Energy Sector Thread - Operators, Engineers, Technicians Et Al

[De Dragon]

Again all this is based on speculation. We do not know what BPTT and Shell are telling the MoE. We do not know if there might be other sources of gas that is being worked on. At some point in time, all parties will have to account to their shareholders. I am sure that BPTT, Shell and China will not allow their money to go down the drain, even as they have larger or equal shares to us.

Actually we know exactly what they are telling the MoE and yes other gas sources are being worked on but mote where they are going



In terms of gas supply the company restated the impact of its 2019 infill drilling programme. In May 2020, it reported "disappointing results" in the Columbus Basin would affect production, especially in that year and 2021. The company said then there would be challenges to the gas supply to train one – which began operations in 1999.

On this, it said on Monday, "...we have since refocused our production operations on maximising production from our existing fields in the short-term, actively taking measures to offset natural declines. Even though these factors helped production at the beginning of 2020, natural declines continue to be a challenge as we manage our gas deliverability for 2021.

"While we continue to progress our Matapal and Cassia C projects, the volumes from these developments will be put towards fulfilling our existing contractual obligations for Trains 2, 3, 4 and NGC."

And in the same article you are quoting from it says

[b]The ministry defended NGC's investment to keep the plant running saying it had sourced a reliable gas supply.
“At all times NGC has acted to protect the rights and position of the citizens of TT.”
The ministry also said it was committed to working assiduously to ensure the future supply of gas for TT.
https://newsday.co.tt/2021/07/22/bp-gas ... one-for-1/

[/b]

Or are you going to deny you posted this article too?

Tuntsy, where is this gas coming from, your cacahole?
Why is your God JUHN Scarfy so feverishly defending the NGC Board indemnity?
Why are they seeking an indemnity if there is gas?
Wouldn't there be much more clarity and transparency if we knew where the gas is coming from?
Not everyone believes in JUHN Scarfy and Goebbels "i say so" sheit, and if you are one of those whoe does, well that's fine, but so far you and Colos are not making any sense in your arguments, whatever they are

[wing]

Ramnarine was on cnc3 with jw this morning. More or less espoused the same sentiments: no gas for the while, the majority shareholders opted not to spend the money, and the wiser board decision was to not spend the money..

Rowley made a political Decision against the rational industry decisions and have no positive result to show, whle putting another company is peril.

Ramnarine is a UNC so his views don't matter according to pawn Habit7

Again UNC is not in power nor are they important at stage.

[Cantmis]

Shareholders control the market and there is nothing you can do about !

[Habit7]

Again all this is based on speculation. We do not know what BPTT and Shell are telling the MoE. We do not know if there might be other sources of gas that is being worked on. At some point in time, all parties will have to account to their shareholders. I am sure that BPTT, Shell and China will not allow their money to go down the drain, even as they have larger or equal shares to us.

Actually we know exactly what they are telling the MoE and yes other gas sources are being worked on but mote where they are going



In terms of gas supply the company restated the impact of its 2019 infill drilling programme. In May 2020, it reported "disappointing results" in the Columbus Basin would affect production, especially in that year and 2021. The company said then there would be challenges to the gas supply to train one – which began operations in 1999.

On this, it said on Monday, "...we have since refocused our production operations on maximising production from our existing fields in the short-term, actively taking measures to offset natural declines. Even though these factors helped production at the beginning of 2020, natural declines continue to be a challenge as we manage our gas deliverability for 2021.

"While we continue to progress our Matapal and Cassia C projects, the volumes from these developments will be put towards fulfilling our existing contractual obligations for Trains 2, 3, 4 and NGC."

And in the same article you are quoting from it says

[b]The ministry defended NGC's investment to keep the plant running saying it had sourced a reliable gas supply.
“At all times NGC has acted to protect the rights and position of the citizens of TT.”
The ministry also said it was committed to working assiduously to ensure the future supply of gas for TT.
https://newsday.co.tt/2021/07/22/bp-gas ... one-for-1/

[/b]

Or are you going to deny you posted this article too?

