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Ramnarine lauds T&T’s success in attracting energy investment
Posted On 22 Jun 2014
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Energy Minister Kevin Ramnarine
Energy Minister Kevin Ramnarine says US$9.5 billion is forecast to be spent by the energy sector in T&T between 2014 and 2016—and that is coming after an estimated US$5.8 billion was spent developing energy assets between 2010 and 2013.
Speaking at the Society of Petroleum Engineers conference at the Hyatt Regency hotel earlier this month, Ramnarine said the ministry’s preliminary analysis indicates that T&T should be able to hold the 4.2 billion cubic feet per day plateau rate until 2015 “subject to the realisation of related investment” from the incumbent producers.
He said T&T had received some US$6.5 billion in foreign direct investment between 2010 and 2013—US$549 million in 2010, US$1.83 billion in 2011, US$2.45 billion in 2012 and US$1.71 billion in 2013—and that the assumption that 90 per cent of foreign direct investment into T&T would be energy related has held in that period.
“The point is we have seen a surge in energy related foreign direct investment since 2010 and this is due to increased investor confidence (particularly from the incumbent players BP, BG, BHP and EOG) and this is also related to the fiscal incentives that have been provided in every budget for the last four years,” said Ramnarine. In the upcoming 2015 budget, Ramnarine said that he intends to “look closely” at providing incentives for the development of small stranded pools of natural gas.
Ramnarine outlined the expected capital expenditure in the local energy sector until 2016, stating: “In 2014 the forecasted capital expenditure for the energy sector is US$3.3 billion. In 2015, that figure is US$3.2 billion and in 2016 it is US$3.0 billion.
“The main actors in these numbers are BP, BG and Petrotrin. Most of that money is being spent to bring oil and gas to the surface and to market in a safe and efficient manner. The incumbents all have a growth story around T&T and the proof is that they are investing again in substantial sums.” Expanding on the reasons for the increased investment in the energy sector, Ramnarine said the current administration has brought fiscal certainty to the sector….READ MORE
