Dear Editor,
In the month of September, 2016 I read in the dailies of Guyana and Trinidad and Tobago that the Guyana and Trinidad and Tobago Governments were planning to sign a Memorandum of Understanding (MOU) as it relates to the Trinidad and Tobago Government providing technical assistance, support and co-operation to help with the development of Guyana’s Oil and Gas sector.
It was also stated in the articles that there were plans to sign a MOU in November 2016 or by the end of 2016 and that the Government of Trinidad and Tobago would provide guidance to ensure that the Guyana Government does not make the mistakes that the Trinidad and Tobago Government would have made in developing its own Oil and Gas sector
In addition it was proposed that a delegation representing Guyana’s private and public sectors would visit Trinidad and Tobago with the aim of observing and discussing the following.
#1. The operations available to support the Oil and Gas sector in Trinidad and Tobago.
#2. Examine the options available for monetizing Natural Gas and
#3. Examine the commercial and fiscal arrangements in place to support the Oil and Gas sector.
As we approach the month of November and the end of the year 2016 I would like to highlight and remind us of the role the following entities play as it relates to the development of the Oil and Gas sector of Trinidad and Tobago.
#1. Petroleum Company of Trinidad and Tobago Ltd. (PETROTRIN)
It is an integrated oil and gas company engaged in the full range of Petroleum operations; exploration, development and production of hydrocarbons; manufacturing and marketing of a wide range of petroleum products. In addition PETROTRIN utilizes Joint Ventures to increase reserves and expand participation in upstream business operations.
The company was incorporated in 1993 and is 100% owned by the Government of Trinidad and Tobago (GOTT).
#2. The National Gas Company of Trinidad and Tobago Ltd (NGC)
It was established to purchase, compress, transport and distribute natural gas to industrial users, there is a heavy focus on the development of the local gas industry of Trinidad and Tobago.
The company was incorporated in 1975; 100% owned by the GOTT.
#3. The Natural Energy Corporation of Trinidad and Tobago Ltd (NEL)
It was established to develop and manage the Marine Assets of Point Lisas as well as managing the LaBrea Estate, which provides marine and infrastructure facilities.
The company is a wholly owned subsidiary of The National Gas Company of Trinidad and Tobago (NGC).
#4. Phoenix Park Gas Processors Ltd (PPGPL): a major natural gas processing company and it was 90% owned by the National Gas Company Ltd of Trinidad and Tobago(NGC) and
#5. Trinidad and Tobago National Petroleum Marketing Company Ltd (NP)
It is a diversified company involved in the marketing of petroleum fuels, LPG and CNG, manufacturing of its own line of lubricants, oils and greases and blends oils for foreign brands as well as provides aviation and marine fuels inclusive of bunkering facilities.
In 2015 PETROTRIN made a loss of approximately ($1.7B)TT; Foreign exchange contribution $434ml TT.
In 2015 National Gas Company Ltd of Trinidad and Tobago(NGC) made a profit of $1.228 B TT; corporate tax of $562 ml TT; Foreign exchange contribution of $677ml TT.
In 2015 Natural Energy Corporation Ltd of Trinidad and Tobago (NEL) made a profit of $493ml TT; no information on corporate taxes or foreign exchange contribution was provided.
In 2015 NP made a loss of ($16.6ml) TT; corporate tax of $6.6 ml TT; foreign exchange contribution of $185ml TT.
In 2015 the Government of Trinidad and Tobago launched the country’s largest Initial Public Offering (IPO) offering shares of 75.8ml of Phoenix Park Gas Processors Ltd (PPGPL) to the citizens of Trinidad and Tobago, the offer was fully subscribed.
In September 2016 it was reported in Loop News Trinidad and Tobago- Looptt.com that the Government of Trinidad and Tobago was interested in developing a partnership that will be mutually beneficial with the Government of Guyana as it relates to the Gas and Oil sector. They reasoned that they had spent large sums of money in upgrading the refinery with the expectation that they would have been able to be refining more crude, their own and import and to the extent that they have refining capacity in Trinidad and Tobago and Guyana has crude especially crude found by a company Exxon whose core business is not refining it may very well be that the possibility might exist for Guyana’s crude to be refined by Trinidad and Tobago.
Editor, I wanted to highlight the above points which I am certain that the main actors in the framing of the Memorandum Of Understanding (MOU) would have taken into consideration but I am not certain whether the issues surrounding Oil and Gas are fully appreciated in some other quarters; I believe that the Government of Guyana has to play the most important role as it relates to the development of the Oil and Gas Sector because I believe and I can substantiate it that it is only the Government that would have a serious interest in promoting a Public, Private partnership and make available a Public Offering facility for the benefit of all Guyanese in and out of Guyana.
Yours faithfully,
Dunstan Barrow
