Beachfield Facility, to accommodate gas from that field.”

NGC focused on the downstream to secure a stable supply of gas to the petrochemical and manufacturing industrial sectors.

 

 

Loquan exits NGC

2024, 01/21

National Gas Company (NGC) announced that president Mark Loquan would leave the company when his contract ends on August 31. He will not renew his contract with NGC and his appointment as director on the NGC board and its affiliates will also cease.

The news took the industry by surprise given the company’s stability and profitability. Loquan listened to a presentation during the launch of NGC’s Green Company

Mark Loquan was clear that he could not present at the Energy Conference on behalf of the National Gas Company (NGC) and its future knowing he would not be a part of it. So he opted to break the news before the conference to keep the integrity of his presentation intact.

Why, after eight years, is he stepping away?
He had already retired (he is 63), so he was just ending his present contract.
He felt it was time. When he started the NGC in 2016, it was in turbulent times–claims and curtailments were affecting the company’s perception, profitability and purpose with the view that it was just a pipeline business.

The NGC Group was on a mission to internationalise its business footprint, seeking opportunities to enter new markets and broker new partnerships across the world.

In his eight years, Loquan dealt with claims from the downstreamers, managed curtailments, reduced liabilities to the company to “almost zero”, posted a $2 billion loss for investments before his time and then last year rebounded to a $2 billion profit, saw the NGC grow into an integrated energy company, made strategic investments–NGC now has a bigger stake in Atlantic LNG– and sought to make the company sustainable–through its newest subsidiary, the NGC Green has 30 per cent stake in the country’s first solar park, and expanded regionally and internationally.

NGC came under negative scrutiny by the media and the Opposition for some investments–particularly, the decision to spend millions to maintain and then idle Atlantic’s Train 1 when it was a minority shareholder.

“I’m only human, right, and I didn’t have to do this job, as you know, I am retired, I was retired. I would say that there have been many times when during that turbulence I would ask myself, what am I really doing here? Why am I doing this?”

If he had opted to leave at the time, it would have affected NGC and the entire energy sector.

“The only thing that brought me back was that the country would have probably been a lot worse off, if I really decided for myself, to just take care of me. In hindsight, I am happy I didn’t do that because there was a lot that had to be accomplished, which I think the organisation has now done. We have a foundation that we can build on, there is a lot more hope than when we started. Yes, we still have to do a lot of hard work to get things across the line, Dragon still has to be built and so on. There was always a higher purpose, which is value for the people of T&T, and we hadn’t finished what we really set out to do. And, I think it felt incomplete to me. So much better this way to leave when things are done right.”

Working for a private multinational for most of his career, Loquan was not accustomed to public scrutiny.

“I am not used to that. I have always played a technical role and been in a professional environment that didn’t subject me to all of those kinds of things. I have to accept that in T&T, some of these things do happen and it depends on election seasons or all kinds of things going on. I tried, personally, to remain focused on what we had to do, the big picture–we knew we needed to get Atlantic restructuring, we knew we needed to get Dragon, we knew we needed to get contracts in the Estate done for continuity, claims removed. Without those things, NGC probably will not be surviving and this is such a central, I will say, cog in the wheel, for the whole economy.”

He’s cognisant that the industry still faces challenges–the energy business is vulnerable to volumes, there should be a greater gravity to green and hard decisions need to be taken with regard to electricity.
Natural gas volumes would still be down for some time until Manatee and Dragon are complete.
T&T has been the beneficiary of wars and the cyclical prices associated with global instability.

“When it comes to the prices … where we don’t have control of prices, but at least we could prepare ourselves by having a strong institution. We do keep plants alive. We do keep plants running. Yes, sometimes we have to shut down plants because it gets very unstable. But if NGC wasn’t doing that, well what would happen? What would happen with the power supply? At the same time, the power supply is an integral part of your molecules. So we do have to keep the power company running and this makes sure the power is also driving plants and all of these things too. So it’s all integrated.”

In his view, if T&T is not efficient with the molecules and will be “more and more challenged over the years”.

“There is an inefficient use of gas when you put it in electricity and you need to get the return value in the Petchem and LNG. So the more we use in that space (electricity generation) it’s not good for us. “If you look at the demand side, we waste energy, and we have a long way to go when it comes to making sure every household, every school child, every adult starts to think in a manner that says, , I better think twice before I do this.”

He observed that rate changes tend to alter those behaviours but it does require tough decisions.

“That’s not an NGC decision as really the Cabinet makes those kinds of decisions. But that would go a long way.  “On the whole, the sector is “not where we’re supposed to be.”

However, activities being done and collaboration between energy majors were being worked through.

“What drives investment in upstream is also taking away some of the uncertainties. Like with the Atlantic restructuring–upstream has decided to put money in the upstream so they could feed the LNG trains. The Atlantic restructuring now gives you a long-term predictability with a license, it gives you a simplified operating ownership train. NGC has a bigger part in it. It also gives you a doorway for external gas outside of the shareholders. So it means, deeper water gas can now be part of that arrangement. So I will say the vehicle is there, you have to drive it and make sure it gets to the right place, where we weren’t before.”

As for the energy transition, Loquan believes T&T needs to move a lot quicker, and be much more prepared not only as a company but as a country.
In his view, he has stabilised the company, created a stronger institution and prepared it for the future with respect to the energy transition.

“I can’t help certain things like having the molecules (natural gas) increasing, for example. So we are still going to be short for some time, but hopefully, the activities that we have done now will yield some fruit in some years.”

When he started at NGC, he believed the best value for the country was along the gas value chain.

“We had some forces that were driving us to do things out of necessity because of the lack of gas and you have an industry to maintain. While we tried to be more efficient, the world was changing in a way that we needed to prepare ourselves also, to get involved in the whole not only the gas value chain, but the renewables and the green energy chain so I would say that is part of the evolution. The culture that was needed to get that done was really around sustainability.”

In his 40th year in the energy business, Loquan is of the view that it’s time “for a fresh batch of energy to come in and take this forward.” In his time, he focused on building the institution and strategic direction of what an integrated energy company entails.

“We have a direction, we know where we are going. Do I have to be the one doing that? Probably not. We have a good team that has been built and so on. I think I’ve done my part.”

As for the future? He’s open to possibilities. He was recently appointed to the board of Republic Bank Financials Holdings (RFHL) which is a new but interesting sector for him.

“ You might see me transitioning into other sectors, but I’m still there to provide more indirect support.”

Asked whether the timing of his announcement was too early, he explained that it would take a few months to source the ideal candidate and then have them transition into the job. He is presenting at the Energy Conference on the NGC being an integrated company along the gas value chain and he wanted to keep the integrity of the presentation knowing that he will not be there to finish the plan he first envisioned for the company.

Loquan, 63, assumed duties at NGC in September 2016. and has over 40 years experience in the petrochemical industry. He began his career as a process engineer. He was a former president of Yara Trinidad before he departed to take up the position as president of Upstream Business Development-Angola/Sub-Sahara Africa at Yara International and then chief executive at Yara Pilbara in Australia.
NGC noted that Loquan joined at a time when the global energy industry was experiencing significant disruption and transformation and, the focus on a low-carbon future was building in prominence.
Through his efforts, Mark helped to solidify NGC’s position as a leading contributor across the energy value chain, advocating for greater collaboration across the local energy sector in areas such as safety, local content, supply chain management, gas optimisation, and energy efficiency.

He has been at the forefront of NGC’s efforts to move beyond natural gas to encompass other forms of clean energy, investing and partnering to build a portfolio of energy assets and projects that support the global transition to a low-carbon future.
During his tenure at NGC, Loquan has had to manage gas curtailment issues and deal with expired contracts.

Under his watch, NGC expanded its role and got a bigger stake in Atlantic LNG business as a result of the restructuring of the company.
As part of his commitment to see the company become more sustainable, the NGC launched NGC Green which will focus on investments in renewable energy. The NGC will take a 30 per cent equity stake in the local solar initiative, Project Lara. Loquan listened to a presentation during the launch of NGC Green Company.
This month, the NGC posted after-tax profits of $2 billion for 2022.

“Mark has played an indelible role in the sustained growth and development of NGC. As president, he has leveraged his global mindset, strategic thinking, and commitment to national development to ensure that NGC remained focused on delivering sustainable value for Trinidad and Tobago, within the context of an often-disruptive global energy industry. We have valued his leadership style, his support for people, and his commitment to Trinidad and Tobago. On behalf of the board of directors, I thank Mark for his leadership and his contribution to making NGC one of the leading companies in Trinidad and Tobago,” said NGC chairman Joseph Khan.

The company said as it begins to look for a successor, Loquan will continue to work with the board and leadership team to execute NGC’s strategic plan. Once a successor is named, Loquan will work with the new president to ensure a smooth transition.

 

 

 

Proman

2024,  01/25
Anthony Wilson

On December 27, 2023, I wrote a news story headlined Govt to sell MHIL shares to Proman, in which it was reported that a decision had been taken to sell Clico’s 56.53 per cent shareholding in Methanol Holdings International Ltd to petrochemical giant, Proman, for the sum of US$347 million. MHIL was incorporated in July 2004 in St Kitts and Nevis with its registered office being the law offices of Gonsalves & Hamel-Smith.

MHIL has owned 60 per cent of the Oman Methanol Company since August 12, 2008, according to Clico’s 2022 financial statement. The other shareholder in MHIL, with 43.47 per cent, was Consolidated Energy Ltd, a company owned, either in whole or in part, by Proman.
The subtext of the December 27 article is that if MHIL owns 60 per cent of the Oman Methanol Company, and Proman owns 100 per cent of MHIL, then Proman would be the majority shareholder in MHIL with 60 per cent.

Two things this week progressed that story, which was illustrated with a photograph of Prime Minister Dr Keith Rowley greeting Proman CEO David Cassidy at the Switzerland headquarters of the company in September 2022.

The first is that Dr Rowley said some kind words about Proman on the first day of the 2024 Trinidad and Tobago Energy Conference. Responding to a question from Energy Chamber CEO, Dax Driver, who mentioned Proman’s role in driving revenue, jobs and entrepreneurship in T&T, Dr Rowley said:

“We are particularly pleased with the successes that Proman has made. And in the Government, we have been taking steps to ensure that our people are astride the developments,.” He then discussed the 35 graduates of “some of the best universities in the world” who were brought into the Ministry of Energy in 2018.

“Proman’s agreement to do more in Trinidad and Tobago: to create, to innovate, to establish and to pioneer in going after projects like small-pool gas, which De Novo Energy (a Proman subsidiary) has done; taking decisions to have new-build ships using methanol in their fleet and showing the world that ships can, in fact, change. And taking us to a point where the world-trading decision makers would know that their vessels can be refueled in Trinidad and Tobago with clean fuel (methanol), especially as we move towards the greening of the products at the Point Lisas Industrial Estate. These are the decisions that will give us access, not only to markets, but to better markets. And the collaboration that we heard about this morning, can go all the way down, but usually starts with the understanding that we are all in this thing together.”

After the session with Dr Driver, the Prime Minister visited the Proman booth and chatted with the staff , including former Central Bank Governor Dr Euric Bobb and former government senator and minister, Carlos John.

