Energy Minister Kevin Ramnarine yesterday sought to clarify the continued negative speculation over the massive Loran/Manatee field which straddles the border between Venezuela and Trinidad.In an e-mail interview, the minister said he signed the 2013 Agreed Minutes concerning the functional structure of the Unit Operator of the Loran/Manatee area, which is not a completed agreement.
"The process is by no means completed. There are other agreements that will have to be signed, however, the most recent signing is a significant step forward," Ramnarine said.Ramnarine said the country will in fact benefit from the recent agreement.
"The main benefit is that natural gas that was stranded will be utilised for the benefit of both countries. Please note that a development plan has to be first submitted to the directing committee. This has neither been formulated nor has it been submitted. Positions and views have been advanced by Venezuela and positions and views have been advanced by Trinidad and Tobago. It is our view and position that the natural gas within Manatee (the Trinidad side of Loran/Manatee) will at the very least come to our local market to be utilised for the benefit of Trinidad and Tobago."
"Please remember that a development plan is yet to be agreed. Note, too, that there are four companies involved–the two Chevron companies, PDVSA and BG T&T. These companies would also have input in the formulation of a development plan."
Ramnarine did confirm that the agreement did not state whether gasfrom the Loran side of the cross-border find will come to Trinidad but said "the position that we have advanced which has been consistent over the years is that at the very least the gas that is in Manatee will come to Trinidad via pipeline."
The larger portion of the field, is 73.3 per cent on the Venezuelan side of the border. While the Manatee side of the field, just over 26 per cent in on the local side of the border.Regarding the four way share-up of the voting rights, Ramnarine said that Trinidad's 16.97 per cent of the voting share was "in no way a compromise."
"It is simply a factor of the Government's entitlement to gas under the production sharing contract. The remainder is apportioned to Chevron T&T 4.98 per cent and BG T&T 4.98 per cent. Therefore, GORTT 16.97 per cent plus Chevron 4.98 per cent plus BG T&T 4.98 per cent equals 26.94 per cent. This is in keeping with the terms of the Block 6 production sharing contract," he said.
He did confirm that "extended well testing" is being conducted in the Kapok/Dorado, the smaller of the three finds along that same border."To obtain further information on the extent to which the reservoirs straddle the delimitation line between Trinidad and Tobago, an allocation of the percentage of gas pertaining to both Trinidad and Venezuela is being recorded. An escrow account has not been established for this purpose."
He noted that no dollar value could yet be placed on the mega-find, as no real marketing arrangements have been established just yet.
Veto power
When asked about the issue of veto power buried in the agreement, Ramnarine referred back to his statement in Parliament."There is, however, a right of veto that says that both governments must agree on the decisions of the directing committee. If there is a decision that we are not in agreement to, we can veto that decision and in like manner the Venezuelans can exercise a similar veto. There is a second veto embedded in the agreement that concerns the exploitation and development plan.
"We have advanced that, at the very least, our gas (the 26.94 per cent) should come to this country. The position of Venezuela has been that they would like to build a pipeline to Guiria where their 73.06 per cent would be monetised. We have also advanced a position that the Venezuelans may want to consider some of their gas coming to T&T given the proximity to this country of the Loran-Manatee field and the well developed gas transmission and processing infrastructure we have in this country.
"There is to date no agreement on this matter."Ramnarine also had a message for the People's National Movement who have been critical of both him and the agreement:"I am the Minister of Energy. I have to be circumspect with what I say, as there are issues of the relationship with Venezuela and the international reputation of T&T to consider. I don't have the luxury of the PNM to say whatever I want and don't bother with the consequences."