Petrotrin refinery shut down

[Habit7]

It is funny your falsehood will go unchallenged but my cited rebuttal is PNM props bu t here goes:

Yes T&T has oil but only 40k barrels a day with a refinery that has a 180k barrel a day throughput. The need to import crude makes it unprofitable just like the other Caribbean refineries dependent on imported refined oil.

There was a shortage of USD since 2014
https://archives.newsday.co.tt/2014/06/ ... r-us-woes/

Petrotrin was a net loser of forex
Petrotrin Chairman Wilfred Espinet said. "This results in a net loss in foreign exchange." https://www.spglobal.com/marketintellig ... AAJf4P6XQ2

Our credit ratings by various raters shows no risk of us defaulting on any loan, in fact our debt to GDP is reducing.

“Tenants at the Park include, Caribbean Specialty Foods, IFarm TT, Trinidad Chocolate Factory, Woodsman Caribbean and Royal Dates Galore all at varying stages of establishment and operations. “https://www.investt.co.tt/news-and-events/moruga-agro-processing-li/

Toruba Stadium had 4 CPL finals at at least US$24M benefit to the economy, that is not counting the other events there. http://www.cnc3.co.tt/press-release/eco ... 36-million

WGTL was sold during the PP admin to a private entity already. Its success or failure is dependent on its stakeholders, not T&T.

[The_Honourable]

In time for 2025?

Buyer interested in Pointe-a-Pierre refinery

Prime Minister Dr Keith Rowley said at least one buyer has expressed interest in the Pointe-a-Pierre refinery and will be coming to see its data room in the next week or two.

Speaking at a media briefing at the VIP Lounge, Piarco Airport, shortly after his return from Guyana yesterday, Rowley said the Government has been keeping the issue of the refinery out front as “one of the things we do when we go to these big gatherings where a lot of people are, who are in the business.”

He said the refinery was taken out of operation because of an inadequate local oil supply and purchasing oil was “a big money loser”.

“We always hold it out in the hope that someone with access to oil or wants to get into the refining business, predicated on an oil supply they may have, that those discussions are always with us.

“And we did have some of it in Georgetown. There’s one party having heard us that has gone off to put things in place to come and look at the refinery’s data room at Pointe a Pierre,” he said.

Rowley said anyone interested would find all the information they need in the data room.

“So having heard us, we have at least one interested party who’s indicated an interest in going to the data room sometime in the next week or two,” he said.

He added that if they think there are opportunities to talk further, they will.

“We still think the refinery is valuable. It’s available for us but it requires a sustained supply of crude oil.”

https://www.guardian.co.tt/news/buyer-i ... 39e596ba22

[wing]

The only option is a supply from Guyana. At market prices, for any potential buyer to operate at good margins, the staffing will have to be very lean and cash flows tightly controlled. Doesn't look good for Roget if it ever materializes. Maybe that's why they hiding under Kamla skirt.

[Habit7]

The only option is a supply from Guyana. At market prices, for any potential buyer to operate at good margins, the staffing will have to be very lean and cash flows tightly controlled. Doesn't look good for Roget if it ever materializes. Maybe that's why they hiding under Kamla skirt.

Guyana don't want to hear about Trinidad's refinery. Guyana is selling their share of Exxon's oil on the open market to the highest bidder. To sell to TT would mean a loss of potential profits. They don't want to buy the refinery because they have no experience in running a refinery esp one that failed twice.

Refineries are closing all over the world and the existing ones are becoming more efficient. Rowley is trying to sell the country dreams about somebody buying the refinery soon. And any other politician promising to reopen the refinery is just as deceptive.

[nervewrecker]

The only option is a supply from Guyana. At market prices, for any potential buyer to operate at good margins, the staffing will have to be very lean and cash flows tightly controlled. Doesn't look good for Roget if it ever materializes. Maybe that's why they hiding under Kamla skirt.

Guyana don't want to hear about Trinidad's refinery. Guyana is selling their share of Exxon's oil on the open market to the highest bidder. To sell to TT would mean a loss of potential profits. They don't want to buy the refinery because they have no experience in running a refinery esp one that failed twice.

Refineries are closing all over the world and the existing ones are becoming more efficient. Rowley is trying to sell the country dreams about somebody buying the refinery soon. And any other politician promising to reopen the refinery is just as deceptive.

I thought Guyana building a refinery?

