Trinidad and Tobago

EITI Status Yet to be assessed against the 2016 Standard
EITI Member Since 2011
Latest Data From 2015

Overview

Trinidad and Tobago is a leading hydrocarbon producer in the region of Latin America and the Caribbean. It is the second largest natural gas producer in the region. Trinidad’s natural gas output represented 1.3% of world output in 2013. Trinidad and Tobago accounted for 50.6% of US LNG imports between October 2011 and May 2012. However, the US is importing less LNG from Trinidad and Tobago as domestic needs are increasily met with shale gas. Trinidadian gas exports to countries like Argentina, Chile, Spain and South Korea have expanded. Trinidad's economy is strongly influenced by the petroleum industry. Trinidad and Tobago has earned a reputation as an excellent investment site for international businesses and has one of the highest growth rates and per capita incomes in Latin America.

Oil and gas in Trinidad and Tobago accounts for about 43% of GDP and 85% of exports in 2013, falling clearly into the list of countries that the IMF designates as “resource-rich”. The country has benefited from a large amount of foreign investment into the sector. Leading operators in the oil and gas sector are BP Trinidad and Tobago (BPTT),  EOG Group, British Gas (BG), Repsol and BHP Billiton and the state-owned companies Petrotrin and National Gas Company. The Atlantic LNG's project, a consortium led by BP, BG, and Repsol  has increased its overall output capacity by almost 50% in recent years and Over the last five years, LNG production averaged approximately 33.1 thousand cubic metres

Extractive industries contribution

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

Contract transparency policy

According to the Ministry of Energy,  E&Ps contracts and PSCs are confidential documents by virtue of section 35 of the Petroleum Act, Chap. 62:01. Further, they are exempt documents under Section 31 (1) (a) of the Freedom of Information Act, Chap. 22:02 and may not be disclosed. The model contracts are available. While this means that the full text of the general terms and conditions of the model E&Ps and PSCs are publicly available, it does not provide any indication of the provisions which may be negotiated when individual contracts are awarded.

Beneficial ownership disclosure

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.

Production

Oil and gas production

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Gas reserves

According to BP's Statistical Review, at the end of 2015 Trinidad and Tobago had 11 trillion cubic feet of gas reserves (0.2% of world reserves).

Revenue collection

2014-2015

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.

2013

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.

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Revenue allocation

Revenues from the extractive industry are allocated through several mechanisms. They are:

  1. 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.
  2. 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.
  3. Share to the Ministry of Energy and Energy Affairs.
  4. 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.

Policy recommendations and reforms

The 2014-2015 TTEITI Report contains a wealth of recommendations including audit and assurances on government figures, licensing information, production data and automation of Ministry and Energy's records.  Recommendations to improve the governance of the mining sector include, among others, simplifying processes for mining licenses and to disclose information related to mining liceses. More details are found in Section 8 of the report.

Innovations

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. 

Implementation

Timeline

Validation

Trinidad and Tobago’s Validation against the Standard will commence on 1 September 2018. The country is compliant under the 2011 Rules.