BpTT CEO: $1.5B increase in Government revenues by 2006

Chairman and CEO of bpTT Robert Riley said with the company ramping up production in its gas fields,  Government revenues will be increased by TT$1.5 billion ($US280M) in 2006. He was speaking at a press conference on Thursday, giving an overview of bpTT’s Cannonball, the US$139 million gas processing platform now being constructed at the LaBrea Industrial Development Company (Labidco). When up and running, Canonball, Riley said, will supply Atlantic LNG Train IV. “Our  growth rate in  2006 is approximately 30 percent and will increase Government’s revenues by TT$1.5 billion for 2006 at planning prices,” he told reporters.

The platform is due to be in place by May 2005, and when completed will take up or one billion cubic feet of gas per day. The entire project, from fabrication and project management to installation, is being done for the first time  in Trinidad and Tobago. Riley stressed that approximately 40 percent of the engineering design was done by TT engineers. In addition, TT nationals performed 65 percent of the management, engineering and fabrication work on Cannonball.  Riley also warned against talking about a boom in local content in the energy sector. Making a case for the players in the local service sector to take advantage of the opportunities for local content, Riley said either they employ people with the skills directly into their firms or they align themselves with firms that will enhance their capabilities.

He noted though that this was not a process to be rushed. “The reason I say that this does not have to be rushed is the same reason I talk about let’s not be carried away with boom talk,” he said. “We have contracts for 20 years. We are trying to create a business, in the initial expense, that will be sustainable at these levels of activity for more than 20 years. “That now gives a wonderful planning horizon and what we now need to do is methodically do this sector by sector.” He urged Government to create a framework to stimulate the development of local content. He said local content had reached the stage where it now needs some incentives to flourish, and suggested that Government look at a simple policy framework. Local content does require Government support, he maintained.