[wing]

The only option is a supply from Guyana. At market prices, for any potential buyer to operate at good margins, the staffing will have to be very lean and cash flows tightly controlled. Doesn't look good for Roget if it ever materializes. Maybe that's why they hiding under Kamla skirt.

Guyana don't want to hear about Trinidad's refinery. Guyana is selling their share of Exxon's oil on the open market to the highest bidder. To sell to TT would mean a loss of potential profits. They don't want to buy the refinery because they have no experience in running a refinery esp one that failed twice.

Refineries are closing all over the world and the existing ones are becoming more efficient. Rowley is trying to sell the country dreams about somebody buying the refinery soon. And any other politician promising to reopen the refinery is just as deceptive.

It is true many refineries are closing, most due to the same issues that ours faced. However, there are still markets in the Caribbean and beyond that any prospective bidder would have considered before coming here. Point to note, the largest refinery in Africa was just commissioned last month in Nigeria. Many of the upgrades in the refinery such as the CCR, FCCU, ALKY ACID and UTILITIES are basically new plants not to mention the ULSD plant which may have hope of rehabilitation. It will take huge sums to get it going and run as a lean business. As long as the government stays out, there is a chance of success.

[Habit7]

I thought Guyana building a refinery?

yes they are looking to build a small refinery like 30K barrels/day, not as large as ours. Enough for local consumption of products and a little extra for export. But just like their gas to electricity plans, it is mixed up in confusion and yet to get off the ground.

It is true many refineries are closing, most due to the same issues that ours faced. However, there are still markets in the Caribbean and beyond that any prospective bidder would have considered before coming here. Point to note, the largest refinery in Africa was just commissioned last month in Nigeria. Many of the upgrades in the refinery such as the CCR, FCCU, ALKY ACID and UTILITIES are basically new plants not to mention the ULSD plant which may have hope of rehabilitation. It will take huge sums to get it going and run as a lean business. As long as the government stays out, there is a chance of success.

The benefit of Nigeria is that they have endless crude and don't need to import it, unlike the Caribbean refineries. They have the raw materials and the market in one country. The Caribbean has to import the raw materials and export the products to the market. More middlemen, less profit.

We have to understand we are biased toward PaP because it is ours and we have a nostalgic attachment to it. But as an unbiased international investor, PaP is a wildcard with better investment prospects elsewhere.

[wing]

I thought Guyana building a refinery?

yes they are looking to build a small refinery like 30K barrels/day, not as large as ours. Enough for local consumption of products and a little extra for export. But just like their gas to electricity plans, it is mixed up in confusion and yet to get off the ground.

It is true many refineries are closing, most due to the same issues that ours faced. However, there are still markets in the Caribbean and beyond that any prospective bidder would have considered before coming here. Point to note, the largest refinery in Africa was just commissioned last month in Nigeria. Many of the upgrades in the refinery such as the CCR, FCCU, ALKY ACID and UTILITIES are basically new plants not to mention the ULSD plant which may have hope of rehabilitation. It will take huge sums to get it going and run as a lean business. As long as the government stays out, there is a chance of success.

The benefit of Nigeria is that they have endless crude and don't need to import it, unlike the Caribbean refineries. They have the raw materials and the market in one country. The Caribbean has to import the raw materials and export the products to the market. More middlemen, less profit.

We have to understand we are biased toward PaP because it is ours and we have a nostalgic attachment to it. But as an unbiased international investor, PaP is a wildcard with better investment prospects elsewhere.

Anyone who is visiting for a site visit obviously has an economic way to acquire crude as well as a market to sell products. Unless of course is to buy it for scrap.

[pugboy]

what’s latest with dead divers report and millions spent for coe?

wha bout the oil spill barge?

[Habit7]

what’s latest with dead divers report and millions spent for coe?

wha bout the oil spill barge?

Well there are threads for either one.

[nervewrecker]

I thought Guyana building a refinery?

yes they are looking to build a small refinery like 30K barrels/day, not as large as ours. Enough for local consumption of products and a little extra for export. But just like their gas to electricity plans, it is mixed up in confusion and yet to get off the ground.

It is true many refineries are closing, most due to the same issues that ours faced. However, there are still markets in the Caribbean and beyond that any prospective bidder would have considered before coming here. Point to note, the largest refinery in Africa was just commissioned last month in Nigeria. Many of the upgrades in the refinery such as the CCR, FCCU, ALKY ACID and UTILITIES are basically new plants not to mention the ULSD plant which may have hope of rehabilitation. It will take huge sums to get it going and run as a lean business. As long as the government stays out, there is a chance of success.

