PCJ Group Annual Report 2009 - Petroleum Corporation Of Jamaica

Mission & Mandate 

Our Core Values 

The Petroleum Corporation of Jamaica, 

as mandated by the Petroleum Act of 

1979, will undertake the development 

and promotion of Jamaica’s energy 

resources and will seek, where necessary, 

business partners through joint ventures 

with the private sector. 

The Corporation will conduct its affairs in 

a manner beneficial to Jamaica and will 

ensure that the environment is protected 

at all times. 

The Corporation will act with integrity 

and will strive for excellence in all its 

operations. 

Customer Focused: 

We will consistently provide excellent customer 

service to meet our customers’ [internal and 

external] needs and exceed their expectations. 

Teamwork Oriented: 

We believe in creating an open, caring and 

dynamic environment to foster cooperation, 

communication and motivation among all our 

employees. 

Dynamic and Responsive: 

We believe in being flexible and proactive 

engendering a spirit of innovation and creativity 

for sustainability in an ever-changing operating 

environment. 

Committed to Integrity: 

We value and respect our relationships with 

colleagues, customers and others with whom we 

do business, and as such always act honestly, 

morally and ethically. 

Professional: 

We will conduct all our affairs with integrity and 

professionalism, always respecting the needs and 

constraints of our customers. 

Prudent: 

We use all assets available to us in a judicious and 

appropriate manner and always in accordance 

with legal and regulatory requirements.

Energy For Change 

Petroleum Corporation of jamaica 

Group Annual Report 

2009 

pcj annual report 2009 www.pcj.com 

1

c o r p o r a t e d a t a 

ESTABLISHED: June 15, 1979 

REGISTERED OFFICE: 

36 Trafalgar Road, Kingston 10, Jamaica 

TELEPHONE: (876) 929 5380-9 

FACSIMILE: (876) 929 2409 

EMAIL: 

ica@pcj.com 

WEBSITE: 

www.pcj.com 

BOARD OF DIRECTORS 

CHAIRMAN: 

GROUP MANAGING DIRECTOR: 

DIRECTORS: 

ATTORNEYS-AT-LAW 

BANKERS 

SUBSIDIARY COMPANIES 

Mr. Ian Moore 

Dr. Ruth Potopsingh, Ph.D. 

Dr. Jean Dixon, Ph.D. 

Mr. Wenworth Charles 

Mr. Don Creary 

Mr. Russell Hadeed 

Mr. Karl James 

Miss Kathryn Phipps 

Mr. William Saunders 

Mr. Glenford Watson 

K. Churchill Neita & Company 

Patterson Mair Hamilton 

National Commercial Bank Jamaica Limited 

The Bank of Nova Scotia Jamaica Limited 

Petrojam Limited 

Petrojam Ethanol Limited 

Jamaica Aircraft Re-fuelling Services 

(A Joint Venture Company) 

The Petroleum Company of Jamaica Limited 

Wigton Windfarm Limited 

2 www.pcj.com 

pcj annual report 2009

c o n t e n t s 

CHAIRMAN’S MESSAGE 4 

PCJ: ITS PURPOSE & PERFORMANCE 

BOARD OF DIRECTORS 6 

GROUP MANAGING DIRECTOR’S MESSAGE 

PCJ: LEADING THE CHANGE 11 

PCJ: GROUP INITIATIVES 13 

PETROJAM ETHANOL LIMITED (PEL) 15 

FOCUS ON RENEWABLES 

JAMAICA AIRCRAFT REFUELLING SERVICES (JARS) LIMITED 19 

CENTRE OF EXCELLENCE FOR RENEWABLE ENERGY (CERE) 21 

DIVERSIFYING JAMAICA’S ENERGY OPPORTUNITIES 

PETROJAM: FINANCIAL HIGHLIGHTS 24 

WIGTON WINDFARM LIMITED 34 

PCJ: EXECUTIVES’ COMPENSATION 41 

PETROJAM: DIRECTORS’ COMPENSATION 42 

PETROJAM: EXECUTIVES’ COMPENSATION 43 

PETROJAM ETHANOL LIMITED: 

DIRECTORS’ COMPENSATION 44 

PETROJAM ETHANOL LIMITED: 

EXECUTIVES’ COMPENSATION 45 

PETCOM: DIRECTORS’ COMPENSATION 46 

WIGTON WINDFARM LIMITED: 

DIRECTORS’ COMPENSATION 47 

WIGTON WINDFARM LIMITED: 

EXECUTIVES’ COMPENSATION 48 

FINANCIAL STATEMENTS 49 

PCJ: DIRECTORS’ COMPENSATION 40 


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P E T R O L E U M C O R P O R A T I O N O F J A M A I C A 

I T S P U R P O S E A N D P E R F O R M A N C E 

I a n M o o r e - C h a i r m a n 

THE GLOBAL ENERGY SITUATION 

The past three years have seen a period of truly 

unprecedented developments, for the world 

economy and energy markets. Prices for all forms 

of traded energy rose steeply, some reaching 

record highs, and then falling dramatically. 

Producers and consumers alike are wondering 

where global energy markets are headed, and 

how to manage the myriad issues around energy, 

including price volatility, security and climate 

change. 

In challenging times such as these, clear and 

objective perspectives are needed, and this is 

what the Petroleum Corporation of Jamaica has 

offered to the nation. 

As ever, the world economy is the key driver of 

energy consumption. It is easy to forget that until 

the middle of 2008, the economy continued to 

grow. In retrospect, 2007 represented the end of 

one of the strongest periods of economic growth 

ever recorded globally. However, since that time 

the Jamaican economy has continued to slow, 

most likely not unrelated to the high price of 

energy, and the financial crisis which triggered 

a sharp recession – with critical implications for 

global energy consumption and for a Jamaican 

economy, heavily dependent on imported fuel. 

THE RESPONSIBILITIES AND PERFORMANCE OF THE 

PETROLEUM CORPORATION OF JAMAICA 

The Petroleum Corporation of Jamaica (PCJ) 

continues to be involved with developing and 

managing energy resources in Jamaica. This 

includes petroleum refining, retail marketing and 

the utilization of alternative energy resources such 

as wind, solar and hydropower. 

Developing indigenous resources is a critical path 

that the country has to take. In this regard, the 

PCJ has developed the Wigton Wind Farm with an 

installed capacity of 20.7 megawatts (MW) and 

has initiated plans to expand this windfarm by a 

further 18MW by the end of 2010. 

At the same time, a number of greenfield sites for 

future wind farms are being studied, bearing in 

mind that there exist the possibility of expanding 

Jamaica’s onshore wind capacity by at least a 

further 60 MW. 

There are also exciting prospects for hydropower 

with a number of opportunities to expand on the 

approximately 23 MW of present installed capacity. 

Amongst the potential small scale hydropower 

projects under study for implementation are 

Laughlands Great River in St. Ann (2 MW) and 

Great River in Hanover (about 6 MW). 

Meanwhile, Solar Energy will continue to be an 

important source of energy for Jamaica and 

could become a ‘game-changer’ for individuals 

and businesses. With the costs associated with 

solar technologies expected to decline; Jamaica 

could see more citizens and commercial entities 

investing in solar photovoltaic panels, once a net 

metering policy is implemented at the electricity 

utility company. 

With respect to biofuels, this energy source is 

expected to become a significant contributor to 

the national fuel economy, through the continued 

use of ethanol and biodiesel. The diversification of 

4 www.pcj.com 


Jamaica’s base load fuel is a key component of 

the National Energy Policy and way forward. 

Another area of great potential for Jamaica is 

Waste-to-Energy. There are ongoing projects 

relating to the development of this energy source 

primarily using solid waste from landfills in Riverton 

City in the Kingston metropolitan area and 

Retirement in St. James. 

