Member Info for LayLadyLay

THE Petrotrin board is reviewing a proposal by the Oilfield Workers’ Trade Union (OWTU) to have the Pointe-a-Pierre refinery leased to them as a joint venture. This after a three-hour meeting yesterday between the OWTU and the Petrotrin board led by chairman Wilfred Espinet.

The purpose of the meeting was to discuss the union’s alternative proposal in light of the impending closure of the state-owned refinery. Espinet, in a media release, later said: “We received the union’s alternative proposal including the suggestion of leasing the refinery to the OWTU and as such, a number of questions were raised. We need some more time to analyse their proposal in more detail.” Both parties have agreed to meet next Thursday.

Speaking after the meeting, OWTU president general Ancel Roget said the union’s proposal was founded on the principle that Petrotrin’s assets belongs to the citizens and any type of arrangement the union would enter into or end up with, must have firm consideration from all stakeholders. “We insist that the board, the Prime Minister and government do not have to put the burden on TT by sending workers home, closing down Petrotrin and offering for cheap sale, the country’s assets. We made an entire presentation and were able to answer all their questions,” Roget said.

Roget said the union will now hold discussions with its “business partners” who have already expressed interest in a joint venture.

“We are able to go to our business partners. We can have them come forward with expressions of interest in the refinery. Our position is to have the refinery operate at its optimum,” Roget said.

Roget said the impending closure does not only affect Petrotrin workers but the country. It is about, he said, the country losing its economic independence, losing the opportunity to produce its own fuel for its own economy.

Given that the union answered all questions posed to them by the board yesterday, Roget said the ball is now in the court of the prime minister, the Petrotrin board and government to return with a response favourable to the union.

https://newsday.co.tt/2018/09/20/petrotrin-reviews-owtus-proposal/

When the initial announcement was made about the closure of the Petrotrin oil refinery last month, Espinet indicated that 1,700 jobs in refining will be terminated.

He said overall approximately 2,600 permanent jobs would have been affected and that the redesigned Exploration and Production business will have approximately 800 workers.

In in his address to the nation on September 3, Prime Minister Dr. Keith Rowley stated that 1,700 workers from the refining and marketing side of Petrotrin will be sent home while exploration and production employment levels will be reduced from 1,700 to 800 persons.

Then in the Senate on Monday, Energy Minister Franklin Khan presented a completely different figure to be terminated, which was 4,700.

https://www.trinidadexpress.com/news/local/espinet-blame-me/article_581477e0-bb81-11e8-acd2-3fce59510866.html

The Oilfields Workers Trade Union (OWTU) and the Board of Petrotrin are expected to meet on Tuesday to discuss termination packages for workers affected by the decision to close the Pointe-a-Pierre refinery.

Energy Minister Franklin Khan made the comment as he responded to an urgent question in the House of Representatives on Monday posed by Opposition MP Dr. David Lee.

He was asked to provide an update on the calculation of the termination benefit packages for all categories of Petrotrin refinery workers and the number of employees this would impact.

Khan was reported as saying that severance packages for Petrotrin workers will cost upwards of $1 billion, a small price to pay, he said, compared to the annual loss at $2 billion.

However, speaking in Parliament today, he said no final decision has been reached.

“The termination packages and the benefits therein, is currently being negotiated by the Board of Petrotrin and the Oilfield Workers Trade Union and a meeting is carded for tomorrow. So in a sense, I wouldn’t want to preempt or prejudge what package they will come up with,” the Energy Minister told members of parliament.

He added that some 4700 employees will be affected by the closure of the refinery.

“As to the number of employees that will be impacted, the total number of permanent employees that will be impacted from the Petrotrin restructuring is approximately 3500 permanent workers and approximately 1200 non-permanent workers,” he revealed.

The Energy Minister was also asked to clarify media reports that it will cost state owned Petrotrin under $2 billion to close the company’s refinery.

Khan stood by his comments that it will cost upwards of $1 billion, but noted that this figure may change depending on the negotiation process.

“I personally said the packages will cost upward of $1 billion and if you take the collective agreement and you do some basic calculations, it is obviously more than $1 billion. But the government and the Board of Petrotrin is willing to sit down with the union and go through all the numbers and possibly offer some enhancement to that package,” the Energy Minister sought to clarify.

http://www.looptt.com/content/4700-employees-be-affected-petrotrin-refinery-closure

IT will cost State-owned Petrotrin just under $2 billion to close its refinery.

The bulk of that sum will be in severance packages for its 2,500 permanent employees which the Sunday Express understands is estimated at more than $1.8 billion.

https://www.trinidadexpress.com/news/local/b-to-close-petrotrin-refinery/article_29b74c1a-b951-11e8-b995-2386b397feb6.html

Opposition Senator Gerald Ramdeen has accused the government of trying to mislead the public on the number of workers that would be affected by the closure of Petrotrin's Pointe-a-Pierre refinery.

Speaking during a media conference on Sunday, Ramdeen pointed out that the initial number of workers to be sent home, given by the government, was 1,700.

