Home' Trinidad and Tobago Guardian : June 22nd 2014 Contents JUNE 22 • 2014 www.guardian.co.tt SUNDAY BUSINESS GUARDIAN
NEWS | SBG3
Energy Minister Kevin Ramnar-
ine says US$9.5 billion is fore-
cast to be spent by the energy
sector in T&T between 2014
and 2016---and that is coming
after an estimated US$5.8 bil-
lion was spent developing energy assets
between 2010 and 2013.
Speaking at the Society of Petroleum Engi-
neers conference at the Hyatt Regency hotel
earlier this month, Ramnarine said the min-
istry s preliminary analysis indicates that T&T
should be able to hold the 4.2 billion cubic
feet per day plateau rate until 2015 "subject
to the realisation of related investment" from
the incumbent producers.
He said T&T had received some US$6.5 bil-
lion in foreign direct investment between 2010
and 2013---US$549 million in 2010, US$1.83
billion in 2011, US$2.45 billion in 2012 and
US$1.71 billion in 2013---and that the assump-
tion that 90 per cent of foreign direct invest-
ment into T&T would be energy related has
held in that period.
"The point is we have seen a surge in energy
related foreign direct investment since 2010
and this is due to increased investor confidence
(particularly from the incumbent players BP,
BG, BHP and EOG) and this is also related to
the fiscal incentives that have been provided
in every budget for the last four years," said
In the upcoming 2015 budget, Ramnarine
said that he intends to "look closely" at pro-
viding incentives for the development of small
stranded pools of natural gas.
Ramnarine outlined the expected capital
expenditure in the local energy sector until
2016, stating: "In 2014 the forecasted capital
expenditure for the energy sector is US$3.3
billion. In 2015, that figure is US$3.2 billion
and in 2016 it is US$3.0 billion.
"The main actors in these numbers are BP,
BG and Petrotrin. Most of that money is being
spent to bring oil and gas to the surface and
to market in a safe and efficient manner. The
incumbents all have a growth story around
T&T and the proof is that they are investing
again in substantial sums."
Expanding on the reasons for the increased
investment in the energy sector, Ramnarine
said the current administration has brought
fiscal certainty to the sector.
The minister said: "In the past four years
there has been no increase in taxes on com-
panies in the energy sector. This has allowed
upstream companies, for the first time in many
years; to operate in an environment of certainty.
Companies like certainty and don t like having
the rug pulled from under them. This comes
against the backdrop of almost a decade of
indecision as it relates to the fiscal regime. At
the Ministry of Energy, we make decisions
about the fiscal regime in the national interest."
Ramnarine also said that in the last four
years, the Ministry of Energy has simplified
the competitive bidding process, which has
resulted in the signing of seven deepwater
production sharing contracts (PSCs), five shal-
low/average depth water PSCs and a licence
to Petrotrin for the Trinmar acreage.
He said the ministry expects to sign two
more deepwater PSCs and three onshore
licences with Range Resources, Territorial and
Lease Operators. He added that of the 28 cur-
rently active PSCs dating as far back as 1974,
12 were signed within the last four years.
"At the 2014 Energy Conference, I
announced the award of three land blocks to
Range Resources, Lease Operators Ltd and
Touchstone. These three blocks, together with
the Trinmar license and the seven existing
deepwater PSC s will lead to the drilling of at
least 31 exploration wells (these are based on
contractual obligations) in the next eight years
and at most 53 exploration wells. The additional
22 will be based on the optional second and
third exploration phases under signed PSC s,"
Referring to the theme of the conference
"Future Assets: Acquisition, Maintenance &
Reliability," the minister said 2018 will be a
significant year for T&T "as we must treat
with the renewal of the Train I contract as
well as the renewal of the BP domestic con-
tract." Next year, he said, the BG/Chevron
base gas sales contract with NGC expires.
"These are big contracts that impact the
future of the country. We don t intend to make
decisions around these contracts without the
benefit of a new natural gas master plan and
it is for that reason we have commissioned
such a study," Ramnarine said.
An in-house committee has been named
to evaluate the applications by the consultants.
By circular letter to all insurance companies, the
Central Bank of T&T on June 12 advised there are
two insurance companies operating outside of the
"The Central Bank of T&T hereby reminds all
insurance companies that intermediaries with whom
insurance business is transacted, must be registered
with the Central Bank under the Insurance Act, Chap-
ter 84:01," Inspector of Financial Institutions Carl
Individuals may refer to the Central Bank Web site
ance-sector for a current list of insurers and inter-
mediaries registered under the Act, he wrote.
"In this regard, the Central Bank wishes to advise
that the following individuals and companies are not
registered to carry on insurance business under the
Act: (i) Bernard Jacobs trading as Jake s Insurance
and Financial Services Ltd; and (ii) Crystal Khan-
Harrypersad trading as Crystal Insurance Services,"
the letter said.
Section 88 (1) of the act stipulates inter alia that
no person may carry on business as a broker, a sales-
man, an adjuster or an agent of an insurance company
unless registered with the Central Bank.
Moreover, the inspector said, Section 104 of the
act states that: "Where at the date of placing or
negotiating insurance, a person is not registered as
an agent, a broker or a salesman, no insurer and no
officer, employee or agent of the insurer shall pay,
agree to pay or allow to be paid to that person com-
pensation or anything of value for placing, negotiating
or attempting to place or negotiate insurance or for
negotiating the continuance or renewal of insurance
on lives, property or interests in T&T."
He told the insurance companies: "It is expected
that due diligence be carried out to ensure that inter-
mediaries and insurers are duly registered before any
insurance business is transacted."
Ramnarine lauds T&T's success
in attracting energy investment
CBTT: Two companies
the Insurance Act
We have seen a
surge in energy related
foreign direct investment
since 2010 and this is
due to increased
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