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Port of Spain, Trinidad and Tobago

Trinidad and Tobago

Status
Meaningful progress
Joined
1 March 2011
Latest validation
2019
Latest data from
2018
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Overview and role of the EITI

The oil and gas sector plays a significant role in Trinidad and Tobago’s economy, accounting for 27% of government revenue and 51% of export earnings in 2018. The island nation has a long history of oil and gas production, but has been mainly producing natural gas since the 1990s. The country also has a smaller mining sector which produces commodities used in the construction industry, such as sand, gravel and clay.

Trinidad and Tobago joined the EITI with the objective of enhancing natural resource governance, promoting economic growth and reducing poverty. The government has been actively engaged with EITI implementation and remains committed to strengthen the systematic disclosure of extractives data. TTEITI has been a channel for dialogue, primarily focused on reconciling payment data, informing government reforms and disseminating data to the public.

Economic contribution of the extractive industries

27%
to government revenues
51%
to exports
7%
To GDP
1.6%
to employment
  • Step 1
  • Step 2
  • Step 3

Download country data

Download open data on government and company revenues, revenues by revenue stream and indicator, summary data and more.


Innovations and policy reforms

  • TTEITI’s State of the Extractive Sectors Report 2021 presents key developments and economic indicators for the extractive sector in an engaging, user-friendly format. The online report presents data on fuel subsidies, social expenditures, state participation, commodity trading, environmental reporting, renewable energy projects and gender.
  • In 2021, TTEITI published a comprehensive guide to help civil society groups understand and scrutinise information within the national budget and participate in policy debate related to budgeting and public finance.

As a Government, we subscribe to the principles of transparency and accountability and therefore the EITI has our full support.

Franklin Khan former Minister of Energy

Extractive sector data

Production and exports

LNG

Revenue collection

Level of detail 2

Revenue distribution

2018
Standardised revenue types

Top paying companies

2018

Extractive sector management

Licenses and contracts

Rights for oil and gas exploration and production are granted through a competitive bidding round and awarded by the Ministry of Energy and Energy Industries (MEEI) in the form of a contract or a production sharing contract (PSC) with the government.

Applications for mining licenses are submitted to, and processed by, the Minerals Advisory Committee (MAC) and are awarded by the MEEI. The Minerals Division of the MMEI is currently developing an electronic system to improve the efficiency of mining license allocations. An overview of petroleum and mining licenses can be downloaded from the MEEI’s website.

At present, licenses and PSCs are confidential documents in the country and cannot be made public due to a legal barrier exists within the Petroleum Act and the Freedom of Information Act. TTEITI is undertaking measures to make contract public, including removing legal barriers and including EITI disclosure clauses in contracts deep water projects.

Beneficial ownership

The Companies Act 2019 requires companies to disclose their beneficial owners in a national register. The law contains provisions related to the definition of beneficial owners, requirements to obtain and validate the beneficial ownership status of shareholders and to update the companies register annually. 

In 2020, TTEITI published the country’s first beneficial ownership register, which supported the government’s obligations under FATF, the Global Forum and the EITI. The electronic database was supported by a national campaign and contributed to the country being removed from the FATF grey list.

Revenue distribution

All extractive and non-extractive revenues flow to the consolidation fund of the central government. Trinidad and Tobago does not have a revenue sharing formula that determines how revenues should be allocated. Generally, the Minister of Finance meets with representatives of stakeholder groups to gather information on the areas that they deem important for spending for the upcoming fiscal year.

The minister incorporates the information into the national budget, which is submitted to parliament for approval. Once the budget is approved, the extractive and non-extractive revenues from the consolidated fund are allocated to the various Government Ministries and Statutory Agencies which the provide goods and services to the public. There are no statutory requirements for subnational transfers.


EITI implementation

Governance

TTEITI is administered by the Trinidad and Tobago Multi-Stakeholder Group (MSG), also known as the Steering Committee, which is composed of 30 representatives from government, industry and civil society. The MSG is hosted by the Ministry of Energy and Energy Industries and chaired by the Assistant Secretary at the Department of Finance, Mr Gregory Mcguire.

Validation

Trinidad and Tobago was found to have made meaningful progress in implementing the 2016 EITI Standard in February 2019, following its first Validation. The Validation identified eight corrective actions to be addressed by the country’s next Validation, expected to commence in July 2022.

