Petrotrin update

[zoom rader]

I lol'd when I realized that was a Guardian article; they have a penchant for spreading negative news about Petrotrin. Silicon Valley? Really? The average Silicon Valley annual salary is about $120,000 US dollars; the figure given in the article isn't even equivalent to $60,000-barely half. Some of us are so caught up in detesting the OWTU, or the Petrotrin employee or the BP employee or the *insert energy sector company here* employee or running down propaganda that we aren't rationalizing certain things. A lot of the Petrotrin employees I know don't make anywhere close to the average $33,000/month, not even the cleaners. Poor cleaners. Pun intended. The wage bill is apparently propped up by the high salaries of the President, the VPs, and many a senior manager or manager or head of department, etc. Another thing, common sense should tell us, (corruption, orchestrating, etc. aside) overstaffed and overtime can't go in the same sentence. Another reason for the wage bill, is excessive overtime. If a department or company on the whole is overstaffed, there'd be enough employees to relieve a shift, should a scheduled employee not come out, which would mean the employee awaiting relief wouldn't have to be paid overtime, so it begs the question, which area is overstaffed?

Like I said in the WASA thread, the powers that be are quick to cry overstaffed, to a) protect their executive friends and family and b) distract from the corruption and poor management that causes these situations in the first place. Do you think it was a Refinery Operator that sanctioned $1.6 bn in loans to finance a project that is long overdue? Why are we calling for the heads of average citizens like you and I who have very little influence and not that of those put in charge of effectively and efficiently managing resources?? State companies/offices are often inefficient, trust me I see it everyday, but it often starts at the top.

I have been telling folk becareful where they are reading from .

The PNM media houses has an agenda, guilable folk lap up everything they read and belive it to be true.

[Redman]

About 2 years odd ago I was in the presence of 2 life long Petrotrin employees-senior in time there and upper middle class in terms of position

My question:
You have a blank cheq and the keys to Petrotrin-and FULL autonomy to solve the problems.
What do you do.

I ask 2 of them seperately.

Both started with employees and the union being locked out.
Selective rehire-breaking Union.

Since then Ive asked Petrotrin employees I know and meet the same question
The have VERY SIMILAR ANSWERS.
Reduce staff at every level

It eh managmenet that spending food vouchers on household items
It eh Management that walking sheeit off the compounds for years.

So while Joshies point is valid....there are MANY causes....its the union who has given the ultimatum.
So its the union that will receive the attention during discussions

[zoom rader]

About 2 years odd ago I was in the presence of 2 life long Petrotrin employees-senior in time there and upper middle class in terms of position

My question:
You have a blank cheq and the keys to Petrotrin-and FULL autonomy to solve the problems.
What do you do.

I ask 2 of them seperately.

Both started with employees and the union being locked out.
Selective rehire-breaking Union.

Since then Ive asked Petrotrin employees I know and meet the same question
The have VERY SIMILAR ANSWERS.
Reduce staff at every level

It eh managmenet that spending food vouchers on household items
It eh Management that walking sheeit off the compounds for years.

So while Joshies point is valid....there are MANY causes....its the union who has given the ultimatum.
So its the union that will receive the attention during discussions

That was a paid PNM view

[Allergic2BunnyEars]

Yeah Redman is food vouchers and walking sheit off the compound (whatever that means) have Petrotrin where it is LOL.

[Redman]

Yeah Redman is food vouchers and walking sheit off the compound (whatever that means) have Petrotrin where it is LOL.

No
It's not.
I said many causes...
I said reduce staff at many levels

If it is that The union say no job loss...into the public realm...and that's the only public talking point in the news cycle...then that's the nail that will be hit.

Roget know this....
But no job loss is his way of saying it is not bloated.

At the end of the day Petrotrin has exponentially more employees per BOPD than many of the integrated oil cos that I can find.

2017 numbers.
Petrobras produces about 30bopd per employee.
Basket Case PEMEX produces 18-but they have plans to cut 23% of their staff.
Exxon-57 BOPD per employee
BP-57
Chevron-47



Petrotrin produces 45000
Do your math ....with 5000 .

At best 9 BOPD per employee

And...not one job loss is the unions position
Take out the PRIVATE companies that produce through the FO/LO/IPSC....whats the number of BOPD per Petrotrin employee?????
(Im gonna look)

Where is the quantity of employees....management ?
On the board?

