Trinidad and Tobago

EITI Status Meaningful progress
Joined EITI in 2011
Latest Data From 2017
Latest Validation 2018
Last updated 9 June 2020

Overview

A total of TT$5.8 billion in revenue was generated by the 46 upstream oil and gas companies involved in the reconciliation exercise. This represents 98.4% of all revenues generated from the upstream sub-sector in 2017. The TTEITI Independent Administrator (IA) found a TT$3.9 million difference between what oil and gas companies reported in payments compared to Government receipts. The reason for the differences was foreign exchange fluctuations and timing differences. Importantly, there were no unidentified differences and all revenue could be accounted for. As it relates to oil and gas production, the IA successfully reconciled  in the latest EITI Report, oil production to 26,294,864 barrels and gas production to 1,197,804,002 million cubic feet in fiscal year 2017.

In terms of mining, five mining companies also participated and contributed a reconciled total of TT$ 2,605,068 million in payments to Government in 2017. This related to reconciled production of 641, 236 metric tons.

Nonetheless, since 2017 and due to due to reduced revenue from low global oil and gas prices and low domestic oil and gas production, Trinidad & Tobago has experienced a substantial cutback in Government spending on key social projects, foreign exchange shortages and decreases in the fuel subsidy. Given the country’s reliance on the local oil and gas industry, many Trinbagonians mistakenly believe that the energy sector generates most of the country’s revenue. However, in 2018, 63.8% of the total revenue came from the non-energy sector (i.e. agriculture, manufacturing, construction, finance and insurance). While the non-energy sector generates the most tax revenue for the country, it does not bring sufficient export revenue.

Trinidad & Tobago implements the EITI to ensure that country’s natural resources are used to the benefit of all citizens, bring accountability and transparency into the sector and enable public access to reliable information. The EITI has represented a channel for dialogue in Trinidad & Tobago, focusing on reconciliation of data, reform to the government systems and relay of the data collected.

Extractive industries contribution

  • 77.9 %
    to exports
  • 32.1 %
    to GDP
  • 30.5 %
    to government revenue
  • 3.4 %
    to employment

Beneficial ownership disclosure

In 2015, the Trinidad and Tobago EITI Steering Committee “unanimously agreed to implement a TTEITI Beneficial Ownership Project”, and ever since the country started gathering beneficial ownership data to populate their Registry.

The Beneficial Ownership Registry offers a free, public repository of key information on oil, gas and mining companies operating in Trinidad and Tobago which voluntarily report to the TTEITI and which are leading by example to meet the now legal requirements of beneficial ownership under the Companies (Amendment) Act of 2019.

This register includes information about the beneficial owners of extractive companies including the names of natural persons, registered addresses and official Board of Inland Revenue company number. It also names any politically exposed persons associated with these reporting companies.

Production

Oil and gas production

Initializing chart.

Revenue collection

Initializing chart.

Revenue allocation

Revenues from the extractive industry are allocated through several mechanisms:

  • The national budget: the country’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 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 and is supervised by the Ministry of Finance. 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: 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. These were introduced in 1974 with the proclamation of the Petroleum Production Levy and Subsidy Act (Act 314). The subsidy is managed by the Ministry of Finance and changes are informed through the Budget Reviews.

Implementation

Trinidad and Tobago joined the EITI in 2011, with the objective of enhancing natural resource governance and promoting economic growth and poverty reduction. The government of the country has been actively engaged with EITI implementation and committed to advance in the systematic disclosure of extractive data. Trinidad and Tobago has published six EITI Reports to date, covering Fiscal Years from 2010 to 2017. In addition, the country has disclosed information on government revenues in open data format through the national EITI website.

Based on the reports’ findings, an estimated $869 million in differences between extractive companies’ declared revenue payments and Government’s declared corresponding receipts have been identified, audited and reconciled. The reports have also provided extensive recommendations on improving Government revenue collection, data management and audit and assurance processes. Data published in the reports have also informed the findings of the Gas Master Plan and assisted the country in wider discussions regarding transparency policies.

A key element of EITI Implementation is engaging with a diverse group of stakeholders to promote public debate and discussion on extractive sector issues. The TTEITI hosts workshops, writes blogs/articles, and engages with its partners through various social media channels. They also have a Youth Advisory Committee, which meets on a regular basis to discuss ways to engage the nation's youth. The TTEITI has developed a new civil society engagement strategy and in the coming year will target secondary schools, residents of fence-line communities and other key stakeholders. The engagement strategy includes several elements such as:

  • Regional Outreach: Promoting Best Practice in Natural Resource Management in the Caribbean 2017/2018
  • Outreach Events: The TTEITI often engages in community outreach in order to promote the findings of the Report.
  • Forums: The TTEITI host forums with its stakeholders in order to discuss findings of the report.

Governance

Currently, Gregory McGuire is the EITI Champion for the country and Sherwin Long is the National Coordinator. The multi-stakeholder group of TT-EITI is comprised by:

Government constituency

  • Board of Inland Revenue.
  • Ministry of Energy and Energy Affairs
  • Ministry of Finance and the Economy

Industry constituency

  • National Gas Company
  • Heritage Petroleum
  • National Quarries Company Limited
  • Shell
  • BHP Billiton Trinidad and Tobago
  • BP Trinidad and Tobago Limited
  • The Energy Chamber of T&T
  • T&T Chamber of Industry and Commerce

Civil Society constituency

  • Fishermen and Friends of the Sea
  • Network of NGOs for the Advancement of Women
  • The Cropper Foundation
  • Trinidad and Tobago Transparency Institute
  • Oilfields Workers' Trade Union

 

Timeline

Trinidad and Tobago implementation 2020

Validation

Trinidad and Tobago’s first Validation against the Standard started on 1 September 2018. On the 27 February 2019 the Board decided it accomplished "meaningful progress"

 

Trinidad and Tobago's progress by requirement

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