Dear Editor,

IN SEPTEMBER 2016, I read in one of the dailies of Guyana and one of the dailies of Trinidad and Tobago that the Guyana and Trinidad and Tobago Governments were planning to sign a Memorandum of Understanding (MoU) relative to the Trinidad and Tobago Government providing technical assistance, support and cooperation to help with the development of Guyana’s Oil and Gas sector.The articles also said there were plans to sign an 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 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 should visit Trinidad and Tobago to do the following:
1. Observe and discuss the operations available to support the Oil and Gas sector in Trinidad and Tobago.
2. Examine the options available for monetising natural gas, and
3. Examine the commercial and fiscal arrangements in place to support the Oil and Gas sector.

As we approach November and the end of 2016, I would like to highlight and remind us of the role the following entities play in relation to development of the Oil and Gas sector of Trinidad and Tobago:
1. Petroleum Company of Trinidad and Tobago Ltd. (PETROTRIN) is an integrated oil and gas company engaged in the full range of petroleum operations: exploration, development and production of hydrocarbons; and 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 a wholly owned state enterprise, 100% owned by the Government of Trinidad & Tobago (GoTT).

2. The National Gas Company of Trinidad and Tobago Ltd (NGC) was established to purchase, compress, transport and distribute natural gas to industrial users, and there is a heavy focus on development of the local gas industry of Trinidad and Tobago. The company, incorporated in 1975, is 100% owned by the GoTT.

3. The Natural Energy Corporation of Trinidad and Tobago Ltd (NEL) was established to develop and manage the marine assets of Point Lisas, as well as manage the La Brea 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) is a major natural gas processing company that is 90% owned by the National Gas Company Ltd of Trinidad and Tobago (NGC).

5. Trinidad and Tobago National Petroleum Marketing Company Ltd (NP)
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 TT$1.7B. Its foreign exchange contribution was TT$434M.
In 2015, National Gas Company Ltd of Trinidad and Tobago (NGC) made a profit of TT$1.228B. It paid corporate tax of TT$562M, and contributed foreign exchange of TT$677M.

In 2015, Natural Energy Corporation Ltd of Trinidad and Tobago (NEL) made a profit of TT$493M. There was no information on the corporate taxes or foreign exchange contribution it provided. In 2015, NP made a loss of TT$16.6M. It paid corporate tax of TT$6.6M and foreign exchange contribution of TT$185M.

In 2015, the Government of Trinidad and Tobago launched the country’s largest Initial Public Offering (IPO), offering shares of 75.8M 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 would be mutually beneficial with the Government of Guyana as it relates to the Gas and Oil sector. The TT Government reasoned that it had spent large sums of money to upgrade the refinery with expectation that it would have been able to refine more crude of its own and import to the extent that there was refining capacity in Trinidad and Tobago and Guyana has crude, especially crude found by Exxon, whose core business is not refining. It may very well be that the possibility might exist for the Guyana crude to be refined by Trinidad and Tobago.

Editor, I wanted to highlight the above points, which I am certain 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.
Regards,
DUNSTAN BARROW