In the area of energy conservation and efficiency, 

the PCJ through its public education programmes, 

facilitated significant public awareness among 

Jamaicans. The PCJ was also responsible for 

strengthening the energy infrastructure of the 

public sector through the implementation of 

energy efficiency projects in a number of public 

institutions, with a particular focus on the hospitals. 

Jamaica, like the rest of the world, will continue to 

utilize fossil fuels as a primary source of energy for 

some time. Hence, during the period 2008-2009, 

under review, PCJ has increased its effort to find 

Minister of Energy and Mining, Hon. Clive 

Mullings greets Group Managing Director 

Dr. Ruth Potopsingh during an Energy 

Efficiency Seminar organized by the PCJ’s 

Energy Efficiency Unit. Sharing in the 

occasion are Chairman, Ian Moore (right) 

and Resident Representative in Jamaica, 

United Nations Development Programme 

(UNDP) Minh Pham. 

out if there are resources of oil and gas, particularly 

offshore. In 2009, 6,118 line kms of multi client 2D 

seismic data was collected offshore Jamaica. The 

new data will be presented to the industry in 2010 

for further exploration opportunities. 

FACING THE ENERGY CHALLENGE 

PCJ continues to fulfill its major purpose of 

providing energy resources at a low cost and high 

value to the Jamaican economy. 

This cardinal purpose is intricately interwoven with 

a number of goals. Among the goals are to diversify 

Jamaica’s energy mix away from petroleum into 

other conventional fuels while developing cleaner 

energy from renewables. 

The objectives of the Petroleum Corporation of 

Jamaica are linked specifically to the Petroleum 

Act 1979 from which it takes its mandate, to 

the National Energy Policy, and the Vision 2030 

Jamaica – National Development Plan. The latter 

plan is part of the Vision that intends to make 

Jamaica equivalent in the quality of life to that of 

a first world country by 2030. 

The effort to achieve the objectives of the 

Petroleum Corporation of Jamaica will require 

foresight, forecasting, proper planning, and the 

implementation of projects and activities in the 

energy sector which will accrue to the benefit of 

the country. It is important that Jamaica tries to 

reduce energy cost so that it can be competitive 

in the provision of goods and services in both 

regional and global markets. At the same time 

we must be cognizant of the need to mitigate 

the effects of climate change through the use of 

cleaner energy sources. 

Energy is one of the most important parameters 

that affect, directly and significantly, Jamaica’s 

economic growth. In supporting the Government’s 

effort in providing energy at the least cost and 

in stimulating the interest of the private sector in 

participating in the growth and development of 

the energy sector, PCJ has a significant role. 

The Petroleum Corporation of Jamaica is the 

lighthouse and the crossroads on the path towards 

the rational use of energy in Jamaica’s future. This 

effort requires functional cooperation from policy 

makers, academia, NGOs, the private sector and 

civil society. This will ensure that the best years are 

yet ahead as the rational use of energy becomes 

engrained in Jamaican culture. 


5

Board of directors profile 

IAN MOORE, MIEE 

Chairman 

DR. RUTH POTOPSINGH, PhD - 

Group Managing Director 

Mr. Moore is a Co-Founder and a Director of 

A graduate of the University of the West Indies 

Adjoined Consulting. He has over 20 years of 

and the University of London, Dr. Ruth Potopsingh 

experience in telecommunications consulting, 

has a multidisciplinary professional background 

information technology strategy and project 

that covers Geography, Education, Urban 

leadership. Mr. Moore has practiced extensively 

Development Planning, Environmental Strategy 

in North America and the Caribbean representing 

and Business Management. 

world leading brands such as Oracle and SAP 

regionally for over 10 years. For the last 5 years he 

Her professional career spans 30 years in the 

has led business process re-engineering for clients 

public sector, where she has worked in urban and 

across the region. 

regional planning, bauxite land management and 

for the last 18 years in the field of energy. Her recent 

A graduate of the City University of New York 

appointment as Head of the PCJ comes after nine 

and Nova South Eastern University, he serves 

years as Deputy Group Managing Director. She is 

as a Director on the Boards of: Port Authority of 

a founder of the Jamaica Solar Energy Association 

Jamaica, Port Authority Management Systems 

and was instrumental in introducing a Certificate 

and Kingston Container Terminal. He holds 

Course in Energy Management at the University of 

professional membership in the Institute of 

the West Indies, Mona. 

Electrical and Electronic Engineers and the Honor 

Society of Engineers. 

6 www.pcj.com 



WENWORTH CHARLES 

DON CREARY 

DR. JEAN DIXON, MBA, PhD 

Wenworth S. Charles is an Attorney-at-Law 

specializing in conveyancing, corporate and 

criminal law. He attended Holmwood Technical 

High School and the University of the West Indies 

where he attained a Bachelor of Laws (Hons.) 

Degree. He was awarded the Legal Education 

Certificate in 1981 from the Norman Manley Law 

School and is currently a member of the Jamaica 

Bar Association. 

Mr. Charles is a former Director of the Urban 

Development Corporation and was also the 

Chairman of the Appeals Tribunal in the Ministry 

of Education. He currently serves on the Boards of 

the Sugar Company of Jamaica Holding Limited 

and the Medical Council of Jamaica and Chairs 

the Land Divestment Advisory Committee. 

Don Creary is a 42 year old Businessman with an 

amazing record of corporate excellence. He 

became a top life insurance salesman first with 

Jamaica Mutual Life where he became their 

youngest ever agent at age 19 years. During his 

insurance career he broke several records and 

won numerous local and international awards 

including qualifying for the Court of the prestigious 

Million Dollar Round Table, becoming the youngest 

person in the world ever to do so. 

Mr. Creary was also the youngest ever President 

of a Kiwanis Club anywhere in the world when 

he became President of the Kiwanis Club of St. 

Mary at age 22. A few years later he became 

the youngest ever President of any Chamber of 

Commerce when he was elected President of St. 

Mary’s Chamber. Don holds a bachelor’s degree 

in Business Administration from the College of Arts 

Science and Technology (now UTech). 

Dr. Jean Dixon is the Permanent Secretary in the 

Ministry of Energy and Mining. As Chief Executive 

and Administrative Officer of the Ministry she 

has oversight responsibility for its twenty-eight 

departments and agencies. Before her current 

appointment, Dr. Dixon was the Executive Director 

of the Scientific Research Council, a statutory 

body mandated to undertake, foster, coordinate 

and apply scientific research for national 

development. 

Dr. Dixon holds a Masters in Business Administration 

(Finance Major) and a Doctor of Philosophy (Ph.D.) 

in the biological monitoring of air quality, from the 

University of West Indies. She presently serves as a 

Board Chairperson and Board Director of several 

private and public sector entities. 


7


MR. RUSSELL HADEED 

KARL JAMES 

KATHRYN MARGUERITE PHIPPS 

Russell Hadeed has over 30 years of experience 

in manufacturing, industrial engineering and 

product design development and also has 

extensive experience in appliance manufacturing 

from Caloric Corporation, Westinghouse Electric 

Company LLC and Electrolux Zanussi S.p.A. 

He currently serves as: Chairman of National 

Water Commission, Serv-Wel Industries Limited, CTI 

Solid Surface Technology Limited and Petroleum 

Company of Jamaica Limited and is a Director 

of the Jamaica Public Service Company Limited. 

He is a former Chairman of National Tool and 

Engineering and Serv-Wel Electric Limited. Mr. 

Hadeed is a member of the Mechanical Engineers 

Advisory Board at the University of Technology. 

