Petrotrin

Petrotrin, formally the Petroleum Company of Trinidad and Tobago Limited, was a state-owned integrated petroleum company established in 1993 through the merger of two national oil enterprises, Trintoc and Trintopec. Its business covered exploration, development and production of hydrocarbons, refining, petroleum-product marketing, and related commercial activities. The company operated under the direct control of the Minister of Finance in the constitutional role of Corporation Sole, while the Ministry of Energy served as the line ministry responsible for technical oversight, statutory approvals and sector coordination. The company represented the consolidation of a much older petroleum industry. Trintoc inherited assets associated with Shell Trinidad and later Texaco, while Trintopec was formed after the government acquired interests previously connected with Trinidad Tesoro and the former British Petroleum assets in Trinidad and Tobago. In 2000, Petrotrin absorbed Trinmar, an entity associated with offshore exploration acreage acquired from Trinidad Northern Areas Limited. These predecessor businesses themselves had roots in early twentieth-century operators such as Trinidad Oilfields Limited, United British Oilfields of Trinidad, Trinidad Leaseholds Limited, Trinidad Petroleum Development Company, Apex Trinidad Oilfields and Kern Trinidad Oilfields. Petrotrin's upstream operations covered land and marine acreage, principally in southern Trinidad. The company used joint ventures, farm-outs, lease operatorships and incremental-production service contracts in arrangements with domestic and foreign participants. From 2004, it received an automatic interest in exploration and production arrangements involving foreign companies in Trinidad and Tobago. Its downstream business centered on the Pointe-à-Pierre refinery, the country's only operating petroleum refinery during Petrotrin's existence and one of the largest industrial landmarks in the national economy. The refinery manufactured liquefied petroleum gas, gasoline, aviation fuel and kerosene, diesel and heating oil, fuel oil, aviation gasoline and other refined products. Petrotrin supplied the domestic market and exported refined products to other Caribbean countries. In 2018, fuel accounted for approximately 90 percent of its local-market sales, with gasoline, diesel, jet fuel and liquefied petroleum gas making up the principal categories. Jamaica, Barbados and Guyana were identified among its key CARICOM export destinations. The company therefore occupied a strategically important position in national energy security, foreign-exchange generation and regional fuel supply. Its financial and operational condition deteriorated over time. The company faced declining production, aging refinery infrastructure, heavy debt, labor-relations constraints and allegations of weak governance, waste, corruption and nepotism. The government also argued that Petrotrin's refining model had become uncompetitive because the company needed to import crude or other feedstock to supplement domestic production. After a period of low oil prices and sustained losses, the government announced in August 2018 that Petrotrin would be shut down. The refinery formally ceased operations on 30 November 2018, ending more than a century of refining activity at the Pointe-à-Pierre site and terminating the Petrotrin corporate structure. Approximately 5,500 permanent, temporary and casual workers were reported to have lost their employment. From 1 December 2018, Petrotrin's functions and liabilities were reorganized into four successor entities. Trinidad Petroleum Holdings Limited assumed legacy liabilities and outstanding financial obligations. Heritage Petroleum Company Limited took responsibility for exploration, development, production and marketing of crude oil. Paria Fuel Trading Company was established to trade and market imported fuel products. Guaracara Refining Company became the holding entity for the Pointe-à-Pierre refinery and related assets, which were intended to be offered for sale. Petrotrin consequently remains significant as a former national energy institution and as the predecessor of Trinidad and Tobago's post-2018 petroleum companies, but it is no longer an operating brand.