Tuntsy, where is this gas coming from, your cacahole?
Why is your God JUHN Scarfy so feverishly defending the NGC Board indemnity?
Why are they seeking an indemnity if there is gas?
Wouldn't there be much more clarity and transparency if we knew where the gas is coming from?
Not everyone believes in JUHN Scarfy and Goebbels "i say so" sheit, and if you are one of those whoe does, well that's fine, but so far you and Colos are not making any sense in your arguments, whatever they are

And as Redman pointied out you are not being consistent.
You are selectively believing BP and Shell when they fit your bias.
We are a shareholder with private entities, when the negotiations are settled all will be evident. Nothing can happen with Train 1 behind closed doors. Relax yourself, ease up on the beat up and bump your gum when you have confirmed info on the way forward.

[De Dragon]

Again all this is based on speculation. We do not know what BPTT and Shell are telling the MoE. We do not know if there might be other sources of gas that is being worked on. At some point in time, all parties will have to account to their shareholders. I am sure that BPTT, Shell and China will not allow their money to go down the drain, even as they have larger or equal shares to us.

Actually we know exactly what they are telling the MoE and yes other gas sources are being worked on but mote where they are going



In terms of gas supply the company restated the impact of its 2019 infill drilling programme. In May 2020, it reported "disappointing results" in the Columbus Basin would affect production, especially in that year and 2021. The company said then there would be challenges to the gas supply to train one – which began operations in 1999.

On this, it said on Monday, "...we have since refocused our production operations on maximising production from our existing fields in the short-term, actively taking measures to offset natural declines. Even though these factors helped production at the beginning of 2020, natural declines continue to be a challenge as we manage our gas deliverability for 2021.

"While we continue to progress our Matapal and Cassia C projects, the volumes from these developments will be put towards fulfilling our existing contractual obligations for Trains 2, 3, 4 and NGC."

And in the same article you are quoting from it says

[b]The ministry defended NGC's investment to keep the plant running saying it had sourced a reliable gas supply.
“At all times NGC has acted to protect the rights and position of the citizens of TT.”
The ministry also said it was committed to working assiduously to ensure the future supply of gas for TT.
https://newsday.co.tt/2021/07/22/bp-gas ... one-for-1/

[/b]

Or are you going to deny you posted this article too?

Tuntsy, where is this gas coming from, your cacahole?
Why is your God JUHN Scarfy so feverishly defending the NGC Board indemnity?
Why are they seeking an indemnity if there is gas?
Wouldn't there be much more clarity and transparency if we knew where the gas is coming from?
Not everyone believes in JUHN Scarfy and Goebbels "i say so" sheit, and if you are one of those whoe does, well that's fine, but so far you and Colos are not making any sense in your arguments, whatever they are

And as Redman pointied out you are not being consistent.
You are selectively believing BP and Shell when they fit your bias.
We are a shareholder with private entities, when the negotiations are settled all will be evident. Nothing can happen with Train 1 behind closed doors. Relax yourself, ease up on the beat up and bump your gum when you have confirmed info on the way forward.

Tuntsy, anything to make your God JUHn Scarfy and your cult look good, you'll not hesitate to debase yourself to.. I never said BP/Shell weren't to be trusted. If we allowed ourselves to be out-negotiated into paying a gas which shut down half of Point Lisas, then that's on us, specifically JUHN Scarfy and Goebbels, because remember the MoE Guy Smiley had to cool he heels here while the real Trumpian negotiators did the art of the deal T&T style.
Also you haven't stated where the gas is coming from, nor why the NGC Board requires an indemnity if there is a gas source. At least you align with your other dotish half and consistent with ollour "me eh know keke keke keke " stance.

[Redman]

These are the same BP,/Shell you say not to trust?

