Hyatt Energy Conference 2017 Remarks

News FEED TT Remarks: Energy Conference Hyatt 23- 25th January, 2017

Two important questions were raised at the opening ceremony 1. How do we stimulate investment into upstream oil and gas production? 2. What changes need to be made to attract energy investment?

The recommended solution 1. fiscal framework adjustments i.e. offer competitive and attractive investment 2. progress of helpful reforms and 3. flexibility at heart

Case: United Kingdom  example Taxes reduced with other measures to attract investment.

For local capability in Trinidad:

1. Short term investment and long term stability

2. Cost & Efficiency for a stone proof industry considering safe to work collaboration

3. Institutional effectiveness - change and strengthening, high standards enable continued investment, talent retention, leads to greater competitiveness

4. Gas production prices - gas policy and pricing that recognises markets of competitivity

BpTT announcements for Trinidad :

Key plans for competitiveness

1. Energy Transitions
2. Vision over division
3. Courage over complacency
4. People over power

Exploration Well 1: Savanna in the Columbus Basin

Exploration Well 2: Macadamia in the Columbus Basin

The Honorable Colm Imbert acted as Minister of Energy, he said

World Oil Prices are volatile, decline in oil prices hurt economy of Trinidad and Tobago from $TT19 billion in 2014 to $TT2 billion in 2016. No business can survive in 90% drop in income

below $50/bbl in a situation like this the supplemental petroleum tax is also lost which accounts for $TT20 billion in 2014. The main problem in 2017 is the declining gas production. A need for

equitable outcomes for a win-win situation between operators and the government to maximize production. The result is the energy task force to assist the country.

Future Outlook:

1. Offshore compression - 2018/2019 Venezuela dragon gas field
2. Sustain exploration and aggressive production
3. Total number of wells planned to be drilled in 2016 -17 has declined
4. Petrotrin boosts oil production land / marine
5. Land acreage, offshore and deepwater will be up tender based on operators fulfilling current commitments and those who have failed
6. Increased revenue and increased production
7. Asset integrity through an audit
8. Waste to Energy Landfill Initiative
9. Commercial Memorandum of Understanding between Cuba, Suriname and Guyana
10. Transfer of technology to local investors