The benefit of Nigeria is that they have endless crude and don't need to import it, unlike the Caribbean refineries. They have the raw materials and the market in one country. The Caribbean has to import the raw materials and export the products to the market. More middlemen, less profit.

We have to understand we are biased toward PaP because it is ours and we have a nostalgic attachment to it. But as an unbiased international investor, PaP is a wildcard with better investment prospects elsewhere.

Surinam building something too? The company with the grocery chain have men there but it slipped my mind to ask what they doing.

[sMASH]

Espinet got the refinery profitable in the lead up to the closure even with the staffing bloat


The problem was. The Malcom Jones wgtl loan bullet payment.



Even when thy had to buy crude to make up the production runs, it was still a wise venture to cause u bought crude at crude prices and sold the products at distilled prices.

That brought in much needed forex, and kept a lot of people employed, and who in turn sustained a lot of micro economics.



The problem with selling the refinery is they want to saddle the buyer with the Malcom Jones debt.
Every body want to buy the refinery, but not that debt.


Cause the refinery was a good business.

[Habit7]

Surinam building something too? The company with the grocery chain have men there but it slipped my mind to ask what they doing.

Suriname already has a small refinery.

Espinet got the refinery profitable in the lead up to the closure even with the staffing bloat


The problem was. The Malcom Jones wgtl loan bullet payment.



Even when thy had to buy crude to make up the production runs, it was still a wise venture to cause u bought crude at crude prices and sold the products at distilled prices.

That brought in much needed forex, and kept a lot of people employed, and who in turn sustained a lot of micro economics.



The problem with selling the refinery is they want to saddle the buyer with the Malcom Jones debt.
Every body want to buy the refinery, but not that debt.


Cause the refinery was a good business.

It is amazing how you don’t let facts influence your beliefs. Your problem is not with me, it is with reality.

[The_Honourable]

I don't think the Malcom jones debt comes with the refinery if sold. Profits from Heritage is already servicing that debt and other outstanding petrotrin related debts.

Stand to be corrected tho.

[Habit7]

I don't think the Malcom jones debt comes with the refinery if sold. Profits from Heritage is already servicing that debt and other outstanding petrotrin related debts.

Stand to be corrected tho.

Imbert said many people have asked the question: If the refinery was unprofitable over the years, why should anybody believe that a new entity can make it profitable.

“There is a simple answer to that. The refinery was saddled with huge debt, billions of dollars of debt. Any person taking over the refinery now will not have to carry that debt, which was a tremendous drain on the revenue being derived from the refinery. The refinery is going forward debt free.

https://trinidadexpress.com/news/local/ ... f.amp.html

[The_Honourable]

Chairman: $500,000 a month to preserve mothballed refinery

APPROXIMATELY $500,000 a month is being spent to preserve the former Petrotrin refinery at Pointe-a-Pierre.

Guaracara Refining Company (GRC) chairman Newman George gave this response to a question from Public Accounts Enterprise Committee (PAEC) vice-chairman Mayaro MP Rushton Paray, during a public inquiry held by the PAEC on April 17.

The meeting was held to examine the audited financial statements of Trinidad Petroleum Holdings Ltd (TPHL) for the year ended September 30, 2019

GRC is one of four subsidiary companies under TPHL and its main function is to manage the physical assets of Petrotrin, such as the refinery.

Petrotrin was restructured into TPHL on November 30, 2018. The refinery was closed on the same date.

Paray asked George if the cost of preserving the refinery was in US or TT dollars.

George replied, "I speak in TT (dollars)."

Paray observed that unlike two other TPHL subsidiaries, Heritage Petroleum and Paria Fuel Trading Company, GRC was not classified as a revenue-earning entity in the group. He asked where GRC was obtaining funds to preserve the refinery.

George said this revenue was coming from lease agreements that GRC has with Heritage and Paria for storage facilities.

Paray asked if the cost of preserving the refinery was an incentive for TPHL to find someone to operate it.

TPHL chairman Michael Quamina, SC, said, "There is no greater driving force in so far as in trying to get somebody to take it off our hands."

He added that outside the cost of preserving the refinery, "There are driving forces even more significant than that would want us to get somebody to take it over."

