Friday 25 September, 2020

Ramnarine: Changes at BP will trickle down to T&T

Government and policymakers must take note of the changes taking place within BP.

That’s according to former energy minister Kevin Ramnarine, who expressed concern that T&T is not adapting to the changing global energy environment.

His concern follows the announcement by the global oil and energy giant of the sale of its petrochemicals business to INEOS for $5 billion.

BP’s global petrochemical business includes a 36.9 percent stake in Trinidad and Tobago’s Atlas Methanol plant.

The former minister said the sale is a sign of the major changes taking place at the company, and these changes will eventually cascade down to T&T.

Below is the full statement from Ramnarine:

The decision by BP plc to sell its global petrochemical business is yet another sign of the major changes taking place in the company.

BP’s global petrochemical business includes a 36.9% stake in Atlas Methanol in Point Lisas.

This latest sale follows on announcements of staff cuts of 10,000 workers and a write down of $17.5 billion in value.

The latter is an indication that the oil and gas fields, including those in T&T, under BP’s control are valued less than previously thought.

The economic impact of Covid 19 and the oil pricing war in the first quarter of 2020 would have no doubt driven these decisions.

The sale of its global petrochemical business is part of a wider strategy of divestiture aimed at raising $15 billion.

BP has also committed to “net zero” carbon emissions by 2050.

It is inevitable that these changes will eventually cascade down to T&T.

Given that BP is the largest economic player in the T&T economy, it is important that the Government and policy makers are cognizant of the changes taking place with BP plc.

Unfortunately, I get the impression that this is not the case and we are not adapting to the changing global energy environment.

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