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00:15BP said it would increase its investments in oil and gas by about 20% to US$10 billion a year,
00:22while decreasing previously planned funding for renewables by more than US$5 billion.
00:28BPTT also announced that it is aligned with BP's focus on growing the upstream,
00:34as outlined in its strategy reset today.
00:37It stated,
00:38In response to that announcement,
01:03former Energy Minister Kevin Ramnarine believes this is good news for TNT.
01:08In an interview with InsideBusiness earlier today,
01:11Ramnarine says the shift will allow for BP to further expand its gas operations here,
01:17resulting in an uptick for the local economy.
01:34BP's major focus in Trinidad and Tobago is oil and gas.
01:37My understanding is that that is potentially good news for us,
01:41because it would mean that more capital would be allocated to BP's business in Trinidad,
01:47which fundamentally is drilling for oil and gas.
01:49And that may result in BP moving from the current drilling program they have,
01:57which is one rig, moving potentially in the coming years to two rigs,
02:01which is very good for Trinidad and Tobago because we need the gas.
02:04While the ramped-up production is anticipated,
02:07he said it will be a stretch to expect the company to have three operational rigs again,
02:12as it did over a decade ago.
02:14But he stressed that the company would need to start producing around 1.5 billion cubic feet of natural gas.
02:21He added that his one concern is the Lara project,
02:26a solar farm project in Brechin Castle, Cuva,
02:29which BP has undertaken with the energy giant Shell and the National Gas Company of TNT.
02:35My understanding is that BP and Shell continue to be committed to that project,
02:40but given this refocus and this move away from the renewable space,
02:46we would adopt a look-and-see type approach with respect to that.
02:53But certainly I think that it is a fundamental shift for BP,
03:00and I think it's advantageous to us here in Trinidad and Tobago.
03:05Ramnarine says while BP stated its plans to refocus on oil and gas,
03:10an element of cost-cutting is expected in the next couple of years till 2027.
03:16That, too, is something that we have to keep an eye on here in Trinidad
03:20because, as you know, the company divested one of its gas-producing hubs last year to Perenco.
03:28So does that mean more cost-cutting in Trinidad?
03:33We have to wait and see.
03:35But certainly what happened today is a fundamental change in strategy and a U-turn.
03:40He added that the market response is also something that has to be monitored,
03:45given the response so far has resulted in a share price decrease.
03:49Rashauna Pagu for InsideBusiness.
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