Quamina said the Houston-based branch of the Bank of Nova Scotia was serving as consultants to TPHL with respect to assessing potential bidders for the refinery.

"We went through a very formal process some time ago. I would think this is the most progress that we have made. We do have some prospects in hand."

Paray asked how many bidders TPHL was considering.

Paria general manager Mushtaq Mohammed said, "Currently we have had eight expressions of interest (EOIs) for the purchase, lease or restart of the refinery."

Mohammed added all eight EOIs were unsolicited proposals.

He said TPHL expects the eight entities to submit formal offers by May 10, and those offers will then be reviewed and a decision made in due course.

Paray asked, "In terms of those bidders, can you share how many may be local or a combination of foreign and local?"

Mohammed replied, "I would say at this time, all of them have a composition of local and foreign participation."

No details were provided of the identities of any of the entities interested in the refinery.

At the launch of an apprenticeship programme by the Youth Development and National Service Ministry in Santa Flora last month, the Prime Minister said two parties were currently interested in the refinery, but it was not yet a sealed deal.

“One looks very promising, one looks very interested. But until the horse begins to drink the water, you don’t know what’s happened at the river.”

https://newsday.co.tt/2024/04/17/chairm ... -refinery/

[wing]

Scrap iron

[screwbash]

Kamla go open it back for we. Vote UNC 2025

[sMASH]

Scrap iron

Might be the best option now

[wing]

Scrap iron

Might be the best option now

Since 2021

[The_Honourable]

PM cautiously notes interested party for Petrotrin refinery

THE PRIME MINISTER didn’t want to say much on it, but he did allude that there may be a one party interested in the Petrotrin Refinery, mothballed since 2018, which may be successful in closing a deal with government.

He made the statement while responding to questions at the post-Cabinet meeting held at the Diplomatic Centre in Port of Spain.

“We have had so many bridesmaids without a bride,” Dr Rowley said, responding to reporters.

“We keep getting interest along the way but many times they don’t pan out. We have had some interest in recent times and if we are a little reluctant to speak on that at this stage we will simply say that as soon as there is some ink on some paper we will let the population know.”

The Petrotrin refinery was mothballed in 2018 amid significant losses.

Since then, government has invited several entities to make offers to buy the refinery for operations. One such company was the Oilfield Workers’ Trade Union (OWTU’s) Patriotic Energies and Technologies. However, in 2018, Government turned down the company’s offer. Finance Minister Colm Imbert in a press conference in 2018, said based on the options provided the government would have to bear the burden of financing the sale.

Patriotic tried again in 2021 and was once again denied.

https://newsday.co.tt/2024/04/19/pm-cau ... -refinery/

[sMASH]

I too have 8 bidders for my own refinery

[wall]

My crystal ball tells me Arab money cometh soon

[centricgtr]

My crystal ball tells me Arab money cometh soon

You really think so?….or you really just optimistic?

I mean, them buying our little refinery would be comparable to us going and buying a pack of corn curls, with the kind of money them have.

[wing]

Ajodasingh: More than half of Petrotrin’s outstanding debt has been paid



 

Over half of the $11.9 billion debt inherited by the closure of Petrotrin has already been paid, the Deputy Chairman of Heritage Petroleum Company Ltd, Reynold Ajodhasingh, has confirmed.

He made the disclosure on Tuesday, at the project launch of the Point Fortin Heritage Administrative Complex.

Deputy Chairman Ajodasingh revealed that $7.5 billion in principal, interest and withholding tax have been paid.

He said the company has since secured the release of several non-operational assets, which are now being re-purposed for the benefit of the people and the country, noting that the administrative complex is one such asset that is being re purposed to house various government services.

“As part of our refinancing of this debt in 2022, TPHL and Heritage Petroleum Company secured the release of direct and indirect liens on Petrotrin Company and non-operational assets, all of which were previously pledged to this loan,” he explained.  “This has now enabled us to re-purpose these assets accordingly.”

Reynold Ajodhasingh noted that some of the assets that were repurposed include the Augustus Long Hospital for the use of the SWRHA, as well as a multi-storey building on Clarke Road in Penal that has been vested with the Ministry of Social Development as a transition home for domestic violence survivors.

[wall]

My crystal ball tells me Arab money cometh soon

You really think so?….or you really just optimistic?

I mean, them buying our little refinery would be comparable to us going and buying a pack of corn curls, with the kind of money them have.