Roderick Karl James has been a Director on the 

PCJ Board since 1994 and is also the Chairman 

of Petrojam Ethanol Limited. The PCJ considers 

Mr. James to be an excellent choice to lead 

the Group’s ethanol thrust given his many years 

of experience and expertise in sugar and sugar 

cane products including ethanol. 

He has served as the General Manager of Jamaica 

Cane Products Sales Limited since 1986 and is 

also Chairman of the Sugar Association of the 

Caribbean, Vice President of the Caribbean Basin 

Initiative Sugar Lobby Group and a Director on the 

Boards of the Jamaica Exporters Association and 

the Jamaica Association of Sugar Technologists. 

Kathryn Marguerite Phipps is a practicing Attorneyat-Law 

with over 26 years of experience in the 

field specializing in criminal law. She is a graduate 

of Barry University, the University of the West Indies 

and the Norman Manley Law School. 

Ms. Phipps has been a Director on the Board 

of Petroleum Corporation of Jamaica since 

November 2007, and is also a Director on the 

Board of the University Hospital of the West Indies. 

A past student of St. Andrew High School for Girls, 

and the mother of two children, her hobbies 

include dancing, playing the piano, swimming 

and reading. 

8 www.pcj.com 



WILLIAM SAUNDERS, CD, BSc, MSc, 

PE, CEng, CEnv, CSci, MIChE, MJIE 

William Saunders is a Registered Professional 

Engineer, Jamaica (P.E.), Chartered Engineer, UK 

(C.Eng), Chartered Scientist, UK (CSci), Chartered 

Environmentalist UK (CEnv), Member, Institute 

of Chemical Engineers (M.IChE), and Member, 

Jamaica Institution of Engineers (M.J.I.E.). 

He joined the government in 1978 as the first 

Director of Energy in the then Ministry of Mining and 

Natural Resources. Under his direction, Jamaica’s 

first energy policy was prepared leading to the 

commencement of numerous alternative energy 

studies, some of which resulted in installations for 

hydro-electricity and wind power. Mr. Saunders is 

a founding member and the first Group Managing 

Director of the PCJ Group of Companies. 

GLENFORD WATSON 

Glenford Watson is an Attorney-at-Law with over 

fifteen years of experience and knowledge in 

energy matters and contract negotiations. Mr. 

Watson has served in the capacities of Legal 

Counsel, Senior Legal Counsel and Corporate 

Secretary of the Jamaica Public Service Company. 

He currently sits on the Boards of a number of 

energy-related entities. 

Mr. Watson is a graduate of the University of the 

West Indies Law Faculty and the Norman Manley 

Law School. 


9

The Wigton Windfarm in Manchester. 

10 www.pcj.com 


P C J : L E A D I N G T H E C H A N G E 

D r . R u t h P o t o p s i n g h - G r o u p M a n a g i n g D i r e c t o r 

The Petroleum Corporation of Jamaica 

takes quite seriously its responsibility for the 

implementation of Jamaica’s National Energy 

Policy. One of the very critical aims of this policy 

is the diversification of the sources of energy for 

Jamaica in a manner that will seriously reduce the 

cost of this vital resource. It is generally agreed 

that as important as oil has been to the national 

economy over the years, it is imperative that 

we increase the contribution of other sources 

of energy to the nation’s economy. During the 

2008/2009 period of operation, the Corporation 

continued to pursue initiatives towards this end. 

FUEL DIVERSIFICATION 

The attributes of coal and natural gas were 

intensely examined, discussed and analysed with 

the aim of making the most appropriate choice of 

a diversification fuel for the island. The Petroleum 

Corporation of Jamaica played a pivotal role 

in these considerations and facilitated the 

exchange of ideas among key players. A process 

which was started a year earlier towards the prequalification 

of overseas entities for the supply and 

installation of a liquefied natural gas storage and 

re-gasification terminal was suspended during the 

year. This was to allow for further discourse on the 

merits of coal and to await a final policy decision 

on the diversification fuel of choice for Jamaica. 

ALTERNATIVE ENERGY 

The further development and use of alternative 

energy made its own contribution towards 

changes in the energy profile of Jamaica during 

the year. There was the implementation of solar 

outdoor photovoltaic lighting systems at two 

hospitals; the Princess Margaret Hospital in St. 

Thomas and the St. Ann’s Bay Hospital in St. 

Ann. Solar water heating systems were installed 

in seven hospitals. These were: the Cornwall 

Regional, Lionel Town, Black River, St. Ann’s Bay, 

Annotto Bay, Port Antonio and Spanish Town 

hospitals. The conversion from electric to solar 

water heating helped to contain the demand for 

electricity and if even in a small way, contributed 

to the lowering of the national oil import bill. When 

these are taken together with the 20 megawatt 

wind-power plant at Wigton in Manchester and 

other alternative energy engagements such as 

compact fluorescent lighting of homes, it can be 

seen that alternative energy usage is well on its 

way. 

Additionally, seroius consideration is being given 

to the possibility of increasing the capacity of 

wind-generated power beyond the 20 megawatt 

plant at Wigton in Manchester. 

ENERGY CONSERVATION AND EFFICIENCY 

Public Education Programmes on energy 

conservation and efficiency were ongoing 

throughout the year. This was a part of the 

Corporation’s sustained effort to foster informed 

public discussion on issues relating to energy. 

In keeping with this, the PCJ engaged 14 inner 

city high schools through an energy efficiency 

competition. Through the competition, the PCJ 

was able to sensitize students to the issues of the 

energy sector particularly those relating to energy 

conservation and efficiency and the environment. 

Another important initiative was the development 

of a web page devoted to energy conservation 

and efficiency. The web page was constantly 

updated with messages that targeted various 

audiences, including residential, commercial, 


11

P C J : L E A D I N G T H E C H A N G E C O N T D . 

small business, large industrial and public sector 

users. To further promote energy conservation and 

efficiency, the PCJ facilitated the sale of compact 

fluorescent lamps at exhibitions. 

The Corporation also intensified its energy 

efficiency programme in the public sector 

by auditing Government operated facilities, 

identifying energy conservation opportunities 

and implementing initiatives that will realize 

tangible savings. This resulted in the upgrading 

and refurbishing of internal hot water piping at the 

Lionel Town and Black River hospitals; electrical 

faults were corrected at the Princess Margaret 

and Annotto Bay hospitals and an energy audit 

was done at one additional technical high school, 

resulting in a total of nine educational institutions 

being audited. 

THE ENERGY FUND 

The Energy Fund was launched in October, 2008 

with the Development Bank of Jamaica (DBJ) 

committing J$1 billion to the Small and Medium 

Enterprises (SME) Energy Line of Credit. Funds were 

being made available to allow small and medium 

enterprises to implement the type of retrofits that 

would reduce their recurrent cost of energy and 

enhance the viability of their businesses. 

The University of Technology (UTech) signed on as 

partners with the Development Bank’s PetroCaribe 

SME Energy Fund. UTech was committed to the 

training and certification of energy auditors who 

would identify the key energy-saving measures 

to be implemented at medium and small 

businesses and quantify the savings achievable. 

The Computing and Engineering Entrepreneurial 

Centre (CEEC) at UTech and the newly formed 

Jamaica Society of Energy Engineers (JSEE) were 

collaborating to offer the Certified Energy Auditors 

(CEA) course. 

UPGRADE OF PETROJAM REFINERY 

Work continued on the Front End Engineering 

Design (FEED) for the upgrade of the 

Petrojam Refinery. This was the preliminary 

design stage for the transformation of the 

refinery from a hydro-skimming facility of 

36,000 barrels per day to a modern facility 

capable of refining 50,000 barrels of crude 

oil per day and 

added products. 

Schools’ Programme - Awards Dinner: Minister 

of Energy and Mining, Hon. Clive Mullings (left) 

and Group Managing Director of the PCJ Dr. 