GTL finalizing package, Soldado Barge issue, the Presidents treatment of managers that retire and come back all play their big part in the sheit the co is in.

But when you listen to existing and past employees talk about the wastage, theft and wonton disregard for where we are as a country ,people and the co....all while collecting excellent packages and benefits.... the sanctimonious bs goes out the window.

My reference to TCL is that in 2018 there are international buyers that will come in buy the asset and make it work and the union will hold its labor line into oblivion.

Compare this with what we get from Petrotrin.

http://www.pemex.com/acerca/plan-de-neg ... ex2017.pdf

[Allergic2BunnyEars]

Redman at the end of the day the public is stupid. Just because a certain topic isn’t discussed in the public doesn’t mean it is any less relevant.

The union is not perfect. There is a reason for its presence. The discourse however seems skewed to only focus on the union. Even when you receive info that points to other areas within the company the discourse always falls back on the union. I think that is myopic and there are many areas to discuss fixing in Petrotrin.

[Joshie23]

Yeah Redman is food vouchers and walking sheit off the compound (whatever that means) have Petrotrin where it is LOL.

No
It's not.

If it is that The union say no job loss...into the public realm...and that's the only public talking point in the news cycle...then that's the nail that will be hit.

Roget know this....

At the end of the day Petrotrin has exponentially more employees per BOPD than many of the NOC s that I can find.
Petrobras produces about 30bopd per employee.

Petrotrin produces 450
Do your math....nd take out the farm outs ....

Where is the quantity of employees....management ?
On the board?

Redman, since you like maths so much, how many of those employees of Petrotrin are directly affiliated with core operations such as oil production or refinery operations or SCM, etc? Also, the article highlighted the wage bill to great extent. You think that an operator or mechanic is really taking home $33k a month? If they are, how much then would a senior superintendent or a manager or worse yet, the President make? That's the thing about an average figure; you can make duck for 4 out 5 cricket matches, but if you make 1000 runs in the 5th match, you'd go down as a star with an AVERAGE of 200 runs per match. What you also should have asked your two senior partners was how much they made and compare it to the $33k average. What the article touched on but again propaganda fanatics obviously missed is the fact that ALL benefits are covered in that $2bn-contributions to pension and medical funds/plans, the travelling allowances your senior partners probably got, etcetera etcetera.

You know I've read through a lot of these threads about state entities-WASA, T&TEC, TSTT, Petrotrin, etc. and while we know there is a smorgasbord of issues that plague these institutions that ultimately hinder progress, it's amazing and maybe even frightening to see how many of our fellow men wake up every morning and look forward to a man losing his job and ultimately his ability to provide for his family. In some cases, downsizing is a must ESPECIALLY where you have instances of positions in said companies being created for friends and family of a political persuasion, but there are obviously other ways as A2B hinted to, that we can use to fix these problems.

[Redman]

well Josh the math is exactly that.

We have 5000 people -of which some are management and some are labor-and some of both has to go.
2B worth of compensation.

Collectively getting the highest salaries-as a group in the country.
and yes they competitive world wide...
with sheit performance.

and no risk of job loss.
But they get a raise last year KNOWING THAT THE COMPANY IN DIRE STRAITS.
So take what we could get and to ass with the rest.


How is it that ONE man handled the fake oil scenario....????

Which union members were part of the chain that sent the 2.5M USD to Mexico in the Soldado issue.
Only management???


The solution is that everybody has to take a hit-will the employees give back part of their benefits?

Whats their share of the load to make it work???
or is it just tax payers to take the hit??

[vaiostation]

If Malcolm Jones never passed through or AV, petro could have saved billions today...
Yet no one was held to account, just like Calder Hart...
De only people that had to suffer was the tax payers, while Party Card holders gain...

[The_Honourable]

Joshie i believe most of us hear what you are saying. At the end of the day, not just top management have to feel the axe. I agree with Redman, staff needs to be reduced at all levels from Management all the way down to the cleaner. Some paycuts especially at upper management needs to be done also.