Timeline

Scorecard

Latest Validation: 27 February 2019
Year

Assessment of EITI requirements

  • Not met
  • Partly met
  • Mostly met
  • Fully met
  • Exceeded
Scorecard by requirement View more Assessment View more

Overall Progress

MSG oversight

1.1Government engagement

A senior individual has been appointed to lead on the implementation, and senior government officials are represented on the MSGSC. The current representation from the government shows that the government is engaged and active in in all aspects of implementation including lifting confidentiality restrictions, dissemination of reports, outreach to other stakeholders and expanding coverage to the mining sector.

1.2Industry engagement

Oil and gas companies are actively and effectively engaged in the EITI process, both as providers of information and in the design, implementation, monitoring and evaluation. Industry representatives have taken part in outreach and efforts to promote public debate, both at a national level and in regional roadshows. The MOU signed between stakeholders have created an enabling legal environment.

1.3Civil society engagement

There are no suggestions of any legal, regulatory or practical barriers to civil society’s ability to engage in EITI-related public debate, to operate freely, to communicate and cooperate with each other, to fully, actively and effectively engage on EITI-related matters or in relation to the EITI process. However, engaging with the CSOs wider constituency is less than optimal.

1.4MSG governance

The mechanism followed in 2011 for selecting civil society members was allowed by the 2009 EITI Rules. However, it is not in line with the 2016 Standard. On the other hand, the MSG is functioning well, and stakeholders are adequately represented. The ToRs for the MSG addresses almost all the requirements of the EITI Standard. Stakeholders have not highlighted any significant deviations from the ToRs in practice.

1.5Work plan

The 2018 work plan is publicly accessible, produced in a timely manner and updated annually, with objectives aligned with national priorities. The work plan also includes follow up on recommendations from EITI reporting. The three constituencies were actively engaged in its elaboration. However, there is little evidence that it has been consulted with key stakeholders in the broader stakeholder groups.

Licenses and contracts

2.1Legal framework

The 2016 EITI Report provides a comprehensive description of the legal framework and fiscal regime governing the extractive industries, including the degree of fiscal devolution, and addresses recent reforms. It also includes a description of the roles of the main regulatory bodies.

2.2License allocations

The information listed in Requirement 2.2 regarding the award and transfer of licenses in the oil and gas sector is disclosed through the EITI Report. The situation in the mining sector is problematic. The licensing allocation procedures and the cadastral information are unclear. The government acknowledges these deficiencies and is addressing its remediation. However, timescale for achieving that is uncertain.

2.3License register

Information regarding all active oil and gas licenses is provided in the EITI Report. However, some required information in is missing. The government does not have an up-to-date data base of the mining licenses. A great number of the licenses are under revision and pending collecting necessary information. The government acknowledges these deficiencies and is addressing its remediation. Timescale for achieving that is uncertain.

2.4Policy on contract disclosure

The government’s policy on contract transparency is described in the 2016 EITI Report, which also provides an overview of current disclosure practice.

2.5Beneficial ownership

Not assessed

Trinidad and Tobago published a roadmap for disclosing beneficial ownership information. There has been some progress in implementation to date. Beneficial ownership legislation will establish a registry expected to collect information to be shared among enforcement agencies. The MEEI has considered that future oil and gas licensing rounds might include knowing the beneficial owners of bidders.

2.6State participation

The report included information regarding the financial relationship between SOEs and the government including transfers of funds between SOE and state, retained earnings, reinvestment and third-party financing, government ownership including changes in 2016 and loans and guarantees. This also includes the level of ownership in oil and gas companies and authorizations for financial operations.

Monitoring production

3.1Exploration data

The 2016 EITI Report provides an overview of the extractive industries including the invitation to companies to express interest in exploration activities.

3.2Production data

The volume and value of oil and gas production is disclosed. However, for mining, production values are missing.

3.3Export data

EITI Trinidad and Tobago has disclosed information on total export volumes for hydrocarbon and refined products that were exported in 2016, disaggregated by commodity. It is also disaggregated by export destination. However, in accordance with Requirement 3.3 the value of exports is not provided in the report.

Revenue collection

4.1Comprehensiveness

The 2016 Report documents materiality including the options considered, the limitations due to confidentiality provisions, thresholds and the rationale for the agreed definitions. Material revenue streams are clearly identified, alongside the government entities collecting them, and include all revenues listed in Requirement 4.1.b.. However, the lack of disclosure of total government revenues received is problematic.