We Wait and see . Politics gotta politic so any announcements would probably be made nearer general elections next year

[wing]

Buying scrap iron ole battery buyin

[sMASH]

They have the dinar to get it restatted and pay off the Malcom jones debt.
Once they could lock down a long term crude supply contract, they coudl do it.


Saw sumting where they want to expand their a380 contracts, so here could be a destination for that transport.

It have big things going on geo politically and geo energy that we dont know about.

The world order changing up. And American sanctions is not sumting that holding back the big players as much any more

[Habit7]

***trigger warning***

THE TRUTH ABOUT PETROTRIN AND ITS RESTRUCTURING.

Allow me to start by openly declaring that I welcome healthy debate and have never shied away from a good and robust debate, whether it be in the courtrooms as an advocate attorney, on the floor of the parliament (as a temporary opposition senator or as an elected member of parliament), or simply whilst walking throughout the country and engaging persons who have strong opinions on various matters. In my opinion, there are always two non-negotiable requisites for a healthy debate, firstly, mutual respect and secondly, reliance on evidence which is based on the facts.
It has unfortunately become increasingly apparent that a complete disregard for facts and truth by certain public interest commentators comes naturally to the said individuals in furtherance of agendas. Publication of inaccurate and misleading information can be harmful to the public interest. When we rely on the media for information to guide our decision making it is absolutely essential that the media assumes the role of fact checking and ensuring accuracy otherwise these platforms can be used unwittingly for nefarious purposes. The latest offending publication is authored by commentator Ralph Maraj in the Sunday Express Newspaper of April 28th, 2024, under the headline “Shed Your Intellectual Laziness”.
Ralph Maraj once again invents facts in his submission that the Government, and in particular, the Prime Minister, Dr Rowley, was wrong in its/ his decision to restructure Petrotrin and to close the loss-making refinery. As Minister of Energy and Energy Industries the responsibility is mine to once again put the irrefutable facts forward and to correct the record.
Not for the first time Mr Maraj mentions chairmen, board members and reports which allegedly advised the government against closing the refinery and he does this without being able to point to a single item of fact in support of these assertion. He cannot identify a single chairman, or board, or report, in support of his frequent assertions.
It is an irrefutable fact that Petrotrin was restructured. Petrotrin still exists as a legal entity, its main business is holding various legacy assets; however, its original operations were restructured. Trinidad Petroleum Holdings Limited (TPHL) was incorporated as a holding company with Petrotrin, itself, as one of its subsidiaries. The exploration and production operations were restructured into the successful company Heritage Petroleum Company Limited. The provision of refined fuel products was taken on by Paria Fuel Trading Company Limited (Paria) which has successfully imported refined products (e.g. gasoline, diesel, aviation fuel etc) for the domestic market and for sale throughout the region. The refinery was placed into Guaracara Refining Company Limited, a subsidiary formed to preserve the refinery and to provide utility services to Paria.
This restructuring was actually conducted in 2018 by the then Chairman of Petrotrin, Mr Wilfred Espinet and his board in conjunction with the decision making of the Cabinet. The board was fully involved at every step of the way in the restructuring of Petrotrin and advising the Cabinet. The decision of shutting down the refinery was a Cabinet decision. It is also an irrefutable fact that the shutting down of the refinery and the restructuring of Petrotrin’s operations averted a major economic crisis for the Treasury and the country at large.
Upon coming into office in 2015 the government was confronted with a major unsustainable financial model and operations at Petrotrin. In 2014, Petrotrin registered a loss of $361.3 million and in 2015 its loss was $1.2 billion.
The country had seen a decline in its total domestic oil production from approximately 144,000 barrels of oil per day (bopd) in 2005 to 98,000 bopd in 2010 to 78,600 bopd in 2015. Of this, Petrotrin’s own production of oil declined from approximately 64,000 bopd in 2006 to 42,000 bopd in 2016. It now stands at approximately 35,000 bopd. Our mature fields were clearly on a decline and this crude oil was the input into the Petrotrin refinery which was constructed to refine 175,000 bopd. This meant that Petrotrin was required to import approximately 120,000 bopd to maximise output at the refinery. This component of imported crude oil was sourced on the international open market at prices set by the global oil markets. It should be appreciated that the purchase of all imported crude was required to be done in US dollars. The declining oil production in Trinidad and Tobago had led to the increasing costs of importing crude for refining at Petrotrin. All analyses show that more often than not, this resulted in losses of US $5-$7 a barrel of refined product.