Ruth Potopsingh (2nd right) celebrating with 

some of the winners on the night. 

producing more value 

OIL AND GAS EXPLORATION 

Blocks are now licensed to three overseas 

exploration companies, authorising them to carry 

out seismic surveys and other exploration activity 

offshore the south coast of Jamaica as part of 

the preliminary stage of oil and gas exploration. 

A Data Acquisition Agreement was signed with 

Colombia for the collection of seismic and other 

data over the Joint Regime Area between the 

two countries. 

CONCLUSION 

The Petroleum Corporation of Jamaica continues 

to play a leading role in bringing to the energy 

sector the types of changes necessary to increase 

the use of local renewable sources, contain the 

national oil import bill and diversify the nation’s 

energy supplies. 

Launch of Energy Fund. 



P C J : G R O U P I N I T I A T I V E S 2 0 0 8 – 2 0 0 9 

• The Front End Engineering Design (FEED) for 

the Petrojam Refinery Upgrade Project continued 

in earnest during the 2008/2009 financial year. The 

expansion and modernization of the Petrojam 

refinery will allow the company to supply the full 

range of petroleum products to meet Jamaica’s 

fuel demand with surplus for export. The upgraded 

refinery will facilitate the processing of heavier, 

lower cost crude oil and provide for full conversion 

of the crude bottoms into more valuable products 

thereby significantly improving refining margins 

(profitability). 

• PCJ, through its subsidiaries Petrojam and 

Petcom, successfully rolled out the E-10 87 octane 

gasolene on a limited basis to the motoring 

public on November 1, 2008. The island-wide rollout 

of E-10 87 and 90 octane gasoline will occur 

towards the end of 2009 following the expansion 

of Petrojam’s Montego Bay Loading Rack. 

To meet this demand, LNG terminals exist and 

continue to be built along the US Gulf Coast. These 

terminals could provide an option for the delivery 

of Jamaican LNG into the US Market. 

• The new oil exploration block map 

comprising 31 blocks offshore was publicized in 

December 2008. Previously there were 20 blocks. 

The 19 offshore blocks that are not presently under 

license will be the subject of a formal bid round in 

early 2010. 

• An agreement was signed between 

Jamaica and Colombia on November 4, 2008, 

for the conduct of geological, geophysical and 

geochemical data acquisition on the 52,000 sq km 

Joint Regime Area (JRA) between Jamaica and 

Colombia, which is situated south of the Pedro 

Bank. Acquisition of several geophysical data on 

this area is likely to be conducted in 2009. 

• CGGVeritas (formerly Wavefield Inseis) 

acquired on a multi client basis, 6,118 line kms of 

2D seismic data during the period January – May 

2009. This was at a cost of approximately US$8 

million. PCJ will receive 10% of the initial sales of 

the 6,119 line kms of data prior to Cost Recovery 

and 20% after Cost Recovery. This data provides 

a new body of information which is pointing to 

prospects, particularly in the deeper water in the 

eastern side of Jamaica’s maritime space. 

• A study was completed by the Finder/Flow 

Energy Joint Venture Group on the Gas Market 

Potential of Jamaica in June 2008. Targeting 

natural gas production offshore, the study 

concluded that LNG could be produced from 

Jamaica with the USA being a potential market. 

According to the study, the natural gas market in 

the USA is already substantial and is predicted to 

continue its growth. Along with the growth in the 

overall gas market, there is the expectation of a 

corresponding expansion in the market for LNG. 

General Manager of 

Petrojam, Winston Watson 

(left) updates Minister of 

Energy and Mining, Hon. 

Clive Mullings on the status 

of the Front End Engineering 

Design of the Refinery 

Upgrade Project, during a 

tour of the Refinery. 


13

P C J : G R O U P I N I T I A T I V E S C O N T D . 

One of the many racing cars that participated in the E 10 Xtreme Motor Sports and Family Fun Day. 

Flagship Service Station – PETCOM. 

• Energy efficiency projects were 

completed in eight (8) public hospitals, namely, 

Princess Margaret, St. Ann’s Bay, Cornwall 

Regional, Lionel Town, Black River, Annotto Bay, 

Port Antonio and Spanish Town. These projects 

included (a) solar photovoltaic outdoor lighting, 

(b) solar water heating, (c) upgrading and 

refurbishing of internal hot water piping, and (d) 

upgrading of electrical systems and correction of 

electrical faults. This brings to ten the number of 

hospitals that have benefitted under the Hospitals 

Energy Efficiency Programme. 

• The Energy Efficiency Unit provided 

technical assistance to the DBJ-PetroCaribe 

Energy Fund for Small and Medium Sized Entities 

(SME). This technical assistance was mainly in the 

form of project related 

advice to potential 

borrowers from the Fund. 

• PCJ continued 

its Public Education 

Programmes on energy 

efficiency, conservation 

and renewable energy, 

through its participation 

at various exhibitions and 

through joint initiatives 


with 

Educational 

Institutions in the delivery 

of energy conservation 

content. 

Agro Expo: This patron, inquiries about the difference in energy consumption between the energy efficient 

compact fluorescent bulb and the incandescent bulb. Looking on is Shift Leader, Petrojam Ethanol Limited, 

Terrence Jackson. 


P E T R O J A M E T H A N O L L I M I T E D : 

F O C U S O N R E N E W A B L E S 

BACKGROUND 

Petrojam Ethanol Limited (PEL), a wholly-owned 

subsidiary of The Petroleum Corporation of 

Jamaica since May 2007, qualifies for duty 

exemption under the Caribbean Basin Economic 

Recovery Act (CBERA) of 1983, in regard to the 

export of fuel grade ethanol into the United States 

from countries of the Caribbean Basin (Caribbean 

& Central American region). 

OVERVIEW 

In 2008, the company’s main goal was to produce 

36 Million US gallons of ethanol for both export and 

local sales. However, this was not realized due to 

the following factors: 

• Divestment activities. 

• Termination of the Coimex partnership. 

• Fire in November 2008 which destroyed the 

plant’s cooling tower. 

In an effort to divest the sugar cane industry, the 

Government of Jamaica included the assets 

of PEL as part of the divestment package. The 

partnership that was established with Coimex 

Trading of Brazil expired at the end of June 2008 

and was not extended in order to facilitate 

interest from the sugar cane divestment process. 

For the rest of the financial year PEL focused on 

supplying the local market with ethanol, pending 

its sale. During the plant shutdown period, a fire 

damaged the cooling tower while maintenance 

activities were being carried out. 

ETHANOL MARKET REVIEW 

Global Overview 

2008 was a challenging and unpredictable year for 

ethanol with the first half of the year seeing ethanol 

prices soaring to dizzy heights and increased use 

of the commodity. This led to the food versus fuel 

debate with accusations that the increased use 

of crops across the world for ethanol was leading 

to food shortages and hunger in some developing 

countries. In the second part of the year, the 

ethanol prices experienced a rapid fall due to a 

plunge in the oil prices from $147 earlier in 2008 

and the bad economic outlook. 

United States of America - For the U.S. ethanol 

industry, 2008 ushered in a year of historic production 

to meet record demand as the industry continued 

to grow to meet America’s energy needs. The 

industry can be proud of the milestones reached 

in 2008, including record production of 9 billion 

gallons, implementation of a new Renewable 

Fuels Standard (RFS), record exports of distillers 

grains to feed the world’s livestock, building new 

infrastructure, moving to higher blends and last, 

but perhaps most importantly, technological 

innovations to improve both starch and cellulosebased 

ethanol production. It will take time to 

yield returns on these investments. This past year 

presented unique challenges and economic 

difficulty, as producers faced record input costs, 

lower ethanol values and the evaporation of 

credit in the market. 