Questions:

• What is the nature of Proman’s “agreement to do more in Trinidad and Tobago,” and is this agreement a formal document that can be made public or is it a verbal commitment by the Swiss company to use its best efforts to do more in T&T in the future?

• At the renaming ceremony for a Proman methanol-fueled ship on November 23, 2022, Prime Minister Rowley discussed creation of a bunkering industry in T&T for ships using methanol.What steps has the Government taken to progress the aspiration to make T&T a centre of methanol fuel bunkering?

The second interesting development is that Minister of Finance, Colm Imbert, ( Corporation Sole) confirmed the December 27, 2023 report that Clico’s block of 56.53 per cent of MHIL was sold to Proman.

In the Senate, Mr Imbert clarified that the decision to sell the block of shares to Proman was taken by the shareholders of the insurance company: the liquidators of CL Financial, parent company of Clico, owning about 51 per cent of the company, and the Government, the owner of 49 per cent of the insurer.

“The liquidator could have sold them (the MHIL shares) without the Government’s consent, but there is a relationship of respect between the liquidator and the Government with respect to important decisions. It is the business of the liquidator to try and recover the $30 billion that the Government put into the bailout of CL Financial…It is the job of the liquidator to liquidate the assets if CL Financial, which include the 51 per cent of Clico to repay that $30 billion the Government is owed…”

A clause in the agreement that established MHIL stipulated that if either Clico or Consolidated Energy were selling their shares in MHIL, those shares had to be offered to the other party.

“It is a typical commercial clause where if the shares are to be sold, they have to be first offered to the other shareholders and if that shareholder refuses, then the shares can be sold on the open market… On all previous occasions when Clico offered the shares to Consolidated Energy, at an independent valuation price…in accordance with the shareholders’ agreement, Consolidated Energy declined to pay the price. So whether it was US$300 or US$350 million…Consolidated Energy said no we cannot pay that price.”

After the shares were offered for sale “a month has to elapse, and then Consolidated Energy would say yes we are buying the shares at the valuation price or no we are not. On every occasion, they said no.”

Another “unique” element of the shareholders’ agreement was that the MHIL shares could not be sold to a competitor of MHIL (presumably a methanol company). The Minister of Finance confirmed that there were three attempts by Clico to offer the shares to Consolidated Energy.

“On the last occasion after multiple legal opinions were received, an opinion was rendered that you could try to sell them to the Government and the NIF (the National Investment Fund). As soon as that was done, the lawyers for Consolidated Energy immediately sent pre-action protocol letters to the Government outlining that if it tried to complete the transaction, they would go to court and ask for an injunctive relief… Sometime between September and November last year, Consolidated Energy said we are now ready to buy the shares at the valuation price, which is what they had refused to do for 12 years. As a result, the shareholders’ agreement kicked in and they have paid $2.4 billion (US$347 million) for the shares. That’s it.”

Questions:

• If Consolidated Energy refused Clico’s offer at the end of 2022, on what legal basis can they come nine to 11 months later and say they are now ready to buy the shares?

• If the Government received “multiple” legal opinions that Clico could sell the MHIL shares to Corporation Sole and NIF, why didn’t Mr Imbert instruct his attorneys to fight the matter, instead acquiescing to Proman’s injunction threat?

• Why would the Government’s proposal that Clico sell the shares to Corporation Sole and NIF trigger a pre-action protocol letter, if neither is a competitor of MHIL?

 

 

 

Proman stakes future on a methanol hub

2024,  01/21

Proman has been ahead of the state in the energy transition. In recent years, actively advocating methanol and in the future ammonia, as a fuel.

Ricardo Mohammed, executive director of Group Operations at Proman said the company and Government discussed the benefits and potential for making T&T, the regional methanol bunkering hub for vessels, including cruise lines.

“This initiative aligns with Proman’s wider work to drive the uptake of cleaner fuels and decarbonise the global shipping sector. It has the potential to attract more vessels to Trinidad and create an increased demand for maritime services (chandlery, maintenance) therefore supporting the growth of Trinidad & Tobago’s maritime industry and diversifying the overall national economy. We stand ready to support the Government in taking this initiative forward.”

As a cleaner marine fuel, methanol offers significant opportunity for decarbonisation of the maritime sector and other hard-to-abate industries.

“Globally, the role of methanol as the fuel of choice for the aviation, road transport and power generator industries is growing. While the feasibility of methanol as a cleaner fuel within these industries has been proven, Proman welcomes the opportunity to work with stakeholders to conduct local feasibility studies, with the aim of strengthening this country’s pathway to the energy transition,.”

He identified Proman’s investments along this trend:
* Partnership with Stena Bulk to construct six new build methanol-fuelled vessels.

“These ships are using approximately 12,000 tonnes of methanol as fuel per year, significantly reducing the volume of greenhouse gas emissions when compared to conventional marine fuels. To-date, we have launched six low-emission, methanol-fuelled vessels but we are committed to transitioning our entire fleet to methanol.”

* The AUM facility. Proman’s corporate ethos was always to minimise emissions and make the most of every molecule of feedstock.

“Which is why we built the AUM downstream complex and already capture and recycle CO2 from our ammonia production in our methanol downstream plants. Since 2006, almost 25 million tonnes of CO2 have been captured from both our own and neighbouring ammonia plants and re-used. We closely review our emissions profile and part of the role of our T&T Sustainability Committee is to constantly review opportunities across our entire portfolio here and identify ways to increase energy efficiency and further reduce emissions.”.

* The Zandolie platform. Located in the Gulf of Paria and powered wholly by wind and solar, “one of our most significant green investments, was the locally fabricated, 100 per cent renewably powered Zandolie platform.”
* Proman’s world-scale, Abu Dhabi methanol plant will be one of the world’s most technologically advanced and low emission natural gas-to-methanol facilities. In Canada, its Varennes Carbon Recycling Plant will produce bio-methanol from non-recyclable residual material.

T&T will benefit through Proman’s many global, pioneering projects and particularly those that support the energy transition by developing a workforce with world-class knowledge and skills.

“Through this upskilling, our nationals directly contribute to the development of the local petrochemical sector and the local energy transition and importantly, they develop the expertise to better assist our Government in achieving its commitment to the United Nations’ 2030 Agenda for Sustainable Development.”

The downstream sector is currently constrained by the low availability of feedstock.

“However, we acknowledge and applaud the extensive efforts and achievements made by the Government and the upstream sector to secure long term gas supply, such as the potential for cross-border gas fields (Dragon and Loran/Manatee) and the opportunities to monetise smaller stranded gas fields such as that successfully developed by our upstream subsidiary, DeNovo.”

Local talent for a global team.

Switzerland contributed to energy since Swiss geologists like Dr Hans Kugler, the Father of Trinidad geology, developed the petroleum industry in Trinidad. From his vantage point Mohammed is able to see the impact T&T has on the Switzerland company. By equal measure, the impact Proman has on T&T.

“Our industry is at an inflexion point and I am fortunate to be able to be part of the exercise to future proof our business,.”

Before he assumed the role of executive director, Group Operations at Proman’s Switzerland headquarters, he was the Managing Director of Operations at Proman Trinidad. His new role, which he began in 2022, allows him the opportunity to interface with every aspect of Proman’s business and people and to witness first-hand the benefits of “Proman in-country.”

“T&T remains the nucleus of our production. Locals comprise the majority of our global headcount and most of our plants are located here. We believe in this country’s potential both from a natural and a human resource perspective and we are significantly invested in playing a major role in contributing to its long-term success,.”

“I see myself as an advocate for Trinidadian talent and just as I have been afforded opportunities, it’s an important part of my job to provide opportunities for others, including international exposure. Throughout our industry, Trinidadians are a valued human resource commodity. I am filled with pride when I see us excel on the international stage. My goal is to continue to provide these opportunities, while acknowledging that with expectations there are responsibilities.”

Mohammed, a graduate of Presentation College Chaguanas, gained a BSc. in Mechanical Engineering, an MSc. in Production Engineering and Management and an MBA, from the University of the West Indies.

He took the job in Switzerland to contribute to the company’s strategy and “offer a unique perspective at the executive level to help shape the future of our business. I do miss being on the plants in Point Lisas , particularly the teamwork and interaction that is a key part of this dynamic environment.”

Through Proman’s 14 petrochemical plants, Point Lisas Industrial Estate is an economic powerhouse and plays a major role in effectively maximising the local value chain for the country’s benefit.

“I’m proud to say we remain the largest employer on the Estate, with over 1,100 employees and most of our contracts, especially for plant turnarounds, are awarded to local contractors. But this country’s biggest benefit is through the investment we make in our people.

We have a world-class team in Trinidad and we invest significantly in providing global opportunities for our employees to showcase their talent and develop their skills. I have benefitted from this opportunity, as have many other members of the diaspora, who are leading or working as part of the global team and who proudly represent this country in all that they do.

Trinidad and Tobago nationals are embedded within each of our global plants and projects and colleagues from Trinidad are working on the next generation of global methanol and ammonia projects. Over 10 per cent of our operations team in Trinidad and Tobago will support one of Proman’s international projects in Mexico, Abu Dhabi, Switzerland, Canada and USA,.”

 

 

 

NGC Green to improve energy use

NGC president Mark Loquan, Minister of Energy and Energy Industries Stuart Young, and NGC chairman Dr Joseph Ishmael Khan launched the NGC Green Company Ltd.

– Ayanna Kinsale

NGC CNG, the compressed natural gas (CNG) supplier, was rebranded as NGC Green with an expanded remit of renewable energy and energy efficiency. The NGC will hold a 30 per cent stake in the Project Lara solar farms at Orange Grove and Brechin Castle. NGC chairman Dr Joseph Ishmael Khan said a huge wave was approaching the world in the form of climate change, like an approaching tsunami, requiring action now.

“We can no longer stand around on the shore.”

The NGC intended to become a carbon-neutral brand by 2050, which would help the region. President Mark Loquan said the company wants TT’s energy mix to be 30 per cent renewables by 2030. He lamented record-high carbon dioxide emissions globally last year, amounting to 40 billion tonnes, up by 1.1 per cent from the preceding year and up by 1.5 per cent from pre-pandemic levels.

“At current emissions levels, the Global Carbon Budget team estimates a 50 percent chance that global warming will exceed 1.5°C consistently around 2030. We need to cut 22 gigatonnes of greenhouse gases in the next seven years to keep 1.5°C within reach. The urgent challenge is to increase the pace of new clean energy projects, especially in emerging economies outside China.”

Limiting global warming to 1.5 degrees requires tripling renewable energy use by 2030, doubling energy efficiency and quadrupling carbon capture. He listed NGC efforts towards these goals.

“We embarked on a campaign to reduce methane output by 25 per cent for our operated assets by 2025, compared to 2021. This involves monitoring our assets for leaks using satellite and infrared technology.”

Methane, a component of natural gas is a product of farm animals and contributes to global warming.

“We are working with T&TEC and independent power producers to address inefficiencies in the power generation system, to reduce value leakage and improve the carbon footprint of our power sector.”

