The calculation of back pay owed to former Petrotrin non-permanent workers is expected to be completed by Tuesday.
And Petrotrin’s refinery assets will soon be offered globally for “all options” including lease or sale.
Energy Minister Franklin Khan spoke about the back pay and other issues in Parliament last Friday.
He confirmed information on the refinery yesterday.
Replying to Opposition questions in Parliament last week, Khan said the total amount spent to date on severance for Petrotrin workers was $2.419 bn, comprising termination packages ($1.9 bn), outstanding vacation ($211m) and back pay ($308m).
Khan confirmed that backpay extended to non-permanent (casual) workers. He also added, “However, the only outstanding payment to non-permanent workers is the calculation of back pay and that’s expected to be completed by January 15.”
He commented yesterday on the refinery aspect after Prime Minister Keith Rowley said last week that Requests For Proposals for the refinery assets would soon be issued.
Following closure of the refinery last November and Petrotrin’s restructuring, the assets were preserved and put into a company known as the Guaracara Refining Company. In Parliament last week, Khan said the cost of preserving - “mothballing” - the assets is $14.5m. Damus Ltd has been contracted to maintain the equipment until an operator is obtained, Khan confirmed.
Khan told the Guardian Media that efforts are being made to have the RFPs for the refinery ready tentatively by month-end.
It’s a broad-based proposal for acquisition of the refinery for “all options available.” That includes sale or lease, he confirmed.
Khan said the RFP will be issued globally via international websites and also locally. Advertising cost will come from the cash flow of the Petrotrin holding company.
“We still have to decide how long the RFPs will be open and what the deadline will be for the closure of submissions, whether three months or what. It’s complex overall - in terms of technical, financing, the source of crude oil, marketing and commercial arrangements - which an interested entity may want to have with the State,” Khan added.
Khan said the refinery’s processing facilities are all closed but electrical and water systems are being maintained. He noted there has been a smooth transition regarding fuels supply.
In Parliament last week Khan said Petrotrin’s pension plan (PEPP) has met all obligations to retirees including those who qualified for retirement last December. He said PEPP is committed to ensuring the plan can meet all liabilities and obligations after December 2018, including costs for its 20,000 retirees.
Khan confirmed that two expert consultants/companies - HRC Associates Ltd and Progressive Recruitment Specialists - were paid a total of $3.495m for logistical services to assist recruitment processes for new companies in the restructured Petrotrin.
He said recruitment has largely been with Heritage Petroleum Co Ltd which has 41 senior and middle managers who are assisting in interviewing subordinate employees and this process continues. He said 1,000 employees will be employed ultimately.
Khan could not confirm that Heritage company may be seeking to undertake a “roadshow” to raise US$1bn as UNC MP Roodal Moonilal has claimed.