GOVT SET UP OWTU AGAIN

THE Government is playing the Oilfields Workers’ Trade Union (OWTU) for the third time on the purchase of Petrotrin.

The Government is in an advanced stage of negotiations with a foreign-owned energy corporation to take over the Pointe-a-Pierre operations that have been mothballed since November 2018.

Prime Minister Dr. Keith Rowley is expected to hold further discussions during a forthcoming visit to India, during which he is due to speak with Indian business mogul Mukesh Ambani, head of conglomerate Reliance Industries.

Rowley and Ambani will discuss the construction of a cricket stadium on the site of the abandoned Pan Trinbago headquarters.

The proposed cricket facility is to be owned by an Ambani subsidiary, Indiawin Sports Private Ltd., operator of five franchise cricket teams including Mumbai Indians, which takes part in the annual Indian Premier League (IPL) competition.

Ambani is the biggest investor in cricket, and has more than US $100 million in sports assets.

Forbes magazine has described Mumbai Indians as that country’s most valuable cricket franchise team.

Rowley is aiming to make a public announcement on the Petrotrin deal ahead of the general election.

Construction of the cricket stadium and takeover of the sprawling energy plant would see a major business grip by tycoon Ambani in Trinidad and Tobago.

Foreign ownership of Petrotrin would be a sharp reversal for the country, which nationalised the energy sector in the 1970s following an OWTU-led campaign.

It would be another blow to the union, which is currently finalising a third bid for the refinery and associated plants.

The previous two tenders were rejected because of the reported absence of a financing plan.

OWTU’s subsidiary Patriotic Energies and Technologies Co. Ltd., led by union official Ossie Warrick, has been shopping for financiers and technical advisors.

The company has discussed its proposal with four prospective international financiers for a commitment of US $1 billion.

The sum is proposed to cover three years of crude oil purchase, plant refurbishment and payroll.

A team recently conducted a site visit for inspection, evaluation and scoping.

The proposal said there are available markets to make Petrotrin viable and that the refinery is well-configured to process a variety of crudes.

The tender provided a logistical assessment, a competitive cost structure, a resumption plan and other relevant matters.

Restart activities would cost US $273 million, according to the proposal.

OWTU is confident about its bid, and foresees a full resumption within 12 months.

But Rowley is pushing ahead with plans to introduce an international operator.

If the deal is sealed, the new owner is expected to utilise modern renewable technologies and create production linkages with energy operations in Guyana and other South American countries.

“The Government wants to earn political dividends on this matter,” a well-placed source said.

Meanwhile, energy sources are disputing the recent revelation that preserving the Petrotrin plant is costing TT $500,000 a month.

Newman George, Chairman of Guaracara Refining Company, provided that figure in response to a question at a meeting of Parliament’s Public Accounts Enterprises Committee.

“The chairman neglected to state the relevant currency,” one informed source stated, “because the cost of maintaining the integrity of the plant is US $500,000 a month.

“That, of course, is a huge difference in cost.”

The cost includes 24-hour surveillance, nitrogen blanketing, equipment maintenance, keeping refining assets intact, and environmental monitoring.

OWTU officials, who have had a bitter-sweet relationship with the Rowley Administration, are likely to harden an adversarial stance if the union is bypassed for the Petrotrin operations.

Union leader Ancel Roget recently sang an anti-Government calypso.