This report covers Trinidad and Tobago's extractive sector from October 2017 to September 2018.
Trinidad and Tobago joined the EITI in 2011, with the objective of enhancing natural resource governance and promoting economic growth and poverty reduction. The government of the country has been actively engaged with EITI implementation and committed to advance in the systematic disclosure of extractive data. Trinidad & Tobago implements the EITI to ensure that country’s natural resources are used to the benefit of all citizens, bring accountability and transparency into the sector and enable public access to reliable information. TT-EITI has represented a channel for dialogue in Trinidad & Tobago, focusing on reconciliation of data, reform to the government systems and relay of the data collected.
Trinidad and Tobago has published six EITI Reports to date covering fiscal years 2010 to 2017, reconciling an aggregate of approximately TT$128 Billion in payments from extractive companies and receipts by government. These exercises identified a total discrepancies of TT$869Million, that is to say less than 0.007% of the overall amounts analyzed. In addition, the country has disclosed information on government revenues in open data format through the national EITI website.
The latest EITI Report represents the last one produced under the 2016 EITI Standard, and has paved the way for TTEITI to expand its focus, including areas such as environmental reporting, mainstreaming and transfer pricing reporting.
Trinidad and Tobago legislative framework regulates the petroleum industry, the minerals industry, the mid and downstream (petroleum) activities;,the health, safety and environmental activities and also includes regulation on freedom of information. All current regulations are available at the Legislation and Tax Laws page of the Ministry of Energy and Energy Industries.
The oil and gas fiscal regime is also explained in the Trinidad and Tobago EITI Reports. The rights for exploration and production of oil and gas in Trinidad and Tobago are granted through a contract or a Production Sharing Contract (PSC) with the Government. The PSCs include provision for operators to pay various fees, levies and other contributions. The Ministry of Energy and Energy Industries is responsible for monitoring and auditing amounts due and paid by PSC operators.
Companies pay taxes according to the agreements signed under the PSC. The main taxes paid to the Government are:
- the Petroleum Profits Tax (PPT),
- the Supplemental Petroleum Tax (SPT),
- the Unemployment Levy,
- the Petroleum Production Levy,
- the Oil Impost, the Corporation Tax,
- the Green Fund Levy, and;
- the Withholding Tax
The fiscal regime also includes a package of incentives provided to these companies to boost oil and gas production and attract new investment. Incentives may take the form of tax rebates and various allowances which generally serve to lower the tax burden on the companies. These include the Sustainability Incentive, Investment Tax Credit, the Workover Allowance and the Deepwater Allowance, among others.
Companies which are engaged in exploration and production (E&P) of oil and gas are taxed under the Petroleum Taxes Act, while petrochemical companies and NGC are taxed under the Companies Act.
The mining sector is regulated by the Minerals Law Act No. 61 of 2000, the Asphalt Industry Regulation Act, the Mining Compensation Act, the Geological Survey Act and the Minerals (General) Regulations 2015.
In 2015, the Trinidad and Tobago EITI Steering Committee “unanimously agreed to implement a TTEITI Beneficial Ownership Project”, and ever since the country started gathering beneficial ownership data to populate their Registry.
The Beneficial Ownership Registry offers a free, public repository of key information on oil, gas and mining companies operating in Trinidad and Tobago which voluntarily report to the TTEITI and which are leading by example to meet the now legal requirements of beneficial ownership under the Companies (Amendment) Act of 2019.
This register includes information about the beneficial owners of extractive companies including the names of natural persons, registered addresses and official Board of Inland Revenue company number. It also names any politically exposed persons associated with these reporting companies.
Revenues from the extractive industry are allocated through several mechanisms:
- The national budget: the country’s national budget is partially financed by income from petroleum activities. On 1st October every year when the National Budget is presented, the Ministry of Finance informs how the Government plans to use its energy revenues.
- The Heritage and Stabilization Fund (HSF): is to cushion the economy in case of a sustained shortfall on Government revenue due to a collapse of petroleum prices. The HSF Act also sets up that the fund also has a heritage purpose and is supervised by the Ministry of Finance. The auditing process are conducted by the Auditor General to ensure that funds are not mishandled.
- Share to the Ministry of Energy and Energy Affairs.
- The Petroleum Fuel Subsidy: fuel subsidies absorb a part of the total cost of petroleum fuels as a means of protecting consumers from high fuel prices and sharing of the petroleum wealth. These were introduced in 1974 with the proclamation of the Petroleum Production Levy and Subsidy Act (Act 314). The subsidy is managed by the Ministry of Finance and changes are informed through the Budget Reviews.
Trinidad and Tobago joined the EITI in 2011, with the aim of providing a collaborative mechanism and platform for developing and consolidating transparency and accountability in the country's oil and gas sectors, the cornerstones of the national economy.
A key element of EITI Implementation has been engaging with a diverse group of stakeholders to promote public debate and discussion on extractive sector issues. The TTEITI hosts workshops, writes blogs/articles, and engages with its partners through various social media channels. They also have a Youth Advisory Committee, which meets on a regular basis to discuss ways to engage the nation's youth.
Currently, Gregory McGuire is the EITI Champion for the country and Sherwin Long is the National Coordinator. The multi-stakeholder group of TT-EITI is comprised by:
- Board of Inland Revenue.
- Ministry of Energy and Energy Affairs
- Ministry of Finance and the Economy
- National Gas Company
- Heritage Petroleum
- National Quarries Company Limited
- BHP Billiton Trinidad and Tobago
- BP Trinidad and Tobago Limited
- The Energy Chamber of T&T
- T&T Chamber of Industry and Commerce
Civil Society constituency
- Fishermen and Friends of the Sea
- Network of NGOs for the Advancement of Women
- The Cropper Foundation
- Trinidad and Tobago Transparency Institute
- Oilfields Workers' Trade Union
This EITI Report covers Trinidad and Tobago's extractive sector in 2017.
On 27 February 2019, Trinidad and Tobago was found to have made meaningful progress in implementing the EITI Standard. See Board decision 2019-23/BM-42
Timeline of Validation and related materials
1 September 2018: Validation commenced15-19 October 2018: Country visit
Initial data collection and stakeholder consultations
11 January 2019 - Report on Initial data collection and stakeholder consultation [E
This document is the annual progress report for year 2016 - Trinidad & Tobago EITI, in accordance with requirements 7 and 8 of the Standard
Attached below is Trinidad and Tobago's open data policy, published in December 2016.
Every EITI country must agree a clear policy on the access, release and re-use of EITI data (requirement 7.1.b of the EITI Standard