Trinity Exploration & Pr... Share Discussion Threads

[spellbrook] 17/3/2018 22:39

The current price reflects Trinity’s troubled past rather than its future and the shares are a bargain.

[spellbrook] 17/3/2018 22:32

at last they have listened to me copying them in on TRIN, May bring some new investors

[shrewdmole] 17/3/2018 11:12

As long as we are making profit every day I'm not too bothered about spt reform.

We are over complicating Trin and its investment case somewhat.

I'd love to see a breakdown again as per the grade just based on production, reserves and profitability what Trin should be worth.

At the end of the day in the coming months we will have repaid the debt and the cln and be making money each day on rising production. All the other possible scenarios are bonuses.

S

[fidra] 17/3/2018 10:38

Ok I’ll put it out there Dingwall to petrotrin.

Trinity to Petrotrin .

[spellbrook] 17/3/2018 09:26

Im with Bruce and Team Trin

Management is continuing to examine a range of options regarding the sale of the West coast assets. In the interim, the assets continue to generate positive cash flow.

The longer-term opportunity for realising further value from our Galeota license remains under review.

The Company continues to explore various options to strengthen the balance sheet further, with the intention of repaying the remaining amounts due to the BIR and MEEI, and redeeming the CLN, during 2018 and accelerating the onshore infill drilling programme.

The Board remains confident that the growth in high margin production and continued focus on strengthening the balance sheet will deliver excellent returns for shareholders in 2018 and beyond.

[shrewdmole] 17/3/2018 09:09

As long as we are making profit every day I'm not too bothered about spt reform.

We are over complicating Trin and its investment case somewhat.

I'd love to see a breakdown again as per the grade just based on production, reserves and profitability what Trin should be worth.

At the end of the day in the coming months we will have repaid the debt and the cln and be making money each day on rising production. All the other possible scenarios are bonuses.

S

[mark10101] 17/3/2018 08:37

It definately looks like they have a fair amount of work to do on the gas sector atm. Sensible to get that soughted first but will only lead to oils further demise.

[whiskeyinthejar] 16/3/2018 14:14

Multinationals don't produce much oil in Trinidad. 90% of Trinidad production is gas. And most oil is produced by Petrotrin and they can't make a profit.

Multinationals were getting away with paying very low "rent" or royalties on gas until recently. It was only in December that royalty on gas was put up to 12.5%.

So maybe there is some scope for them to squeeze multinationals a bit more on gas then, but they aren't producing enough oil to squeeze. One reason Petrotrin lose money is that they have to import oil.

I agree with this:

"She urged the Government to focus on stabilising the economy and working on fixing the issues facing the country, rather than in engaging in yet another unnecessary, expensive talk shop."

The strategy on Petrotrin seems completely clueless. So they say lets split the business, but they can't decide how because they don't know why they are doing it.

[spellbrook] 16/3/2018 13:03

Published:
Friday, March 16, 2018

Rowley’s statement came after stakeholders and commentators had called for the arrangements within the Supplemental Petroleum Tax to be changed, because multi-nationals in the energy sector were no longer enjoying revenue from an oil price of more than US$100 per barrel.

But in a release yesterday, Persad-Bissessar said the PM’s comments fell short of expectations and demonstrated “just how out of touch” Rowley was with the country’s current economic reality.

[spellbrook] 16/3/2018 09:54

By Nadaleen Singh

PORT SPAIN
Petroleumworld 03 16 2018

Prime Minister Dr Keith Rowley yesterday signalled that it was time for the contracts of multi-nationals in the energy sector to be re-opened and re-negotiated, so that citizens can reap the rewards from energy revenues. He added that as a country, we had incentivised ourselves into a financial loss position and it was time to change.

Rowley's statement comes after stakeholders and commentators had called for the arrangements within the Supplemental Petroleum Tax to be changed because multi-nationals in the energy sector were no longer enjoying revenue from an oil price of more than US$100 per barrel.

But speaking at a conference hosted by the Ministry of Energy and Energy Industries yesterday at the Hyatt Regency, Port-of-Spain, Rowley noted that revenues from the energy sector had moved from $20 billion to $1 billion and T&T was justified in wanting to re-negotiate contracts which multi-nationals now hold.

