Oil and Gas Law Conference looks at sector’s use of local content

She says last week’s Second Oil and Gas Law Conference at the Hilton Trinidad and Conference Centre was testimony to the abiding faith of the faculty in the oil and gas sector in this country and the region. Antoine said just last year the faculty was worrying whether the conference would lose “some of its buzz” but this year it was “re-energised not to mention bpTT’s recent gas finds in this country.” She added that while the faculty fully supports the need for diversification, it believes that the oil and gas sector remains a key industry in the country and the region and decided to continue staging the conference. Day One of the two-day conference was themed Exploring the legal framework for Oil and Gas Law, while the second day focused on The Trinidad Experience: Setting the Context and Lessons Learnt.

She said when the first conference was held three years ago, it was because of the faculty’s recognition that the oil and gas and energy sector is a deeply significant one and the faculty needed to be at the forefront of developing its jurisprudence and scholarship. She said despite the short time since that first conference, it had grown, and in addition to an impressive roster of participants from this country it had also attracted participation regionally as well as internationally. She said the first Oil and Gas Conference was a resounding success and confirmed the view that a law space to discuss key issues about oil, gas and energy is sorely needed in the region. “What better institution than the University of the West Indies, the thought leader in the region, and primary research and scholarship engine to initiate and guide this.” In addition, she said recent oil and gas discoveries in the region had seen several territories trying to develop their own oil and gas industries, with Guyana being the most significant. The UWI Law faculty believed it had an obligation to offer intellectual leadership to these efforts and equally that the conference should pay “some attention to helping to build the capacity of Guyana’s sector,” a view she said was happily shared by the faculty’s stakeholders. She said the fact that the conference chairman, Alicia Elias-Roberts is Guyanese, seemed to suggest that “all of the pieces were coming together.” She said the focus of the second conference, held from June 8-9, was on local content in the oil and gas sector and examined the extent to which the sector was making use of local labour, goods and services. “It is essential to project the role of local content within the broader socio-economic goals of the country. The government must seek to create value beyond the petroleum sector itself and must access resources and capability.

A comprehensive understanding of the role and principles of this local content is therefore vital.” The conference also looked at the good governance issues in management of energy resources which she said were always important: issues such as preventing and curbing corruption and the “particular weaknesses” of emerging economies where this was concerned. According to Antoine, the issue was centered around the need to develop a “technocratic management elite” in an emerging economy which would be independent from political influence. A team that would be able to manage the oil and gas resources for the nation, as opposed to a political elite operating in collusion with global energy producers to further their own interests at the expense of the society they are supposed to serve. She pointed to Brazil as an example. She said the conference would provide lessons for non-lawyers, adding, “Of course I am not suggesting that lawyers don’t need to know about corruption and the like or do not act in their own self-interest, but we are inclusive – it is multi-disciplinary.” The conference also explored the role of environmental accounting and regulations in shale gas exploration.

The conference has been attracting increasing interest from foreign universities, international organisations and many top law firms in the region. There was a delegation from Coventry University in the United Kingdom, including some of the top lecturers in the university’s Law faculty as well as some students. Antoine said the UWI Faculty of Law has a Memorandum of Understanding with Coventry University.

She welcomed back bpTT as the premiere sponsor of the conference, noting that the company was a sponsor of the first conference. In fact, she said the company was more than a sponsor but a mentor as well, and thanked the other sponsors, Shell and EOG resources.

Giselle Thompson, vice president, Corporate Operations at bpTT, seconded Antoine’s view that despite the need for Trinidad and Tobago to advance its diversification, the oil and gas sector remained important as a bridge in that transition. She said bpTT had benefitted from this country’s stable political and legal environment, as well as its broad commitment to the sanctity of contracts. She said bpTT had recently announced the conclusion of negotiations with the National Gas Company (NGC) for a new gas sales agreement to replace a 20-year agreement which expires in 2018. “This agreement is important because it was a prerequisite to continued investments, the first of which is the Angelin Project.

