Govt silent on Petrotrin refinery shutdown

The government remains silent about the fate of Petrotrin, after a surprise announcement yesterday that the board had decided to shut down the 101-year-old Pointe-a-Pierre refinery.

Energy Minister Franklin Khan, Communications Minister Stuart Young, Finance Minister Colm Imbert and Prime Minister Dr Keith Rowley did not respond to Newsday’s several requests for comment.

Rowley is, however, scheduled to address the nation about the future of Petrotrin, owners and operators of the refinery.

Yesterday the company announced it will shut down its refinery and marketing operations and focus on exploration and production.

Over 2,500 employees will be affected, with up to 1,700 refinery jobs to be terminated.

This shutdown is part of the state-owned Patrotrin's plan to restructure and manage its crippling debts, as well as attempt to return to profitability. For the third quarter of 2018, it even boasted an $85 million profit. The transition period for the shutdown will begin on October 1.

Petrotrin chairman Wilfred Espinet told the media yesterday there were no plans to sell the refinery.

All refined products will be imported, while all the company’s oil will be exported. Petrotrin produces approximately 40,000 barrels of oil today. The refinery capacity is 140,000, which means the company has had to import 100,000 barrels per day to reach nameplate production. Because of this, the company is a net user of foreign exchange.

On a plane ride back to Trinidad from Caracas, Venezuela on Saturday, Rowley told reporters in an informal briefing that Petrotrin was the only oil company he had ever heard of that had developed a policy of being in the oil business and not looking for oil.

His criticism, though, is in contrast to the sentiments he expressed at a press conference earlier that day at the Miraflores Palace, where he had teased the possibility that TT could one day refine Venezuelan oil. Venezuela has the biggest oil reserves in the world, but is currently under severe economic constraint.