“As we put our acreage out (for bidding) and they are successful or the major investment is successful, we get our return in taxes, we ought not to shy away from the business of the market place. We got ourselves into this situation because we shied away from knowledge of the marketplace-that is coming to an end,” the PM said at the conference, titled “Our Oil, Our Gas, Our Future, Spotlight on Our Energy.” (See Pages A13 & A15)

“It is against that understanding that we have worked for the last year and a half with Poten and Partners (a consultant), and we are ensuring what is the best advice available, so when we come to the table to talk in a zone of mutual respect, T&T is not disadvantaged. We welcome the investment into our country.”

What is clear, Rowley said, is that he is confident the multi-nationals will be receptive to the re-negotiated contracts.

“There is a willingness not to treat contracts as cast in stone. While contracts bind us to terms and conditions, if the conditions (in the global energy market) have changed dramatically, then the re-opening and the renegotiation is a reasonable demand of the people of T&T. We anticipate that our partners in this business will see our claim as a fair and just one. We anticipate that there would be some re-opening of contracts, so that at the end of the day, we can all benefit from the riches of T&T.”

Representatives of several multi-national energy corporations reserved comment when contacted yesterday on the Prime Minister's statements.

Addressing the issue of well-educated young people who can't get jobs in the energy sector, he said the Government has set out to look for young people and to find places for them in the energy sector.

Rowley also said there is need to diversify the economy, but said we should not turn our backs on the energy sector since it is a sector that must be anchored properly.

Also addressing the issue, former Energy Minister Conrad Enill said T&T cannot be giving fiscal incentives at a time when revenues are down.

He said,”If your revenues are down, your production is down, then you give fiscal incentives, it means you put the country at risk. I think today for me, re-confirms the fact that energy and finance must always be on the same page. If you go after energy and you try to explore, you try to go after acreage and you do so at a time when the country's resources are low, you are going to put the country at risk.”

He added that at a time when T&T finds itself in the position it is in now, with changed conditions in the energy market, the only decision that must be made is to, “re-negotiate contracts. It means you are making sure that the companies are competitive, they are viable, but at the same time the share of profits need to be looked at.”

NGC/CNC RESOLVE IMPASSE

Prime Minister Dr Keith Rowley also announced yesterday that a new arrangement between the National Gas Company and the Caribbean Nitrogen Company (CNC) has been negotiated.

While he did not give the details of the arrangement, he confirmed NGC would resume supplying gas to CNC.

In a release last evening, NGC confirmed a new deal had been reached with CNC, adding they were now in the process of formalising the required legal agreement. It added that both companies thanked Minister in the Office of the Prime Minister Stuart Young and Minister of Energy and Energy Industries Franklin Khan for their support in resolving the matter.

CNC had shut down its operations in January after NGC cut its natural gas supply because the two could not agree on a new supply contract. CNC, which employs close to 400 people, eventually took the matter to the UK Court of Arbitration. The two companies eventually returned to the negotiation table last month.

[spellbrook] 16/3/2018 09:52

Clarity on Petrotrin's path in 6 months




By TT Guardian

PORT SPAIN
Petroleumworld 03 15 2018

There should be clarity in six months on what the options are for state-owned, struggling Petrotrin.

This was confirmed by Energy Minister Franklin Khan in the Senate yesterday in response to questions from United National Congress Senator Wade Mark.

Khan said given the company's serious financial position, an early report is expected by Petrotrin's board on its restructuring plan. A transition team comprising board members and engagement of other third parties is underway to seek a new management team, Khan said. He said that mandate is for six months and in that time there should be clarity on Petrotrin and what the options are.

Khan said one of the recommendations of the Lashle restructuring report is to split Petrotrin into business units - Refining/Marketing and Exploration/Production.

“Another stakeholder view is that Exploration/Production needs sub-dividing into Exploration (Land/Marine) which includes solely Trinmar operations. Also, the union (OWTU) wants a Human Resource Division and they're even saying Petrotrin's Augustus Long Hospital should be a separate business unit,” he said.