The same BP/She'll:
That will benefit from the LNG prospects being crappy....in all the renegotiating happing now.

That will love for the arrangements for the sale of all the LNG to be as murky and lopsided as they were in the past.

It's the same Ramnarine that as minister sat back and allowed the transfer pricing to take place full bore under his watch.

Yep those are the folks that you believing.

None of us know what the details are.

We no where close to the full picture.

You keep trying to portray this as a tit for tat little spat between BP/Shell and the GORTT, while ignoring the facts
BP/Shell said they have no gas for Train 1. This is not an idle statement made by a billion dollar company.
Cutting off your nose to spite your face isn't good business practice as you're asking us to believe that having been made to rectify transfer price discrepancies, they're now further losing money on Train 1 by withholding gas just to spite us?
Also don't forget, this entire thing was further thrown into a shadiness when the indemnity issue came up, and was not only publicly supported by JUHN Scarfy, but seems to be a done deal.

I am just pointing out that on one hand you state that we can not trust the MNCs.
And yet you happy quoting what they say and treating it as gospel...cuz it supports your POV.

Nothing new...

Meanwhile we still have to wait and see what the situation is at the end.

Dem is the facts

[De Dragon]

These are the same BP,/Shell you say not to trust?

The same BP/She'll:
That will benefit from the LNG prospects being crappy....in all the renegotiating happing now.

That will love for the arrangements for the sale of all the LNG to be as murky and lopsided as they were in the past.

It's the same Ramnarine that as minister sat back and allowed the transfer pricing to take place full bore under his watch.

Yep those are the folks that you believing.

None of us know what the details are.

We no where close to the full picture.

You keep trying to portray this as a tit for tat little spat between BP/Shell and the GORTT, while ignoring the facts
BP/Shell said they have no gas for Train 1. This is not an idle statement made by a billion dollar company.
Cutting off your nose to spite your face isn't good business practice as you're asking us to believe that having been made to rectify transfer price discrepancies, they're now further losing money on Train 1 by withholding gas just to spite us?
Also don't forget, this entire thing was further thrown into a shadiness when the indemnity issue came up, and was not only publicly supported by JUHN Scarfy, but seems to be a done deal.

I am just pointing out that on one hand you state that we can not trust the MNCs.
And yet you happy quoting what they say and treating it as gospel...cuz it supports your POV.

Nothing new...

Meanwhile we still have to wait and see what the situation is at the end.

Dem is the facts

JUHN Scarfy Goebbels a re the untrustworthy ones, after all they "negotiated" us right off of a cliff. Again, if they were outclassed, outmaneuvered, and outfoxed, doh beat up. I mean it shows a little fallibility, and I know your LFD RFD PNM heart cyah bear dat, but that is the facts

[The_Honourable]

JUHN Scarfy Goebbels a re the untrustworthy ones, after all they "negotiated" us right off of a cliff. Again, if they were outclassed, outmaneuvered, and outfoxed, doh beat up. I mean it shows a little fallibility, and I know your LFD RFD PNM heart cyah bear dat, but that is the facts

Essentially, PNM cyah do business...

[Habit7]

JUHN Scarfy Goebbels a re the untrustworthy ones, after all they "negotiated" us right off of a cliff. Again, if they were outclassed, outmaneuvered, and outfoxed, doh beat up. I mean it shows a little fallibility, and I know your LFD RFD PNM heart cyah bear dat, but that is the facts

Essentially, PNM cyah do business...

Well if the PNM cyah do business tell the other team that spend out the $14B the inept PNM made and saved in NGC, to return it nah. So that this squabble about the $400M actually invested in our downstream, could pale in comparison.

[sMASH]

Ramnarine was on cnc3 with jw this morning. More or less espoused the same sentiments: no gas for the while, the majority shareholders opted not to spend the money, and the wiser board decision was to not spend the money..

Rowley made a political Decision against the rational industry decisions and have no positive result to show, whle putting another company is peril.