In the long term, it will serve as the basis for future investment decisions.” She added that bpTT’s recent announcement of the discovery of two trillion cubic feet of natural gas in its Savannah and Macadamia exploration wells served to underscore the point that this country continues to have a strong future in the energy sector. “Success in exploration, the completion of key agreements and the sanction of our latest project, Angelin, set a strong platform for activity and growth over the medium to long term. With these projects, along with activities by other operators in the sector, it is important for us as a country to continue to strengthen the legal and regulatory frameworks to ensure that they are responsive to the needs of the industry and that the country derives maximum benefits.” She said that future success also depended on strengthening collaboration across the sector and progress was already being made in this area through the establishment of the Trinidad and Tobago Upstream Operators Association. Stronger collaboration across the sector, she said, will allow everyone to improve efficiencies and reduce waste and costs as the industry tried to reset its operations to survive in a very tough energy world.

Head of Legal for Shell Trinidad and Tobago, Michael Short, said that oil and gas companies in this country, working with the government, are radically rethinking and retooling to find significant opportunities to reverse the current declines in production. He said their successes were highlighted in recent headlines, and oil and gas lawyers, such as those attending the conference, had a chance to work on those projects and to make a difference and ensure that Trinidad secures the energy future for the next generation.

The organisers of the conference did manage to attract a lawyer from Guyana, barrister at law, Nigel Hughes, a partner in the firm Hughes Fields and Stoby. Stoby is also director of the Guyana Oil and Gas Association, a body he formed to ensure the responsible development of Guyana’s new oil and gas industry. He urged the conference to understand and forgive, the “muted enthusiasm” of the citizens of Guyana who are uncertain whether the country has the capacity to efficiently manage and protect the newly found energy resource for the short, medium and long-term benefits of the country and the region. He said outside Guyana there is wild excitement over the historic oil and gas discovery at Liza and the potential for even greater discoveries. However, he said the reality was that Guyana has no history of managing oil and gas and has set itself the “rather ambitious” target of beginning production between 2019 and 2020, a decision which “may have been driven by considerations other than the best expert industry advice.” He said this was exactly why the Guyanese people deeply appreciate and hope to benefit from Trinidad and Tobago’s long history and experience in the oil and gas industry and from the Oil and Gas Conference. “The need for collaboration and synergies is selfevident.”

Bad weather ahead

The rise in temperature due to climate change is expected to have a significant negative impact on the global economy. Unmitigated climate change is likely to reduce the income of an average person by roughly 23 percent in 2100, according to estimates contained in research publications. In fact, it is estimated that climate change will reduce average income in the poorest 40 percent of countries by 75 percent in 2100.

The overall aggregate effect of climate change on economic growth will most likely be negative in the long run. Global warming is expected to increase the frequency and severity of extreme weather events, bringing with it property and infrastructure loss.

Rising sea levels will also harm economic output as businesses become impaired and people suffer damage to their homes.

There would also be a fall in the productive capacity of the world economy. This would translate into a downward shift in world production. Higher global temperatures may also affect food security, promote the spread of infectious diseases and impair those working outdoors.

There may also be inflationary factors to consider. Agricultural yields are sensitive to weather conditions and as our climate becomes ever more extreme, more frequent droughts may reduce crop yields in areas where food production is vital. Higher global food prices will likely impact income in the process. As the level of warming becomes even greater, food price inflation would rise. Rising inflation may also materialise through reduced land availability. The surge in global temperatures may eventually cause some areas of the world to become uninhabitable and with this will come mass migration.

Alongside the political and socioeconomic implications of these moves will be higher demand for an ever decreasing amount of land. Higher energy costs are also likely to boost inflation. As our climate becomes more extreme we are likely to demand greater energy to cool both our working and living environments. Not only will energy demand change, but supply may shrink as the efficiency of existing power stations is compromised due to higher temperatures.

Internationally, the insurance industry already recognises that it is likely to bear much of the risk of global warming. Companies have already felt the force of extreme weather events on profits; from unseasonal floods to hurricanes.

Extreme weather-related damage to properties has seen insurance companies pay out to cover these costs.

The biggest losers in these global changes are the developing countries which are more likely to disproportionately experience the negative effects of global warming.

Not only do many developing countries have naturally warmer climates than those in the developed world, they also rely more heavily on climate sensitive sectors such as agriculture, forestry and tourism. As temperatures rise further, certain regions will face declining crop yields and will struggle to produce sufficient food for domestic consumption, while their major exports will likely fall in volume.