Khan said Petrotrin has “long tentacles” in the south west peninsula and Government will take serious cognisance of the impact of any decision on residents' lives.

He said there was also room for compromise with the Oilfield Workers' Trade Union (OWTU).

“Petrotrin's future won't have a smooth ride unless we have OWTU's engagement. We're conscious of that and are working assiduously to bring that to fruition,” he said.

[spellbrook] 16/3/2018 09:49

Geisha Kowlessar
Published:
Thursday, March 15, 2018

Energy Minister Franklin Khan delivers an address during the Spotlight on Energy Conference at the Hyatt Regency yesterday. PICTURE SHIRLEY BAHADUR
Untenable.

This was how Energy Minister Franklin Khan described this country’s current situation with the LNG marketing arrangements, noting large amounts of monies continue to flow out of T&T with no benefit to our citizens. He said it was the right of the State to extract a fair economic rent on behalf of citizens, but noted it has been estimated the country lost up to US$6 billion annually from transfer pricing practices for the period 2010 to 2014.

Khan’s comment came as he delivered the feature address at the “Spotlight on Energy – “our Oil, Our Gas, Our Future” conference at Hyatt Regency Hotel, Port-of-Spain, yesterday.

“Government finds the situation with the LNG marketing arrangements to be untenable, in that significant revenues are flowing offshore while Government is facing severe revenue shortfalls,” Khan said, warning Government intends “to deal frontally and decisively with these matters.”

“As a consequence, Government has communicated to the upstream companies and their affiliates that the status quo in relation to LNG marketing arrangements cannot be maintained and a new framework that is beneficial to T&T will have to be instituted.”

Khan said Government had retained the services of ship brokers and consultants Poten and Partners and the international energy law firm of White and Chase to advise them on this matter.

He said exploration activity was a costly and risky business and the cost of drilling an exploration well in deep-water ran into the tens of millions and development cost was in US billions of dollars. Therefore, Khan said energy companies expected to realise a fair return on their investment.

But he added, “Concomitantly, the resource owner, the people of T&T, expect to receive a premium for the monetisation of its non-renewable oil and gas resources. Indeed, I will go further and state unequivocally that the State, as the resource owner, has a sovereign right to extract a fair economic rent on behalf of the people of T&T.”

Khan said data from the Ministry of Energy and Ministry of Finance revealed that taxes and royalties collected from the sector had been on a diminishing trend.

“Energy sector revenue, which peaked at TT$28 billion in 2008, fell to TT$1.0 billion in 2017. Falling energy prices may account in part for the reduction in revenue. Oil prices, which averaged US$97 per barrel in 2008, averaged US$54 per barrel in 2017. Henry Hub gas prices on which most contracts are based fell from US$9 per MMBtu to US$2.99 per MMBtu,” Khan said.

But he said the fall in energy prices and declining production, as significant as they were, could not be solely responsible for precipitous fall in revenue. In fact, he said other countries were not experiencing the same decline in revenue returns from such activity.

“The research indicated that we are singular in this matter. In one example, whereas the upstream company in that other jurisdiction paid taxes of US$3.6 billion or 53 per cent on its gross revenue of US$6.8 billion, that said company paid only US$31 million or 0.6 per cent in taxes from its gross revenue of US$5.3 billion in T&T,” he told the gathering.

“A comparative analysis of the T&T competitiveness showed that T&T is in the median range with respect to fiscal incentives and the rate of return achieved by investors was among the highest in oil and gas economies.”

Khan reiterated that even State-owned Petrotrin was complicit in the under-payment of revenue due to Government.

“Petrotrin, which produces approximately 60 per cent of the country’s crude oil, has been withholding payment due to its financial challenges and other financial obligations,” Khan said.

“As at December 31, 2017, the company owed Government TT$2 billion in taxes and royalties. With current prices averaging US$60 per barrel, the debt continues to accrue at TT$70 million per month without any indication by Petrotrin of any forthcoming payment. This is an unacceptable position which the board of directors has been requested to address.”

