Angelin going ahead

Last week, Oilfield Workers Trade Union (OWTU) President-General Ancil Roget said workers were not responsible for the platform for Angelin not being fabricated in TT.

“Take your platform and go! We are not prepared to have any type of construction in an environment that is unsafe, unhealthy and void of good industrial relations practice,” Roget told reporters during a protest outside of the OPM in St Clair last week.

In a statement, bpTT (BP’s local subsidiary) said the decision not to fabricate the platform in La Brea was difficult but, “necessary to preserve Angelin’s project schedule.” The Angelin field is located in the Columbus Basin off the south-east coast of Trinidad.

The company said while it continues talks with the National Gas Company (NGC) to progress the completion of a gas sales agreement as a prerequisite to the sanction of Angelin, it continues to pursue all options to maintain the project schedule and first gas goal of early 2019. “This is a priority to ensure that gas supply volumes can be maintained in 2019 and beyond,” bpTT said.

The company also said it, “remains fully committed to maximizing local content in all our operations however given the compressed project timelines and other competitiveness factors for the Angelin project local fabrication is no longer a feasible option.” The company said it is also, “committed to maintaining an option of fabrication in-country for future platforms and will be working with local service providers on key competitiveness factors such as productivity.”

Coming out of discussions which Prime Minister Dr Keith Rowley had with BP in Houston last month, Young said, “They (BP) are sanctioning Angelin.” He said while some persons are blaming the Government for delays regarding the Angelin project, Young disclosed, “The truth is that, no negotiations and discussions, no matter how BP tried to progress those discussions were taking place, by the prior administration.” Young accompanied Rowley to meetings with BP, Shell, Exxon Mobil and EOG Resources in Houston from March 29 to 31.

Reiterating that the former People’s Partnership (PP) government had failed to re-negotiate several energy contracts when they were supposed to, Young stated, “TT is in a very different place from when these contracts were negotiated.” Against this background, Young said, “Coming out of those conversations, there was a finalisation of the price that the future purchase of gas would be made by NGC.”

Observing that up streamers are demanding higher prices for their gas, down streamers want reduced prices to continue producing their commodities, the minister explained that Government, through the NGC, is trying to find the best price.

Explaining that what was agreed to in the discussions with BP and Shell was augured well for TT, Young said, “One of the things we managed to negotiate last week with BP as well as Shell and to get them to agree on is a continued supply of gas up to 2019.”

He said these companies also agreed that any increase or finds of gas or increased efficiencies on their part will see them selling “to NGC to assist the downstream industry.” Young said, “From that aspect, we’ve gotten more gas going until 2019.” Noting the Juniper project will be on stream in the third quarter of 2017 and will maintain the country’s gas production at its current levels, he said, “When you are in a situation like this, any more scuffs of gas is going to assist.” He said, “What we have been speaking to them about is an allocation of more gas to the downstream (industry).”

On discussions with Exxon Mobil, which is active in Guyana’s emerging energy sector, Young said, “The Prime Minister had prefaced that with meetings with President (David) Granger in Guyana. TT is about to sign a new MOU on energy with the Government of Guyana but, we are really looking to play a supporting role to the government of Guyana going forward.” He also said Exxon was invited to TT to see the infrastructure that is available here.

In a statement on Tuesday, the TT Chamber of Industry and Commerce said the lost opportunity to have the Angelin platform fabricated in La Brea, “should concern us all.” The Chamber said beyond the immediate loss of jobs and much needed economic activity, “what has resulted is the potential elimination of any prospects of building additional platforms for neighbouring oil and gas fields.”

The Chamber said, “Anyone genuinely concerned about the welfare of those suffering job losses will not treat this matter cavalierly; neither would they suggest that we encourage further loss of opportunity.”

With resources becoming increasingly scarce, the Chamber said TT, “is in a crunch to remain attractive to foreign direct investment.” The Chamber said the posturing of the labour movement and apparent delays by Government in finalising the gas supply contract with bpTT may have led to a compression of the time to deliver on gas from the Angelin project.

The Chamber also said recent statements made during Rowley’s visit to Houston suggested that while there was agreement in theory, nothing was signed. Saying this points to a critical gap in our decision-making process, the Chamber reiterated that it cannot be business as usual, “particularly in times of economic hardship.”