Why jw who barely scrap through o levels and is a confirmed pnm hosting a show with political and economic discussions.

TTT 2.0, which is really ttt
3.0, which is rally ministry of communitication 4.0

[sMASH]

Again all this is based on speculation. We do not know what BPTT and Shell are telling the MoE. We do not know if there might be other sources of gas that is being worked on. At some point in time, all parties will have to account to their shareholders. I am sure that BPTT, Shell and China will not allow their money to go down the drain, even as they have larger or equal shares to us.

When u run out of toilet paper u does decide to log in tuner and hit enter?

[sMASH]

Facts: -great money spent on train 1.
-train 1 is not online.
- the majority shale holders opted not to spend money on the tar.
- we was saying not to spend money on the tar.
- leaked BP board meeting said try don't expect gas. And they rebutted that was info not to reach the public.



Speculate Nothing.

Trying to defend a potical decision, which was a poor idustry decision, and only a good executive division of the ngc board members had sumting to gain personally, is not filling anyone.


PNM did sheit, out right.

If they waited till. More gas supply became available, then it would have made sense.

But seems like they hell bent on mashing up every goddam industry for poktical and personal financial gains.

[Habit7]

But seems like they hell bent on mashing up every goddam industry for poktical and personal financial gains.

How is the T1 TAR mashing up the industry?

[sMASH]

But seems like they hell bent on mashing up every goddam industry for poktical and personal financial gains.

How is the T1 TAR mashing up the industry?

We covered that already a few pages back when the tar was completed and it was not runnung.
I explained the difference between the 'Atlantic lng train 1' and the 'TAR' cause u seemed to not know d fack ur Talking about but yappin.

[Habit7]

But seems like they hell bent on mashing up every goddam industry for poktical and personal financial gains.

How is the T1 TAR mashing up the industry?

We covered that already a few pages back when the tar was completed and it was not runnung.
I explained the difference between the 'Atlantic lng train 1' and the 'TAR' cause u seemed to not know d fack ur Talking about but yappin.

My knowledge of the subject is far better than your spelling. But don't punt, how is the T1 TAR mashing up the industry?

[alfa]

But seems like they hell bent on mashing up every goddam industry for poktical and personal financial gains.

How is the T1 TAR mashing up the industry?

We covered that already a few pages back when the tar was completed and it was not runnung.
I explained the difference between the 'Atlantic lng train 1' and the 'TAR' cause u seemed to not know d fack ur Talking about but yappin.

Don't waste your time on this dude. He still believes the govt never closed petrotrin

[sMASH]

But seems like they hell bent on mashing up every goddam industry for poktical and personal financial gains.

How is the T1 TAR mashing up the industry?

We covered that already a few pages back when the tar was completed and it was not runnung.
I explained the difference between the 'Atlantic lng train 1' and the 'TAR' cause u seemed to not know d fack ur Talking about but yappin.

My knowledge of the subject is far better than your spelling. But don't punt, how is the T1 TAR mashing up the industry?

Ouch, ooohh. I need to go hopstital,,, that was a harddd blow u dealt me. Dere.
F*, u hit me right in thr spelling and grammar. U win bro, u win.

[De Dragon]

These are the same BP,/Shell you say not to trust?

The same BP/She'll:
That will benefit from the LNG prospects being crappy....in all the renegotiating happing now.

That will love for the arrangements for the sale of all the LNG to be as murky and lopsided as they were in the past.

It's the same Ramnarine that as minister sat back and allowed the transfer pricing to take place full bore under his watch.

Yep those are the folks that you believing.

None of us know what the details are.

We no where close to the full picture.