[mark10101] 15/3/2018 22:30

Agreed, it would have to be a decent lease to garner enthusiasm. Last year there was a suggestion Petrotrin would relinquish leases to the private sector, this is where I expect some good deals to be done. We already have Enough good acreage so it would need to be a good deal, not somthing I have heard the mamangment mentioned so not top of my list of possitve wild cards.

[whiskeyinthejar] 15/3/2018 21:54

That's about as far as I got too.

I dont think there would be enthusiasm for Trinity buying leases Mark. As I understand it, the leases available are the stuff nobody has wanted before. Decent leases aren't given up in Trinidad because the government mostly hasn't placed minimum drilling requirements. Its partly why oil production has declined- drilling wasn't required by government so companiesdon't bother, eg when PoO is low. My understanding anyway.

[mark10101] 15/3/2018 21:06

Hi WITJ, I watched the first 30 mins the only interesting bit that came up was the tendering process for new leases. There has been no indication from TRIN that they have applied for new leases but it is one of the cards I have that could spark enthusiasm here should the right opportunity become available.

[whiskeyinthejar] 15/3/2018 20:33

Well I managed to get through the root treatment, but I just cant work up the enthusiasm for the "spotlight on energy".

Ive had a look for news though.

This is a summary :


Tweet from journo more interesting to me:

Juhel Browne@trinijournalist
Energy Minister Khan says at #SpotlightonEnergy event that State-owned oil company Petrotrin owes the State $2 billion in taxes & royalties and is accruing debt at $17 million a month @tv6tnt #Trinidad and Tobago

So Im glad I didn't bother in the end.

[mark10101] 15/3/2018 18:12

WITJ, which was worse the dentist or the presentations? Totally agree with your view this is yet more jawboning but hopefully pathing the way for some action finally.

[lady jennifer] 15/3/2018 09:49

Greetings Ladies & Gentlemen

[l j] 15/3/2018 09:47

O/T

Just a courtesy call to let you know that I am "changing my name" to pick up my old premium account again.

Traditionally I am known as Lady Jennifer - hence the LJ short form.

Not standing on formality I am happy for any (polite) version of my "name" to be used with the exception of "Jen", "Jenni" or "Jenny" etc.

[whiskeyinthejar] 15/3/2018 09:47

I'll try to listen to all of it today Mark. But I'm actually in dentist waiting room just now. All I can hear just now is the purr of his black and decker.;)


But what I hope is that this is their little PR exercise on energy just before they announce energy policy. Just like the last one they had on the economy was a prelude to the budget.

I always hope though, I never expect.

[mark10101] 15/3/2018 08:45

WITJ it is 5 hrs if you listen to both, let us know if pick up on anything interesting outside of the moaning I listened to. No news articles about or RNS this morning so guessing not much. Although TRIN is looking perkier today. Maybe it was just a big sell they were clearing.

[whiskeyinthejar] 15/3/2018 08:44

To be fair, the government always make the point that oil is an expensive business and oil companies deserve to make a good profit as well as the state having a right charge oil companies "rent". Seems reasonable imho.

The problem I see is that there's always talk, reviews and reports, but when it comes to any plans I struggle to work out where they are going.

The property tax is a shambles. There was a waiver on property tax up to 2015. So that was just allowed to lapse, but nothing was put in place to say what comes next. That's why Trinity said in RNS they've put an accrual for property taxes for 2016 and 2017 of US$1.4 million on the balance sheet. Trinity say " this accrual may be reversed in H1 2018 if the bill currently before parliament waiving the property tax obligation for 2016 and 2017 is passed. "

So we have to wait see what goes through parliament now to establish what Trinitys property tax liability was last year and year before!

It seems to me, that the reason they get years behind where they should be is because of bureaucracy and windbag politics.

[mark10101] 15/3/2018 07:52

So lots of winging and moaning about lack of tax collection yet we still have no news Laying out their new regime.

[whiskeyinthejar] 15/3/2018 07:13

"Spotlight On Energy: Our Oil. Our Gas. Our Future "
- Part 1

- Part 2


Am listening now. Seems a bit long winded.