Added to the unfavourable marketing arrangements for crude, the inefficient costs of lifting barrels of oil at Petrotrin had made the company very uncompetitive.
In 2016, Petrotrin registered a loss of $4.3 billion which meant that it had incurred cumulative losses of approximately $5.9 billion in a three year period. By the end of 2016 the Government had done a preliminary assessment of Petrotrin. It was concerned about its trajectory and in particular the effects that it was threatening to have on the Treasury and the country’s sovereign rating. A decline of our sovereign rating would affect the Government’s ability to borrow and the interest rates that its borrowings would be subjected to. So critical was the declining state of Petrotrin and the on-going demands being made by the OWTU union for increases that the Prime Minister, addressed the nation in early January 2017 on the threat that Petrotrin posed to the country and its well-being.
In February 2017, the Cabinet appointed a Team to conduct a review of the operations of Petrotrin and to make recommendations for its restructuring. The team comprised of Mr Selwyn Lashley, as Chairman, Ms Helen Drayton, Professor Chanrabhand Sharma (who subsequently recused himself due to a potential conflict), Mr Robert Riley, Mr Wilfred Espinet, Mr Gregory Marchan (representative of the OWTU) and Mr David Abdulah (representative of the OWTU). The Lashley committee as it came to be known submitted its report dated June 01, 2017 to the Cabinet and this report was subsequently laid in Parliament.
This report concluded that all was far from well at Petrotrin and highlighted its financial difficulties, the inefficiencies that it was facing in its refinery operations which were losing hundreds of millions of dollars, the concerns of asset integrity, the looming bullet payment of US $850 million which had to be paid in August 2019. There were further difficulties associated with servicing another US $750 million debt, the increasing burden of short term debt (the majority of which was being used to purchase crude oil for input into the refinery) and its declining oil production. Interestingly enough, none of these pertinent and well known facts ever from any part of the analyses, fulminations and castigations of the government frequently presented by Mr Maraj. He always talks about the refinery as though it operated in a vacuum of love and affection.
The terms of reference and work done by this Lashley team was limited in nature and was always meant to provide an initial independent high level analysis of the state of Petrotrin. Their conclusion was very worrying and required immediate action which included a deeper dive into Petrotrin’s operations to ascertain more details and to come up with options to avoid Petrotrin’s poor state having a contagion effect on the country’s economy.
Based on this situation, the Government, and in particular, the standing energy sub-cabinet committee recognised that an urgent intervention into Petrotrin was necessary. The Government appointed a new board of directors with specialist skills led by Mr Wilfred Espinet an experienced businessman who had successfully restructured companies and their operations in complex situations before including, Trinidad Cement Limited. The new board was mandated to assess Petrotrin and to come back to the Cabinet with its recommendations including, importantly, a proposal to deal with the US $850 million (TT $5.8 billion) bullet payment due in August 2019 and to do so without recourse to the Minister of Finance having to liquidate same and without the provision of a government guarantee. The board hired a number of consultants and industry experts all of whom concluded that Petrotrin was in a dire position and at minimum it was threatening to downgrade the country’s sovereign rating.
In 2017/ 2018, to add to the operational woes, Petrotrin’s auditors insisted that cumulative losses that were being carried forward for tax purposes to the tune of approximately $5 billion had to be written off, this would have had detrimental effects on Petrotrin’s financial standing and affected its solvency threatening to result in triggers on payment of its debts, including the US $850 million and US $750 million debts. The continued need to import crude oil was being supported by short term US dollar loans which required government support. By the time the decision was taken to shut down the refinery these short term US dollar loans totalled approximately US $450 million. These US dollar short term loans continue to be carried up to today’s date totalling approximately US $402 million (TT$2.77 billion).
The Espinet led board and its advisors, met regularly with a sub-committee of the Cabinet chaired by the Prime Minister and they also met with the full Cabinet on occasions as they worked through the various options available for the restructuring of Petrotrin. The Cabinet was advised that to continue without any changes and in particular, to continue operating the refinery in the manner it was being operated with the high costs of production and negative projections would lead to Petrotrin continuing to incur losses at an average of over $2 billion per annum. In 2017 Petrotrin declared another loss of $2.4 billion in addition to defaulting on its statutory payments of royalties and taxes.
