OPM: Petrotrin report mulls restructuring

The committee was set up by Rowley in March after a Cabinet decision to review Petrotrin’s operations in light of falling revenues, allegations of mismanagement and decreasing oil prices worldwide.

In an address to the nation in January, Rowley said Petrotrin was experiencing a dramatic slump in crude oil prices, plus an ongoing decline in refinery margins and declining local oil production, that had together cut its revenues by half from $37 billion in 2012 to $16 billion in 2016.

“The situation was further exacerbated when the union served formal strike notice on Petrotrin in January,” said the statement.

The statement added that traditionally Petrotrin has been a net earner of foreign exchange, of US$250 million per year in 2015 and 2016, and a key contributor to government tax revenues and TT’s energy security.

“For many years however, high international oil prices masked a range of fundamental weaknesses in Petrotrin’s operations.

“Among the main structural problems were a steady decline in domestic oil production, low productivity, escalating manpower costs and steadily increasing operational and capital costs, due to inadequate controls, questionable management practices, ageing assets and infrastructure.” Petrotrin now has more than 5,000 employees, with an annual wage bill of $1.9 billion, which is close to 50 per cent of its total annual operating costs.

The Prime Minister is expected to present the Petrotrin report to Cabinet and then to the energy sub-committee.

The Petrotrin Review Committee has agreed to remain empanelled on assignment with Cabinet until December 31.

The Committee is chaired by Ministry of Energy permanent secretry, Selwyn Lashley.