TT:
Enill: Don't expect high oil income
By Nigel
Cumberbatch
The Trinidad Express
Port
Spain
Petroleumworldtt.com
10 29 06
On the eve of the National Budget presentation,
Conrad Enill, Minister in the Ministry of Finance,
speaks at a press conference at the Central Bank
in Port of Spain. Photo: DEXTER PHILIP
On
the eve of the Prime Minister's presentation of
the 2004-2005 Budget, Government officials have
acknowledged that money is a problem, with Trinidad
and Tobago's crude oil fetching only about US$32.08
a barrel thus far this year.
Oil
revenue in Trinidad and Tobago this year will be
higher than originally budgeted but will be much
lower than what many expect the country would earn
with international oil prices currently averaging
just under US$52 a barrel.
The
Government originally calculated its 2003-2004 budget
based on an average oil export price of US$25 a
barrel and is expected to base its 2004-2005 budget
again on US$25 a barrel.
At
a press conference yesterday, Finance Minister Conrad
Enill explained that the nation's oil income this
year will not be as high as some anticipated because
the average export price for T&T's crude oil
was in fact much lower than international oil prices
and lower oil production by bpTT, the main oil producer
in the country.
Reduced
crude oil production at bpTT alone led to a $1 billion
decline in Government's tax take from the company.
Trinidad
& Tobago's mix of higher priced Galeota crude
and lower priced Petrotrin crude yields an average
annual realised price of US$32.08 over 2003-04 fiscal
year, said Enill.
Just
a few weeks ago, Enill told Parliament that due
to sustained higher oil prices, the latest revised
estimate for oil and gas revenue this year is $5.4
billion, an increase of some $443.3 million above
the original estimate.
During
his press briefing yesterday, Enill explained why
T&T's oil and gas windfall will not be as high
as many anticipate.
Enill
said that of the 40 shipments of oil bpTT made this
year, none sold for US$50 and only three were above
US$45. According to a presentation, 31 shipments
were sold for less that US$40 a barrel and four
of these were for less than US$30.
Nonetheless,
he added that the economy is not just booming because
of escalated oil prices but revenue is being generated
from other areas of the economy.
He
said he needed to make certain aspects clear because
representatives at the International Monetary Fund
(IMF) have queried reports that there was "wild
spending" in this country because of this boom.
He
said he showed the representatives reports from
the Central Bank and public sector investment programmes
to prove that these reports were false and called
on reporters to state the facts.
Enill
also gave an explanation as to why the oil and gas
tax regime which Prime Minister Patrick Manning
outlined in last year's budget to deal with revenue
from the industry has not yet been developed and
implemented.
Enill
said that the regime, which was promised by Manning
to be implemented on January 1 of this year was
a "complex issue" and more time was needed
to better understand the data received.
Camille
Robinson Regis who also chaired the press conference
with Enill said Government is looking at legislation
for oil companies and a team from the Ministry of
Energy as well as the Inland Revenue has been established
to look into it.
-with
reporting by Anna Ramdass
Trinidad Express
Thursday, October 7th 2004
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