The Trinidad and Tobago government has announced a new board of directors for the state-owned oil company, PETROTRIN. The government also announced the company is cash-strapped company and is to be restructured.
Prime Minister Dr. Keith Rowley, told reporters the company is saddled with a debt estimated at US$850 million due to be repaid in 2019. He said the company is unable to pay this debt.
New board to be installed
Rowley said his Cabinet has taken the decision to install a new board with a mandate to make the company sustainable, and profitable. It was also decided to restructure the company in the best interest of the nation, taking into account all the competing interests and challenges.
The nine- member board will be chaired by businessman Wilfred Espinet. Rowley the board had been “carefully selected”, with a mix of private and public sectors officials experienced in their various business endeavors, including working within PETROTRIN.
“We are hoping that within a period of two to three years we can turn around the arrangements at PETROTRIN so the company can get out of, or at least be on a path towards making a contribution of its promise,” Rowley said.
A committee had been established to look into the company’s affairs and a report has since been submitted to the Cabinet.
Restructuring process
“On Wednesday, a decision was taken to begin the process of restructuring PETROTRIN by converting PETROTRIN in the shortest possible time to a company that not only conducts a stable business but conducts business as profitably, and contribute profits to other benefits of national improvement,” said Rowley.
Huge debt
The Prime Minister said the “huge debts” which the PETROTRIN has incurred cannot now be discharged by the government. The company has been suffering numerous challenges as its oil production has been falling considerably.
The Oilfield Workers Trade Union (OWTU), which has been calling on the government to restructure PETRIOTRIN but not to divest the company, said it would issue a response to Rowley’s announcement on Monday.