The NGC has been delivering on its mandate to accelerate the use of CNG in cars.

“In 2022, NGC CNG achieved the target set out in its founding mandate to support the introduction of 17,500 natural gas vehicles into the domestic market. The NGC has lobbied industry by conferences, consultancy and collaborative decarbonisation projects, plus a project to help audit and improve energy efficiency in the light industrial and commercial sector.”

The NGC invested in sustainable energy projects.

“We have set ourselves a goal of attaining 30 per cent of TT’s market share for renewable energy and energy efficiency business by the year 2030.”

The NGC CNG’s remit was widened last November to handle “clean and renewable energy, energy efficiency, sustainable transportation, alternative fuels, and research and development.

“We give all assurance that the business of CNG will continue under the green company.”

Displaying the new NGC Green logo, Loquan said it represented “progressive thinking, climate consciousness, and responsible and sustainable business.”

NGC Green sales and marketing manager Anna Lisa Goindoo said the company now offers 15 CNG stations nationwide, with more in the pipeline. Provision of CNG in TT had leapt from 2.8 million litres in 2014 to 25 million litres in 2023 (where one litre of CNG is 0.59 kg).

Khan said the solar projects can light 30,500 homes while saving 150,0000 tonnes of natural gas.

The NGC will be a 30 per cent equity investor in these Project Lara solar projects to supply energy that is “cleaner, more accessible and more affordable.”

 

 

Minister touts RE, FE

 

At the launch of NGC Green, when NGC CNG was rebranded with expanded duties, Energy Minister Stuart Young urged the National Gas Company (NGC) to seek new opportunities in renewable energy projects. Trinidad and Tobago will continue to rely on fossil energy for the foreseeable future as countries re-open coal mines, amid world crises, including climate change, with 2023 one of the hottest years ever.

In the region, tectonic activity caused coastal erosion, lava from volcanic eruption raised sea levels and changing weather patterns generated drought and flood in PRC, Europe and USA. As wars lift energy costs, energy security is a global concern.

Launch of NGC Green is necessary action to manage energy transition.

“The truth is we cannot forfeit fossil fuel. That is the reality.”

Multinationals who pledged transition from hydrocarbons had to retract.

“I don’t think people realise how integrated oil and gas really are in our day-to-day living, and that’s the reality we are facing.”

Everyday items, such as computers, phones and spectacles, were made of petroleum derivatives.

“The real evil, in my view, is coal. TT contributes less than one per cent of the global emissions that are harmful to the environment. If we shut off everything in the energy sector including electricity, manufacturing , vehicles, it will really not make a significant difference.“

TT will act responsibly and NGC Green will promote diversification in the energy sector. It was a great first step for the company to take 30 per cent of Project Lara, the largest regional solar project.

“I am challenging NGC to look outside of TT as well. We have the ability to invest outside of TT.”

State stewardship of NGC has been “extremely responsible and progressive”, in contrast to when $14-16 billion in NGC cash was utilised in ways that did not facilitate the NGC’s progress, as he wished the company had that sum today. NGC cash continues to fund education, infrastructure, sport and culture.

“We are depending on hydrocarbons. Look for opportunities, new renewable projects. What are the new ventures, new concepts? Don’t let the outsiders put pressure on us.”

He saluted foreign companies Shell and bpTT as TT’s partners in Project Lara. Much of TT’s future depended on the NGC. TT would operate responsibly in its energy sector but he chided countries creating wealth by investing in others and powerful countries which play from a different playbook in crisis.

This political rant aligns with the decolonising bandwagon that ousted foreign companies instigating agriculture, shipping and other commercial activity for two centuries and providing the bedrock of the energy economy for over a century. Most regional investment in energy, FDI, is from private foreign investors in advanced countries of Europe and USA who take major risks in energy exploration and production and heavily subsidised education, skills, business, charity and culture, amid egregious crime and insecurity impeding daily life and commerce.

Government spends about $234 million a year on rental of offices and storage space, presumably funded from state coffers bulging with taxes from foreign companies and NGC.

During the ongoing Ukraine conflict, developed countries wisely re-opened coal mines, having promoted sacrifice of oil and gas. During the pandemic, boreal regions created and shared covid19 vaccines, which benefited the region and the world for which the regime should express gratitude.

 

 

 

 

New Marine Services Association

2024, 01/19

Minister of Trade and Industry Paula Gopee-Scoon, told the audience at the rebranding of the Yacht Services Association of TT (YSATT) at Crews Inn Hotel & Yachting Centre, Chaguaramas that the Marine Services Association of TT (MSATT), offered a diversity of services to stimulate greater economic activity, which will boost foreign exchange earnings and promote greater employment.

MSATT membership now services many vessels other than yachts and pleasure craft such as pilot boats, coast guard patrol vessels, fishing vessels, oil tankers and tugboats. This will create a robust marine service ecosystem in the western peninsula, reinforcing the country’s position as a regional leader in boat repairs and maintenance. Data from Research and Markets stated that the global boat repair market is expected to grow from US$6.17 billion in 2023 to US$9.22 billion in 2027 representing an exponential increase of 49.4 per cent.

“These figures are quite impressive, and T&T is well poised to increase its share of this lucrative industry. T&T’s competency in boat repair and maintenance is related to the success of its yachting sector over the past decades. Prowess in marine services attracted a diverse clientele with yacht arrivals from across the world including the United States, Canada, Asia, Europe and Australia.”

The pivot to offer a wider range of boat repair services positions MSATT to capture growing business from this emerging market.

“Data from Grand View Research, a United States-based Market Research firm, has articulated that demand for yachts has also expanded over the last few years, owing to rising disposable income, increased focus on leisure or recreational activities, and a growing preference for luxury tourism. This is very encouraging for us as the United States and Canada are major markets for TT in terms of repairs and maintenance and will lead to a larger volume of vessel arrivals for servicing,” Gopee-Scoon added.

President of the Trinidad and Tobago Coalition of Services Industries (TTCSI) Mark Edghill indicated that marine services is a thriving sector in TT. The marine services industry, specifically the yachting sub-sector at its peak in 2000 generated approximately US$56 million, in direct income from the arrival of 2,800 yachts. He is confident that the industry is moving in the direction to achieve this level of revenue once more.

“T&T was seen as one of the prime yachting destinations in the Caribbean for years. Trinidad and Tobago has many attractive elements that make it an ideal marine services destination, chief among which are its unique geographical location outside the hurricane belt, and lower frequency of extreme weather making it a safe harbour for seagoing vessels, and its stable political and economic situation.”.

Head of MSATT, Peter Peake, President of Powerboat Association told patrons , “We hope that this rebrand will help to showcase our organisation as a representative of hard-working professionals and tradespeople. It will allow us to deepen our relationships and representation in the marine space and position us for continued growth in the 21st century. We invite all of our stakeholders and would-be stakeholders to join us in welcoming this next step in the improvement of our shared marine industry.”

Well done, seafarers and mariners!

 

 

Phoenix revives a familiar tale

PRC Ambassador Fang Qui, , Foreign Affairs Minister Dr Amery Browne, Trade and Industry Minister Paula Gopee-Scoon, Prime Minister Dr Keith Rowley; eTeck chairman, Imtiaz Ahamad, Housing and Urban Development Minister Camille Robinson-Regis and Finance Minister Colm Imbert attended the ribbon-cutting ceremony to open eTeck Phoenix Park Industrial Estate on January 10.

The Government achieved two complementary objectives with the launch of the Phoenix Park Industrial Estate. It signalled its commitment to economic diversification and to the concept of “industrial park” as a key means of achieving diversification. It continued mutually beneficial ties with PRC. If diversification is avoiding putting all your eggs into one basket, then continuing past approaches is decidedly obstinate and unambitious.

To paraphrase the maxim, if it isn’t broken, why fix it? Industrial parks create jobs and improve the tax base. They aid sustainability by encouraging businesses to stay in one fixed place while boosting growth. They open the door to greater diversity. TT has decades of experience with these parks. State company eTeck has oversight of two dozen such economic zones, supporting almost 400 enterprises. Labidco in La Brea and E-Idicot in Tobago are also associated with parks.

Yet, it is hard to quantify how much revenue is generated, how many are employed and how pervasive the impact of these parks has been, for want of up-to-date data and analysis. Ribbons are cut without follow-up. Assuming these spaces bring benefit, the latest industrial park is not solely a state project but an initiative of PRC, under its ambitious, controversial Belt and Road programme. Here, too, is the ring of the familiar. PRC investment from 2008 to 2020, totals at least US$2.3 billion with opaque government-to-government arrangements. The Phoenix Park price tag is believed to be US$104.3 million.

Its first tenant was Summit (TT) Luggage Co Ltd, based in Guangdong, PRC. This investment drove past development and seems premised, from a certain vantage point, on a strategic calculation that economic integration advances peace and the global economy. However, we cling to our usual ways as the world unfortunately retreats from such ideals. The Prime Minister stated,

“Although the demand for hydrocarbons will exist for decades to come, economic diversification is an absolute priority. It is a delicate balance.”

TT partly relies on ties to an economy that is itself undergoing change. The World Bank forecasts PRC economic growth will drop from five per cent in 2024 to 3.4 per cent in 2028, well below its historical average. This will affect the terms of existing financing and future investment and the demand for non-energy commodities produced by industrial parks.

While this project is a welcome step in the right direction, it must be part of a bigger effort within the policy calculations of the State, that must do more than merely striking a hesitant balance. Maximising local content and involvement in mutually beneficial cross-border collaborations is compromised by disasters at state company Paria and the risk to Dragon gas from Venezuelan corruption.

 

 

 

 

Dragon wakes, crawls, dance

2023,  12/24

As the Government is lauded for sticking to its guns in pursuing additional sources of natural gas from Venezuela, the reality is that T&T natural gas production is in secular decline. As of September, production averaged 2.6 billion cubic feet a day, 35 per cent less than installed plant capacity.

The result is that there is insufficient gas to satisfy demand. Some plants are closed and others are operating well below their maximum capacity. Finding new gas is a priority whether it is in deep water or Venezuelan waters. This has serious implications for the economic future of TT.

Obtaining a licence is only the beginning of this journey. Despite joy at the prospect of a new gas supply, the Dragon project is a long way from dancing, which requires coordination and execution of a series of moves and steps to produce a continuous fluid movement. Who is providing the music? For the Dragon project to dance two important issues must be addressed.

First, an agreement is a commitment to facilitating the project and does not guarantee its completion. Commitments must be kept and Venezuela has a patchy record in keeping its commitments.

Second is the political risk. Venezuela’s political instability led to the imposition of a wide range of US sanctions which hobbled the performance of Venezuela’s economy and its energy sector. Concluding the negotiations was only possible because of a two-year exemption window granted by the United States.

This is to ignore all the other technical risks which still exist. Lacking operational experience, the Energy Minister seems unaware that the two-year exemption is too short for any energy project to be viable. The licence is for 30 years which indicates the expected production life of the field and the recovery period needed for an investment of nature to be viable.