Overall, the increased frequency and severity of extreme weather will weigh on government budgets.

The aftermath of natural disasters often falls on authorities who are forced to spend vast amounts on clear-up operations and healthcare costs that come with experiencing extreme weather.

Revenue reductions may also be experienced by countries heavily dependent on tourism or on fishing, as those countries in the Caribbean are. After all Tobago is heavily dependent on tourism.

There are also other costs associated with global warming and climate change. These include energy costs of air conditioning, worn infrastructure, health problems such as heart attacks and malaria and dengue. Interestingly, a rapidly growing body of research examined whether human conflict can be affected by climatic changes and researchers found a strong link between climactic events and human conflict across all major regions of the world, as well as a link with personal violence and aggression.

Essentially, the climate is fundamental to our economy.

More extreme weather has the potential to weaken economic growth through damage to the capital stock and labour productivity will weaken as the world economy adjusts to higher temperatures. Inflation will rise through the growing cost of food, energy and insurance. Monetary policy can devote efforts to adapt to climate change to contribute to macroeconomic stability.

Standard inflation targeting approach should be modified to deal with persistent supply shocks –using countercyclical policies as reserve accumulation, exchange rate management, and perhaps a more extensive use of informed judgment. However, fiscal and industrial policy are better suited for controlling or mitigating the factors that lead to climate change. We need to understand how the changes in climate affect us here in Trinidad and Tobago and in what way these might impede our future prosperity.

Let’s stop the negative words

Words are powerful and can give life to or bring death to situations.

The Bible tells us that death and life are in the power of the tongue.

The more we speak negative words, the more we call negativity into being.

Some parents speak negative words to their children such as: “I don’t think you are capable.

Books are not for you. You are a good-for-nothing. You are so stupid.” There are others who speak negative words about our country.

Let us from now on speak positive words to our children, country and when we face difficult situations in life.

The words we speak are seeds we sow that will one day bring a harvest.

What kind of harvest do you want to reap? It all depends on the words that come out of your mouths.

Are they positive or negative? Positive words give you power over difficult circumstances and can uplift others.

ANDRE ROBERTS via email

Sando mayor: Feed homeless at shelters

Regrello observed yesterday that none of 12 homeless people he met to discuss the status of a shelter were from the southern city but from such areas as Princes Town, Chaguanas, Point Fortin and Tunapuna.

They had moved to San Fernando because they were being fed, he said.

“San Fernando is a resourceful place and then you have many successful businesspersons and citizens who usually feed them on the street. And I keep saying to the public, stop the feeding because you are encouraging homeless persons to come here,” he said. The mayor said even families gathered for free food.

“There are families who have homes elsewhere and leave their homes and assemble on the (Harris) Promenade on a Friday, Saturday and Sunday for free food. People pull up in their high-end vehicle or SUV and open their trunk and distribute food as a means of charity, which is not a bad gesture but if you have food to distribute, give it to the centre, give it to the Court Shamrock and the homeless shelter and let them distribute,” he advised.

“It would then allow the people to go there for the food and then they can sit in a decent environment, around a table and have a meal as opposed to sitting on the street,” Regrello said, adding, “cars passing there, there are fumes in the air, there is carbon dioxide in the air and you eating at the side of the street is not healthy.” Regarding his meeting with the homeless, Regrello said they raised concerns about the shelter under construction at the old Revival Time Assembly building at Kings Wharf given the start of the rainy season. He said the facility was not designed as an overnight shelter but as one where the homeless would receive three meals and have use of the toilets and bathrooms.

Regrello also promised to raise the group’s concerns about security at Court Shamrock Centre for the Socially Displaced on Rushworth Street, saying the corporation was also willing to assist the centre.

Managing probationers

I am, however, aware that in some companies, even existing employees may be promoted on probation. For the record, I do not agree with this practice, as I believe it highlights a marked weakness in the internal succession planning and performance management systems.

Most companies, by either policy or collective agreement, establish probationary periods between three-six months.

However, it is not unusual that for some very highlevel positions, the period could be as long as 1 year.

During the probation, the worker should be carefully monitored and guided on the fundamental requirements of his/her role. This allows the employer to determine if the employee’s skill-sets, aptitude and cultural orientation meet the standards established. These requirements are consistent with the objective of facilitating the newly recruited with the wherewithal to allow him/her to succeed in the position.