Petroleum refining and oil production in Trinidad predated Petrotrin by many decades. Early commercial development involved a succession of operators, including Trinidad Oilfields Limited, United British Oilfields of Trinidad, Trinidad Leaseholds Limited, Trinidad Petroleum Development Company, Apex Trinidad Oilfields and Kern Trinidad Oilfields. The Pointe-à-Pierre refinery originated with Trinidad Leaseholds Limited, which acquired former sugar-estate land and built a refinery that began production in 1917 at a reported capacity of 75,000 barrels per day. It was expanded in the interwar period and during the Second World War, when its production of aviation fuel made it an important Allied asset. A catalytic cracking unit entered service in 1942, and the refinery was later described as the largest in the British Empire at the end of the war. Texaco acquired Trinidad Leaseholds in 1956. Further facilities, including topping, lubricating-oil, canning and paraffin plants, were added during the Texaco period. Refinery throughput reached a reported peak of 360,000 barrels per day by 1970, although production was affected by the social and political unrest of that year. Elsewhere in the country, older small refineries gradually became uneconomic because of aging equipment, supply constraints and changing cost conditions. The Point Fortin refinery, which had been built in 1912 and had processed Venezuelan crude, closed in 1994 after the economic difficulties of the 1980s. The Trinidad and Tobago government acquired Texaco's local assets in the mid-1980s and placed them under Trintoc. Trintoc had earlier been formed from Shell Trinidad's assets in 1974 and absorbed Texaco-related assets after the state acquisition. Trintopec was created in 1985 after the government purchased interests in Trinidad Tesoro, a government-Tesoro joint venture associated with the acquisition of former BP assets. The government merged Trintoc and Trintopec in 1993 to create Petrotrin, bringing upstream, refining and marketing operations under one national company. Trinmar, which represented offshore exploration assets acquired from Trinidad Northern Areas Limited, was later merged into Petrotrin in 2000. During the 1990s and 2000s, Petrotrin operated both onshore and offshore acreage in southern Trinidad. It participated in joint ventures and other contractual arrangements with foreign companies, and in 2004 received an automatic stake in exploration and production arrangements involving foreign participants. Investment in the Pointe-à-Pierre refinery during the 1990s upgraded infrastructure, instrumentation and environmental systems. The reported result was improved product quality, including lower sulfur content and higher octane, while refinery capacity was raised from approximately 90,000 to 160,000 barrels per day. Additional plant work continued into the 2010s. Petrotrin was strategically important because it operated Trinidad and Tobago's only refinery and supplied both the domestic market and neighboring Caribbean markets. Its product slate included gasoline, diesel, aviation fuel, kerosene, liquefied petroleum gas and fuel oil. However, the company increasingly struggled with declining crude production, aging assets, debt, weak returns and difficult labor relations. Public criticism also focused on alleged poor corporate governance, waste, corruption and nepotism across successive administrations. The government argued that the refinery could not remain competitive while relying partly on imported crude or other feedstock and that a major recapitalization would be required. On 28 August 2018, Prime Minister Keith Rowley announced that Petrotrin would be shut down. The government cited sustained losses, debt, declining production and the cost of restoring the refinery. Petrotrin ceased operations on 30 November 2018, with approximately 5,500 permanent and non-permanent workers affected. From 1 December, its functions were split among Trinidad Petroleum Holdings Limited, Heritage Petroleum Company Limited, Paria Fuel Trading Company and Guaracara Refining Company. The first assumed legacy liabilities, the second took over upstream petroleum activities, the third handled fuel trading, and the fourth held the refinery and related assets for possible sale. Petrotrin therefore became a defunct predecessor institution rather than an ongoing operating company.

• 2018

  Petrotrin is closed and replaced by four entities

  [1]Petrotrinen.wikipedia.org

  The company ceased operations on 30 November, and its assets, operating activities and liabilities were reorganized from 1 December.

• 2004

  Automatic participation in foreign exploration arrangements

  [1]Petrotrinen.wikipedia.org

  Petrotrin received an automatic stake in exploration and production arrangements involving foreign companies in Trinidad and Tobago.

• 2000

  Trinmar is merged into Petrotrin

  [1]Petrotrinen.wikipedia.org

  The offshore-focused Trinmar entity was incorporated into Petrotrin, further consolidating state petroleum operations.

• 1997

  Refinery modernization program is completed

  [1]Petrotrinen.wikipedia.org

  Upgrades to infrastructure, instrumentation and environmental systems improved product quality and increased reported refinery capacity.

• 1993

  Petrotrin is created

  [1]Petrotrinen.wikipedia.org

  Trintoc and Trintopec were merged to create the Petroleum Company of Trinidad and Tobago, trading as Petrotrin.

• 1985

  Trintopec is established and state acquisition of Texaco assets proceeds

  [1]Petrotrinen.wikipedia.org

  Trintopec was formed after the government acquired interests associated with Trinidad Tesoro, while Texaco-related assets were placed under Trintoc.