From what the public sees, all levels for different reasons from top to bottom inclusive of Government and Unions took advantage of Petrotrin for decades. By privatizing it, most of the BS will stop:

- Government not there anymore so they can't put their padna, family and party card holders to eat ah food.
- Taxpayers don't have to worry and vex about feeding and bailing out a sick company.
- No more OWTU threatening to strike, make noise for wages, and some reps eating ah food instead of helping workers.
- Overstaffed and understaffed areas would be properly treated by Management since their aim is to make a profit.

Most state companies need to be privatized, including Petrotrin.

[Redman]

The standard for a company' like Petrotrin...payroll is about 30-45% of costs.

[zoom rader]

Standard company's payroll is about 30-45% of costs.

Very few trini companies bare that cost .

Workers get ripp off by bigger industrial employers they pay in TT but sell in US. Labour is cheap and next to nothing here

[Redman]

^^^^ Right.

More Math
From the Consolidated Monthly Bulletins up to Nov 17..

Petrotrin produces about 16% of the oil and condensate -segregating the IPSC,FO,LO operators. The number is 11,768 BOPD
Seems to only have 1 rig in service Petrotrin Rig #1
Accounts for:
16% of the Rig Days in 2017
10% of the depth Drilled
Started 11 wells-AV started 21
Completed 30% of the oil wells and 18% of all wells
43% of the winch hours-which is a excellent indicator of work over activity.

All of the above are causal to oil production.....

Irrelevant in Nat Gas production
Imported 29M exported 9M BBLS of oil
Refinery utilization of 130000 BOPD vz specd 165000-79%

[Numb3r4]

Do you know how long I haven't heard 'bout Rig 1?

They have an entirely new office staff looking over them now. The crew is about the same and generally very nice cool guys who know the job.

The drilling and work over department though has always had issues with regards to in house vs consultants and preferential treatment handed out to favored contractors.

[Allergic2BunnyEars]

Redman doh worry. Your hopes and wishes will begin to see fruition in about a month’s time.

[Redman]

Its pretty amazing really.
post 2014 new carriers were being sold ex factory at 30-50% sticker.
Oil field equipment went through a glut.
Service King had 15 sk575s half price with a downpayment
Just off their line
Why in the years 2014-2017...is only one Petrotrin owned drilling rig listed as doing work????

[Redman]

Redman doh worry. Your hopes and wishes will begin to see fruition in about a month’s time.

My hope is for a strong indigenous Petrotrin.
A big part of OUR future is vested in Petrotrin working
my wish was that this process was done while we had high oil prices.

Numbers are numbers-and I dont believe you can definitively solve a problem without a proper sober analysis of the root cause....

[Numb3r4]

Its pretty amazing really.
post 2014 new carriers were being sold ex factory at 30-50% sticker.
Oil field equipment went through a glut.
Service King had 15 sk575s half price with a downpayment
Just off their line
Why in the years 2014-2017...is only one Petrotrin owned drilling rig listed as doing work????

I think its becase Rig 1 is the only wholly owned by the company, the other rigs are owened by other companies and are contracted by the company to do work....drilling that is.

The other rigs owned by Petrotrin are workover rigs that only look after the servicing of the wells, even still Petrotrin has contracted out rigs for workovers.

[nervewrecker]

Ah hear ah talk, but waiting to see if is true.

[Redman]

Well I getting silence....so it must be.

[Redman]

As to the rig.
How can a NOC be serious about production....with one drilling rig...

Even the winch hours are embarrassing...for a NOC.

[nervewrecker]

I mean about the rigs btw.

Heard it from a customer that works there. Aint see nothing yet.

[Numb3r4]

As to the rig.
How can a NOC be serious about production....with one drilling rig...

Even the winch hours are embarrassing...for a NOC.

Remember Petrotrin workers are unionized that was why they never got around to having more than one drilling rig, added to that private companies proved to be far more efficient and cost effective, so it was better to have a operator contractor relationship than to own more drilling rigs.

The low winch hours could be because of the slow but ever steady contracting out of winch work both workover and drilling. Initially it took the for of the lease out-farm out programme so they were under the control of private interests and then gradually the management decided to seek the services of other private companies to do other company tasks.