You keep trying to portray this as a tit for tat little spat between BP/Shell and the GORTT, while ignoring the facts
BP/Shell said they have no gas for Train 1. This is not an idle statement made by a billion dollar company.
Cutting off your nose to spite your face isn't good business practice as you're asking us to believe that having been made to rectify transfer price discrepancies, they're now further losing money on Train 1 by withholding gas just to spite us?
Also don't forget, this entire thing was further thrown into a shadiness when the indemnity issue came up, and was not only publicly supported by JUHN Scarfy, but seems to be a done deal.

I am just pointing out that on one hand you state that we can not trust the MNCs.
And yet you happy quoting what they say and treating it as gospel...cuz it supports your POV.

Nothing new...

Meanwhile we still have to wait and see what the situation is at the end.

Dem is the facts

Weren't you the same moron actively arguing that the IBD/CAF lend us vast sums of money because they're altruistic and stuff? Well the same applies to BP/Shell, they're in it purely for BP/Shell, so when you send lightweight dumbos like JUHN Scarfy and Goebbels, what you get is what we got, Pt. Lisas in a mess, and 440 million dollars on a Train with no identifiable gas source all to score cheap political points and soothe dotishees like you and Tuntsy

[Redman]

Nope I wasn't.

[De Dragon]

Nope I wasn't.

Riiiighhttt you weren't, but lemme guess, I hadda "show yuh?"

[Wraith King]

But seems like they hell bent on mashing up every goddam industry for poktical and personal financial gains.

How is the T1 TAR mashing up the industry?

We covered that already a few pages back when the tar was completed and it was not runnung.
I explained the difference between the 'Atlantic lng train 1' and the 'TAR' cause u seemed to not know d fack ur Talking about but yappin.

My knowledge of the subject is far better than your spelling. But don't punt, how is the T1 TAR mashing up the industry?

Habit7 believes he's an expert on every topic by association because be believes he receives expert information from his handler who he believes is an expert on every topic.

Habit7 is also the person who posted an "academic" article that said flooding is desirable and necessary, he said Tobago is a rural municipality and the PNM corruption and incompetence is the fault of the UNC because the UNC didn't stop them from engaging in it.

Somehow he believes he claiming to be knowledgable on a topic holds weight.

[Habit7]

But seems like they hell bent on mashing up every goddam industry for poktical and personal financial gains.

How is the T1 TAR mashing up the industry?

We covered that already a few pages back when the tar was completed and it was not runnung.
I explained the difference between the 'Atlantic lng train 1' and the 'TAR' cause u seemed to not know d fack ur Talking about but yappin.

My knowledge of the subject is far better than your spelling. But don't punt, how is the T1 TAR mashing up the industry?

Habit7 believes he's an expert on every topic by association because be believes he receives expert information from his handler who he believes is an expert on every topic.

Habit7 is also the person who posted an "academic" article that said flooding is desirable and necessary, he said Tobago is a rural municipality and the PNM corruption and incompetence is the fault of the UNC because the UNC didn't stop them from engaging in it.

Somehow he believes he claiming to be knowledgable on a topic holds weight.

The boast

Wraith king...can you explain the UNC abstention from votes?
What's the strategy?

I can because I am experienced in parliamentary practice and knowledge.

The backpedal

One of your male lovers asked about abstaining and I explained its use in a general way.

[De Dragon]

Lawyers now saying indemnity cannot fly, and Impsy cannot indemnify anybody

[Wraith King]

But seems like they hell bent on mashing up every goddam industry for poktical and personal financial gains.

How is the T1 TAR mashing up the industry?

We covered that already a few pages back when the tar was completed and it was not runnung.
I explained the difference between the 'Atlantic lng train 1' and the 'TAR' cause u seemed to not know d fack ur Talking about but yappin.

My knowledge of the subject is far better than your spelling. But don't punt, how is the T1 TAR mashing up the industry?

Habit7 believes he's an expert on every topic by association because be believes he receives expert information from his handler who he believes is an expert on every topic.

Habit7 is also the person who posted an "academic" article that said flooding is desirable and necessary, he said Tobago is a rural municipality and the PNM corruption and incompetence is the fault of the UNC because the UNC didn't stop them from engaging in it.

