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  • 11 months ago
The Trinidad and Tobago Extractive Industries Transparency Initiative has submitted its 2024 report on the oil and gas sector, with the TTEITI highlighting a sharp decrease in royalties, which it assures will be short-lived. Rynessa Cutting reports.
Transcript
00:00The Trinidad and Tobago Extractive Industries Transparency Initiative 2024 report shows
00:06a 33% reduction in royalties paid to government between 2023 and 2024.
00:14Production-sharing contract share profit also declined by 50% between 2023 and 2024.
00:21And the first quarter of 2025 is also looking glum.
00:25Don't be perturbed if you see in 2025 we're falling off a cliff that is only for one quarter.
00:31So we received $550 million in royalties with BP paying $315 million and Heritage paying
00:38$165 million.
00:40The TDIT also provided a historical perspective, showing that this country earned over $90
00:46billion over a seven-year period.
00:49From 2015 to 2022, where $93 billion was reconciled, those were taxes paid, so taxes and royalties.
00:59The country has held 12 bid rungs in the last two decades, earning roughly $6.1 billion
01:06from those blocks on offer.
01:08Of course, not all blocks have gone into production, but companies would pay fees.
01:13But with revenues trending downward, the TDIT is urging government to re-evaluate its strategic
01:18plans.
01:19Our social expenditure, some of the areas we spend, you will see senior citizens pension,
01:26you will see gates, you will also see things like CPEP, URP, again.
01:33So the model shows that social expenditure is sticky.
01:38So even with a 20% decline in energy sector revenue, there's no movement.
01:43Whether it's, it starts a conversation on increasing retirement ages, whether it starts
01:47about, you know, do we realign the gate program to focus on the industries we want to diversify
01:53in?
01:54That's what we're trying to promote with this data.
01:59Renessa Cutting, TV6 News.
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