Latest update March 29th, 2024 12:59 AM
Feb 04, 2020 News
…seeks “fair share of revenue” earned from country’s resources
By Kiana Wilburg reporting from Trinidad and Tobago
Trinidad and Tobago’s Prime Minister, Dr. Keith Rowley, told attendees at this year’s Energy Conference, that since assuming office in 2015, he wasted no time in assuming the principle that the State must have a fair share of the revenues earned from the exploitation of his country’s non-renewable hydro-carbon resources.
The conference kicked off yesterday and concludes tomorrow.
As a first step in this direction, Dr. Rowley reminded attendees of the conference which is hosted by the T&T Energy Chamber at the Hyatt Hotel, that his government introduced across the board, a royalty rate of 12.5%. This was followed by a loss relief restriction to 75% of taxable income and a limit of capital allowances to 20% per annum.
Dr. Rowley also noted that his government entered into dialogue with the major upstream companies, bpTT and Shell Trinidad and Tobago Limited, particularly with what was considered the country’s greatest revenue leakage–Liquefied Natural Gas (LNG).
The Prime Minister said, “I am pleased to state that the companies have been receptive to our concerns. On December 14, 2018, the Government executed with bpTT an Agreement for Phase One which dealt with certain legacy issues; extension to its South East Galeota (offshore block) and the life extension of the Atlantic LNG Train One, which provides for a superior LNG pricing arrangement than previously obtained.”
Dr. Rowley added, “The ALNG Train 1 extension was put on hold pending the evaluation by the gas supplier, bpTT, of its gas portfolio.
In the interim ALNG Train 1 has been operating and subject to a safety inspection in April 2020 will continue in operation until year end, at which time a decision will be made on the ALNG Train 1 Life Extension.
Any such extension would make planned downtime on other trains to be carried out without much disruption in the overall sustained output.”
Additionally, Dr. Rowley revealed that the government executed agreements with Shell on gas related issues, commencing with a Heads of Agreement on May 29, 2019 and Definitive Agreements on August 19, 2019 which have provided improved economic and financial benefits to the country.
At present, the Government is in active discussions with ALNG shareholders on an initiative that will revolutionise the LNG industry in Trinidad and Tobago.
It is proposed to restructure Atlantic LNG by bringing the four LNG Trains under the umbrella of a unified entity. The proposed structure will be a more efficient arrangement for management and operations of the Trains.
Government, through its National Gas Company, currently holds 10% equity in Train 1 and 11% equity in Train Four. It is seeking to attain an increased shareholding across the proposed unitised facility.
In tandem with these discussions, Dr. Rowley said that the Ministry of Energy and Energy Industries is currently engaged in negotiations with bpTT on outstanding gas related issues, inclusive of bpTT’s application for the extension of licences.
He said it is anticipated that both sets of negotiations will be substantially completed by the end of the first quarter of this year.
Further to this, Dr. Rowley confidently stated that the energy sector of Trinidad and Tobago is on a solid foundation, as are the emerging oil driven economies of Guyana and Suriname.
The Prime Minister said, “The story is still unfolding as other Caribbean Countries are in the early stages of exploration for oil and gas. This coupled with the improvement in renewable energy technologies present the region with an opportunity to attain the previously elusive energy security.”
Dr. Rowley noted however, that this will require a shift in the policy, which previously centered on exploitation of Trinidad’s abundant renewable energy resources, which he said is an effective tool in combatting climate change and its deleterious effects on the Caribbean.
Given the complexities in the matter, the T&T Prime Minister said there needs to be a collective approach in addressing this matter.
“It therefore needs to be placed on the Agenda on Heads of Government of CARICOM States. I am prepared to advocate the same,” the Prime Minister said.
THIS IDIOT TELLING GUYANA WE HAVE NO SAY IN THE 50% PROFIT SHARING AGREEMENT WE HAVE WITH EXXON.
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