Trinidad and Tobago

EITI Status Meaningful progress
Joined EITI in 2011
Latest Data From 2016
Latest Validation 2018
Last updated 3 April 2019

Overview

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The 2016 EITI Report identified outdated information in: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.

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

Initializing chart.

Gas reserves

According to BP's Statistical Review,  Trinidad and Tobago had 33.8  billion cubic feet of gas reserves in 2017 (0.9% of world reserves).

Revenue collection

2016

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.

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.

Initializing chart.

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 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.

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

The 2016 EITI Report (including annexes) is available here.

 

Timeline

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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