As and aside there were quite a lot of private small companies that operated small land rigs quite adequate for drilling in Trinidad on land but because of poor tendering and awarding of contracts they were pushed out of the market and that is why we now have monopolies by a few companies. This resulted in the poor state of drilling in Trinidad, Petrotrin doesn't have the luxury of offerings to choose rigs from so they over pay for the local rigs that are there. A problem of their own making I might add.

Added to all of that is that within the company the common theme is that "they want to kill Rig 1".
I wouldn't be surprised if I heard that all drilling and workover activity has been suspended, and the employees are looking over the contractors.

[Specialist Baboons]

Petrotrin’s overtime bill stands at $22m


Shaliza Hassanali
Published:
Thursday, January 25, 2018

Finance Minister Colm Imbert.
Despite facing a financial bind, the monthly overtime bill at State-owned Petrotrin is $22 million, while its annual wage bill to its 5,000 employees amounts to $2 billion.

This was what was revealed before a Joint Select Committee (JSC) chaired by Finance Minister Colm Imbert on Energy Affairs, as senior management of Petrotrin was yesterday interrogated into the operations of the energy company at the ANR Robinson Room, Tower D, Port-of-Spain.

Vice chairman Stuart Young asked if anyone at Petrotrin could say what was the company’s monthly or annual overtime bill compared to payments of salaries.

In response, the company’s vice president of Human Resources and Corporate Services Neil Derrick responded saying “it’s about $22 million a month in overtime for the entire company.”

Young questioned what was Petrotrin’s annual salary bill. Derrick answered, stating that it was $2 billion, which included overtime.

“So the ratio of your $2 billion salary a year how much of that is overtime?”

Petrotrin’s outgoing president Fitzroy Harewood said the figure was about 18 per cent.

“So near to 20 per cent of our salary bill at the end of the year is overtime? “Young asked.

That figure amounts to $400 million in overtime.

Imbert read from the Lashley report which stated that Petrotrin’s cash flow was currently tight, its working capital eroded, margins negatives and salaries were estimated at 50 per cent of operating costs, while the company had an over leverage system.

“If there is a statement such as this that 50 per cent of operating cost being paid to salaries is too high, what is the correct figure? What should it be 25, 30, 40 per cent? Somebody must know what is the standard international benchmark for salaries in terms of operating cost,”Imbert said.

Petrotrin chairman Wilfred Espinet, in response, said it was “twice as much as it should be,” stating the Petrotrin cannot exist in its present form with its high operational costs.

Member Gerald Ramdeen asked Espinet how the board intended to reduce the company’s huge salary bill.

“One of the proposals that has come out of it is to separate the operational activities and to focus our management and employees in their specific operational activities rather than as we have them now as an integrated company where we have operational and a super structure that manages it. That, we see as being an opportunity to reduce the labour force, for sure,”Espinet said.

Espinet said he was not sure if they can convince employees to reduce their salaries down “that you may be able to work four days a week or three days a week rather than five days a week if you want to keep numbers.”

These are issues, Espinet said would have to be discussed.

The chairman said to reduce the labour force and for employees to work less days would have to be part of a negotiated process “because I think there is about six ways to skin the cat.”

[Redman]

As to the rig.
How can a NOC be serious about production....with one drilling rig...

Even the winch hours are embarrassing...for a NOC.

Remember Petrotrin workers are unionized that was why they never got around to having more than one drilling rig, added to that private companies proved to be far more efficient and cost effective, so it was better to have a operator contractor relationship than to own more drilling rigs.

The low winch hours could be because of the slow but ever steady contracting out of winch work both workover and drilling. Initially it took the for of the lease out-farm out programme so they were under the control of private interests and then gradually the management decided to seek the services of other private companies to do other company tasks.

As and aside there were quite a lot of private small companies that operated small land rigs quite adequate for drilling in Trinidad on land but because of poor tendering and awarding of contracts they were pushed out of the market and that is why we now have monopolies by a few companies. This resulted in the poor state of drilling in Trinidad, Petrotrin doesn't have the luxury of offerings to choose rigs from so they over pay for the local rigs that are there. A problem of their own making I might add.

Added to all of that is that within the company the common theme is that "they want to kill Rig 1".
I wouldn't be surprised if I heard that all drilling and workover activity has been suspended, and the employees are looking over the contractors.