So, in essence, the probationary period is an extension of the recruitment process, as this is part of the final phase of selection.

Within the period, both parties engage in the ‘getting to know you’ rituals, accompanied by the proverbial ‘hand-holding’ and coaching.

Orientation is therefore the first phase of the probation, where it is expected that the employee will demonstrate an eagerness to learn and assimilate information. The employer’s role is to give a proper introduction to company and department specific systems and policies and expected standards of conduct. An uneventful orientation and welcoming, now referred by HR professionals to as the “on boarding,” is often an indication that the probationary period will most likely be successful.

The duration of the probation period is therefore crucial. It must be sufficient to allow proper assessment, measurement and determination by both parties.

Regardless of its duration, the entire period must be considered as part of the overall length of service of the employee, once confirmation occurs.

Let me now explain briefly the responsibilities of the parties during that period.

The employee should ensure that he/she abides by the terms of the Contract of Employment, observes all work-rules and complies with company policies.

Since it’s a period of coaching and learning, the employee should point out to the employer any area in which he/she may be experiencing difficulty.

The employee is well advised to dispel any reluctance to ask questions and seek clarifications.

Such reluctance may create a revolving trap of ignorance which could lead to an extension of the probationary period or his/her non-confirmation.

The responsibilities of the employer include providing the guidelines, as well as, coaching during the period. The employer should ensure the employee has the resources and establish feedback sessions with the employee to give him/her the best possible chance to succeed.

A formal mid-probationary assessment should be completed, requiring the employee’s signoff.

During this and the final assessment, the employer must be careful to ensure that any performance concerns discussed were previously brought to the worker’s attention during earlier feedback sessions.

Many employers are often misguided by the contents of the standard termination clause in employment contracts. Some assume that it gives them the right to fire “at will” during the probationary period. However, this is furthest from the truth and brings to mind the finding of the Industrial Court in a case involving one of our leading financial institutions.

In this case, a probationer was dismissed and the Court determined among other things, that the training time was insufficient and that the Company failed to complete a formal performance assessment at the mid-period even though the worker was told that this would happen at the start of his employment.

The Court concluded that: “the worker never had a fair opportunity during his probationary period. There were gaps in his training. According to his evidence he did not have the benefit of coaching, even after he was given an unfavourable assessment. On the evidence before us we find that the Worker’s dismissal was harsh and oppressive and contrary to the principles and practices of good industrial relations.” There are two points to note here. Firstly, a probationer is still legally a worker and has access to the Industrial Court to seek redress. Accordingly, the probationer’s treatment must always be in accordance with good industrial relations practices.

The second point is that the probationary period is to serve specific purposes and the employer must show evidence that those purposes were satisfied one way or the next during the period.

It’s therefore in the best interest of both the company and the probationer that the proper steps are taken and the correct course of action is adopted during the probationary period.

Employers are well advised to exercise patience and empathy at every step. Utilise the option to extend the period instead of termination, if uncertain about suitability. The extension provides both parties with another bite of the cherry. On the other hand, the probationer must be alert, diligent and compliant with the guidance and feedback received.

Always keep in mind, the reality that both parties are on trial during the probationary period.

AmCham tt at business conference in Nicaragua

The BFA is the main event of the Association of American Chambers of Commerce in Latin America and the Caribbean (AACCLA), which this year celebrates its 50th anniversary.

The BFA brings together the 24 AmChams of AACCLA from across the Western Hemisphere, influential business leaders and governmental authorities to discuss the opportunities and challenges of realising the economic potential of the Americas.

Lease Operators Junior Tennis serves off today

From today until Monday, matches will be played in the Under- 10, Under-12 and Under-14 age groups.

Matches will be played in the boys singles, girls singles, girls doubles, boys doubles and mixed doubles categories.

There will also be novice categories. The Under-16 and Under-18 age groups would be contested from June 30 to July 2.

Ninety players have entered the competition, including 15 from Tobago.

James Hadden, Alex Merry, Kale Dalla Costa are the top players in the boys Under-10 division, while Jordane Dookie and Jaeda Lee Daniel- Joseph are the title contenders in the girls Under-10 division.