What happens if the two-year exemption is not renewed? Given that two years is too short to allow recovery of any capital expended, TT should proceed very slowly. What happens if Venezuela’s elections do not meet the free and fair test as determined by the United States?

These risks cannot disappear simply because a licence has been obtained.

Another key issue is that the licence was awarded to a joint venture between Shell and the National Gas Company. This is not a T&T project and neither NGC nor the Government has control over the investment decision. Shell is the majority partner and is in the driver’s seat, not NGC. Therefore, Shell’s investment decisions will depend on its internal investment processes. The time taken to proceed with the Loran Manatee project is a good guide to the Dragon project which is more complicated.

The Prime Minister indicated that the risk is appreciated. “If you are going to be the majority shareholder, you are going to have to put out the majority investment and take the majority risk. Because of the importance of this venture to Trinidad and Tobago, we always have to limit our risk exposure …”

This comment is at variance with the statement of the quixotic Energy Minister that “we are putting all the pressure we can (to get them to) bring it in two years.”

Two years is in line with the election timetable of the TT regime. Given all the facts, Shell is unlikely to be in a hurry, having been nationalised in Venezuela in 1976.

 

 

 

 

UNC queries Massy training, Dragon deal

23 December

Accusing the government of not caring about the well-being of citizens, Opposition Senator Wade Mark warned that the public was under relentless assault by the regime, which he criticised for “brutalising” citizens through higher prices, rising unemployment, underemployment and growing income inequality. He voiced concerns about misuse of “scarce” foreign exchange by Massy and blamed the Prime Minister for making light of that issue.

Mark referred to former Central Bank governor Jwala Rambarran, who had previously advised on the mishandling of foreign exchange and was subsequently dismissed by then acting president Christine Kangaloo (now President).

Mark condemned the administrative leave of Massy vice president and general counsel Angelique Parisot-Potter, claiming Massy took unilateral action. At the company’s AGM, Parisot-Potter alleged Massy spent scarce foreign exchange on bizarre Florida-based training, which Massy denied as “patently untrue and scandalous.” Massy board had begun a disciplinary process to review her conduct at the AGM against her duties as general counsel and would follow due process.

Mark expressed anxiety about the impact on state financial shareholders, National Insurance Board (NIB) with 20 percent shares and the Unit Trust Corporation with substantial shares in Massy. He queried significant spending by Massy on leadership training over the last ten years, raising concerns about the use of foreign exchange.

The UNC is demanding the immediate resignation of Massy CEO Gervase Warner and chairman Robert Riley. Mark wants former chairman Robert Bermudez to provide answers about his role in the matter during his ten-year tenure. Mark stressed the financial pressure on NIB and a deficit. He disputed the sale of Prestcon for $17 million when he estimated its value at over $100 million.

Referring to the announcement that Energy Minister Stuart Young signed the final documents that gave the green light for natural gas from Dragon to flow to TT, Mark said the government could not be trusted with the Dragon gas deal, as he demanded full disclosure, transparency and accountability on the production licence and related agreements. Mark urged the government to ensure small business owners receive their packages before Christmas, emphasising the impact on their income.

 

 

 

Playing with fiery Dragon

Ralph Maraj, 31 dec

Without even being aware it is a grave indictment on his leadership, Prime Minister Dr Keith Rowley termed access to Venezuela’s Dragon gas field the “lifeblood” for Trinidad and Tobago, implying that by pursuing it, he is seeking the nation’s salvation. For eight wasted years, he avoided this country’s true salvation and lifeblood—diversification of the economy— more insistent than ever at the start of his tenure.

For eight precious years he left a lame “one-horse economy” limping to nowhere, hoping all this time to draw from the gas field of a country run by an untrustworthy tyrant. Has he been playing with fire?

 

 

 

 

Mass transit system, remote work to ease traffic woes

2024,  01/24

After another massive gridlock as a result of a fatality on the Beetham Highway and a reminder from the Economic Commission for Latin America and the Caribbean (ECLAC) that the average motorist spends over a month a year in Trinidad traffic jams, the business community is seeking urgent changes.

AMCHAM TT said the impact on traffic for everyone was extremely high and the hours wasted in traffic are not productive with negative impacts on families and quality of life. T&T needs an efficient mass transit system.

“This is impacted by safety–reality and perception. If people don’t generally feel safe, they will avoid public transportation as much as they can. So, crime also affects traffic.”

The business group outlined that there have been many studies and solutions proposed.

“It is our understanding that the Inter-American Development (IDB) proposed a rapid bus system not so long ago. Ultimately, the entire infrastructure of the country needs to be upgraded. We know the Ministry of Works and Transport had been doing consultations on this last year. The goal should be to move the most people with the least number of vehicles.”

Offering recommendations, the chamber said in addition to attempts to widen the roads and possibly implement an expanded bus system, there needs to be enforcement of the laws that lead to additional congestion.

“The impunity of blocking the roadway in between the changing of traffic lights, driving on the shoulder and causing congestion when filtering etc, should be eliminated. Further, more efficient incident response and clearance would reduce the very significant impact that an accident has on traffic for several hours after the accident.”

T&T Chamber

T&T Chamber of Industry and Commerce, giving its perspective on the ongoing problem, said businesses can review their operations and determine on a case-by-case basis, whether it may be feasible to offer a remote work option. The group believes that possible solutions that can be considered would be carpooling; encouragement to use public transport ( buses and water taxis), where possible to reduce the number of cars on roadways; flexible working hours as determined by employers if feasible.

“It may also be worthwhile to consider efficiency and effectiveness reviews of the traffic plans which include one-way streets, parking zones; additional car parks with public transport routes based on the park and ride model in other countries; and incentives for carpooling such as a special lane on the highways which makes the commute faster.”.

Some of these solutions may require public-private partnerships and the chamber would support dialogue with the government to review and develop plans to address the matter.

Chaguanas Chamber of Industry and Commerce president, Baldath Maharaj said traffic congestion within the borough of Chaguanas impacts businesses negatively as they lose an average of three productive hours per day. The chamber is aware of the ongoing works along the highway that would reduce congestion during peak hours. One of the major issues in the borough was getting from East to West.

“The third lane on the highway will assist those travelling along the highway. We are very familiar with the famous PriceSmart roundabout that filters traffic in all directions. This is a virtual gridlock during peak hours. Building either two overpasses or tunnels in the short term would significantly reduce the time it takes to get from east to west of the highway or vice versa.”

Fyzabad Chamber of Commerce president Angie Jairam suggested that decentralising the services sector in a real way will help. The real problem was planning, and this has been lacking for too long.

“What is happening with our public transport system? This is an easy fix to make it attractive, efficient, easy to access, and safe throughout our country … Why are we not introducing park-and-ride in the very busy areas? Crime is a real factor, very few want to take public transportation as it is unsafe to travel due to the crime and criminality in our country. Hence everyone prefers to use their vehicles for a sense of comfort.”

The Confederation of Regional Business Chambers said it views with deep concern the amount of time taken by people who reside in the eastern, central, and southern parts as they traverse into Port-of-Spain. The traffic management systems remain in a backward state, and no new or innovative thinking is being brought forward to address this very pressing issue.

“There needs to be a serious effort by the Government to look at a decentralisation plan to move certain ministries and even other public sector services in different zones, so we will not have that volume of traffic into the capital city daily.”.

Works Minister Rohan Sinanan said the traffic problem could be addressed by an improved bus service in the short term followed by a long-term adjustment through road upgrades. However, he indicated the cost of implementing such is a challenge currently, but it remains an option for the future.

The profligate National Carnival Commission NCC has been allocated $141 million from public funds to manage Carnival 2024, a private event which can be funded by participants amid hollowed-out state services.

 

 

 

State spends $234 Million a year in rent …from NGC revenue???

2024,  01/24

The Minister of Public Administration revealed in Parliament that Government spends about $18 million a month, $234 million a year, on rental of buildings for offices and storage space on 178 properties around the country, of which 70 are located in Port-of-Spain and environs. It rents 40 properties for the Ministry of National Security but has active leases for three of the 178 properties.

For 175 properties that the Government operates, the three-year leases have expired, and the State has been on a monthly tenancy, even for some state enterprises.

The Government entered into a three-year rental agreement for a property for the Office of the Chief Personnel Officer. at 3 Alexandra Place from June 1, 2019, to May 31, 2022, to Zaman Enterprises for $600,000 a month.According to the current lease status: “Lease not signed. Currently on a monthly tenancy.”

In 2020, the annual rental bill was $235,829,007.68 as opposed to the 2015 figure of $346,884,503.74,  as a result of cutting 45 properties off the rental list since 2015. Government was pursuing the acquisition of former TSTT and CLICO buildings and intends to allocate these buildings for the accommodation of ministries, departments and agencies.

“The TSTT building located in San Fernando has already been acquired, and efforts are underway to secure three additional TSTT buildings situated in Port-of-Spain, Laventille, and Chaguanas. Concurrently, the Government is also in the process of acquiring former CLICO buildings situated at Edward Street, Port-of-Spain, and Arima. This strategic move is anticipated to contribute to a reduction in the rental bill incurred by the Government as there will be a shift from the leasing model to ownership. This translates into immediate cost savings, as the government avoids the recurring expense of renting office spaces.”

The Government was seeking to further reduce its rental costs by using a Property Management Information System (PMIS) to source available properties for rent or lease.

“The “Request for Accommodation” process via the online portal has been refined to facilitate seamless coordination among key public sector entities, including the Valuations Division, Occupational Safety and Health Agency (OSHA), and the Fire Services Division, Ministry of National Security, which are actively engaged in contributing to the processing of accommodation requests.

“As a result, the Government’s capacity to negotiate advantageous rental terms for properties is strengthened by the ability to choose the most economically viable and cost-effective option available on the PMIS. This strategic shift has not only bolstered efficiency and transparency but will increase the ability to consistently select more cost-effective options through an expanded and carefully considered range of choices. Consequently, this contributes to the reduction of property rental costs for the State.”

The Government was moving to establish administrative complexes in Arima and Point Fortin.   The identified sites for this initiative include a plot of land situated at No 3 Robinson Circular Road in Arima and the former Heritage Petroleum Administrative Building in Point Fortin.

“Construction on the Arima land is scheduled to commence soon, while the Point Fortin Complex is expected to be completed by the middle of this year. These complexes are designed to function as one-stop shops by offering improved government services to citizens in these strategic locations as well as government remote work pods, gyms, child care centres and spaces for commercial rent.”

This development will contribute to a reduction in the State’s rental bill through the consolidation of services, optimised use of space and in-house facilities. A Government Storage Facility in Santa Rosa, Arima will house all physical files, once they have been digitised, from Ministries/Departments/Agencies. Last year, the Government spent $55 million in rental and retrofitting a property in Park Street for the Director of Public Prosecutions but the space was never used, another shameful example of prodigal waste.

 

 

 

 

State ‘represented’ on boards of public companies

2024,  01/11  – Anthony Wilson

Eric Williams Financial Complex, houses both the Central Bank and the Ministry of Finance on Independence Square in Port-of-Spain. Minister of Finance Colm Imbert addressed the TTMA Post-Budget Discussion at the Hyatt Regency, Wrightson Road, Port-of-Spain, last October.