In the past year, America’s annual operating 

capacity increased by 2.7 billion gallons, a 34% 

increase over 2007. This growth in production 

capacity was fueled by completion, start-up and 

operation of 31 new ethanol biorefineries and will 


15

P E T R O J A M E T H A N O L L I M I T E D C O N T D . 

Sugarcane is one of the best sources of ethanol. 

ensure America’s ethanol producers are capable 

of filling the federal requirements outlined in the 

RFS. 

In addition, ethanol production has continued to 

expand geographically, with ethanol biorefineries 

now operating in 26 states, bringing economic 

opportunity to tens of thousands of Americans, 

many of whom live in rural areas. As a result of this 

kind of growth and innovation, America’s ethanol 

industry produced a record 9 billion gallons of 

ethanol in 2008 and is poised to produce well in 

excess of 10 billion gallons in 2009, representing 

nearly 9% of America’s gasoline supply. 

Brazil - Brazil is one of 

the largest producers 

of ethanol in the 

world and is the 

largest exporter of 

the fuel. In 2008, 

Brazil produced 

454,000 barrels per 

day of ethanol, up 

from 365,000 in 2007. 

All gasoline in Brazil 

contains ethanol, 

with blending levels 

varying from 20-25 

percent. Over half of 

all cars in the country 

are of the flex-fuel 

variety, meaning 

that they can run on 100 percent ethanol or an 

ethanol-gasoline mixture. According to Brazil’s 

National Oil and Biofuels agency ANP, Brazil also 

produced about 20,000 bbl/d of biodiesel in 2008, 

and the agency has enacted a three-percent 

blending requirement for domestic diesel sales. 

The importance of ethanol in Brazil’s domestic 

transportation fuels market will only increase in the 

future. According to Petrobras, ethanol accounts 

for more than 50 percent of current light vehicle 

fuel demand, and the company expects this to 

increase to over 80 percent by 2020. Nearly 90 

percent of all new cars sold in Brazil are flex-fuel 

vehicles, which will slowly remove gasoline-only 

cars from the fleet. 

Because ethanol production continues to grow 

faster than domestic demand, Brazil has sought 

to increase ethanol exports. According to industry 

sources, Brazil’s ethanol exports reached 86,000 

barrels per day in 2008, with 13,000 barrels per 

day going to the United States. Brazil is the largest 

ethanol exporter in the world, holding over 90 

percent of the global export market. Besides 

the United States, important export destinations 

include Europe and Japan. According to industry 

reports, Brazil exported 690 barrels per day of 

ethanol to Japan in 2008, but exports were 

expected to increase to 1,600 barrels per day in 

2009. 

Jamaica - In keeping with global trends, the 

Government of Jamaica partially phased out the 

use of MTBE as a fuel additive and replaced it with 

ethanol (which is more environmentally friendly) in 

November 2008. It is expected that MTBE will no 

longer be used by the latter part of 2009. 

Results from the pilot project conducted in 2006 

indicated that it is possible to introduce 10% 

ethanol in gasoline with no adverse effect on 

motor vehicles or disruption of supplies to the 

consumers. The intention of the Government is to 

phase out MTBE with 87 octane gasoline blend 

initially followed by 90 octane blend later. Based 




on this plan, in excess of 1,250,000 US gallons of 

ethanol per month will be required to meet full 

implementation. In this regard, PEL was mandated 

to supply ethanol to meet the demand for the 

local market. 

The Government has a long-term target of gasoline 

being blended with up to 25 per cent ethanol 

by volume. To support this plan the Government 

is in the process of privatizing the Governmentowned 

sugarcane factories for a more diversified 

sugarcane industry. 

OUTLOOK 

Petrojam Ethanol Limited (PEL) intends to continue 

the production of anhydrous ethanol (fuel grade 

ethanol) at its plant located at Marcus Garvey 

Drive. The product will be derived from feedstock 

(hydrated alcohol) sourced primarily from Brazil 

and the local sugar industry. The target is to 

produce a minimum of 36 million US gallons for the 

current period and continue the traditional export 

to the United States of America and to meet the 

full requirements of the domestic E10 fuel market 

through Petrojam Limited. 

PEL intends to maximize its profitability going 

forward, through any one or a combination of the 

following options: 

• Independently through own supply and 

off-take agreements. 

• Equity partnership with new owners/ 

operators of the government-owned sugar 

cane factories. 

• Tolling agreement with suitable partner(s) 

on a medium to long term basis. 

The income from the operation will contribute to 

financing the expansion of the plant and storage 

facility along with the relocation of the plant 

operation from its existing location to facilitate 

the Petrojam Refinery Upgrade Project. The 

opportunities still exist for ethanol producers in 

Jamaica and the Caribbean as the USA continues 

to expand the blending programme. Several 

new and expansion ethanol projects are being 

implemented in the Caribbean to take advantage 

of the existing markets and to explore new ones. 

This also provides a great opportunity for Jamaica 

to develop the local sugar cane industry to meet 

both local and export demands for fuel grade 

ethanol. 

On a longer term basis, PEL continues to actively 

seek opportunities for expansion of its existing 

capacity through alignment with potential 

investors for additional capacity. This includes 

collaboration with the successful entities involved 

in the bid for the privatization and development 

of the local sugar cane industry. The partnership 

will allow for a backward integration into the 

local sugar factories for the production of ethanol 

feedstock to allow for improved accessibility of 

ethanol for local blending in gasoline. 

STRENGTHS: 

• A sound relationship with Brazil, the world 

leading ethanol producer and exporter. 

• The close proximity of Jamaica to the 

primary market, USA and in particular the 

state of Florida. 

• Petrojam Ethanol plant is grand fathered 

as one of the original beneficiaries under 

CBERA act for duty free imports to the USA. 

• The ethanol plant is strategically located 

close to the refinery docks for loading and 

offloading. 

• All earnings are in US dollars for greater 

foreign exchange benefits to the country. 

OPPORTUNITIES: 

• Feedstock from Brazil that is dehydrated 

in Jamaica prior to being exported to 

the United States meets the 35% Value 

Added requirement under the CBI. Hence 

continuation of existing trading relationship. 

• The ability to increase exports as the current 

quota for the CBI countries to export 

ethanol to the USA market continues to 

increase and is undersupplied. 

• The increased demand for ethanol in the 

USA and worldwide due to the passing of 

The Energy Independence and Security 

Act of 2007 which expands the Renewable 

Fuels Standard (RFS) by requiring 36 billion 

gallons of renewable fuel be used annually 

by 2022. 


17


• Secured supply of feedstock - through 

the development of the local sugar cane 

industry for the production of ethanol. 

• The resumption of wine alcohol feedstock 

supplies from EU countries at lower prices. 

• New markets to come on-stream in the 

very near future such as; Canada and 

Europe using indigenous feedstock. 

• Penetration of the local market through the 

Introduction of ethanol in gasoline locally. 

FINANCIAL PERFORMANCE 

The performance for the Financial Year 2008/2009 

showed a loss of JA$421.8M. 

The main contributory factors resulting in the loss 

position were: 

• Sales revenue was below target by 72% 

primarily because the arrangements to 

finalize the partnership with Coimex resulted 

in Coimex being the sole beneficiary 

of sales proceeds for the period July to 

November 2008. Actual anhydrous sales 

totaled 8.2 million US Gallons versus budget 

of 36 million US Gallons. Notwithstanding, 

the average sales price for the year was 

US$2.4 per US gallon compared to budget 

of US$2.13 per US gallon. 

• Cost of sales was below target by 75%. 

Targeted sale volumes were not realized 

resulting in cost of sales being below 

budget. 