4.2In-kind revenues

The 2016 Report confirms that revenues collected in kind was material and disclosed the volumes sold and revenue received partially. However, the information is not disaggregated by individual buying company. There is not additional information on the type of product. There was no reconciliation with the buying companies. The report does not provide a clear picture on the share of production received by NGC from other operators.

4.3Barter agreements

Not applicable

The International Secretariat’s initial assessment is that this requirement is not applicable in Trinidad and Tobago.

4.4Transportation revenues

Revenues from transportation of oil and gas were disclosed in aggregate. No detailed information such as tariffs, individual companies paying for this service, volumes transported was included. Payments were not reconciled. Transportation revenues represent about 3% of total revenues collected. Future reports could include a clear indication of whether transportation revenues were considered material.

4.5SOE transactions

Payments from SOEs to the government are disclosed and reconciled. Lack of comprehensive information about in-kind payments to SOEs is reflected in the assessment of Requirement 4.2.

4.6Direct subnational payments

Not applicable

The EITI Report and Supplementary Report details the legal provisions that norms the payments made by extractive companies in Trinidad and Tobago. None of them include payments to regional corporations.

4.7Disaggregation

TTEITI has reported at project level for the fiscal year 2016 ahead of the required by the Standard. In accordance with Requirement 4.7, the data is disaggregated by individual company (i.e. project), revenue stream and government entity for all revenue streams.

4.8Data timeliness

EITI Reports have been published annually and the data has not been older than the second to the last complete accounting period. The MSGSC approved the reporting period of EITI Reports. Trinidad and Tobago is strongly encouraged to publish timelier EITI Reports. Although reports have been published within the allowed two years period many stakeholders signalled that timelier EITI data could be more useful.

4.9Data quality

The lack of assurances to government data (BIR and MEEI) is problematic. Also, the lack of completion of a significant number of revenue audits by the Ministry of Energy also affects data reliability. A significant number of companies did not comply with the agreed assurance. Reconciliation has been undertaken by a credible Independent Administrator, appointed by the MSG, and applying international auditing standards.

Revenue allocation

5.1Distribution of revenues

The 2016 Report included a description of the distribution of revenues from extractive industries including those recorded in the national budget and in the Heritage and Stabilization Fund.

5.2Subnational transfers

Not applicable

The 2016 Report (Supplementary Report) stated that the Constitution and the Municipal Corporation Act do not provide for any transfer of extractive revenues to local governments.

5.3Revenue management and expenditures

Not assessed

Reporting on revenue management and expenditures in encouraged but not required by the EITI Standard and progress with this requirement will not have any implications for a country’s EITI status. It is commendable that the EITI Report discusses budgeting and auditing processes, as well as revenue projections.

Socio-economic contribution

6.1Mandatory social expenditures

Not applicable

Some companies made voluntary social contributions in 2016. The 2016 EITI Report includes voluntary social expenditures for nine companies including the two SOEs NGC and Petrotrin in the hydrocarbon sector.

6.2Quasi-fiscal expenditures

Not applicable

The 2016 EITI Report demonstrates that SOE does not undertake any quasi-fiscal expenditures.

6.3Economic contribution

The 2016 EITI Report includes all the information required on the contribution of the extractive sector to the economy.

Outcomes and impact

7.1Public debate

TTEITI has used innovative and smart communication tools that have impacted public debates from Parliament, to media, academic for a, youth organizations and affected communities. The TTEITI Reports are comprehensible, actively and widely promoted through varied channels. Trinidad and Tobago has an EITI Open Data policy that is in line with international data standards including some tools for downloading data.

7.2Data accessibility

Not assessed

Requirement 7.2 encourages the MSGs to make EITI reports accessible to public in open data formats. Such efforts are encouraged but not required and are not assessed in determining compliance with the EITI Standard. TTEITI has published brief summary reports. TEITI has published information through a data portal and other features for downloading data.

7.3Follow up on recommendations

EITI Trinidad and Tobago has consistently addressed the discrepancies from their reconciliation exercises and resolved them. Improvements in EITI implementation such as preparations for data collection have made reporting more efficient. The reports have included a wealth of recommendations to improve government systems and the MSG has raised concerns on the follow up of those recommendations.

7.4Outcomes and impact of implementation

The MSG has reviewed and discussed the outcomes and impact of the EITI implementation, including through annual progress reports in accordance with Requirement 7.4. In preparing the annual progress report (and work plan), the MSG has extensive discussions on achievements, implementation gaps and improvements, and future challenges.


Key documents


Contacts