Caricom (the Caribbean Community) islands will benefit from an oil support program the Trinidad and Tobago government is setting up to assist the region's economies hardest hit by high oil prices.
Trinidad and Tobago's Prime Minister Patrick Manning announced the measure to his country's Parliament, saying the move would ease poverty and assist the energy-dependent islands during times of high oil prices. Manning said the Caribbean Development Bank will administer the poverty eradication fund.
"This country is a major player in the Caribbean energy market, and in that respect we are working with Venezuela to make petroleum products more affordable to the region. But that will take some time as will the Intra-Caribbean gas pipeline soUthis measure takes effect retroactively to July this year."
Under the proposal, Trinidad and Tobago would put as much as $5 million/month into the fund when the cost of oil exceeds $30/bbl. Trinidad and Tobago, the largest exporter of LNG to the US, is the only Caricom country that is not a net importer of petroleum products.
Manning also announced that his country had earned $1.2 billion in taxes from the oil and gas sector during the last fiscal year, $200 million above what the country had budgeted. However, its revenues were hampered by a 5.6% decline in crude production from BP Trinidad & Tobago, which cost the government more than $200 million, and the composition of the country's production, half of which is heavy crude.
All extra revenue is placed in a fund set up 3 years ago for surplus oil revenue. It now contains $500 million.
The Caribbean island's production averages 130,000 b/d of oil, but that is expected to increase to 200,000 b/d next year when BHP Billiton brings its Angostura production on stream.