• Gross margin was below target by 54%. This 

adverse variance was due primarily to the 

fact that no significant sale of anhydrous 

ethanol was made for the period July 2008 

to March 2009. Processing activities were 

terminated in October 2008 in order to 

bring the contractual arrangement with 

Coimex to a closure. The primary activities 

since November related to the supply of 

1,222,954 USG of anhydrous ethanol for 

E-10 gasoline blending. All of this volume 

was sourced as finished product from local 

and other suppliers. 

• Expenses for the year were above target 

by J$207.5M or 34%. Of significance was 

the extra-ordinary expense of J$311.1M 

which was in relation to the settlement 

of the contractual arrangements with 

Coimex Trading. The above settlement 

with Coimex was necessary to meet the 

requirements of the Government as it 

relates to the divestment of the sugar cane 

industry. 



J A M A I C A A I R C R A F T 

R E F U E L L I N G S E R V I C E S ( J A R S ) L I M I T E D 

MISSION STATEMENT 

“The company’s mission is to be the number one 

supplier of aviation services by providing a safe 

and efficient operation, enhancing customer 

satisfaction and ensuring stakeholders’ wealth”. 

OVERVIEW 

JARS was established in July 1999 as a Joint 

Venture (JV) between AirBP Amoco and Petrojam 

Limited. The JV was conceptualized as a result of 

the deregulation of the petroleum industry and 

the challenges Petrojam experienced. JARS 

commenced refuelling operations in 2000 at both 

international airports and over the past nine (9) 

years has grown phenomenally. 

JARS has been profitable for six (6) of its nine years 

in operation and our current financial position as 

at December 2009 is, EAT -J$7.5M on revenues 

of J$6.9B. Loss was attributable to bad debt of 

J$96M. 

VOLUME/MARKET SHARE 

The overall fuelling industry in Jamaica has shown, 

a decline of (10%) in volume, when compared to 

2008, with JARS having 73% of the total market 

share with 76% at Montego Bay Jamaica and 72% 

at Norman Manley International Airport. As shown 

in the graph below, JARS market share has grown 

from 11% in 2000 to 73% as at the end of December 

2009. This is despite a decline of (-1%) over 2008. 

CUSTOMER BASE 

JARS currently has approximately 80% of the 

customers at both airports. 

Operational /Developmental Activities 

Further development of the business will be done 

by; 

• Expansion into the aerodromes. 

• Exploring the feasibility of expanding to 

other Caribbean territories. 

• Explore the possibility of implementing our 

own haulage to reduce our cost of sales. 

Yearly Financial Performance 2001 - 2009 

Market Share % per Company 

J$12 

J$80 

100% 

Billions 

J$10 

J$8 

J$6 

J$4 

J$2 

J$0 

J$60 

J$40 

J$20 

J$0 

J$20 

J$40 

Net Profit (EAT) Millions 

% Allocation 

80% 

60% 

40% 

20% 

0% 

89% 

11% 

68% 66% 

32% 34% 

50% 

53% 52% 

54% 

47% 

50% 

48% 

46% 

66% 73% 

34% 27% 

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 

Year 

Gross Revenue 

Net Profit 

JARS 

Other 


19

J A R S C O N T D . 

• Reduction in 

maintenance and 

administrative 

expenses through 

increased training 

and developmental 

activities 

To achieve these 

plans that are 

directly in keeping 

with our mission 

statements, our 

strategy will focus 

on: 

CHALLENGES 

The industry is a highly competitive one, as a result 

JARS has to: 

• Sustain its market share in a shrinking airline 

industry by asserting ourselves as a high 

quality provider and low cost innovator. 

• Ensure safety is at the forefront of our 

operations. 

• Maintain effective communication and 

the strengthening of trust between the 

company and its stakeholders. 

Refueling activity at the Norman Manley International Airport. 

IMPROVE OPERATIONAL EFFICIENCIES 

In addition to market and operational expansion, 

JARS has streamlined operation and administration 

through: 

• Consolidating computer operations and 

leveraging Information Technology across 

both locations, through the implementation 

of the Solomon Accounting package that 

serves all locations. 

• Provision of 

excellent customer 

service through an educated and satisfied 

workforce. 

• Ensuring a competitive pricing 

environment. 

• Creating synergies, where possible 

incrementally increasing our bottom line. 

• Establishing an inspection ready 

environment at all times. 



C E N T R E O F E X C E L L E N C E F O R R E N E W A B L E E N E R G Y ( C E R E ) 

“ D I V E R S I F Y I N G J A M A I C A’ S E N E R G Y O P P O R T U N I T I E S ” 

The Petroleum Corporation of Jamaica’s (PCJ’s) 

Centre of Excellence for Renewable Energy 

(CERE) focused on building institutional capacity 

for Waste-to-Energy conversions, hydropower and 

biofuels development during the fiscal year 2008/9. 

Bolstered by the Office of Utilities Regulation’s 

declaration of an increase in the avoided cost for 

grid-tied renewable energy sources in June 2008, 

the Division’s research and development work 

pushed forward. 

feasibility studies and the issuance of Request for 

Proposals (RFP) for joint venture partners. 

BIOFUELS FOR SUSTAINABLE DEVELOPMENT 

PCJ’s CERE supported the E10 Programme policy 

analysis by preparing a paper titled “Policy 

Options for the Use of Locally Produced Ethanol”. 

A Biofuels Policy Workshop for intergovernmental 

agencies was held from December 15 – 16, 

2008. The workshop, which was jointly sponsored 

by the Economic Commission for Latin America 

and the Caribbean (ECLAC), the Ministry of 

Mining & Energy and the PCJ, resulted in a report 

identifying the main challenges and opportunities 

for the implementation of locally grown biofuels. 

Twenty six (26) persons attended representing the 

following agencies: the Ministry of Transport and 

Works, the Office of the Prime Minister, the Ministry 

of Agriculture, the PCJ, Jamaica Trade and Invest, 

CARICOM’s Energy Programme Unit, CREDP/ 

GTZ, Petrojam Ethanol Ltd., the Ministry of Energy 

and Mining, National Environment and Planning 

Agency and the Economic Commission for Latin 

America and the Caribbean. 

Partnership agreements were signed with 

Mexico’s Non-Conventional Energy Unit – 

Institute for Electrical Research (GENC-IIE) and 

CARICOM’s Caribbean Renewable Energy 

Technical Assistance Facility (CRETAF) for technical 

assistance in renewable energy engineering. 

Sponsorships were provided by China’s Ministry 

of Commerce, the Canadian International 

Development Agency (CIDA), the Organization 

of American States (OAS), the United States Trade 

Development Agency (USTDA) and the United 

Nations Economic Commission for Latin America 

and the Caribbean (UN-ECLAC). This resulted 

in training workshops, updated pre-feasibility/ 

Permanent Secretary in 

the Ministry of Energy and 

Mining, Dr. Jean Dixon 

addresses the audience 

during a Biofuels Policy 

Workshop. 


21

C E R E C O N T D . 

At PCJ’s Font Hill Farm, a biodiesel cultivation 

experiment was carried out with 2.8 kilogrammes 

of Nordestina seeds from Brazil. The seeds were 

planted on a 0.75 acre plot. The plants matured 

within five months with an estimated harvest of 

over 740 kilograms of seeds. Testing was carried 

out in collaboration with the Jamaica Bureau of 

Standards and the Bodles Agricultural Research 

Unit. Test results indicated the seeds’ oil content 

was forty six percent (46%). 

Over the period November 17–21 2008, the Ministry 

of Energy and PCJ’s CERE, represented Jamaica 

Castor Oil as a Biofuel: A castor field in Font Hill. 

at an international conference on Biofuels hosted 

by the Government of Brazil in Sao Paulo. The 

theme of the conference was “Bio-fuels as a 

driving force of Sustainable Development”. 