Under the headline, ‘Do you have faith in local stocks?’ this column raised the issue of the performance of the companies listed on the Trinidad and Tobago Stock Exchange (TTSE) in which the State, represented by Corporation Sole, owned outright, or controlled firms holding significant interests in local public companies in 2023.

Last week’s commentary found that Corporation Sole, owned significant shareholding interest in nine local, public companies, either in its own right or through state-owned investment holding companies such as National Enterprises Ltd and the National Investment Fund. Those companies are Republic Financial Holdings Ltd (RFHL), First Citizens Group, Massy Holdings, NGL, National Flour Mills, National Enterprises Ltd, Angostura Holdings Ltd, One Caribbean Media and the Point Lisas Industrial Port Development Corporation (Plipdeco).

Of those nine companies, four experienced increases in their share prices in 2023:

• National Flour Mills, which is 51 per cent owned by Corporation Sole, recorded a 29.33 per cent increase in its share price in 2023;

• National Enterprises Ltd (NEL) is 66.05 per cent owned by Corporation Sole and 16.67 per cent owned by the National Gas Company of T&T (NGC), which is 100 per cent owned by Corporation Sole. In total, 82.72 per cent of NEL is owned by Corporation Sole. NEL reported a 22.06 per cent increase in its share price for 2023;

• One Caribbean Media (OCM) has Corporation Sole as its largest shareholder with 22.98 per cent. This shareholding is owned through the National Investment Fund Holding Company Ltd (NIF), which is 100 per cent owned by Corporation Sole. OCM experienced a 15.15 per cent increase in its share price in 2023; and

• Plipdeco, which is 51 per cent owned by Corporation Sole, was up by 8.50 per cent in 2023;

As at September 30, 2023, the top three shareholders of RFHL were entities that are owned or controlled by Corporation Sole, which holds assets on behalf of the State, represented by the Minister of Finance, Colm Imbert.

Those entities are:

* NIF, which owned 42,475,362 shares in RFHL, comprising 25.95 per cent of the financial holding group;

* National Insurance Board (NIB), which owned 30,811,955 shares in RFHL, comprising 18.83 percent of the financial holding group; and

* Corporation Sole itself, which owned 10,976,578 shares in RFHL, comprising 6.71 per cent.

Those three entities, therefore, owned a total of 84,263,896 shares in RFHL, which means that, as of January 9, 2024, Corporation Sole owned, or controlled, 51.47 per cent of the financial holding company’s 163,705,258 issued share capital.

Does the fact that Corporation Sole owns or controls 51.47 per cent of RFHL’s issued share capital make the English-speaking Caribbean’s largest financial institution a state enterprise?

A. It is certainly a majority state-owned company.

Two additional points on Corporation Sole and RFHL:

1) By notice dated December 9, 2023, on its website, NIF notified the public that it acquired 6,546,417 RFHL shares—representing approximately 3.99 per cent of the shareholding of RFHL—from the Government of the Republic of Trinidad and Tobago on November 20, 2023. That means, according to my calculation, that NIF now owns 49,021,779 RFHL shares, which is 29.94 per cent of the financial holding company’s issued share capital;

2) The NIB is included in the tabulation of the top three shareholders of RFHL because Corporation Sole (the Minister of Finance) appoints ten of the 11 directors on the NIB board.

Also, section 9 of the National Insurance Act states: “In the exercise and performance of its functions, powers and duties under this or any other written law, the Board shall act in accordance with any general directions of the Government, given to it by the Minister (of Finance); but subject to this section, the Board shall, when exercising and performing its functions, powers and duties, be subject to the control or direction of no other person or authority.”

Does the National Insurance Act mean that Mr Imbert can give the NIB board “general directions” to vote with NIF and Corporation Sole to ensure that the State is “represented” by the majority of 13 directors on the RFHL board?

The issue of Corporation Sole exercising its shareholder right to appoint a majority of the directors is, perhaps, moot, as Mr Imbert told a news conference last year that he has no intention to do so.

He said that, even though as at September 30, 2023—and for many months before that date—Corporation Sole and NIF, owned over 32 per cent of RFHL shares, which should have triggered the Takeover Code of the TTSE.

There are at least two real world laws that may prevent Corporation Sole from requisitioning a special meeting of RFHL shareholders to gain a majority of seats on the company’s board:

i) The Financial Institutions Act, at section 74 3(b), requires the Central Bank to take several relevant factors into consideration in determining whether to issue a permit for entities to take control of licensed financial holding companies, including:
“The size and concentration of economic power in the combination of the proposed acquirer and the licensee, holding company or the financial holding company of the licensee.”
And the Financial Institutions Act, at 74 (4) states:
“In considering the criteria referred to in subsection (3)(b), the Central Bank shall take into account, without limitation—
(a) the combined market share in Trinidad and Tobago of the licensee and any financial entity affiliated with the licensee, the proposed acquirer and any financial entity that is affiliated with the proposed acquirer.”

What this means is that given Corporation Sole’s 60 per cent shareholding in the First Citizens Group, it would be almost impossible for the Central Bank to allow the State to effect control of RFHL by way of a majority of directors on the financial holding company’s board;

2) Section 99 of the Companies Act requires all directors to act honestly and in good faith with a view to the best interests of the company and to exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances.
In determining what are the best interests of a company, directors are called upon to regard the interests of the company’s employees in general as well as the interests of its shareholders.
Section 99 (3) states: “The duty imposed by subsection (2) on the directors of a company is owed by them to the company alone; and the duty is enforceable in the same way as any other fiduciary duty owed to a company by its directors.”

In my view, the language in section 99 (3) of the Companies Act requires all directors “to bring independent and unbiased judgment to board deliberations, especially in areas where the interests of management, the company and its shareholders may diverge,” according to the 2013 T&T Corporate Governance Code.

This means that even though in 2022, the NIB nominated Unit Trust Corporation executive director, Nigel Edwards, to the Massy board and in 2023, the NIB nominated retired accounting executive, Colin Soo Ping Chow to the RFHL board, both men are considered to be independent, non-executive directors.

Neither Massy nor RFHL even disclosed that these two eminent gentlemen “represented” the NIB’s interests or that they were nominated by the NIB.
Can Mr Edwards and Mr Soo Ping Chow represent the interests of the NIB on the Massy and RFHL boards?

Yes they can, as long as they seek the “best interests” of those companies and they bring “independent and unbiased judgment to board deliberations.”

Should, for example, Corporation Sole seek to nominate a representative to sit on the OCM board at its upcoming general meeting?

 

 

 

TTUDEOCL sues NiQuan over US$22,275,711 debt

2024,  01/21

In response to questions from Opposition MP David Lee, Energy Minister Stuart Young confirmed that NiQuan Energy Trinidad Limited (NiQuan) owed US$22,275,711 to the Trinidad and Tobago Upstream Downstream Energy Operations Company Limited (TTUDEOCL), as of July 31, 2023,

TTUDEOCL terminated its contract with NiQuan Energy Trinidad Limited (NiQuan) in August 2023.

: “No money is owed to the TTUDEOCL by the National Gas Company of Trinidad and Tobago Limited (NGC) as of October 31, 2023. TTUDEOCL, in accordance with provisions under its contract with NiQuan, terminated the said contract in August 2023 due to non-payment of invoices. This matter is now the subject of active legal proceedings between TTUDEOCL and NiQuan and thus sub judice.”

On the fuel subsidy, Young said:

“For the period October 1, 2022 to September 30, 2023, diesel and kerosene attracted a subsidy at the pump. For the period October 1, 2022 to September 30, 2023, the value of the subsidy paid for diesel fuel was TT$1,095,956,361.

For the period October 1, 2022 to September 30, 2023, the value of the subsidy paid for Super gasoline was TT$9,552,519.00 (subsidy was generated in August and September 2023).”

For the period October 1, 2022, to September 30, 2023, the value of the subsidy paid for Premium gasoline was zero dollars.

For the period October 1, 2022, to September 30, 2023, the value of the surplus earned from the sale of diesel fuel was zero dollars.”

• For the period October 1, 2022, to September 30, 2023, the value of the surplus earned from the sale of Super fuel was TT$152,852,325.
• For the period October 1, 2022, to September 30, 2023, the value of the surplus earned from the sale of Premium fuel was TT$119,803,658.

“The net subsidy paid by the Government on all motor fuels for the period in question was, therefore, $832,852,897. The subsidy and rebate for LPG (cooking gas) for the period in question was $270,904,007, for a grand total of $1,103,756,904 in subsidy of petroleum products in fiscal 2023.

“Additionally, in fiscal 2022, the total subsidy on motor fuels was $2,406,657,492 and the subsidy and rebate for LPG was $362,200,914 for a grand total of $2,768,858,406 in subsidy of petroleum products in fiscal 2022.

Over $500 million of the $2.738 billion liability for the subsidy in fiscal 2022 rolled over into fiscal 2023.”

 

 

 

CoE hits Paria neglect of grieving families

Bereaved families of the victims of the Paria diving disaster were not well treated during the incident and in the aftermath, lamented the report of the Commission of Enquiry into the Paria tragedy, laid in the House of Representatives.

The report drafted by enquiry chairman Jerome Lynch, KC, said the Director of Public Prosecutions (DPP) should consider charging the Paria Fuel Trading Company with corporate manslaughter, while the company and its contractor LMCS might also be charged under the Occupational Safety and Health Act.

On February 25, 2022, five workers – Christopher Boodram, Kazim Ali Junior, Fyzal Kurban, Yusuf Henry and Rishi Nagassar – were repairing a 30-inch pipeline at Pointe-a-Pierre but were sucked in by a pressure differential called a delta P, with only Boodram escaping to later recount the tragedy to the commission.

The report detailed the causes of the accident plus Paria’s disallowance of unofficial rescue efforts arguably to prevent more deaths.

Families neglected

Endorsing a call made by Lynch at a recent news conference, the report’s recommendations called for families in such types of crisis to be helped financially.

“Lastly, in situations where families have had their loved ones and breadwinners snatched away from them in circumstances such as these or any tragedy, real consideration needs to be given to assisting the families in the immediate aftermath of the incident to help them with the financial burden that they have been catapulted into.” Such help is not an admission of liability but simply a recognition that such families need help, the report said.

The report at length lamented Paria’s treatment of the victims’ families, both during the tragedy and afterwards. On the day of the incident the victims’ families were denied entry to the Paria compound, with Nagassar’s wife Vanessa Kussie having to resort to trying to get information from people leaving the compound. It was only a day later that Paria met the families.

“It is the view of the commission that the way in which the families were treated was insensitive and frankly uncivilised The failure to keep them informed, especially during the first 12-24 hours, was shocking, as was the failure to look after them.”

Even in a car park, Paria ought to have provided basic shelter, toilet facilities, food and water.   There must be a proper procedure to keep families updated.

“Companies that operate in dangerous environments must have a protocol for dealing with the families of victims of industrial accidents and incidents. Additionally if there is a prospect of delay or a rescue attempt to be made, providing sanctuary away from the public and the media to the immediate relatives, on site, seems to us not to require any protocol, just common humanity.”

