... REVIEW OF OIL AND GAS TAX REGIME UNDER WAY

THE TRINIDAD & Tobago government is conducting a comprehensive review of the country’s oil and gas taxation regime to ensure it remains an internationally competitive destination for hydrocarbon investors.

Speaking at the 2022 Energy Conference of Trinidad and Tobago, Prime Minister Dr Keith Rowley said Tuesday that that the review encompasses capital allowances, petroleum profits tax, supplemental petroleum tax and royalty, both onshore and offshore, in shallow water and deep-water.

The three-day confab is organised by the Energy Chamber of Trinidad & Tobago.

“However, as we move to identify new resources, we have to manage available resources,” said PM Rowley.

“Management of our hydrocarbon resources has not been without challenges. A combination of COVID-19, low commodity prices and technical issues have set back levels of both oil and gas production. However, with the ease in the pandemic and new activity both oil and gas production are set to rise,” he said.

With new production coming on stream in 2022 and 2023, gas production is projected to increase to 3.2 trillion cubic feet by 2024.

Rowley said, however, that gas supply between 2024 and 2027 would be tight before improving in 2028 with the coming on stream of mega projects, the Manatee and Calypso.

“However, the key to a sustained gas industry will be the exploration and development of our hydrocarbon resources as well as access to cross-border natural gas resources. Hence the aggressive bid-round programme,” he said.

The PM told the conference that as the global energy transition leads to structural changes in energy markets, there is a risk of diminution of oil and gas revenues, which have been the major drivers of T&T’’s socio-economic well-being.

“Therefore, it is in our interest to expeditiously take steps to monetise the country’s abundant oil and gas resources. The latest gas reserve audit established that at year end 2020 technically recoverable resources amounted to 23.2 trillion cubic feet and prospective resources at 55.2 tcf,” he said.

“Whereas the latest oil audit, established 3P reserves at 455.3 million barrels and prospective resources amounted to 3.2 billion barrels with 90 per cent being in our deep-water province.

In Trinidad a bid-round for deep-water exploration, covering 17 blocks, is scheduled to close Thursday, June 2. Seven licensing rounds were previously closed by the first quarter 2022 and another eight licensing rounds are expected to close by year-end

Trinidad is in the market seeking investors the same as regional countries such as Suriname, Colombia and Brazil have closed successful bid-rounds. There are also upcoming rounds for Guyana’s deep-water blocks, Brazil’s sub-salt blocks and Ecuador oil blocks, Rowley said.

“... So we know that we are competing for exploration capital,” he added.