Ramesh: Petrotrin still owes A&V $84m

PETROTRIN owes A&V Drilling $84 million which it is holding in an escrow account. This was revealed yesterday by Ramesh Lawrence Maharaj SC who said arbitration carded for December will determine whether Petrotrin's "fake oil" allegations have merit.

In a media statement, Maharaj said Petrotrin also owes A&V for crude supplied from the Catshill field for January 1 to February 28, valued at $15.3 million.

Petrotrin, which has wound up its oil refining and has commenced termination of workers, is expected to complete arbitration with A&V early next year in which A&V is claiming compensation and damages.

Petrotrin will still exist as a company in order to continue to deal with its assets and liabilities, a Petrotrin official told Newsday yesterday. Two new companies – Her­itage Pe­tro­le­um Com­pa­ny and Paria Fu­el Trad­ing Com­pa­ny – have been formed to replace Petrotrin, with the former responsible for exploration and the latter for fu­el lo­gis­tics and en­er­gy trad­ing.

Petrotrin terminated A&V's contract in exploration of oil wells in the Catshill field, Moruga, based firstly on an internal audit report that payments were made for oil which never reached the company. However, it based its decision to terminate A&V's contract, on February 28, on two forensic reports by Kroll of Canada and Kline of the United States, though the Penal-based oil drilling company was never invited to answer the allegations.

A&V, having drilled the Catshill field for several years, failed to secure an injunction in the High Court to stop the cessation of its contract.

Maharaj, the lead attorney for A&V, in yesterday's release said Petrotrin has been in constant communication with A&V concerning establishing a three-member panel of arbitrators to determine the merits of its case, as well as that of A&V's defence.