The report detailed the liability of Paria and LMCS by way of failing in their respective duty of care towards the dead employees. While the Coast Guard had said their divers were not trained to rescue the men from the pipeline, the report said officers had failed to talk to commercial divers on-site.

The report alleged two Coast Guard officers had ignored calls to meet ahead of the hearings and later declined to give adequate statements until a subpoena resulted in one officer complying. With a witness alleging a Coast Guard member had pointed a gun to stop a diver attempting a rescue dive, one officer claimed Coast Guard members did not have guns but another said they did, the report related.

“It is our understanding the coast guard are routinely armed,” the report concluded.

The report also criticised the long time taken to seek cameras, when in fact some details were already known about pipe conditions, and commercial divers were on-site. Simply blaming LMCS for not anticipating the delta P incident did not exclude Paria from any responsibility after the accident, the report said, recounting that Paria exercised its control of the site.

“No rescue attempt could have been undertaken without their approval.”

The report rejected as “mischievous” Paria’s claim that it could persuade no independent diver to enter the pipe. It deemed one manager “evasive and less than candid.”

Causes of accident

Earlier, the report examined the circumstances before the accident, including oversight of the site and the responsibilities in undertaking the clearing of fuel from the pipeline.

Noting Paria and LMCS had both said they wanted only the correct, partial clearing of the line undertaken to create a space, the report said an independent expert should have overseen this.

On the fateful day, the site was overseen by a technician who missed a requisite toolbox meeting and was on the job only six months. The report said both Paria and LMCS had a duty of care to the workers. Both showed significant organisation weakness in managing diving.

After the accident both had a duty to try to rescue the men, including the duty of anyone who contributed to creating life-threatening circumstances. LMCS clearly had a duty to its workers, while for Paria the men were not trespassers but had been invited onto the site to do work.

“Paria made little or no attempt to rescue in that they failed to manage and co-ordinate the resources that were available. While LMCS’ divers were willing and prepared to attempt a rescue of the men from the pipeline, they lacked co-ordination and were prevented from doing so by Paria.”

The report cited 11 failings of Paria in this duty to rescue.

This included spending three hours in open-water searches despite having information the men could be in the pipe, spending so much time seeking video footage that it became too late to attempt a rescue, failing to seek information from Boodram and a diver named Farah and failing to use/consult an array of divers on-site. The report recommended ways to bring better standards to diving and industrial work practices in Trinidad and Tobago.

Widow of Paria diver seeks compensation for life

One of the widows of the four divers believes it is time for families to be compensated for their loss, after the report of the Commission of Enquiry into the Paria diving tragedy found state-company Paria Fuel Trading Company culpable of “gross negligence,”

On February 25, 2022, five divers employed by Land and Marine Contracting Services (LMCS) – Fyzal Kurban, Kazim Ali Jnr, Yusuf Henry, Rishi Nagassar and Christopher Boodram – were sucked into a 36-inch pipeline at Berth No 6 at Pointe-a-Pierre. Boodram was the lone survivor.

The 520-page report was laid in the House of Representatives by Energy Minister Stuart Young. It contained 52 recommendations and suggested the Director of Public Prosecutions should consider charging Paria with corporate manslaughter based on its “gross negligence.” The report also blamed both Paria and LMCS for the cause of the tragedy, in which a gush of water suddenly sucked the men into an undersea pipeline after a pressure differential known as delta P.

Vanessa Kussie, widow of Rishi Nagessar, said the company should now support all the families affected by the tragedy for the rest of their lives.

“They haven’t given us anything. And they’re supposed to treat us now as if we were one of their families. And when someone is taken away from you – and my husband was taken away, he didn’t go to work to die – so we have to get full pay for life. Compensation for life. We must get it full. They (Paria) must take care of all our children.

“I want to right now really focus on the families as immediately as possible. Because right now all of us are suffering. We don’t know how our bills are being paid. They need to really do something for the families, put something forth.”

Although not explicitly stated in the report that compensation be paid to the families, recommendation 38 said such a mechanism should be considered for similar incidents.

“In situations where families have had their loved ones and breadwinners snatched away from them in circumstances such as these, or any tragedy, real consideration needs to be given to assisting the families in the immediate aftermath of the incident to help them with the financial burden that they have been catapulted into. This does not have to involve any admission of liability, merely the recognition that the families of those who have died or been seriously injured may need help,” the report said.

Attorney Prakash Ramadhar, who represented the Kurban family and the daughter of Yusuf Henry in the CoE, said he will be seeking compensation for his clients. He said they previously issued pre-action protocol letters to both Paria and LMCS with the former denying any liability in the incident.

“So, now that we have had the benefit, all of us, of the (CoE) report…Paria being a state entity at the very least, we will be writing to them another pre-action protocol with a request for an ex-gratia payment in lieu of litigation. It is necessary to put the families in a better place because of the torture they have already undergone and if you could avoid litigation that will be long and difficult, I think that would be the best thing. And according to the chairman himself, it will be the decent thing to do,” he said.

If the company refuses, he said they will not hesitate to file an action in the High Court against both Paria and LMCS. Ramadhar explained there is a formula used by the courts to quantify compensation in such matters, which includes taking into account the income the family is deprived of with the loss of the breadwinner.

Friend of the affected families Kevin Lalchan said the families have been struggling to survive since the incident with some even resorting to fundraisers to help pay bills.

“From since then to now the families have not gotten one cent from the government or any sort of compensation from Paria.”

Receiving counselling, Boodram is unable to work as he struggles to get over the tragedy which constantly replays in his mind and he has problems sleeping.

The report also concluded there is evidence to justify the prosecution of Paria’s operations manager Colin Piper and LMCS managing director Kazim Ali Snr (whose son died in the tragedy) individually for several offences under the Occupational Safety and Health Act.

However, neither Boodram, Lalchan nor Kussie believes Ali Snr should face charges, especially as his son was among the divers who died. Lalchan said he is pleased with the report’s findings and believes it could set a precedent for any future incidents.

In Parliament, Young said the report was forwarded to the DPP who will now determine what charges, if any, should be pursued.

Kussie believes the company’s board needs to be removed.

“They are carrying on their lives like nothing has happened and they are working. Work is going on like normal in Paria. While we, the families, are the ones suffering. Our children are suffering as well. They have taken the breadwinners of our families. This cannot be laid (sic) under the carpet…justice has to be served.”

UNC Mayaro MP Rushton Paray urged the Prime Minister to immediately remove the directors. He said the report’s “damning revelations” requires Dr Rowley’s immediate action. The findings exposed “severe lapses in duty and glaring incompetence within the board and senior executive management of Paria. The government’s foremost responsibility now is the prompt removal of directors, irrespective of their political affiliations.”

Paria’s board of directors are Newman George (chairman), Fayad Ali, Avie Chadee, Peter Clarke, Eustace Nancis and Reza Salim.

Paray said Rowley must not use the review of the report by the DPP as a shield, “recognising the eroded public trust in Paria’s administration since the tragic industrial accident claimed innocent lives.”

He urged the Prime Minister to publicly commit to the expeditious implementation of all 52 recommendations from the commission’s report. He said the accident and subsequent loss of lives left an indelible stain on the industrial landscape, warranting the immediate removal of Paria’s corporate leadership.

When contacted, George said he was not in a position yet to comment as he had not finished reading the report. The Energy Minister and Prime Minister did not response to questions sent via WhatsApp.

 

 

 

 

TT Energy Chamber welcomed the report being made public.

“Sharing the lessons gathered from this incident is critical for the prevention of similar events in the future. The detailed findings of the commission will be studied over the coming days and weeks by stakeholders in the energy industry and the Energy Chamber remains committed to playing a positive role in improving safety in the energy industry and across the country.”

Investigate Paria for corporate manslaughter

2023,  12/31

The Paria Fuel Trading Company Limited should be investigated for corporate manslaughter. It is one of the recommendations from the 380-page report produced by Jerome Lynch, KC, chairman of the Commission of Enquiry (CoE) into the Paria pipeline tragedy which led to the deaths of four divers on February 25, 2022.

It echoes the call made by attorney Prakash Ramadhar, who represented the bereaved families, at the conclusion of the CoE. “So I move against my inner instincts that there should be criminal prosecution recommended in this matter,” Ramadhar had said in his closing argument.

The divers–Rishi Nagassar, Kazim Ali Jr, Fyzal Kurban, Yusuf Henry, and Christopher Boodram, employees of the Land and Marine Construction Services Ltd (LMCS), were sucked into a 30-inch underwater pipeline after a differential pressure (Delta P) event occurred while they were doing maintenance work at Berth No 6 in the Pointe-a-Pierre harbour.

During the CoE, Paria had claimed it did not know the divers were in the pipe between 2.45 pm and 5.30 pm on the day and only became aware when Boodram emerged. Paria did not allow a rescue mission for the other divers and Boodram was the sole survivor in an ordeal which lasted five days.The deaths and the public furore which followed led to the Commission of Enquiry which cost the country $15.5 million.

Despite the recommendation to investigate Paria for corporate manslaughter, the crime of corporate manslaughter is not codified in T&T’s legislation. However, such a charge is possible in common law.   Common law is not old law, it is law that the Commonwealth adopted and can implement in the respective jurisdictions under existing laws.

Lynch’s recommended that LMCS implement stringent measures to ensure all divers are of a certain accreditation. Furthermore, there should be laws that mandate companies have those measures in place for all their workers. That recommendation echoes a call made by Gilbert Peterson, SC, Paria’s attorney, during his closing statement. In his final press conference, Lynch said it remains factual that in an industry inherently dangerous in its operations, there are no compulsory standards in this country.

The CoE report, was submitted to President Christine Kangaloo on November 30 and was sent to the Director of Public Prosecutions, Roger Gaspard, for his consideration. A Cabinet source said,

“The report has far-reaching consequences so as a result it was decided that the report be sent to the DPP,

Prime Minister Dr Keith Rowley has given his commitment to lay the complete report in Parliament after it is reviewed by Cabinet. The report will also be part of a discussion by the Joint Select Committee on Land and Physical Infrastructure whose members are Saddam Hosein, Kennedy Richards, Lisa Morris-Julian and Symon de Nobriga.

Lynch had said the tragedy was “no act of God” and that everyone should ensure it never recurs.  “We understand there is a desire not to accept liability lest that should incur financial responsibility in some civil suit at some later stage, but these men, as I said, already did not die by accident. What they and their families are left with is the posturing of the potential parties, perhaps challenging the very findings of this inquiry before they start fighting with each other, each insisting that they got nothing wrong, This report pulls no punches. It is our honest appraisal of the facts as we see them. There may be those who will be disappointed. There may be those who will be outraged and those who will wish to challenge it.”

Board members of Paria are Newman George (chair), Fayad Ali, Avie Chadee, Peter Clarke, Eustace Nancis and Reza Salim.

How Paria defended itself through the tragedy :

On May 10, Paria issued a press statement that it welcomed the Government’s decision to establish a CoE and it looked forward to “presenting the facts on the incident” at its facility in Pointe-a-Pierre.