Eventually the board submitted to Cabinet that the only way that it was possible to refinance the US $850 million loan without a government guarantee was to go to the market with a restructured company that separated exploration and production into a separate company freeing it of the financial burdens of the refinery. It was also submitted that it was prudent to shut the refinery down and import fuels as the refinery was sinking Petrotrin for the reasons stated above. After much analysis, and deliberation, the Cabinet gave the board the green light to proceed and Petrotrin was restructured with the workers being paid off approximately $2.7 billion in cash, along with a Cabinet decision to provide land to workers from the land bank of Petrotrin. The restructured companies were also able to secure a refinancing of the US $850 million debt without a government guarantee which prevented the financial fall out to the Treasury and country that would have taken place had the restructuring not taken place.
The root of the problem which resulted in the refinery being closed was the unavailability of sufficient crude from Petrotrin’s sources this made the refining business largely dependent on imported crude. Added to these unsustainable costs, Petrotrin’s lifting cost per barrel of oil was inefficient and uncompetitive, it was costing significantly more to lift each barrel of oil than other exploration and production companies. Petrotrin’s exploration and production operations were inefficient and added to the high cost of running the refinery as the input cost to the refinery.
The refinery was a loss-making enterprise that was sinking Petrotrin and threatened to bankrupt Trinidad and Tobago if it defaulted on its payment of the US $850 million debt in August 2019 which would have also triggered a call on the US $750 million debt at the same time, as well as, the US $450 million short term debt. This would have required the Minister of Finance to have to find US $2.050 billion (TT$14.145 billion) to pay off these debts which was not available. In turn there is little doubt that Trinidad and Tobago would have had to turn to the IMF for this money as well as faced downgrades and possible cross default calls on sovereign debt which would have definitely placed us in the hands of the IMF.
It is easy for persons who live in a fantasy to say that the refinery should not have been shut down and to ignore these hard and irrefutable facts that the Government had to face, to save Trinidad and Tobago, from an IMF programme. It cannot be left to those opposed to the Government who object to the policy of restructuring as carried out to try to rewrite history by putting forward false narratives based on disinformation and untruths. The reality is that the only reasonable option that was available to a responsible government that was concerned about the well-being of the country was to get out of the refining business and to restructure Petrotrin in the manner that we did. A very difficult decision to have taken but a necessary one which allowed us to continue to manage our own affairs without turning to the IMF.
The restructuring of Petrotrin and closure of the refinery has been a success. Not only did we avoid calls on the treasury to make payments of the long and short term US dollar debt, we also managed to secure refinancing of the US $850 million debt, not once but twice, at competitive rates of interest and without any government guarantee.
The newly formed companies of Heritage and Paria have also been successful, a fact that is often conveniently ignored by Ralph Maraj and others opposed to the government. For the period FY2019 through March 2024, Heritage has made $40.3 billion in revenue, paid $12.6 billion in taxes and royalties, and made a profit of $6.5 billion. Heritage has also paid TPHL $1 billion in dividends. For the same time period, Paria has made $52.6 billion in revenue, paid $0.9 billion in taxes, and made a profit of $1.3 billion. These results are indicative of the benefits of the restructuring exercise that this Government undertook.
These irrefutable statements of facts are not associated with any laziness or lack of intellect. Any unbiased assessment of this major business turnaround resulting in the removal of a loss-making refining operation and leading to the success of Paria and Heritage whilst keeping the refinery in a preserved state would conclude that it was appropriate to restructure Petrotrin and to shut the refinery.
It is important to note that the refinery is being preserved and that the Government has consistently indicated and invited those who may be interested in restarting it to provide their proposals for doing so. A prerequisite to the refinery’s restart is an operator that has a source of crude, the wherewithal to restart the refining and the financial ability to underwrite the costs associated with supplying the crude and paying for all costs associated with a safe restart. Government has very carefully kept the door open.
I have taken the time to provide this factually accurate op-Ed to ensure that those who seek the truth and facts are fairly provided with same. Mr Maraj and others who pretend to be concerned about Trinidad and Tobago would do well to be honest in their contributions and by respect the public enough to not attempt to mislead them.

Stuart R. Young, M.P.
Minister of Energy and Energy Industries and Minister in the Office of the Prime Minister
May 3, 2024

[matr1x]

Stuart Young not an expert in family, nor petrotrin .

Stuart forget that is his party running into the ground.