BUDGET STATEMENT 2014
24
SUSTAINING GROWTH, SECURING PROSPERITY
• the Government is currently negotiating
an Agreement with the Government of
Venezuela to monetise the gas resources in
the Loran Manatee field after ten years.
Mr. Speaker, exploration activities have been
reaping dividends under the influence of the
fiscal incentives of the last 3 years. The Ryder
Scott report underlines that in 2012 our proven
natural gas reserves recorded the smallest
decline in over a decade.
Energyexplorationandproductionarebecoming
increasingly competitive. Shale gas production,
the expansion of the Panama Canal and natural
gas reserves in East Africa are quickly changing
the dynamics of the global energy business. We
must remain competitive if we are to attract
new investments in particular, from existing
long-established players. We propose to expand
the energy incentive taxation regime in this
year’s Budget.
HIGHWAY INFRASTRUCTURE
Mr. Speaker, this Government is ensuring
that it opens up economic space in this
country. A modern highway network is critical
to the achievement of this objective. We are
according high priority to the development
and maintenance of our highway network. In
some cases, we are expanding the capacity
and in others, we are overcoming persistent
problems through major engineering solutions.
The extension of the Solomon Hochoy Highway
to Point Fortin represents a key addition to this
critical infrastructure. In fact, the Golconda to
Debe section was opened on August 30 2013.
9. PLANS FORMAJOR SECTORS 2013-2014
Mr. Speaker, I turn now to the plans of selected
Ministries for the next year. During the debate,
individual Ministers will amplify and speak in
more detail on the plans and programmes for
each Ministry.
ENERGY
Mr. Speaker, the energy sector has suffered
output disruptions in natural gas supply
which began in late 2010 as a consequence of
maintenance works being conducted by major
natural gas suppliers. Over the past year and
in the context of increasing levels of investor
confidence the sector has returned to growth
with an upsurge in drilling activity. In 2012,
Foreign Direct Investment (FDI) in the sector
was approximately US$2.0 billion.
Mr. Speaker, it is expected that proven natural
gas reserves will increase in the upcoming years.
Recently:
• the Government executed 6 deep-water
production sharing contracts and signed a
new license agreement with the Petroleum
Company of Trinidad and Tobago Limited
(PETROTRIN)
which
mandated
the
company to refocus its strategy on the
upstream sector;
• the Ministry of Energy and Energy Affairs is
at present managing 2 parallel bid rounds: 1
onshore the other in deep-water;
• there has been an upsurge in drilling activity
in the last 12 months. At present, 6 rigs are
drilling offshore with a seventh due in the last
quarter of this year. This compares with one
rig in operation in mid-2010; and
