Expert: T&T must make investment more attractive

T&T needs to have better fiscal terms that would encourage more investment and an efficient regulatory process that would speed up investments in the energy sector. This is the advice of Darren Engles, vice president of Institutional research of First Energy Capital, an energy investment bank, who gave an investor’s perspective on Tuesday at the Energy Chamber’s annual conference at the Hyatt Regency Trinidad hotel, Dock Road, Port-of-Spain. Engles said: “T&T has world-class resource capital, but the country’s fiscal terms are too onerous and too expensive. There are too many barriers restricting foreign investments.”

Pointing out some of these hindrances, Engles said hydrocarbons kept in the ground are essentially worthless and provide no economic benefit. While oil and gas investment is beneficial to the country, there needs to be more working rigs and more wells drilled to increase employment. He said if T&T lowers its royalty rates, it would encourage investment, resulting in increases to reserves and production, which would then generate greater royalties and taxes for the Government.