Upstream oil and gas reporting companies made a total of TT$8,664.43 million in revenue payments to governmentin fiscal year 2016. This represents 99.4% of all revenues generated from the upstream sub-sector. There was TT$26 million in discrepancies(i.e. 0.03%) between what companies reported paying and what Government reported receiving and the IA’s audit found that the reasons for this difference was timing differences, foreign exchange fluctuations and insurance premium tax payments. The mining sector participating companies made atotal of TT$ 13,345,199 million in royalty payments to government in fiscal year 2016.
The 2016 EITI Report key highlights and conclusions relate to the following areas: -
1. Fees for assignment of transfer of PSCs
A number of PSCs have been transferred or assigned without fees to which the MEEI is entitled being charged. MEEI should review these cases promptly and take any necessary action to collect monies due.
2. Monitoring of amounts due from PSCs and amounts paid
PSCs include provision for operators to pay various fees, levies and other contributions. The TTEITI reports for the fiscal periods 2014 and 2015 noted that a system had been implemented under which a report was produced setting out amounts due from PSCs (excluding profit share) for the 2015 calendar year.
3. Licensing reporting
The 2016 EITI Report identified outdated information in:
1. The List of Oil and Gas Contract/Licence Holders - Register of Production Sharing Contracts (PSCs) for Fiscal Year 2010-2011.2. Sub-licences Register - Register of Petroleum Production Sub-licences for Fiscal Year 2010-20113. Petroleum Register for Exploration and Production Licences4. Petroleum Register for PSCs.
4. EITI framework in Trinidad
The continuity of the EITI implementation is not guaranteed - in the event that companies making material payments did not sign the MOU, there is no mechanism to require them to participate in reporting. Expansion of reporting in the mining sector has been affected by this factor.
5. Mining sector
This is the second TTEITI report to include a review of the mining sector in Trinidad and Tobago. The previous report described the challenges facing the sector and contained a pilot study under which two SOEs and two private companies reported payments to Government.
Trinidad and Tobago legislative framework regulates the petroleum industry; the minerals industry; the mid and downstream (petroleum) activities; the health, safety and environmental activities and also includes regulation of the freedom of information. All current regulations are available at the Legislation and Tax Laws page of the Ministry of Energy and Energy Industries.
The oil and gas fiscal regime is explained in T&T Reports (see, for example, section 3.4.4 of the 2015 EITI Report; section 3.9 of the 2013 Report). Companies wishing to explore for and produce oil and gas in Trinidad and Tobago must first be granted the rights to do so by signing a contract or a Production Sharing Contract (PSC) with the Government. Companies pay taxes according to the agreements signed under the PSC.
The main taxes paid to the Government are:
- the Petroleum Profits Tax (PPT),
- the Supplemental Petroleum Tax (SPT),
- the Unemployment Levy,
- the Petroleum Production Levy,
- the Oil Impost, the Corporation Tax,
- the Green Fund Levy, and;
- the Withholding Tax
Further details are available in the 2015 TTEITI Report, table 9.
The fiscal regime also includes a package of incentives provided to these companies to boost oil and gas production and attract new investment. Incentives may take the form of tax rebates and various allowances which generally serve to lower the tax burden on the companies. These include the Sustainability Incentive, Investment Tax Credit, the Workover Allowance and the Deepwater Allowance, among others.
Companies which are engaged in exploration and production (E&P) of oil and gas are taxed under the Petroleum Taxes Act, while petrochemical companies and NGC are taxed under the Companies Act. The Petroleum Taxes Act outlines the taxation rules or laws governing businesses engaged in E&P, refining and marketing. The Act details the type of taxes applicable (e.g. PPT and SPT), how these taxes are calculated and administered and the general principles of taxation. It also outlines incentives and explains how they are to be applied. The Government also obtains revenue from (Lease out-Fram out) LOFOs which are also taxed under the Petroleum Taxes Act.
The mining sector is regulated by the Minerals Law Act No. 61 of 2000, the Asphalt Industry Regulation Act, the Mining Compensation Act, the Geological Survey Act and the Minerals (General) Regulations 2015. A complete overview and access to each document are available at the Ministry of Energy and Energy Industries at the Legislation and Tax Laws.