In the boys Under-12 division, Saqui Williams, Jamal Alexis, Tim Pasea and Nicholas Ready are aiming for titles, while Gabrielle Mckenzie, Charlotte Ready and Ella Carrington are the favourites in the Under-12 girls category.

The other top players are Alijah Leslie, Ebolum Nwokolo, David Rodrigues, Kyle Kerry (boys Under-14), Maria Honore, Aalisha Alexis, Isabel Abraham and Emily Lawrence (girls Under-14).

Camp Cumuto probe continues

Senior Superintendent Lloyd McAlpin, head of the Organised Crime Narcotics and Firearms Bureau, is in charge of the investigation.

Sources confirmed the interviews, however the lead investigator is out of the country and could not be reached for comment.

On March 27, 2016, Attorney General Faris Al-Rawi’s teenaged son and daughter accompanied him and Minister in the Ministry of the Attorney General Stuart Young to Camp Cumuto for training at the shooting range.

Photographs were taken of the teenagers holding high-powered weapons which were outfitted with live ammunition.

The photographs were then made public in Parliament by Oropouche East MP Roodal Moonilal last October.

The Defence Force carried out its own enquiry while the police undertook a separate investigation.

Recently, the Defence Force ended its probe and cleared the Attorney General of any wrong-doing.

Former Chief of Defence Staff Kenrick Maharaj was named in the report as the person who invited the Attorney General and his children to Camp Cumuto.

Maharaj has denied the claim and has applied for a copy of the “Report of Proceedings of the Board of Inquiry.” The information was expected to be made available in 20 days for the date of his application, last Monday.

Maharaj has said he will take legal action

Mucurapo RC win Invitational hockey contest

As it turned out Mucurapo’s “Team A” won top honours after each team played every other in a 22-match round robin tournament.

Each seven-a-side indoor match lasted 10 minutes while both boys and girls teams were represented. Teams participating were Mucurapo Girls, Diego Martin Boys RC, St Joseph Boys RC, Maloney Government Primary School, and Boissierre RC Primary School.

Event organiser and Mucurapo RC teacher, Sharon Harduar, told Newsday, “We have found that the schools are each practising but are not getting together. Today, this is our way to help youths in hockey to develop.” She said most of the girls of Mucurapo RC were in Standard Five and they had played the sport right up to the week of their Secondary Entrance Assessment (SEA) Exams in May. “They had a balance between academics and sport,” she said.

Maloney Government School hockey coach Andrew Phillip lauded the idea of the tournament, said the children are greatly encouraged by the exposure. “And parents become more involved with their children’s lives when they see this,” he added. “It builds pride.” The girls results were: first Mucurapo ‘A”, second Maloney “A” and third Maloney “B”. The boys results were first St Joseph’s Boys, second Diego Martin “A” and third Maloney.

For the girls the best goalkeeper was Jada Bradley, most valuable player (MVP) was Zahara de la Rosa, best defender was Analyse Smith and most goals came from Enya Subero.

In the boys category, the best goalie was Keyron Jacobs, MVP was Lemas Neptune, best defender was Nicholas Whiteman and leading goal-scorer was Joshua Joseph.

Opposition politics moves into 21st century

It must be painful to let go of old India, but India is now a serious contender in the race to have human beings travelling the stars.

India outlawed child marriage as far back as 1955. India successfully launched a communications satellite using its 13-storey GSAT- 19 rocket on June 5 (Christian Science Monitor). Peasant-style Indian rituals are being obliterated by its advances in modern technology.

Time waits for no one and the ritual of child marriage must also not shackle modern TT to the past. Former prime minister Kamla Persad-Bissessar should not be the only Hindu female to break glass ceilings. There is likely another Hindu girl who would have been lost to political TT or the business community because of being married off at an early age.

I took the view that Persad-Bissessar’s support of the outdated traditional views of the secretary general of the Maha Sabha, Sat Maharaj, to be evidence of a well brought up Hindu woman lending support to her religious leader who has allegedly always defended her using the considerable influential power of his religious position.

Inevitably, we have to stop being transfixed by the past. Some of us suffer the politics of religion because in some ways politics is becoming a religion in itself in TT .

June 9 is the day when Opposition politics moved into the 21st century.

LYNETTE JOSEPH Diego Martin