Somehow he believes he claiming to be knowledgable on a topic holds weight.

The boast

Wraith king...can you explain the UNC abstention from votes?
What's the strategy?

I can because I am experienced in parliamentary practice and knowledge.

The backpedal

One of your male lovers asked about abstaining and I explained its use in a general way.

Habit7 you can't judge everyone based on your standard.

Just because you're a liar doesn't meant everyone is a liar. Same goes with your homosexuality.

[Wraith King]

Lawyers now saying indemnity cannot fly, and Impsy cannot indemnify anybody

Yes but remember the PNM didn't pursue the case against Malcolm Jones. They may just do the same thing with another lame excuse for their corruption.

[Redman]

Lawyers now saying indemnity cannot fly, and Impsy cannot indemnify anybody

musbe the reason they giving it fass fass.

[De Dragon]

Lawyers now saying indemnity cannot fly, and Impsy cannot indemnify anybody

Yes but remember the PNM didn't pursue the case against Malcolm Jones. They may just do the same thing with another lame excuse for their corruption.

That was just pure corruption, but the fact that the NGC Board could make a decision to throw almost quarter of a BILLION dollars and then seek indemnity for that decision, stinks to the high heavens. Even if they were compelled by JUHN Scarfy/Impsy/Goebbels, it shows clearly that none of them have the stones or the best interest of T&T in mind.
Yet you have the rabid LFD RFD PNM usual apologist sheep crew with their dotish "we eh know keke keke keke" nonsense

[sMASH]

THis is clico style fiduciary duty again. And Malcom Jones wgtl, and iscott, and port of port of spain.

[randolphinshan]

Lawyers now saying indemnity cannot fly, and Impsy cannot indemnify anybody

Yes but remember the PNM didn't pursue the case against Malcolm Jones. They may just do the same thing with another lame excuse for their corruption.

That was just pure corruption, but the fact that the NGC Board could make a decision to throw almost quarter of a BILLION dollars and then seek indemnity for that decision, stinks to the high heavens. Even if they were compelled by JUHN Scarfy/Impsy/Goebbels, it shows clearly that none of them have the stones or the best interest of T&T in mind.
Yet you have the rabid LFD RFD PNM usual apologist sheep crew with their dotish "we eh know keke keke keke" nonsense

Hope we can get the 1 BILLION wasted on the wastewater treatment plant by Kams and her crooks too

[shaneelal]

NGC: Saving face or gambling?
Mariano Browne
Chief Executive Officer at UWI Arthur Lok Jack Global School of Business

NGC is incorporated under the Companies Act and sections 101 to 105 allow for indemnification of Directors. Section 101 allows the company to indemnify directors and officers, against all costs, charges, and expenses PROVIDED THAT the directors or officers to be so indemnified acted honestly and in good faith in the best interests of the company.

The other shareholders, and ALNG can sue NGC/ NGC ALNG. If recent history is a guide (Eteck, Udecott, Petrotrin), NGC itself and future directors appointed by a new government can sue former directors. The Companies Act neither recognises “national interest”, nor cabinet/ ministerial directives to directors. It requires directors to act in the best interest of the company meaning that the directors must reasonably anticipate that their decisions would add value.

Natural gas, not oil, has been the cornerstone of the TT economy since the 1990’s. Rising prices of petrochemicals and the commencement of LNG exports formed the basis of the rapid economic growth between 1999 to 2014. The energy sector has been vital to the country’s stability as it generates approximately 80% of the country’s foreign exchange earnings. BPTT and Shell account for 68% of all gas produced.