The Conference was staged to encourage 

international discussions about the challenges 

and opportunities posed by biofuels and to 

provide an occasion for addressing issues related 

to biofuels, such as energy security, sustainability of 

the production and use, agricultural and industrial 

processing, as well as issues related to technical 

specifications and standards, international trade, 

climate change, biofuels and innovation and 

biofuels’ future. 

Arising from the meeting, the Government of 

Jamaica signed a tri-lateral agreement with the 

Republic of Brazil and the United States of America 

to support the advancement of the biofuels 

agenda. In March 2009, a Biofuels Taskforce 

was launched to pave the way for new biofuels 

developments. 

ASSESSING HYDROPOWER CAPACITIES 

The PCJ issued a Request for Proposals (RFP) 

for hydropower developments in Jamaica. 

The PCJ identified several potential schemes 

with capacities of up to 10 MW for detailed 

investigation. The RFP was based on the scoping 

works completed in the “Renewable Energies 

Potential in Jamaica” study prepared by Mr. Detlef 

Loy and Mr. Manlio Coviello in June 2005. 

SCP/BPR International Hydro Consultants, the 

sole bidder, was selected by PCJ to support 

hydropower developments. The PCJ and SCP/ 

BPR subsequently applied jointly for and received 

grant funding to conduct a feasibility study update 

for a 2 MW Hydropower scheme at Laughlands 

Great River in St. Ann. Grant funding assistance 

of CAD$156,000 was provided by the Canadian 

International Development Agency (CIDA). SCP/ 

BPR Hydro International, a Canadian consulting 

firm provided CAD$52,000 in financial support, 

while PCJ provided institutional support. 

SCREENING WASTE-TO-ENERGY SOLUTIONS 

PCJ supported a Waste-to-Energy familiarization 

tour for a joint PCJ and National Solid Waste 

Management Authority (NSWMA) team during 

the period July 21–25, 2008. The team visited 

three (3) Waste-to-Energy (WTE) facilities, to gain 

information about WTE technologies and facility 

designs. These were: Westinghouse Plasma 

Corporation, International Environmental Solutions 

(IES) and Covanta. 

The United States Trade Development Agency 

(USTDA) also supported the U.S. Environmental 

Protection Agency International Visitors Program 

by hosting representatives from the PCJ and the 

NSWMA for meetings and site visits during the period 

September 28 – October 5, 2008. Companies met 

on this trip included Gershman, Brickner & Bratton, 

Inc., Covanta Energy Corporation, Integrated 



C E R E C O N T D . 

Waste Services Association, Overseas Private 

Investment Corporation (OPIC), Ex-Im Bank of 

the US, The World Bank, USTDA, US EPA, US DOE, 

Energy Answers International Inc., Wheelabrator 

Technologies, Connecticut Resources Recovery 

Authority, CRRA Trash Museum, The Constant 

Group and New Bedford Waste Systems. Following 

on these visits, PCJ’s CERE worked along with the 

Department of Local Government to prepare a 

draft Waste-to-Energy Policy. 

PCJ in collaboration with National Solid Waste 

Management Authority (NSWMA) developed a 

Waste-to-Energy Request for Proposal which was 

issued to the international and local markets on 

January 19, 2009. The proposal referred to two 

sites; one eastern facility, adjacent to Soapberry/ 

Riverton in St. Catherine and a western facility, 

adjacent to Retirement in St James. Subsequently, 

a pre-bid meeting and site visits were held 

March 17-19, 2009. Twelve (12) potential investors/ 

companies participated in the site visits. The bid 

closing date is April 30, 2009. 

BUILDING INSTITUTIONAL CAPACITIES 

PCJ’s CERE hosted a Renewable Energy exposure 

tour for representatives from Suriname’s State Oil 

Company (STAATSOLIE). The tour was conducted 

during the week of June 16 – 20, 2008. Staatsolie is 

planning to explore renewable energy potentials 

further by implementing a Renewable Energy Unit, 

with a cadre of specialists. 

PCJ’s CERE and Mexico’s Non-Convention 

Institute of Electrical Energy hosted a Renewable 

Energy workshop from April 15-16, 2008 to develop 

a framework for strategic energy planning and 

institutional strengthening. 

China’s Ministry of Commerce sponsored a PCJ’s 

CERE team member to attend a two month 

International Training Course on Renewable 

Energy for Developing Countries. The course, 

which was organized by the Biogas Institute of the 

Ministry of Agriculture, was held from September 

22 to November 20, 2008 in Chengdu, Sichuan, 

China. 

The Organization of American States’ (OAS) 

Department of Sustainable Development 

sponsored a PCJ-CERE team member to attend 

the Forum for Sustainable Development for 

Central and North America on December 11 & 

12, 2008. The meeting was arranged to support 

the promotion of sustainable energy projects in 

the region, and to discuss the development of 

policies for bioenergy and renewable electricity. 

Various countries shared their experiences in using 

advanced technologies to harness renewable 

energy. 

This participant voices his views during a Solid Waste Facility 

Bid Meeting. 


23

P E T R O J A M : F I N A N C I A L H I G H L I G H T S 

This information as it relates to 2008/9 has 

been extracted from the audited financial 

statements presented on pages 49-86. Note 2 to 

the financial statements include details on the 

basis of preparation of these financial statements. 

The selected information should be read in 

conjunction with the audited financial statements 

and related notes elsewhere herein. 

For the fiscal year 2008/9 Petrojam posted before 

tax losses of J$7.3B. 98% of the losses occurred 

between September and December. The losses 

began in September with the onset of the global 

financial crisis, which prompted a collapse in 

commodity markets and in particular a rapid 

decline in world oil prices. Within the four months 

August to December 2008, prices fell from a record 

high of US$147/bbl in July to record low of US$35/ 

barrel. This sustained and precipitous fall in prices 

resulted in negative refinery margins and a net loss 

of J$4.7 billion. 

2008/9 2007/8 2006/7 2005/6 2004/5 

Income Statement Data 

Gross Margin ($millions) 1,631 6,646 4,345 4,437 2,578 

Other Operating Income($millions) (137) 29 121 331 30 

Other Operating Expense($millions) 1958 1,494 1,212 1,275 778 

Admin and Operating Expense($millions) 3,838 4,121 3,590 2,350 1,393 

Income from Operations ($millions) (4,302) 1,060 -336 1,143 437 

Net Profit ($millions) (4,720) 663 -239 717 430 

Balance Sheet Data 

Total Assets 25,085 34,592 23,429 21,468 13,560 

Net Assets 531 5,966 4,652 5,003 4,206 

Share Capital 801 801 801 801 801 

Return on Capital Employed (%) (1698) 19 15 22 11 

Production & Sales Data 

Production (thousand barrels/day) 23.5 27.9 26.7 13.8 10.6 

Sales (thousand barrels) 17.368 17,452 17,544 16,326 14,161 


GLOBAL OUTLOOK FOR 2009 

Prices for energy commodities are expected to 

remain volatile in 2009, reflecting the high degree 

of uncertainty associated with the global financial 

crisis and the unprecedented scale and scope 

of official stimulus measures being implemented 

around the world. 

World crude prices have continued to decline in 

response to the global economic situation. Prices 

fell from a peak of $145/barrel in mid-July 2008 to 

below $40 per barrel in December 2009. Given 

the poor economic situation and continued 

uncertainty, OPEC members have not responded 

to the low prices with aggressive cuts in output, 

however a measured response is anticipated in 

the near future. The projected decline in global 

demand has relaxed the near and medium term 

balances considerably. As the economic situation 

begins to improve and confidence recovers, oil 

prices are projected to gradually rise starting mid 

2009. The near term crude price outlook forecasts 

West Texas Intermediate (WTI) prices at $59 in 

2009 and $78 in 2010. While some refinery and 

upgrading project deferments and cancellations 

have occurred, most of the projects underway 

are expected to be completed in 2009-2011. 

