INSIDE BUSINESS: KEVIN RAMNARINE ON BP GREEN INVESTMENT SLASH

CCNTV6

BP has announced it will cut its renewable energy investments and instead focus on increasing oil and gas production.  The energy giant revealed the shift in strategy today following pressure from some investors unhappy its profits and share price have been lower than its rivals.  Here more in our Inside Business.

Transcript

00:00InsideBusiness is brought to you by Quartz.

00:15BP said it would increase its investments in oil and gas by about 20% to US$10 billion a year,

00:22while decreasing previously planned funding for renewables by more than US$5 billion.

00:28BPTT also announced that it is aligned with BP's focus on growing the upstream,

00:34as outlined in its strategy reset today.

00:37It stated,

00:38In response to that announcement,

01:03former Energy Minister Kevin Ramnarine believes this is good news for TNT.

01:08In an interview with InsideBusiness earlier today,

01:11Ramnarine says the shift will allow for BP to further expand its gas operations here,

01:17resulting in an uptick for the local economy.

01:34BP's major focus in Trinidad and Tobago is oil and gas.

01:37My understanding is that that is potentially good news for us,

01:41because it would mean that more capital would be allocated to BP's business in Trinidad,

01:47which fundamentally is drilling for oil and gas.

01:49And that may result in BP moving from the current drilling program they have,

01:57which is one rig, moving potentially in the coming years to two rigs,

02:01which is very good for Trinidad and Tobago because we need the gas.

02:04While the ramped-up production is anticipated,

02:07he said it will be a stretch to expect the company to have three operational rigs again,

02:12as it did over a decade ago.

02:14But he stressed that the company would need to start producing around 1.5 billion cubic feet of natural gas.

02:21He added that his one concern is the Lara project,

02:26a solar farm project in Brechin Castle, Cuva,

02:29which BP has undertaken with the energy giant Shell and the National Gas Company of TNT.

02:35My understanding is that BP and Shell continue to be committed to that project,

02:40but given this refocus and this move away from the renewable space,

02:46we would adopt a look-and-see type approach with respect to that.

02:53But certainly I think that it is a fundamental shift for BP,

03:00and I think it's advantageous to us here in Trinidad and Tobago.

03:05Ramnarine says while BP stated its plans to refocus on oil and gas,

03:10an element of cost-cutting is expected in the next couple of years till 2027.

03:16That, too, is something that we have to keep an eye on here in Trinidad

03:20because, as you know, the company divested one of its gas-producing hubs last year to Perenco.

03:28So does that mean more cost-cutting in Trinidad?

03:33We have to wait and see.

03:35But certainly what happened today is a fundamental change in strategy and a U-turn.

03:40He added that the market response is also something that has to be monitored,

03:45given the response so far has resulted in a share price decrease.

03:49Rashauna Pagu for InsideBusiness.

Category

Transcript

Be the first to comment

Recommended