High international prices between 2011 and 2014 masked the underlying decline in natural gas production which fell from a high of 4.1 billion cubic feet a day (bcfd) in 2011 to an average of 3.3 bcf in 2016. Juniper and Angelin provided a brief respite. The failure of BPTT’s infill drilling programme has led to continuing production decline. Average daily production in May 2021 was 2.5 bcf. That isn’t enough gas to keep all the plants open as installed plant capacity requires 4.bcf natural gas daily to achieve maximum production. The plants that are open have supply contracts that can be satisfied from existing production. The rest are closed including Train 1 (LNG plant) in Point Fortin.

Each LNG train has a separate ownership structure. NGC is a minority shareholder in Trains 1 and 4 (10% and 11% respectively) and owns nothing in Trains 2 and 3 whilst Shell and BP are the majority shareholders in each Train. Train 1 is the oldest and least efficient. It was scheduled to be upgraded last year assuming that there was enough gas to keep it operational.

TT is a mature hydrocarbon province and faces several challenges; declining supply, higher cost and therefore higher prices, reliance on multinationals, aging plants, a regulatory and enabling environment that has lost its competitive edge and attractiveness to investors. Gas “curtailments” have led to pricing and contracting issues for several years. These factors raise governance, policy and business issues across the sector and is reflected on the plant closures. These plants will remain closed unless these issues are resolved

This is the context in which Franklyn Khan, deceased former energy minister, first stated in December 2020 that Train1 would not be closed. At the time he would have known that BPTT had notified NGC that it could not meet its daily contracted supply and advised NGC that the decision to upgrade Train 1 should be reconsidered. One can safely presume that Mr. Khan’s statement was informed by cabinet’s deliberations in this regard.

Recent press reports in the Business Guardian indicate that the NGC Board unilaterally spent millions on Train 1 and did not meet its commitment for ALNG funding for its’ share of maintenance costs. Why would directors spend on a questionable train and not fund the viable train? What analysis was done, and which experts were consulted? Did they advise that the investment should proceed? Did the instruction come from Cabinet to fund Train 1 and under fund the commitment to ALNG, in breach of contract? These questions raise serious governance and legal issues.

Some have argued that the decision was necessary as the multinational partners cannot be relied on to pursue the national interest and that gas would become available in the future. This ignores the legal arrangements with other shareholders and that the decision could have been deferred until it was clear that a gas supply was available. How does this compare with Petrotrin’s closure?

By February 25, 2021, NGC’s Chairman requested the finance minister to indemnify NGC, NGC LNG, and the directors. “We also previously discussed your commitment to indemnify the NGC company and Directors for any claims or losses stemming from the Train 1 rescue package ($168M). Our request is to extend that indemnity to cover ALNG funding for the April 1, 2021, to December 31, 2021. NGC is also required to indemnify its subsidiary NGC LNG which holds the 10 per cent interest in Train 1.”

NGC is incorporated under the Companies Act and sections 101 to 105 allow for indemnification of Directors. Section 101 allows the company to indemnify directors and officers, against all costs, charges, and expenses PROVIDED THAT the directors or officers to be so indemnified acted honestly and in good faith in the best interests of the company.

The other shareholders, and ALNG can sue NGC/ NGC ALNG. If recent history is a guide (Eteck, Udecott, Petrotrin), NGC itself and future directors appointed by a new government can sue former directors. The Companies Act neither recognises “national interest”, nor cabinet/ ministerial directives to directors. It requires directors to act in the best interest of the company meaning that the directors must reasonably anticipate that their decisions would add value.

The indemnification requested by the NGC’s directors suggests that they complied with Cabinet/ ministerial directives and did so in the full knowledge that the decisions were questionable. Therefore, the indemnity requested is wider than allowed by the Companies Act and NGC cannot indemnify itself. These are major legal issues.

Is the state giving an amnesty or an indemnity? What was the reason to proceed with the expenditure if it became doubtful so quickly? Is this a complex strategy or a gamble? How do citizens ensure that business decisions in the state enterprises are data driven and avoid the wastage of public funds? And how do we hold elected officials accountable?

https://www.linkedin.com/pulse/ngc-savi ... no-browne/