“With respect to the media release dated March 07, 2022, Paria also takes this opportunity to clarify and reinforce that the decision to prevent further entry by LMCS divers into the 30” pipeline during the search and rescue exercise on Friday 25 February 2022 was made by Paria and supported by the T&T Coast guard and other external experts. OSH is currently conducting its own investigation into the incident and Paria is fully committed to making available all relevant documents and information to the investigating team, and we look forward to the completion of the investigation.”

During the CoE, both Paria and Heritage Petroleum wrote to Lynch accusing its commissioners of displaying “apparent bias.” For his part, Lynch “wholeheartedly” rejected the allegations.

“Both suggested they have been unfairly treated and that the commissioners, I suspect, primarily me, have displayed an apparent bias and that we should be recused,” Lynch had said.

During the CoE, Paria’s employees came under scrutiny.
Michael Wei, technical and maintenance manager at Paria, said the company did not want to risk more lives and feared any would-be rescuers might suffer a second Delta P event.
Collin Piper, terminal operations manager at Paria said he thought the unofficial would-be rescuers were too “emotionally charged” to enter the pipeline.

“My assessment was that it would not be a prudent decision to make with a group who are emotionally charged, who have never done anything like this before, who have no training to do anything like this.”

At the close of the CoE, Paria’s attorney Gilbert Peterson, SC, in a callous comment, said Paria had no legal responsibility to rescue the five divers and that the company’s only obligation was to support emergency and action rescue plans LMCS had for its employees.

Peterson had argued that Paria’s actions were wholly reasonable, given its operating conditions following the incident and that the resources available and the safety potential for proposed rescuers were live issues for Paria’s decision-makers. Paria’s knowledge of the pipeline condition was inadequate, unaware of the location and state of an inflatable plug and the divers.

Peterson said at the time Paria had engaged multiple specialist service providers: Eastern Emergency Response Services, Mitchell’s Professional Diving Services Company, HHSL Safety Systems Ltd, Hull Support Services Ltd, Subsea Global Solutions and Offshore Technology Solutions Ltd as well as assistance from Heritage Petroleum personnel and the Coast Guard.

None of these wanted to enter the pipeline.

• • • • The Coast Guard advised that its divers did not possess the training or specialist equipment. Eastern’s confined space technicians could not undertake a diving rescue.
      • Mitchell’s found the risk too high.

Peterson had described Ramadhar’s recommendation for criminal prosecutions of Paria personnel as outrageous.
“I wish Mr Ramadhar was here because I wanted to describe his invitation to the commission for criminal proceedings against Paria and its personnel as outrageous as the evidence did not support this.

It may grab a good headline. It may grab the newspaper front page, but on the evidence: it cannot be supported. There is no evidence here of anything close to criminal conduct,” Peterson had said.

Corporate manslaughter

The law, which came into effect in the UK in April 2008, makes Section 1 of the Corporate Manslaughter and Corporate Homicide Act an offence where a government entity or a company is found to have caused the death of someone through negligence.

According to the Crown Prosecution Service, the UK’s DPP office, corporate manslaughter is an offence that was “created to overcome the limitations of the common law offence of gross negligence manslaughter as applied to companies and other incorporated bodies.

Under the common law, in order for a company to be guilty of the offence it was necessary for a senior individual who could be said to embody the company (also known as “the controlling mind”) to be guilty of gross negligence.”

Under the new law, the controlling minds, the board, the company, or the government agency can be held criminally liable. The UK sentencing review committee prescribed that companies found guilty face a fine between $1.5 million (TT) to $171.8 million (TT) or a percentage of the company’s worth, depending on its financials.

 

 

 

 

PM silent on Paria CoE report

2024,  01/23

As he toured the trade show at TT Energy Conference with Rectrix Drone Services managing director Anthony Vieira,and Energy Minister Stuart Young, beleaguered Prime Minister Dr Keith Rowley remained reticent on the Commission of Enquiry (CoE) report into the Paria Fuel diving tragedy.

Pressed for a response to relentless calls for action against the company and the firing of its board, his chilling reply was, “The commission has reported. The report of the commission of enquiry is available to the public.”

As the Prime Minister remained tight-lipped, the Opposition is doubling down on calls for him to sack the board where his colleagues work. Opposition leader Kamla Persad-Bissessar urged Rowley to fire all executives, including Fayad Ali, Avie Chadee, Peter Clarke, Eustace Nancis, Reza Salim and Paria chairman Newman George.

In her opinion, firing the board is not where justice will be served. She also demanded removal of Minister of Energy Stuart Young, the line minister with overall responsibility of Paria and chairman of Paria’s parent company, Petroleum Holdings Limited, Michael Quamina, Rowley’s personal lawyer.

“His (Quamina) role in this fiasco should not be underestimated and also justifies his immediate removal given his failure to intervene and take decisive action to save the lives of these men. Minister of Energy Stuart Young must also be fired because he does not have the decency to tender his resignation. The Westminster System of parliamentary democracy is such that the buck stops with the line minister with overall responsibility for Paria. We cannot forget Minister Young’s presence at the scene of the crime when, instead of instructing Paria to mount a rescue effort, he joined with them in public relation stunts and gimmicks that were designed to do political damage control and save face for the PNM.”

Young said the report had been sent to the Director of Public Prosecution (DPP) Roger Gaspard, who will now peruse the document before making a decision on whether the CoE’s recommendation that Paria face corporate manslaughter charges is valid.

Persad-Bissessar believes passing the report to the DPP office is not enough. Instead, she insisted Rowley explain to the public what steps the Government intends to take to ensure the multi-million dollar CoE will not go to waste.

The Opposition leader is not the only one wanting an example to be set.

At the energy conference, one of the CoE’s key experts, Chief Executive Officer (CEO) of Corr Tech Limited Zaid Khan, said the findings are most appropriate and the authorities should set an example.

“The findings are most appropriate and relevant to what happened. A lot of people on this island are really concerned about what will happen. Some examples should be set by the authorities to ensure that the managers and people who have power in the industry be more au courant with what is going on within their realm, so when situations of distress arise, people can make appropriate recommendations to alleviate the problems that arise. And you can only make good decisions if you are competent enough and you are skilled enough to do what you’re supposed to do.”

“I was one of the key experts in the Paria incident and I clarified the issues that were confusing to both the legal and professional people…I took my time and developed a model so that people can understand exactly what happened in the Commission of Enquiry.”

 

 

 

Money, compassion will help LMCS families

2024, 01/23

In the cover letter sent to President Christine Kangaloo along with the report of the Commission of Enquiry into the Paria Diving Tragedy, chairman Jerome Lynch, KC, said he could not forget the words of 11-year-old Aliyah Henry, daughter of diver Yusuf Henry, killed in that tragic accident. She she “prayed and prayed” for her father and his colleagues to be safe and went to the scene of the accident in Pointe-a-Pierre “praying for a miracle” that did not happen.

Those words should be a strong enough reminder that the heartbreaking human dimensions of that accident extend beyond the deaths of those men and include the nightmare being lived by the lone survivor, Christopher Boodram and the children, widows and loved ones the divers left behind.

The report of the CoE confirms the extent of the negligence, insensitivity and ignorance that shrouded the incident from the start.

Predictably, there have been cries for the toughest of penalties, including the sacking of the entire Paria board, in addition to the actions already recommended in the report. Some of the tumult, unfortunately, will not hasten the delivery of justice and will only serve to turn this tragedy, which has riveted the nation for close to two years, into a political football.

It is up to Director of Public Prosecutions Roger Gaspard to determine what will be the next steps, given the findings of the CoE “that there are sufficient grounds to conclude that Paria’s negligence could be characterised as gross negligence and consequently criminal.”

That action will focus on Paria, as well as officials of the state-owned energy company and LMCS identified in the report.

It is time to spare much more than a thought and a prayer for the families of the divers who have not yet had the opportunity to recover from the deep pain and loss inflicted on them on February 25, 2022.   The depths of their bereavement are difficult enough to fathom but there is the added appalling twist of the “insensitive and uncivilised” way they were treated by officials of Paria, as documented in the CoE report.

“The failure to keep them informed, especially in the first 12 – 24 hours was shocking as was their failure to look after them. They should have been provided with basic shelter, toilet facilities and water and food ought to have been provided by Paria to comfortably accommodate them.

There is a recommendation that “real consideration needs to be given to assisting the families in the immediate aftermath of the incident to help them with the financial burden that they have been catapulted into.”

Almost two years later, with very little done to help these families heal, especially by Paria, this should become an urgent priority that should extend well beyond the financial compensation being sought by attorney Prakash Ramadhar on behalf of the families.

For them, justice will have to take various tangible forms, in addition to social and psychological support that is essential for them to heal and achieve closure, which has been elusive because of the very public way this tragedy has been handled.

OWTU seeks tough action against Paria

Members of the OWTU in San Fernando demanded action after the Paria drowning report was laid in Parliament.

The Oilfield Workers’ Trade Union held a news conference at the Paramount Building, San Fernando, to demand that the CoE’s recommendations be implemented and not left to collect dust, and for the Director of Public Prosecutions (DPP) to be effectively resourced to carry out the tasks before him. OWTU members urged legal action to be taken against the board of directors and management of Paria Fuel Trading Company arising from the commission of enquiry (CoE) report on the deaths of four divers in an undersea pipeline in February 2022.

President- general of OWTU Ancel Roget said firing them was not good enough, noting the CoE’s recommendation for a charge of corporate manslaughter against the state-owned company. It did not recommend criminal charges against any company official. Roget said while corporate manslaughter seems to be the focus, stronger action should be considered against individuals named in the report, which cannot be the end of this incident and such a tragedy must never happen again.

“The buck must stop here.”

The board is led by chairman Newman George. Roget argued, “’Corporate’ is not the building. It is not the logo. ‘Corporate’ is the people who are at the top of the management of Paria. It is about people who prevented people from rescuing people.”

He said failure was a recurring factor throughout the report. In the February 25, 2022 incident, four divers – Fyzal Kurban, Kazim Ali Jnr, Yusuf Henry and Nagassar – died after they were sucked into a pipeline at Pointe-a-Pierre. They were hired by LMCS Ltd, owned by Kazim Ali Snr, the father of Kazim.

The CoE did recommend industrial relations charges under the Occupational Safety and Health Act against Paria incident team commander Colin Piper, LMCS and Kazim Ali Snr. It said the Occupational Safety and Health Agency (OSHA) has until February 24 to initiate such proceedings before the Industrial Court.

Roget asked the media to picture the chilling situation from the testimony of lone survivor Christopher Boodram, who got out and told Paria personnel his four comrades were still alive and no effort should be spared to rescue them.

“For hours and days he continued to hear the knocking in the pipeline to indicate people were alive, and, to the extent that Paria even instructed the Coast Guard to prevent the rescue, they are culpable.”

Had there been a union presence at Paria, that incident could have been prevented.

“The blood of those four divers is on the hands of Dr Keith Rowley, (the late) Franklin Khan and Stuart Young and all who supported them to reorganise Petrotrin and have one of the most unsafe operations in TT today. Even in the fields and offshore, there are no regulations.”