However, he noted newspaper reports in which Petrotrin Chairman Wilfred Espinet said all 3,500 permanent workers in Petrotrin, not just the refinery, would be terminated.

But Ramdeen said the true number was over 5,000.

He said Petrotrin employs 5,322 workers, of which 3,841 are permanent and 1,481 are temporary.

He added that more than 100,000 families would be affected.

http://www.looptt.com/content/ramdeen-claims-5000-petrotrin-workers-facing-termination

Former Director of Energy Industries at Industrial, Jim Catterson, says closure of the Petrotrin refinery makes no economic sense. He said the closure would decimate south Trinidad.

https://www.trinidadexpress.com/news/local/petrotrin-s-closure-will-decimate-south-trinidad-says-expert/article_3a180e5a-ba8c-11e8-9462-efe4a0406acf.html

Energy Minister Franklin Khan responded that Government did not take the shutdown of the refinery lightly.

“Every aspect was analysed before we came to this decision.”

He said there were several reports. including Petrotrin’s strategic plan. which Government found was not going far enough in terms of turning around the company; hence the results of the Lashley Report – a multidisciplinary team that evaluated Petrotrin’s present financial position and recommended plans for restructuring.

Khan reported Petrotrin recruited two “international first-in-class” consulting firms, Solomon and Associates and McKinsey Consultants, the data was analysed, the board presented options to the Cabinet and the Cabinet accepted the preferred option of the board. He said on tabling the Petrotrin reports that decision would have to be looked at seriously by the Cabinet.

Mark asked Khan when he would report back on Cabinet’s considerations and Khan responded, “At the appropriate time.”

https://newsday.co.tt/2018/09/13/baptiste-primus-i-cannot-comment-on-petrotrin/

“Who are those waiting in the wings to come after Petrotrin’s assets?”

https://newsday.co.tt/2018/09/13/ramdeen-report-supported-refinery/

WTI is currently over 2% down today.

"In July to August 2010, T-Rex drilled the Snowcap-1 exploration well in the
Licence and performed a flow test in February 2011 during which time the well
flowed 29.5-degree API light oil at varying rates from 1,100-1,450 bopd and
gas at a rate of 2.2 MMCFG with final flowing pressure of 1,180 psi. Two
subsequent extended production tests later produced at sustained rates of
approximately 250 bopd on 7 -12/32" choke size (in 2012) and at 80 bopd oil
(in 2015) with an emulsion mix due to possible water influx from a deeper
sand. It is expected that the well will resume to flow and produce at a
fluid-rate of around 100 BFPD with the extent of the water-cut from the well
being unknown at present given that it is over three years since the well last
flowed. "

On reading the above it felt like a throwback to NR days and his open hole flow rate. Mentioning 1,100-1,450 bopd and gas at a rate of 2.2 MMCFG with final flowing pressure of 1,180 psi could create an unreasonable level of expectation.

Who knows what 100bofpd will yield. It all depends on the water cut.

An industry source said any decision on an alternative source outside Caricom would incur a cost, namely the Common External Tariff (CET).

Nirvan Maharaj, president of the All Trinidad Sugar Workers Trade Union, who joined Roget, president of the Public Services Association Watson Duke and Seamen and Waterfront Workers Trade Union president Michael Anisette at the conference, said the planned closure has brought back memories of 2003, when the sugar industry was closed.

“I feel a sense of pain, of hurt when I remember 2003 when the People’s National Movement (PNM) government also destroyed the sugar industry. They are attempting to destroy the oil industry in TT.

The PNM has the unique distinction of being the organisation that would have destroyed the national patrimony.” Describing the Dr Keith Rowley-led administration as the most anti-labour government, Maharaj said it is an opportune time for citizens to stand with the trade unions and take their fight to the PNM. Maharaj warned Rowley that people no matter how docile, passive or humble, when they are pushed too far, may very well rise up and react in ways never anticipated. He said one glimmer of hope is that the pending action at Petrotrin has united the once divided trade union movement, andcalled on the workers at the 25 companies his union represents to support Friday’s rest and reflection.

https://newsday.co.tt/2018/09/07/caricom-fuel-contracts-with-petrotrin-in-trouble/

THE ripple effect of the pending closure of Petrotrin’s refinery is being felt in the Caricom region.

President general of the Oilfield Workers Trade Union (OWTU) Ancel Roget said his union has had discussions with some prime ministers in the region and with the source of their supply uncertain, they are all nervous about what is taking place at the refinery.

Petrotrin supplies refined products such as gasoline, diesel and aviation fuel to countries in the region and beyond, including Jamaica, Barbados, Grenada and St Lucia.

Records indicate that its exports to countries in the region amount to 25,000 barrels per day, 38,000 to extra-regional countries and 6,000 to other regional countries.

“Our Caricom partners who are today recipients of our fuel, who depend on this fuel to power their own economies, are claiming they have no information. They say nobody is talking to them about what seems to be a knee-jerk decision to close the source of supply of fuels to these countries.

