LONDON (Alliance News) - Touchstone Exploration Inc and Columbus Energy Resources PLC both Wednesday said a restructuring of Petroleum Co of Trinidad & Tobago Ltd should not affect their operations.
Both companies currently sell their produced oil to Petrotrin, the country's state-owned oil company, which then refines it before selling it on.
However, Petrotrin has decided to end its refining operations with oil produced in the country to be shipped for refining at other locations. Both firms will keep selling their oil to Petrotrin under existing contracts.
Touchstone and Columbus were both in agreement the restructuring will benefit Trinidad & Tobago, recognising its state oil company must stay profitable.
Touchstone Chief Executive Paul Bay commented: "We believe this is a difficult but necessary step for Petrotrin, and we look forward to working with them as a partner while they transition the business and return to profitability."
Leo Koot, Columbus's Executive Chairman, added: "Yesterday's announcement is a big step by Petrotrin to create a strong and economically viable exploration and production business to the benefit of the people of Trinidad & Tobago.
"We applaud their commercial strategy and are satisfied the proposed closure of the Point-a-Pierre refinery will have no negative impact on our Goudron operations and potentially benefit Columbus into the future, if we are able to obtain a higher oil price due to the high quality of our Goudron oil."
Columbus shares were 3.9% higher Wednesday at 4.00 pence each, while Touchstone was untraded, last quoted at 18.72p.