He said the greatest achievement of these leaders was to get rid of the trade union from the industry. He concurred with King’s Counsel Jerome Lynch’s finding that the behaviour of Paria in leaving the divers’ families camped out in the car park for hours and days without facilities or information, while their relatives languished in the pipeline, was unforgivable.

“Business cannot continue as usual in TT after that damning report.

“We enjoin ourselves to the overwhelming call by right-thinking citizens for the removal of the Paria board. They must take full responsibility,” he said, chastising the board for not resigning or taking a leave of absence while the investigation was taking place.

Roget said while there is talk about criminal prosecution being statute-barred, he submitted that the State had a responsibility, in addition to what the DPP is looking at, to take civil action against those responsible, as a matter of urgency and in the public interest. He again sought adequate compensation for the survivors of the victims, who had gone without bread on their tables since their breadwinners died tragically.

Roget also advocated for proper and permanent staffing and operationalisation of the OSHA which he said is starved of inspectors and other personnel who are on contract.

Councillor Vanessa Kussie, widow of the diver, Rishi Nagassar, was at the news conference.

 

 

 

 

OWTU: Publish NiQuan fire report

January 22

At a news conference to comment on the report of the commission of enquiry into the Paria tragedy in which four divers died in an undersea pipeline at Pointe-a-Pierre, Ancel Roget, President- general of the Oilfield Workers Trade Union (OWTU) demanded that employers be held accountable for the deaths of employees due to failure to make their workplaces safe.

Now that the Paria report has been made public, the OWTU is demanding the same treatment for the investigation into a fatal NiQuan Energy Trinidad Ltd (NETL) incident.

In June 2023, Allanlane Ramkissoon, 35, a pipe fitter with Massy Energy Engineered Solutions Ltd (MEES), was working on the gas-to-liquids plant at the mothballed refinery at Pointe-a-Pierre. There was a fire at the NiQuan plant and Ramkissoon suffered burns over 60 per cent of his body. He was flown abroad for treatment, but died on June 18.

Investigations were initiated by the Ministry of Energy, the Occupational Safety and Health Agency (OSHA), and NiQuan. OSHA temporarily shut down the plant.

In the Senate in December, Opposition Senator Wade Mark asked Trade and Industry Minister Paula Gopee-Scoon – speaking on behalf of Energy Minister Stuart Young – about laying the NiQuan report in the Parliament. Gopee-Scoon said then the matter was sub judice and the report would not be laid in the Parliament.

To Mark’s call for laying the root cause analysis (RCA) report on the incident in Parliament, Gopee-Scoon replied that the report was commissioned by NiQuan Energy Trinidad Ltd, a private company, and hence the report was not the property of the Energy Ministry but subject to the control of NETL with respect to its circulation and distribution.

“The ministry is not at liberty to disclose the contents of the report, nor its authors, as to do so would open the ministry to liability and potential litigation,” she said.

Roget said this incident resulted in a fatality and someone must be held accountable.

“People die while providing for their families. The only act they commit is to go to work to try to put food on the table for their families. Employers, having not taken up their duty of care as defined in the Occupational Safety and Health Act (OSHA), ensuring their workplaces are safe cause people to die, and nobody is held accountable.

“I want to remind the Trinidad and Tobago public about that death, that fatality, that accident that took place at NiQuan not too long ago. They (NiQuan) continue to hoard and hold very close to their chests the investigation and the report.”

Roget recalled that NiQuan was composed of “public assets that were carved up and given in to all kinds of questionable arrangements.” Pointing out the absence of a union presence there, Roget noted the lack of accountability in such a situation.

“A worker died, but you heard nothing. We also want to call for the producing of that report into the enquiry of the NiQuan worker’s death.”

Ramkissoon was the breadwinner for his widow Sarah and their children, and financially supported his parents, Danny and Christine Ramkissoon.

Ramkissoon’s sister Ruthlane Ramkissoon-Gobin also called for the report to be made public, or at least made available to the family so they can have closure.

“The report will not bring him back, but at least it will give us some comfort.”

In July, Allanlane’s widow, through her attorneys, wrote to MEES demanding a comprehensive report on the accident.

 

 

 

 

Residents evacuated after Mayaro mud volcano erupts

2024,  01/12

Three families were evacuated overnight after at least one vent of the Cascadoux Mud Volcano erupted in Mayaro. A team from the University of the West Indies Seismic Research Centre is expected to visit the site later today.    Cocal/Mafeking councillor Renelle Kissoon confirmed that the track leading to the site has been cordoned off.

The activity came from new vents and one was spewing mud at least 15 feet into the air. In a telephone interview , Kissoon said around 11 pm the residents contacted the Mayaro Rio Claro Regional Corporation’s Disaster Management Unit . The DMU, the Hunters Search and Rescue Team, TTPS and Fire Service visited the site.

“No families were directly affected. However, three families were evacuated as a safety measure because of their proximity to the mud volcano and the activity.

At one point the mud that was shooting out , going up a little above 15 feet and it would have been hot and spewing all over the place. So just as a safety measure we would have relocated them,”.

Kissoon said the DMU has not officially activated any shelters in the region, but they would be checking with the families to ensure that they were comfortable at the homes of neighbours and/or close families with whom they were staying.

Depending on the findings of the Seismic Research Centre, she said they would then decide when the families would be able to return to their homes and the next step going forward.

Hunters Search and Rescue Team Captain Vallance Rambharat said they are monitoring the situation and were ready to respond if needed.

 

 

 

 

bpTT cancels pan space over ‘security concerns’

 

Citing “insurmountable security concerns,” bpTT confirmed that it has decided not to proceed with plans for a proposed activity in the Savannah as part of its support of the steelband, after a risk assessment.

bpTT said it had been discussing with the National Carnival Commission (NCC) a proposal for use of a small area of the Savannah opposite bpTT’s head office during the Carnival season.

“The proposal was a new initiative as part of bpTT’s overall support for pan. It would have included a designated public space highlighting steel pan music, including performances by steel bands, all open to the public.

“Having fully risk-assessed this activity, we took the decision to not move forward with the activity at this time. This was communicated directly to the NCC via email.”

It noted with concern that a private e-mail between a company representative and the NCC has been circulating on social media.

The e-mail, confirmed by bpTT, said, “BPTT has noted the recent uptick in gun-related incidents in Port of Spain and environs, which has resulted in the death of a number of persons. We have noted with grave concern the murder in the Queen’s Park Savannah over the weekend in the vicinity of the booths that are being erected for Carnival – this being the area that we were looking to collaborate with the NCC on for creation of the pan-related Carnival space opposite our office.”

Shortly after 1 pm on Sunday, a labourer erecting Carnival vendors’ booths in the Savannah opposite bpTT was shot dead by four men with automatic rifles.

BPTT explained, “This has prompted internal risk reviews and consultations with our security team, and our business has concluded that the rise in criminal activity and this recent murder in the Savannah makes it impossible for us to move forward with this project.

“We, therefore, regrettably have to rescind/reverse our decision to partner with the NCC to establish the pan performance space.”

The e-mail said bpTT was disappointed in the outcome and thanked NCC for its willingness to partner with it to make the idea a reality.

“We apologise for all inconveniences caused and look forward to a safer time in our nation to be able to revisit.”

bpTT said its commitment to the support of culture and for the national instrument remains unwavering, and it would continue its customary support for Carnival 2024 and beyond.

 

 

 

 

New political party plans launch in San Fernando

Political leader, Tim Hamel-Smith, confirmed his HOPE Party is here to stay and is unfazed by the PNM/UNC duopoly of TT politics.

HOPE, acronym for Honesty Opportunity Performance Empowerment, will hold its South Trinidad national launch on December 9, from 2-6 pm at Paria Suites, San Fernando.

Asked why another party and what was special about HOPE, Hamel-Smith, a former senate president under the People’s Partnership, replied,

“That’s a fair question. I’m sure a lot of people have that in mind. You put it in the context of other parties, some of which have dissipated. We think of HOPE as putting down the foundation of an institution that will be here hopefully for generations to come. Even though we’ve been around for a couple of years, we took the time to put the roots down, and the structures that we feel will stand in good stead for many years to come, for a new generation of leaders to emerge.”

The party’s current leaders felt the most important thing was to ensure new leaders would emerge in succession to them when the time comes.

“I think therefore that the structure of a party is very important. If all you’ve done as a party is to say ‘We want to win an election,’ I think that – because it’s not easy out there – when the rains come and the storms blow, you will – as many of our predecessors have found out – flounder and sink.”

Hamel-Smith said the first thing HOPE did was set down its vision, mission, principles and values, so anyone joining would be aware of these. Asked what positives could it learn from other past/present parties, instead of reinventing the wheel, Hamel-Smith replied:

“One of the first key things the PNM did – and in a way we are establishing something of that nature – is to set down political party groups. They were your roots. If your roots don’t go down, your tree will fall.”

He said PNM party groups, when first established, were not just an assemblage of people, but had real influence via their delegate system.

“We looked back at old constitutions of the PNM in trying to come to where we are. We recognised that pivotal to your staying the journey over the long term is to have these grassroots with your party groups, who were then allowed to send delegates.”

He said delegates believed they had a say and could make a difference.

“Not only are we a force in ourselves, but could make a difference at the top level.”

Louis Lee Sing, a former PNM member and Port of Spain mayor, felt the PNM was now no different tfrom the UNC. He alleged the PNM’s focus was now on picking up votes but not on the party’s internal health.

“How many general council and central executive meetings were held this year? What’s the education committee up to ? And the labour committee?”

On the proliferation of parties, he said you wouldn’t say there are thousands of lawyers, so you won’t become one.

Hamel-Smith said HOPE will have representatives in each community to gather local people to exert influence within the party.

“Our assessment is that people don’t have hope in the PNM and UNC. They see the country sinking, crime taking over and the gangs in charge.

“HOPE feels we can make a difference. HOPE arises at a time that the country is crying out for change.”

He said the country could soon see a “1986 moment” again, referring to the NAR beating the PNM overwhelmingly. Saying a sense of corruption has permeated society, he said this must be tackled before crime.

“Each person should get the opportunity to fulfil. TT has potential. We are playing far below our potential.”

Hamel-Smith lamented that people meekly put up with the SEA exam.

Lifting society would not be easy and would take a generation.

Asked if the PNM/UNC duopoly of TT politics was daunting, he said yes. But he added, “If you are just tribally aligned, performance doesn’t matter. We demand nothing of our leaders.”

He urged this be changed.

“If you are content with the status quo, HOPE is not for you. The status quo is taking TT to hell in a handbasket.”

Alleging corruption, he said there was no reason for the PNM or UNC to want to change the status quo.

Lee Sing said, “To all the good people out there: if they don’t get up and demand a better TT, when the anarchy comes we’ll just have to accept it.”

HOPE has come together because TT needs it now but seems dominated by PNM refugees.

Many parents with children studying abroad now tell them, “Don’t return to TT.”

Hamel-Smith added that 20 per cent of UWI graduates are also moving abroad.

“We (TT) have the raw potential, but by itself that means nothing.”