00:00Finance Minister Devin Janath Tanku outlined a new measure in the 2026 Finance Bill regarding offshore natural gas exploration activities
00:09within the maritime boundary of Trinidad and Tobago, which continues to depend on its energy sector as a key source
00:16of revenue.
00:17Clause 14A, insert a definition of marginal marine gas field into the petroleum regulations.
00:25It is an offshore shallow water field with recoverable gas to sea contingent resources of 300 billion cubic feet or
00:33less, an internal rate of return under 15% as a standalone project coming into production after January 1, 2026
00:42and certified by the Minister which is responsible for energy.
00:46The Finance Minister toured the UNC-led Government's line.
00:49For years, Mr Speaker, the previous administration spoke about energy while production declined.
00:57They spent millions of your taxpayers' dollars traveling the world, whining and dining at taxpayers' expenses, amateurs engaging in negotiations
01:08with professional negotiators.
01:10Opposition MP and former Energy Minister Stuart Young referred to the 2015-2025 PNM-led Government as he spoke about
01:19that matter.
01:21The PNM administration in the last 10 years did the work necessary to get marginalized fields and what we call
01:30stranded gas, actually gone after and produced for Trinidad and Tobago.
01:39The Finance Minister then spoke about the percentage of tax the state is to earn from exploration by upstream companies
01:46in what is now defined as a marginal marine gas field.
01:50Clause 14B sets the royalty for such gas at 8% on the natural gas one and seed from the
01:58marginal marine gas field.
02:01Clause 29B and 29C provide an allowance of 20% per year of 130% of qualifying expenditure spread over
02:10five years for investment in these fields.
02:14Clause 29D provides for certification by the Minister.
02:18MP Young spoke about a previous overall policy of a royalty of 12.5%.
02:25Every molecule of gas that leaves the ground is owned by the people of Trinidad and Tobago.
02:31And our royalty protects getting value because when you see you have cost recovery that they're now increasing here and
02:38you have other cost write-offs,
02:41it could mean that the people of Trinidad and Tobago don't get paid for the gas.
02:46But by having a royalty you do.
02:49And rather than set it for marginal fields at 8%, they should have left it open to negotiate on a
02:56case-by-case basis.
02:59The 8% royalty was later defended by Energy Minister Dr. Rudal Munilal.
03:04But a developed marginal field contributes to production, economic activity, revenue.
03:13That is what we are about today.
03:15We are converting stranded molecules into national development.
03:19We are converting uneconomic resources into production.
03:23We are converting geological potential into jobs, foreign exchange and public revenue.
03:28The 2026 finance bill was later passed via the government's majority.
03:34Jewel Brown, TV6 News.
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