• 1974

  Trintoc is formed from Shell assets

  [1]Petrotrinen.wikipedia.org

  The state established Trintoc from assets associated with Shell Trinidad, creating one of Petrotrin's principal predecessor companies.

• 1956

  Texaco acquires Trinidad Leaseholds

  [1]Petrotrinen.wikipedia.org

  Texaco acquired the company operating the Pointe-à-Pierre refinery and subsequently expanded its facilities.

• 1942

  Catalytic cracking capacity is added

  [1]Petrotrinen.wikipedia.org

  A catalytic cracking unit entered service during the Second World War, supporting the refinery's production of fuel products.

• 1917

  Pointe-à-Pierre refinery begins production

  [1]Petrotrinen.wikipedia.org

  The refinery that later became the core of Petrotrin's downstream business began production under Trinidad Leaseholds Limited.

A state-owned, vertically integrated national oil company serving Trinidad and Tobago's upstream petroleum sector, domestic fuel market and Caribbean export trade.

• Upstream hydrocarbons

  Crude oil

  Petrotrin explored for, developed and produced crude oil from onshore and offshore acreage, particularly in southern Trinidad. The company used joint ventures, farm-outs, lease operatorships and incremental-production contracts to support its upstream portfolio.

• Refined petroleum products

  Unleaded motor gasoline

  Unleaded gasoline was one of the principal products manufactured at the Pointe-à-Pierre refinery and represented the largest reported component of Petrotrin's local fuel sales in 2018.

• Refined petroleum products

  Diesel and heating oil

  The refinery produced diesel and heating oil for Trinidad and Tobago's domestic market and for regional trade. Diesel was one of the company's major local-market fuel categories.

• Aviation and middle-distillate fuels

  Jet fuel, aviation gasoline and kerosene

  Petrotrin's refinery produced aviation-related fuels, including jet fuel and aviation gasoline, as well as kerosene. These products extended the refinery's role beyond road fuels and supported domestic and regional energy needs.

• Gases and household fuels

  Liquefied petroleum gas

  Liquefied petroleum gas, commonly used as cooking gas, was part of Petrotrin's refinery output and accounted for a smaller but strategically important share of local fuel sales.

• Refined petroleum products

  Fuel oil

  Fuel oil was among the heavier petroleum products manufactured at Pointe-à-Pierre and marketed through Petrotrin's domestic and regional distribution activities.

• 2018

  Governance and stewardship criticism

  Public and governmental criticism characterized Petrotrin as suffering from poor corporate governance, waste, corruption and nepotism. These allegations formed part of the broader case for closing and restructuring the company, although the available reference does not identify a single discrete scandal or adjudicated finding.

  Source

Read more

• 2018

  Close Petrotrin and restructure its activitiesStrategy

  Background

  The government cited prolonged losses, declining production, heavy debt, weak competitiveness, imported feedstock requirements and the high cost of restoring refinery infrastructure.

  Action taken

  Petrotrin was closed on 30 November 2018. From 1 December, its legacy obligations, upstream operations, fuel trading and refinery assets were allocated to four successor companies.

  Aftermath

  The closure ended Petrotrin's corporate existence, affected approximately 5,500 permanent and non-permanent workers, and left the Pointe-à-Pierre refinery under Guaracara Refining Company for potential sale.

  Government-reported cumulative losses, debt and estimated recapitalization requirement. (Five years preceding the 2018 closure announcement)

  Source

• 2000

  Integrate Trinmar into PetrotrinM&A

  Background

  Trinmar held offshore exploration-related assets that the government had acquired from Trinidad Northern Areas Limited.

  Action taken

  Trinmar was merged into Petrotrin.

  Aftermath

  Petrotrin gained a more consolidated role across Trinidad and Tobago's onshore and offshore petroleum activities.

  Source

• 1993

  Merge Trintoc and TrintopecM&A

  Background

  The government sought to consolidate major state-owned upstream, refining and petroleum-marketing assets into a single national oil company.

  Action taken

  Trintoc and Trintopec were merged to establish Petrotrin.

  Aftermath

  The merger created an integrated state petroleum company with upstream, refining and marketing responsibilities.

  Source

1. 1Petrotrinen.wikipedia.org