Ramnarine: We tripled FDI in oil/gas
ENERGY Minister, Kevin Ramnarine, hit back at Diego Martin North East MP Colm Imbert’s criticism of the country’s oil/gas tax regime by saying this Government’s major overhaul of energy taxes and incentives had led to a three- fold increase in foreign direct investment (FDI) in the sector from 2011 to 2013, compared to the previous three years under the former administration.
Ramnarine said FDI in the sector has grown from US$501 million in 2010; US$1.7 billion in 2011; US$2.2 billion in 2012; and US$1.4 billion last year.
Querying Imbert’s call at a recent Rotarians meeting for tax-breaks as incentives for energy companies, the Minister said Imbert seems unaware that the oil/gas regimes had been significantly overhauled in the past four years. “These are the most far-reaching since the 1970s,” assured Ramnarine.
He boasted that the changes had been informed by talking to local stakeholders, and by not using foreign consultants unlike what had been done by the former PNM government. He listed 14 incentives to oil/gas companies, that have been welcomed by stakeholders and have resulted in a significant rise in FDI and in drilling activity.
These included incentives for deep-water exploration, and for efforts to re-work mature fields, and for the use of enhanced recovery.
Investor confidence is shown by bpTT’s FDI investment in the Juniper field of US$2.1 billion, the Minister said. He denied Imbert’s claims that a decline in oil production had begun in 2010 under this Government, but said it had begun in 2006 under the former administration. “For the last two years oil production has stabilised,” he assured.
Ramnarine was unfazed by falling oil-prices, saying Finance Minister, Larry Howai, has assured that most of TT’s revenues come from the sale of natural gas (which he said is at US$3.35 per MMBTU, compared to the Budget being pegged at just US$2.75 MMBTU) and from petrochemicals such as methanol and ammonia which Ramnarine said along with LNG are now still fetching strong prices.