West: Foreign energy companies not cutting back in TT

MINISTER in the Ministry of Finance, Allyson West, said foreign energy companies have given a commitment that they will not be cutting back in this country.

She was responding to a question in the Senate on Monday on what new sources of foreign direct investments (FDIs) are being attracted by the Government to assist in financing the country’s external debt commitment, in light of the increase in this country’s foreign debt obligation.

West reported, for the period 2016-2019 non-energy foreign direct investment totalled $2.788 billion. The sectors which benefited from these investments were maritime, retail, creative industries, manufacturing, services, clean technology, construction and agri-business.

West reported planned investment projects in the non-energy sector for the period 2020-2024 is expected to yield an estimated $7.2 billion in FDIs.

Over the period 2016-2019, energy FDI by the upstream, midstream and downstream operators totalled US $8.091 billion. For the period 2020-2022 the estimated FDI by these companies totalled $7.331 billion. West said the energy sector FDI over the last four years included a significant number of exploration drilling programmes by BHP, BP and EOG. She also reported on various production and projects involving BPTT, BPTT and EOG and Shell from 2017 and planned up to 2024.

Opposition Senator Wade Mark asked how the various investment projects have contributed in assisting TT in funding external debt commitments. West replied that the projects are expected to generate foreign exchange earnings and will assist in keeping foreign reserves up and servicing foreign debt.

Mark also asked if the covid19 pandemic would play any negative role in the energy projects and commitments made for the periods 2020-2023. West said the energy sector had been characterised as an essential service during the pandemic and was allowed to continue operating.

"So therefore, investment activity continued. Also in discussions with the various companies, we have had commitment from them that, although they are cutting back in areas of the world, TT will continue to enjoy the benefits of those investments."