Petrotrin competes with Venezuelan company for Caribbean oil markets
Like David fighting Goliath, Trinidad-based oil company Petrotrin is taking on the mighty Venezuelan oil producer PDVSA in looking for customers in Guyana and the Caribbean. With revenue of US$2 billion per year Petrotrin, which produces, refines and markets petroleum products along with natural gas, still has financial muscle. But it is going up against a company that produces 3 million barrels of oil per day and helps to make Venezuela the third largest oil producer in the world and the United States' number one supplier. Petrotrin's Chairman, Donald Baldeosingh, remains undaunted. "We are certain we can be competitive," and he mentioned that Petrotrin has an agreement in principle to work with GUYOIL to sell petroleum products and is waiting for a response from GUYOIL on a quotation. This initiative comes at a time when local observers have expressed concern over the reliability of supplies from Venezuela given remarks attributed to Venezuela's Foreign Minister Jose Vicente Rangel, alluding to the use of oil as a weapon. This was not lost on Baldeosingh who contrasted the deep and historic friendships between Trinidad and Guyana. Meanwhile, Venezuela is moving aggressively to capture market share in the Caribbean and Central America with the signing of the Caracas Energy Cooperation Accord. This allows for an extra 80,000 barrels per day to be split among the ten existing signatory countries to the 1980 San Jose Pact. Other countries in the Caribbean are expected to be invited to join the Accord. Baldeosingh said that once more supplies come on to a fixed market it will have an effect and his company was looking to hold its own. The Caracas Agreement has a low-interest financing component to soften the high prices now being paid. Baldeosingh said he had written to the relevant ministry in Trinidad alerting them to the loan component. Petrotrin is also considering an industrial kiln project planned for Berbice, which it would supply with liquid petroleum gas. Balseosingh was naturally happy about the high prices of oil which have risen from around US$10 per barrel in late 1999 to well over US$30 in recent months. But he would be happier if prices remained stable what with the long lead times needed in making investments profitable.
 Follow the goings-on in Guyana
|