Trinidadian state firm in U.S. retail marketing venture

Petrotrin, Trinidad and Tobago's national oil company, has agreed to set up a joint venture with U. S. partners to build a series of full-service truck stops in the U.S. and to market its high-value refined products directly through gasoline/diesel stations to be located at the stops.

The plan calls for Petrotrin and a group of U.S. private investors to build 33 "travel plazas" in different parts of the U.S., starting in Florida and Texas, catering mostly to semi-trailer trucks. T&T North America, the joint venture set up by Petrotrin and its U.S. partners, expects to spend about $500 million on the venture, according to Fernando Dalmau, one of the U.S. investors in the project.

Petrotrin, which produces its own crude oil but also imports crude to supply its 160,000 b/d Point-a-Pierre refinery on Trinidad, currently exports refined products to the U.S. East Coast, Central America, and, occasionally, to Brazil. It wants to develop a new market by selling diesel fuel and lubricants directly to truck stops, which will be located near interstate highways.

Each truck stop will cover around 30 acres, with gas/diesel islands, a food court and restaurant, a group of stores (including a convenience store), a service and parts center for cars and trucks, a warranty service center for big rigs, 600 parking spaces, road services, and a budget hotel with 100-300 rooms. T&T North America projects gasoline sales of 15 million gal/year.

Trinidad and Tobago

Petrotrin, which employs 4,700, had revenues of close to $1 billion last year. Trinidad and Tobago's total crude oil production (Petrotrin and other operators) in 1998 was estimated at 120,800 b/d, down slightly from the previous year. Trinidad's proved crude reserves stood at around 534 million bbl at the end of 1998, not including 100 million bbl of new reserves identified last year by BP Amoco plc.

Over the last 5 years, Trinidad and Tobago has attracted over $3 billion in foreign investment, most of which went to the twin-island republic's energy sector, mostly natural gas, petrochemicals, and natural gas-based heavy industries. Petrotrin is now eager to develop downstream businesses overseas for its petroleum products.