Let us see gas deal

It is understood the agreement will see gas from Venezuela’s Dragon Field piped to the Hibiscus Platform, owned by Shell, on to land at the Point Lisas Industrial Estate, Trinidad, where the gas would be processed and sold.

The visit of Prime Minister Dr Keith Rowley to Caracas was one filled with much fanfare. We were treated to the spectacle of the Prime Minister and Venezuela’s embattled President Nicolas Maduro in a congo line with dancers clad in colourful costumes. Yet, the nitty-gritty details of the government- to-government agreement signed between the two countries remained carefully out of sight.

Despite the seemingly festive air of the proceedings, the agreement is likely to be critical to both Trinidad and Tobago and Venezuela.

This is due to the economic downturn which has come about due to depressed international energy market prices.

The agreement comes at a time when Venezuela is struggling with hyperinflation and is enduring a shortage of goods and foods. This year, Trinidad and Tobago offered assistance in relation to this problem by getting local companies to sell stocks to the Venezuelan market.

It was also a quid pro quo as local businesses were able to get US earnings where locally the foreign currency is limited.

Also, Trinidad and Tobago’s maintenance work on its facilities is continuing, meaning we are experiencing challenges with gas supplies.

According to Rowley, Trinidad and Tobago is expected to be given priority when it comes to taking in gas supplies from Venezuela. We will have to wait and see.

Rowley’s trip saw yet another pledge by Maduro to deal with the Caribbean Airlines Ltd (CAL) issue.

An agreement to pay CAL the over $300 million owed the airline was reached in Caracas, in another gesture of goodwill. It appears to be a case of helping each other to maintain stability, and a means of boosting the economies again.

But goodwill notwithstanding, full details of the agreement signed on Monday should be disclosed.

Why is there a need for confidentiality clauses in a government- to-government arrangement? Who is being protected by this? The respective State companies, NGC and PdVSA, or Shell? What about the public, the taxpayer? The Prime Minister has said hundreds of millions of US dollars will be spent. Who is raising this money? The governments? The companies involved? What are the benefits and, importantly, the consequences should problems arise even before the first length of pipe is laid? What about construction? Employment? Environmental issues? Offshore and onshore security issues? Where is the oversight? Some will call attention to the involvement of a multinational, Royal Dutch Shell, which has interests in both countries. Maduro has told the company to monetise the gas in the shortest possible time.

It is unfortunate the longstanding practice of government-to-government arrangements remaining confidential remains in place. Advocates for these kinds of arrangements argue that private companies should not have sensitive details made public simply because they are doing business with State entities.

It is hard to argue with such an assertion when the agreements remain secret. In theory there should be scope for partial release of agreements.

A greater role could be played by Parliament’s committee system.

Possible procurement problems as well as the lack of transparency seem to pose greater risks to society than nebulous claims of possible damage should supposedly sensitive commercial data be made public.

Let us see government-to-government deals.