Private sector more efficient.-What does the Private sector have that Petrotrin doesnt have???
Petrotrin has
No cost of acquisition-its their oil,their wells,their blocks their land and Infrastructure that is fully depreciated.
Low cost of Capital-ultimately the GORTT can fund equipment aquisition
Regulatory head start-

How is it that the private sector is able to do the work for less??
With higher up front costs?

Yeah-not a job to be lost.

Unionized
5000 strong
one rig.

All of these are VARIABLE conditions that contribute to the sheeit we in.
It shows the corruption from Captain to cook.
Yet as made clear by your post-100% accurate these contribute to Petrotrin being a failure since the 80s-these are thrown out as if they are fixed like gravity and cannot be changed.

But this is where I think LABOR has to take responsibility.....they run the union, they see the on the ground deficiencies,poor workmanship and failures...but have not changed the union from the ground up to evolve into 2018.There are many employees that see the situation and are happy to make sacrifices.

However we need to bell the cat-no sacred cows, and we need the golden goose to continue laying.

Check the below links-there is a difference in the approach-and transparency

http://www.pemex.com/acerca/plan-de-neg ... ex2017.pdf


http://www.naturalgasintel.com/articles ... stical-hat

[zoom rader]

As to the rig.
How can a NOC be serious about production....with one drilling rig...

Even the winch hours are embarrassing...for a NOC.

Remember Petrotrin workers are unionized that was why they never got around to having more than one drilling rig, added to that private companies proved to be far more efficient and cost effective, so it was better to have a operator contractor relationship than to own more drilling rigs.

The low winch hours could be because of the slow but ever steady contracting out of winch work both workover and drilling. Initially it took the for of the lease out-farm out programme so they were under the control of private interests and then gradually the management decided to seek the services of other private companies to do other company tasks.

As and aside there were quite a lot of private small companies that operated small land rigs quite adequate for drilling in Trinidad on land but because of poor tendering and awarding of contracts they were pushed out of the market and that is why we now have monopolies by a few companies. This resulted in the poor state of drilling in Trinidad, Petrotrin doesn't have the luxury of offerings to choose rigs from so they over pay for the local rigs that are there. A problem of their own making I might add.

Added to all of that is that within the company the common theme is that "they want to kill Rig 1".
I wouldn't be surprised if I heard that all drilling and workover activity has been suspended, and the employees are looking over the contractors.

Private sector more efficient.-What does the Private sector have that Petrotrin doesnt have???
Petrotrin has
No cost of acquisition-its their oil,their wells,their blocks their land and Infrastructure that is fully depreciated.
Low cost of Capital-ultimately the GORTT can fund equipment aquisition
Regulatory head start-

How is it that the private sector is able to do the work for less??
With higher up front costs?

Yeah-not a job to be lost.

Unionized
5000 strong
one rig.

All of these are VARIABLE conditions that contribute to the sheeit we in.
It shows the corruption from Captain to cook.
Yet as made clear by your post-100% accurate these contribute to Petrotrin being a failure since the 80s-these are thrown out as if they are fixed like gravity and cannot be changed.

But this is where I think LABOR has to take responsibility.....they run the union, they see the on the ground deficiencies,poor workmanship and failures...but have not changed the union from the ground up to evolve into 2018.There are many employees that see the situation and are happy to make sacrifices.

Right is right-its not necessary to kill the goose.

Private sector limits the PNM appointed job for the boys. You have to fit the job profile with papers.

Private sector aims for results and profits and they expect a certain output from their workers.

State enterprises has entitled lazy workers looking for higher pay

[Allergic2BunnyEars]

Petrotrin’s overtime bill stands at $22m


Shaliza Hassanali
Published:
Thursday, January 25, 2018

Finance Minister Colm Imbert.
Despite facing a financial bind, the monthly overtime bill at State-owned Petrotrin is $22 million, while its annual wage bill to its 5,000 employees amounts to $2 billion.

This was what was revealed before a Joint Select Committee (JSC) chaired by Finance Minister Colm Imbert on Energy Affairs, as senior management of Petrotrin was yesterday interrogated into the operations of the energy company at the ANR Robinson Room, Tower D, Port-of-Spain.

Vice chairman Stuart Young asked if anyone at Petrotrin could say what was the company’s monthly or annual overtime bill compared to payments of salaries.

