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The 2016 EITI Report identified outdated information in: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.