To recover from PetroCaribe losses

"Taken from our B U S I N E S S section."

STATE OIL company Petrotrin is aiming to penetrate markets in the United States in order to make up for markets it could lose in the region as a result of Venezuela’s PetroCaribe initiative.

In making these disclosures at a parliamentary joint select committee meeting at the Red House on Tuesday, Petrotrin officials said the US$650 million upgrade of its Pointe-a-Pierre refinery was vital for the company’s survival and the nation would see increased energy revenues of US$113 million annually once that upgrade is complete.

Petrotrin executive chairman Malcolm Jones told the committee that economic reasons aside, the refinery upgrade was a must “for the continuance of Petrotrin” because of the challenges posed by PetroCaribe. Petrotrin’s marketing manager Ken Allum supported Jones’ view, indicating that PetroCaribe may cause the company to lose some of its markets in Caricom.

Prime Minister Patrick Manning held discussions with US Vice-President Dick Cheney in Washington DC last month on PetroCaribe’s impact on Caricom and other matters of mutual interest.

Noting that there is currently a shortage of gasoline in the US market, Allum explained that this was why Petrotrin was currently upgrading its refinery in order to produce a higher blend of petroleum products that would be able to penetrate all global markets.

Company president (operations) Wayne Bertrand said once the upgrade is completed Petrotrin’s revenues could increase by US$113 million per year. Bertrand added that as of the end of May, Petrotrin recorded a profit of $964 million.

Jones indicated that while Petrotrin’s profits had increased from $1.5 billion in 2004 to $3.6 billion in 2005, there remained room for improvement.

He also spoke about the company’s plans to construct a US$125 million gas-to-liquids plant at its Pointe-a-Pierre refinery.