“They (regional prime ministers) are very nervous,” Roget said Wednesday at a joint news conference at Palms Club, San Fernando to discuss Friday’s planned nationwide strike in solidarity with the oil workers who are to be retrenched when the refinery closes.

“The prime ministers are claiming our government had no discussions with them with respect to alternative means of ensuring they would be provided with the supply of fuel. There are contracts signed with Petrotrin and these countries, for Petrotrin to supply fuel to them.

The economy of these countries depend on this supply. That is how far-reaching the effects of this decision has gone and continues to go.”

Roget said penalties could be incurred if the contracts are breached.

Neither Petrotrin chairman Wilfred Espinet nor Energy Minister Franklin Khan could be reached for clarification.

Chesh - you and Ross joined LSE within a few days of each other yet nobody has suggested you and he are the same poster. I put that down to your continual ramping which meets with the approval of your fellow rampers. The starnage thing though is that in4cedros continually berates Ross for what he calls 'saturation posting' and yet you are not mentioned in despatches despite having amassed more than twice as many posts in the same period of time. I wonder why?

Down but not out offerman.

THE Prime Minister last night said the Oilfield Workers Trade Union (OWTU) will be given the first option to buy the Petrotrin refinery, which he described as non-viable, as the company shifts its focus to the extraction and export of crude oil.

In a televised address to the nation, Dr Rowley spoke about last week’s announcement from Petrotrin chairman Wilfred Espinet about the refinery’s intended closure, with the loss of 1700 jobs in refining plus the loss of 900 jobs in exploration and production (where staffing will fall from 1700 to 800 workers, according to Rowley.)

“The refining assets of Petrotrin can now be put in a separate company for opportunity attention. "The OWTU will be given the first option to own and operate it on the most favourable terms.” Otherwise he alleged the union had declined his invitation to meet in September 2017, to sit on the new/current board of Petrotrin and attend a Spotlight on the Energy Sector forum.

“Our Pointe- a-Pierre refinery is 101 years old and has reached the end of its commercially viable days. It is now at a stage where it is haemorrhaging cash, and the cost of rehabilitating it is way more than its potential to ever be profitable, competitive or sustainable.”

https://newsday.co.tt/2018/09/02/pm-challenges-owtu-on-petrotrin-buy-the-refinery/

Petrotrin officials grilled on controversial Soldado Project, fake oil

http://www.looptt.com/content/petrotrin-officials-grilled-controversial-soldado-project-fake-oil

"Here is the bit for LLL as he didn’t seem to know how close SWP was from Soldado Platforms - ‘The SWP leases are estimated by CERP to have gross unrisked prospective resources of 1.38boe to which we have applied a 15% recovery factor based on company guidance and data from the NEARBY OFFSHORE SOLDADO FIELD."

in4cedros - which part of over 4 miles offshore didn't you understand? It's a matter of opinion whether that is considered to be nearby.

"‘New technical work on the SWP has been commissioned involving specialist exploration consultants to develop a technical roadmap for de-risking 2019 drilling locations.’

Oh no!.. what does that mean :)"

It means that CERP employs a lot of consultants.

Kerman & Co advised on the Steeldrum acquisition and Lind facility.

http://www.kermanco.com/news/kerman-co-advises-columbus-energy-resources-plc-on-acquisition-of-steeldrum-oil-company-inc-and-us3-25-million-convertible-secured-facility/

VSA is employed as house broker to provide research material for the purpose of attracting investment.

That's not an exhaustive list; just two examples and the one you mentioned. I expect that the spend on consultants is somewhat high. It's irrelevant whether they are paid in cash or shares or a mixture of the two but any shares issued in respect of fees is dilutive.

I also noted the cash burn since the start of Q1, which Ross has referred to from time to time. It will be interesting to see what the cash balance is at the end of Q3. I would not be surprised to see a drawdown from the new Lind facility sooner rather than later. I'm well aware that the company needs to invest in order to grow but it remains to be seen whether it can generate enough cash to evolve organically so as to avoid the need for placings.

in4cedros - you seem at pains to teach granny to suck eggs. I don't think there's any need to debate anything as you can only speculate in general terms. It's a shame you can't back up your assertions with anything more than your having seen an impressive slide at the AGM. Irene will be disappointed that you can't give a specific estimate of the chance of success in terms that she could challenge.

Soldado, by the way, is just over 4 miles offshore. I can see how you might think that somehow increases the chance of significant oil on the SWP. Of course it's possible that CERP will deliver a spectacular success and that's what keeps people here. But what are the odds. It's still a gamble that may or may not pay off. Is it a calculated gamble or just a gut feeling? If it's a calculated gamble then you will be able to give Irene some idea of how you come to your eventual conclusion.

Garnhiem - technology does become more sophisticated over time although you have not been specific enough to know what technology you have in mind?

Believe it or not but some very deep wells were drilled in Kuwait in the 70's. No advances in technology can turn water into oil or extract oil from non oil bearing rocks.

The technology card was played by NR when he forecast 7000 bopd from Goudron by 2017. Something must have gone wrong.