Trinidad and Tobago EITI Steering Committee “unanimously agreed to implement a TTEITI Beneficial Ownership Project” in its 54th meeting held on 19 March 2015. As part of the 2014-2015 TTEITI Report, the country started gathering beneficial ownership data to populate the Beneficial Ownership Registry. The Beneficial Ownership project webpage documents a suggested definition of beneficial ownership and a politically exposed person.
The Trinidad and Tobago received in 2016 USD 1.3 billion in revenues from the extractive sector. This is a 66% decline from 2015. The largest revenue stream collected by the country was USD 699 million paid in dividends from NGC in 2015. It represented 53% of total fiscal extractive revenues.
The Trinidad and Tobago received in 2015 USD 3.3 billion in revenues from the extractive sector. This is a 27% decline from 2014. The largest revenue stream collected by the country was USD 913 million paid in dividends from NGC in 2015. It represented 27% of total fiscal extractive revenues.
The TT-EITI 2013 Report shows that Trinidad and Tobago received TT$ 21.4 billion (USD $ 3.3 billion) in the fiscal year ending on 30 September 2013. 60% of those revenues were collected by the Ministry of Finance for mostly petroleum taxes, 33% corresponded to revenues collected by the Ministry of Energy for royalties, share of profits from the PSC and other petroleum levies. The remaining 7% was collected by the Investmend Division of the Ministry of Finance.
Revenues from the extractive industry are allocated through several mechanisms. They are:
- The national budget: Trinidad and Tobago’s national budget is partially financed by income from petroleum activities. On 1st October every year when the National Budget is presented, the Ministry of Finance informs the country how the Government plans to use its energy revenues.
- The Heritage and Stabilization Fund (HSF): is to cushion the economy in case of a sustained shortfall on Government revenue due to a collapse of petroleum prices. The HSF Act also sets up that the fund also has a heritage purpose (see more in 2015 EITI Report, session 3.5.2). The fund is supervised by the Ministry of Finances and the auditing process are conducted by the Auditor General to ensure that funds are not mishandled.
- Share to the Ministry of Energy and Energy Affairs.
- The Petroleum Fuel Subsidy: is another medium through which oil and gas revenues are shared directly with citizens. Introduced in 1974 with the proclamation of the Petroleum Production Levy and Subsidy Act (Act 314 of 1974), fuel subsidies absorb a part of the total cost of petroleum fuels as a means of protecting consumers from high fuel prices and sharing of the petroleum wealth. The subsidy is managed by the Ministry of Finances and changes are informed through the Budget Reviews.
The 2016 TTEITI Report contains a wealth of recommendations including licensing, audited financial statements of SOEs mining, fees for assignement or transfer of PSCs, MOU, government's share of production, assurance environment of government reporting, royalty monetisation among others.
Recommendations to improve the mining sector include that the TTEITI Steering Committee should continue its efforts to engage with companies and widen the number included in the initiative. There is also recommendations to improve the government systems regarding its record system.
More details are found in Section 8 of the report.
The EITI encourages multi-stakeholder groups to explore innovative approaches to make the EITI more relevant and useful.
Trinidad and Tobago has a Youth Advisory Committee, which meets on a regular basis to discuss ways to engage the nation's youth. Members of the committee have take part in television and radio shows throughout the year to promote the 2013 EITI Report and engage the wider society in contributing to TTEITI's work.
This document is the annual progress report for year 2016 - Trinidad & Tobago EITI, in accordance with requirements 7 and 8 of the Standard
This is the Trinidad and Tobago EITI 2018-2019 work plan (in accordance with Requirement 1.5).
Attached below is Trinidad and Tobago's open data policy, published in December 2016.
Every EITI country must agree a clear policy on the access, release and re-use of EITI data (requirement 7.1.b of the EITI Standard
This EITI Report covers Trinidad and Tobago's extractive sector in 2012 and 2013. It was published in September 2015.
This is Trinidad and Tobago 2015 Annual Progress Report in accordance with requirement 7.4 and 8.4
This is the Trinidad and Tobago EITI 2014-2016 work plan (in accordance with Requirement 1.5).
This Trinidad and Tobago EITI Validation report was published in May 2014.