Home' Trinidad and Tobago Guardian : September 5th 2013 Contents SEPTEMBER 2013 • WEEK ONE www.guardian.co.tt BUSINESS GUARDIAN
ENERGY | BG9
In written evidence submitted by
attorney Nadia Kangaloo on behalf
of PricewaterhouseCoopers (PwC)
partner Brian Hackett and World
GTL Trinidad Ltd (in receivership)
for a Port-of-Spain High Court
matter yesterday, Hackett said he formed
"strategy" and took decisions based on dis-
cussions with Petrotrin.
New York-headquartered World GTL Inc
is claiming US$2 billion for expropriation
by Petrotrin and the country (T&T) of a
gas-to-liquids (GTL) plant on Petrotrin
compound in Pointe-a-Pierre. In its filing
in a US district court (Southern District of
New York), World GTL Inc accused PwC
of being a "puppet receiver" for World GTL
Trinidad Ltd (WGTL-TL) "who took control
of the facility without notice to anyone and
without any judicial proceeding."
The US district court referred the case
to the London Court of International Arbi-
In his written evidence, Hackett said:
"Upon my appointment as receiver, I con-
sidered that there were several options open
to me, including but not limited to: com-
pleting the GTL plant; partnering with
someone to complete the GTL plant; selling
the charged assets as a complete package
or alternatively on a break up basis."
He said he also formed strategy based on
discussions with Petrotrin.
He said: "My original strategy, which was
formed based on discussions with the third
defendant (Petrotrin) as debenture holder
prior to my appointment as receiver and
my independent analysis of the situation
prior thereto, was to complete the GTL
plant, as opposed to selling it and to that
end all employees of the first defendant
(WGTL-TL) were retained.
In December 2009 (a) request for pro-
posals for project management services
were issued by the receiver. The purpose
of this request for proposals was to hire an
engineering procurement and construction
(EPC) firm to project manage the completion
of the GTL plant. At the end of February
2010, Techint was selected as such a firm.
However, shortly thereafter, based on dis-
cussions between the third defendant
(Petrotrin) and the receiver, it was decided
not to proceed with completion of the plant
and a decision was taken to halt further
construction on the GTL plant and to com-
mence the process of looking for a buyer."
In May 2010, the Government of T&T,
which appoints the Petrotrin board,
changed. Incumbent Petrotrin chairman
Lindsay Gillette was appointed on October
In the next paragraph in his written evi-
dence, Hackett continued: "A teaser letter
was then prepared and distributed in or
around May 2011, an incomplete (missing
attachments I and II) copy of which is
annexed at AG.3 to the affidavit of Ainsley
Gill, sworn and filed herein as set out in
paragraph 5 herein above."
Gill is the chief executive officer of NiQuan
Energy s T&T operation which took the
receiver to court alleging that Hackett and
Petrotrin allowed Chinese investors to visit
the GTL plant.
In his statement Hackett, also said he
sold more than $455,000 in scrap items
from the plant.
He said: "In or around April 2013, I
arranged for the sale of certain scrap items
in an effort to raise short term cash to meet
accumulated liabilities. The scrap items sold
were badger dock scrap, site scrap, containers
with scrap items, electrical containers and
poles, including cable trays and other scrap
ends, which secured a return of $455,000."
Mexican regulators slap
Pemex with US$50m fine
Mexico's Federal Competition Commission, or
CFC, said it imposed a fine of 653.2 million pesos
(about US$50 million) on state-owned oil giant
Petroleos Mexicanos, or Pemex, for forcing serv-
ice stations to hire the oil monopoly's trucks to
handle deliveries of gasoline and diesel.
The practice forced service stations to "pay a
surcharge amounting to one billion pesos (about
US$77 million)," the CFC said in a statement.
The fine was approved on a vote of 3-2 by the
CFC's commissioners and the agency ordered
Pemex to "cease this practice within 30 working
Pemex Refinacion is responsible for 651.6 mil-
lion pesos of the total fine for engaging in mo-
nopolistic practices in the market for the
transportation of gasoline and diesel, the CFC
Pemex will have to pay the remaining 1.6 mil-
lion pesos "for assisting in said practices," the
Under Article 27 of the Mexican Constitution
and implementing legislation, Pemex Refinacion
is the country's only authorised wholesaler of
gasoline and diesel.
The company, however, "abused the market
power that this legal exclusivity grants it by forc-
ing service stations to acquire" gasoline and
diesel from the company itself once the fuel was
no longer under its ownership, the CFC said.
Pemex has a monopoly on the production of oil
and gas, as well as over the production of petro-
leum derivatives and the distribution of gasoline,
The state-owned oil giant, which posted total
revenues of US$131.75 billion and had assets of
US$161.8 billion in 2012, is the world's number
five oil producer and accounts for about 40 per
cent of the Treasury's revenues.
World GTL accuses PwC
of being a 'puppet receiver'
An aerial view of Petrotrin.
PHOTO: ALVA VIARRUEL
New York court filing:
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