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The Ministry of Energy cannot verify how much royalites Oil companies supposed to pay

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hydroep
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The Ministry of Energy cannot verify how much royalites Oil companies supposed to pay

Postby hydroep » November 21st, 2017, 7:01 pm

They were just discussing this on i95.5. Apparently the Ministry of Energy basically takes whatever the oil companies tell them because they have no systems to verify the figures...:|

This place jokey too bad yes.

Is TT being short-changed?

THE EDITOR: Is it that we the people of TT are being short-changed when it comes to how much money we get for our oil and energy? Or, are we being paid what is due?

Well, we may not even know because the caretaker of our oil and gas resources – the Ministry of Energy and Energy Industries – doesn’t have a good clue too!

Here is how we are in this mess.

The last Auditor General Report (2016) states that “no evidence was seen that oil and gas production data received from companies and used in the calculation of revenues collectible was verified by the Ministry.”

In other words, our Ministry did not verify what the companies were telling them how much they produced so we can charge them the required fees! So, we could have been undercharging or overcharging them. One wonders which one?

As a result of this situation, the Auditor General went on to say that “the accuracy of revenue from Royalties and share profits from oil companies could not be assessed.”

It means, therefore, that the auditors had no way of determining if what we received from the oil companies were in fact what were due to us! Thus, any mark could have played here. In fact, the report added that “the Measurement Unit is constrained.”

More specifically, the auditors added that at the time of the audit, the Royalties from eleven oil companies were outstanding.

We need to know what action can be taken by the Ministry to get these outstanding monies.

To make matters worse, the auditors noted that “quarterly and annual reconciliations of Royalties due and received were not produced for nine out of eleven oil companies.”

In other words, the amount of Royalties that we ought to receive cannot be verified for almost all of the oil companies in Trinidad and Tobago! Is this shady-looking situation be one of the main reasons that our country seems not to be benefitting from our oil and gas resources?

This is our main income generator. Could it really earn us much more money? We will never know.

Further, is it curious that the independent auditors cannot get the information on the monies due to us? Is it even more suspicious as to why our caretaker Ministry cannot have the required systems in place to ensure the country gets its due?

Ian Ramdhanie via email


http://newsday.co.tt/2017/11/20/is-tt-being-short-changed/

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skylinechild
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Re: The Ministry of Energy cannot verify how much royalites Oil companies supposed to pay

Postby skylinechild » November 21st, 2017, 7:08 pm

WTFMCIS.... so whose job it is it put systems in place to monitor how much oil they extract and charge them based on that quantity...???

thats like saying T&TEC doesnt have any metering system in place and just charging ppl what they feel..

is only when in hard times you start counting every dollar and then you realizse where they money gone...you hold yuh head and bawl...

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zoom rader
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Re: The Ministry of Energy cannot verify how much royalites Oil companies supposed to pay

Postby zoom rader » November 21st, 2017, 8:19 pm

Just as Tessoro scandal this another one the PNM trying to cover up

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EFFECTIC DESIGNS
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Re: The Ministry of Energy cannot verify how much royalites Oil companies supposed to pay

Postby EFFECTIC DESIGNS » November 21st, 2017, 8:28 pm

Doh worry we will cover it with tax dollars, lets raise the tax on online shopping once more.

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Re: The Ministry of Energy cannot verify how much royalites Oil companies supposed to pay

Postby pugboy » November 21st, 2017, 8:33 pm

well this must be going donkey years now

Numb3r4
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Re: The Ministry of Energy cannot verify how much royalites Oil companies supposed to pay

Postby Numb3r4 » November 22nd, 2017, 1:00 am

Is it true or is this a smoke screen to cover for the A & V "fake oil" scandal?
Now with this in hand they can blame the government for poor practices and they get off....

One wonders if the the oil companies are just doing the cheap thing and bribing officials.....this just makes us sound like Nigeria and reminds me of the nonsense that goes on in the Niger Delta.

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Re: The Ministry of Energy cannot verify how much royalites Oil companies supposed to pay

Postby airuma » November 22nd, 2017, 2:47 pm

There is no question about under charge or over charge. Just because GORTT does things without Transparency, Accountability and Value for Money (conditions clearly set out in the procurement legislation), it does not mean that profitable international organizations does it too! BP, BG et. al. will know exactly what they have to pay.

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ingalook
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Re: The Ministry of Energy cannot verify how much royalites Oil companies supposed to pay

Postby ingalook » November 23rd, 2017, 4:13 am

The subsidy on gas on the pump was originally paid by these royalties, our governments decided to go easy on "Big Oil" and instead charge the small man at the pump

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Re: The Ministry of Energy cannot verify how much royalites Oil companies supposed to pay

Postby Redman » November 23rd, 2017, 7:51 am

I dont believe that the issue would concentrated anywhere other than Petrotrin.

AFAIK Petrotrin is the purchaser of all oil brought to surface in TnT-they consider that title changes at the well head.

There is some crude that is exported directly because of its high quality-and the royalties are paid to MOE.

The bigger companies are gas focused and that regime is much more regulated,automated and I would think harder to fudge in the way it was done at Petrotrin.

What is claimed to have taken place at Petrotrin with AVOG......has been happening for years-wasnt it MoraVen that was busted pumping water for oil, and having a buried line returning oil to be fiscalized repeatedly.

Same tactics, a few of the same people...

What is clear is that there is more than ONE PETROTRIN employee that is responsible.

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