In response, the company’s vice president of Human Resources and Corporate Services Neil Derrick responded saying “it’s about $22 million a month in overtime for the entire company.”

Young questioned what was Petrotrin’s annual salary bill. Derrick answered, stating that it was $2 billion, which included overtime.

“So the ratio of your $2 billion salary a year how much of that is overtime?”

Petrotrin’s outgoing president Fitzroy Harewood said the figure was about 18 per cent.

“So near to 20 per cent of our salary bill at the end of the year is overtime? “Young asked.

That figure amounts to $400 million in overtime.

Imbert read from the Lashley report which stated that Petrotrin’s cash flow was currently tight, its working capital eroded, margins negatives and salaries were estimated at 50 per cent of operating costs, while the company had an over leverage system.

“If there is a statement such as this that 50 per cent of operating cost being paid to salaries is too high, what is the correct figure? What should it be 25, 30, 40 per cent? Somebody must know what is the standard international benchmark for salaries in terms of operating cost,”Imbert said.

Petrotrin chairman Wilfred Espinet, in response, said it was “twice as much as it should be,” stating the Petrotrin cannot exist in its present form with its high operational costs.

Member Gerald Ramdeen asked Espinet how the board intended to reduce the company’s huge salary bill.

“One of the proposals that has come out of it is to separate the operational activities and to focus our management and employees in their specific operational activities rather than as we have them now as an integrated company where we have operational and a super structure that manages it. That, we see as being an opportunity to reduce the labour force, for sure,”Espinet said.

Espinet said he was not sure if they can convince employees to reduce their salaries down “that you may be able to work four days a week or three days a week rather than five days a week if you want to keep numbers.”

These are issues, Espinet said would have to be discussed.

The chairman said to reduce the labour force and for employees to work less days would have to be part of a negotiated process “because I think there is about six ways to skin the cat.”

Interesting maths in this article.

Overtime per month is $22 million per month.

$22 million x 12 months is 264 million per year.

Wage bill approximately 2000 million per year.

264 million as a percentage of 2000 million is 13.2 %.

President says it's 18%.

Stuart rounds that up to 20%.

Guardian writes 20% of 2000 million is $400 million.

Surprised Espinet didn't tell Gerald most of the workforce is deceased but still getting paid.

[Joshie23]

Interesting maths in this article.

Overtime per month is $22 million per month.

$22 million x 12 months is 264 million per year.

Wage bill approximately 2000 million per year.

264 million as a percentage of 2000 million is 13.2 %.

President says it's 18%.

Stuart rounds that up to 20%.

Guardian writes 20% of 2000 million is $400 million.

Surprised Espinet didn't tell Gerald most of the workforce is deceased but still getting paid.

Interesting maths indeed. I'm also surprised they didn't divide the $22,000,000 per month overtime bill by the 5,000 employees and said that every employee takes home an average of $4,400 per month in overtime which added to their near $33,000/month salary is $37,400 a month, carrying them even closer to Silicon Valley figures..oh wait that's terrible mathematics, because the overtime is already calculated in that $33,000/month they reported but it'd make for good bachannal i meannews so let's print it.

[airuma]

What does the Private sector have that Petrotrin doesnt have???

The appropriate question to ask is what does petrotrin have that the private sector doesn't have?
OWTU
GoRTT appointees.

[Allergic2BunnyEars]

Interesting maths in this article.

Overtime per month is $22 million per month.

$22 million x 12 months is 264 million per year.

Wage bill approximately 2000 million per year.

264 million as a percentage of 2000 million is 13.2 %.

President says it's 18%.

Stuart rounds that up to 20%.

Guardian writes 20% of 2000 million is $400 million.

Surprised Espinet didn't tell Gerald most of the workforce is deceased but still getting paid.

Interesting maths indeed. I'm also surprised they didn't divide the $22,000,000 per month overtime bill by the 5,000 employees and said that every employee takes home an average of $4,400 per month in overtime which added to their near $33,000/month salary is $37,400 a month, carrying them even closer to Silicon Valley figures..oh wait that's terrible mathematics, because the overtime is already calculated in that $33,000/month they reported but it'd make for good bachannal i meannews so let's print it.

I wish my salary was that high.