Imbert wants details of Exxon deal, says revenue unlikely until 2037

Former Minister of Finance Colm Imbert speaks during a media conference at the Opposition Leader's office on Charles Street, Port of Spain, August 18. - Ayanna Kinsale

DIEGO Martin North East MP Colm Imbert called for details of the production-sharing contract (PSC) recently signed between the government and ExxonMobil, as he addressed a briefing hosted by Opposition Leader Pennelope Beckles at her Port of Spain office on August 18. The deal involves the exploration of an amalgamation of seven marine blocks in ultra deep water over a vast acreage lying some 150 miles off Trinidad's east coast.

"What was the procurement process? Was it sole select tender? What are the terms?" Imbert queried.

He said Guyana – under its former administration (headed by Brig David Granger) – had allowed ExxonMobil very favourable terms of paying the country two per cent on its oil finds, compared to 12.5 per cent charged by TT.

Imbert cautioned that in 2012 or 2013 the then prime minister Kamla Persad-Bissessar had posed with two jars of oil from the Soldado oil field, but said up to now TT had not earned a cent from that field. He reckoned TT would not see oil from ExxonMobil's field for at least ten years, assuming it contained any oil at all. He said seismic surveys would take a year, to be followed by exploratory drilling which would take another two years, after which extractive drilling would take seven years, in all adding up to ten years.

Imbert said the PSC said ExxonMobil must initially be allowed to recoup its costs (for exploration and extraction) and only afterwards could TT get any earnings.

He reasoned that in reality, it would be 12-13 years before TT earned any revenues.

Imbert made the point that $1.5 million had already been approved as the cost of the Independence Day parade, now cancelled by the government.

He dismissed as "absolute rubbish" claims by Prime Minister Kamla Persad-Bissessar that the former government had sold Trincity Mall to its friends and financiers for peanuts.

"The sale of Trincity Mall is being managed by a court-appointed liquidator from the firm of Grant Thornton." The liquidator was named in 2017, he said.

He said the liquidation judge had mandated the sale of any CL Financial assets must include a transparent procurement process, a valuation, and a justification for the sale of the assets.

Saying the liquidator had taken a long time in his role, Imbert said the first offer of the mall had attracted a $600 million bid by Ansa Mc Al which it subsequently withdrew due to delays. A second offer had attracted a $500 million bid by a consortium. Reiterating the liquidator's role, he said it was ridiculous to say the former PNM government sold the mall for peanuts.

On the Public Service Association's (PSA's) bid for a ten per cent wage hike for public servants, Imbert said there was literally no difference between what the former PNM government had offered and what the union now stood to get under this government.

He said the government is now offering the ten per cent by way of four per cent (2010-2016) and six per cent (2017-2019). However, he said the former government had offered the same four per cent for 2010-2016 and offered five per cent for 2017-2019, but with this latter figure being an opening offering which he said would have gone up to six per cent, producing the same overall ten per cent.

On the recent news of Republic Bank cutting its limit of individuals' foreign spending by credit card, he said if that had happened when he was in office he would have faced a barrage of media queries, as he accused reporters of being soft on the current government. While admitting to a rise in credit card spending under the former UNC government from $600 million up to $3 billion under the then PNM government, he asked if the solution to the forex challenge really was to cut credit card spending by 50 per cent.

Tancoo later replied to Imbert, alleging, “cheap theatrics from the person responsible for creating the foreign exchange crisis.”

He accused Imbert of “fake concern” for a crisis he caused by not creating an enabling environment for investment, diversification, non-energy production and exports.

Tancoo said TT was using more forex than it was generating.

“Obviously as a country we need to generate more foreign exchange, manage existing foreign currency holdings and engage in import substitution.”

Tancoo said Imbert’s remarks were allegedly meant to distract the population, instill fear in the business environment and chase away domestic and foreign investors.

“This is the unpatriotic, anti-people position which the PNM has now adopted.”

Tancoo said under Imbert’s tenure Republic Bank’s credit card limit on US dollars fell from $15,000 to $5,000 per cycle “without him (Imbert) lifting a finger to do anything.”

“Over the period 2020-2023, Republic Bank reduced its US$ spending limit by 67 per cent, while another Bank, RBC Royal Bank took similar action, slashing its US$ limit on credit cards by 73 per cent. Tancoo said, “I am committed to working with all stakeholders to ensure effective and efficient use of our limited stock of foreign exchange while the Government rolls out our transformation agenda to generate wealth for future generations.”