Last update: 06-Dec-2013 8:28 pm
Friday, December 06, 2013
Trinidad & Tobago Guardian Online
You are here
Does T&T need an energy holding company?
Monday’s acquisition by NGC of all of the exploration and production assets owned by French energy giant Total for the stated price of US$473 million provides the Government with another opportunity to share the country’s wealth with T&T’s individuals and financial institutions (such as mutual funds, credit unions and NIB).
The purchase of the Total assets follows the August 16 acquisition by NGC of the 39 per cent of Phoenix Park Gas Processors held by ConocoPhillips, the US energy giant, for US$600 million. Phoenix Park is a natural gas processing and natural gas liquids fractionation operator based at Point Lisas.
The transaction this week gives 100 per cent state-owned NGC a 30 per cent stake in Block 2(c) and an 8.5 per cent stake in Block 3(a), which translates into 15,000 barrels of oil equivalent per day.
The acquisition of the assets is effective as of January 1, 2012, which I understand to mean will result in NGC paying less than US$473 million for the light, sweet crude and natural gas coming from the blocks.
The acquisitions by NGC mean that in the space of six weeks, the 100 per cent state-owned company has gone from being mainly a natural gas distribution entity to being a company with an upstream presence and 80 per cent of Phoenix Park (ten per cent of that company is owned by PanWest/GE and ten per cent by National Enterprises Ltd). NGC also owns about 17 per cent of National Enterprises Ltd (NEL) and ten per cent and 11.1 per cent stakes in Atlantic LNG Trains I and IV and has assumed responsibility for the marketing of its LNG.
User comments posted on this website are the sole views and opinions of the comment writer and are not representative of Guardian Media Limited or its staff. Guardian Media Limited accepts no liability and will not be held accountable for user comments.
Please help us keep out site clean from inappropriate comments by using the flag option.
Guardian Media Limited reserves the right to remove, to edit or to censor any comments. Any content which is considered unsuitable, unlawful or offensive, includes personal details, advertises or promotes products, services or websites or repeats previous comments will be removed.