Trinity Exploration Welcomes Trinidad & Tobago's Energy Plans

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LONDON (Alliance News) - Trinity Exploration & Production PLC on Tuesday said the latest government budget to be unveiled in Trinidad & Tobago "could have a positive impact on future trading", after officials said they aim to encourage investment in the energy sector.

The 2018 budget was unveiled on Monday, accompanied by a government statement that said, in order to improve the government's revenue-take, that a review of the energy tax regime would be conducted in order to simplify and rationalise the terms of both production licences and production sharing contracts.

Trinity Exploration said the "critical areas" being addressed include: making the supplemental petroleum tax responsive to underlying profitability rather than price, extending that tax to gas, reconciling and simplifying fiscal regimes related to exploration and production, and standardising and uniformly applying appropriate royalty rates to all crude oil, condensate and gas.

Trinity, citing the government statement, said negotiations between the energy companies and the government are well advanced and we expect to be in a position to present the new oil and gas fiscal regime before the end of this year.

Commenting on the budget, Trinity Executive Chairman Bruce Dingwall said: "This could prove to be an extremely important change for the company in terms of bottom line economics and company valuation. The government is aligned with Trinity in seeking to increase oil production and once the terms of the changes to supplemental petroleum tax are clear we will then be in a position to quantify what the effect on the company will be."

Trinity shares were flat on Tuesday at 14.50 pence.

By Joshua Warner; [email protected]; @JoshAlliance

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