Global refining margins continue to decline and 

a relatively deep and prolonged down-cycle is 

expected. The global decline in demand, coupled 

with significant new capacity is forecasted to 


P E T R O J A M : F I N A N C I A L H I G H L I G H T S C O N T D . 

create a fairly severe overcapacity balance 

unless additional projects are cancelled or 

delayed. Simple refining and gasoline processing 

margins are projected to be particularly weak, 

but conversion margins will also be affected and 

are expected to decline further in 2009-2011. 

Given the demand outlook and new capacity, a 

recovery is not expected until 2011-12. 

So what does the way forward for Petrojam look 

like? 

In the immediate term, 2009 is poised to be a 

very good year for operations at Petrojam. There 

is no scheduled major turnaround to interrupt 

production and we are working hard to avoid 

any unexpected shutdowns that may hamper our 

performance in 2009. We are also actively working 

to reduce the time estimated for the planned 

regeneration of the powerformer catalyst. We 

are targeting average production levels of 26.7 

thousands of barrels per day (kbd) through the 

year – a 12% improvement over actual production 

in 2008. Sales target is set at 19.2 million barrels as 

we anticipate little difficulty in finding a market 

for the products we refine, although we foresee a 

slight reduction in demand for diesel and gasoline 

due to closure of the bauxite companies and 

overall reduction in demand for transportation 

fuels respectively. 

Refinery Upgrade Project: The progress of the 

refinery upgrade project will depend on many 

factors including the cost and availability of 

funding and the projected returns on the project. 

Based on the estimated cost of the project to 

date, we intend to undertake a value engineering 

assessment of the project with a view to reducing 

the total project cost while ensuring that the 

required safety standards will be met. We continue 

to have financial flexibility with conservative debtto-cash 

flow ratios and a strong credit profile and 

believe we will be able to secure the necessary 

funding for the project. 

E-10: Development of the project for full conversion 

of all grades of gasoline to E-10 gasoline will 

continue with the installation of infrastructure and 

other facilities at the Petrojam’s Montego Bay 

Industrial Loading Rack. We expect to have that 

completed by the end of June 2009. 

SAP Sales & Distribution (SD) Project – The full 

implementation of the SD project has been 

delayed due to concerns regarding perceived 

operational safety risks. Mitigating actions are 

being explored and if implemented this will add to 

the project cost. 

As we prepare to meet the challenges in 2009/10 

we intend to improve the efficiency of our oil loss 

& energy conservation process; our distribution 

facilities; our safety and emergency response 

systems; and also our sales and billing process and 

procurement systems. 

OVERVIEW OF STRATEGIC PRIORITIES 

Petrojam’s focus since Fiscal Year 2005/6 has been 

centered around six (6) main Strategic Themes 

which evolved from the mapping of the strategic 

linkages between the critical success factors 

across all perspectives of the Balanced Scorecard. 

1. Ensure Long Term Competitiveness 

Efforts to secure the future viability of the Petrojam 

refinery will continue to be a priority item, given 

its key role in the national strategy to ensure 

security of supply for the country. In this regard, 

the development of the refinery upgrade project 

continues to advance. The project is expected 

to address most of the external threats and 

opportunities identified, including introduction of 

LNG, removal of Common External Tariff, more 

stringent sulphur specifications for diesel and 

improved profitability through greater capacity 

utilization and improved product yield structure. 

2. Improve Plant Reliability 

Reliability refers to the operating availability of 

the refining facilities. High reliability is fundamental 

to nearly all aspects of the business, impacting 

upon the ability to optimize the refinery margin, 

increased demurrage and maintenance expenses 

as well as increased risk of supply shortages. Low 

reliability results in fatigue, low morale and low 

productivity of staff. 


25

F I N A N C I A L H I G H L I G H T S C O N T D . 

3. Meet & Exceed Customer Needs 

Operating as it is in a competitive market 

environment, Petrojam has to ensure consistent 

supply of products at the specified quality, at 

the best price and in the required quantities in 

order to ensure that customers receive the best 

value for money at all times. As more customers 

seek to explore alternative supply options, it 

is imperative that Petrojam maintains good 

customer relationships and high service standards 

in order to retain key customers. To this end a 

customer service unit was established and service 

standards will be developed and deployed. 

4. Maintain & expand market share 

Although Petrojam’s market share has gradually 

increased over the years to its present level of 

about 85%, the company still faces the threat 

of significant competition from alternative fuels 

and alternative suppliers. A primary objective will 

therefore be to consolidate existing business and 

aggressively pursue opportunities for increasing 

Petrojam’s share of the local market. 

5. Increase Business Process Efficiency and 

Cost Savings 

Several critical success factors identified were 

centered on improving the efficiency of various 

internal processes, in keeping with the thrust 

to benchmark favourably against our peers. 

The supporting initiatives include continued 

attainment of best practices in all areas, 

leveraging Information Technology to improve 

workflow and productivity, implementing an 

alternative dock option geared towards reducing 

demurrage expenses, and other projects aimed 

towards improving the refining margin and 

reducing losses. 

6. Strengthen 

Organizational Support 

Human Capital 

Development, and Health, 

Safety and Environment 

Compliance (HSE), are 

critical 

organizational 

supports for the core 

business processes. 

The 

focus is on ensuring 

alignment of human 

resources to the strategic 

Project Title 

plan through a comprehensive manning and 

development plan, as well as focus on employee 

retention through restructuring the current 

compensation system. The major projects to be 

undertaken in support of the strategic themes are 

presented in summary below; 

Project Description 

Major Maintenance – Storage Tanks Repairs are required to improve the mechanical integrity of the tanks, 

minimize environmental impacts due to leaks and evaporative losses and 

reduce the possibility of fires. 

T-2 De-Ethanizer Tower Replacement Replace the existing De-ethanizer T-2 with a new Tower, with new 

metallurgy and optimized level elevations for reboiler nozzles. The new 

tower is designed to meet both existing process requirements and those 

of the Refinery upgrade. 

E-4 Replacement Purchase and install a new Heat exchanger with removable cover design, 

forced draft cooling and increased cooling capacity. 

Remote Vibration Monitoring System Installation of a remote vibration monitoring system to determine 

potential failures of motors, gear boxes and other rotating equipment. 

Refinery Motor Replacement 

Installation of new High efficiency motors and starters to enable 

increased reliability of motor equipment, ease of maintenance and align 

the company with international best practice standards. 

RS-1 Process Improvement 

Installation of asphalt emulsion facilities that will enable flexibility in the 

blending of asphalt products to meet quality specifications and also meet 

environmental requirements. 

Sub1 13.8kV Switchgears 

Replacement 

Portable Compressor 

Rundown Slop Metering 

Kerosene Tank drainage and product 

recovery 

Fire Pump and Pump Station 

New Laboratory 

Installation of new 13.8kV switch gear that will result in increased 

protection, monitoring and co-ordination of electrical systems and 

deterministic operations. 

Replacement of the obsolete and inefficient compressor with a new one 

that will result in reduced maintenance costs, provide for shutdown and 

start-up of the Refinery Unit in the event of loss of electrical power to the 

Refinery. 

Installation of flow meters on the refinery product run-down. The 

rundown meters will reduce economic penalties that would normally 

accrue through the loss of man-hours and provide more accurate data on 

the Plant balances. 

Install facilities that will enable drainage of the Jet Fuel storage tanks 

with minimal product loss or damage to the environment. These facilities 

will comply with International Jet Fuel facility requirements. 

Upgrade the existing firewater system to extend firewater coverage and 

fire capability to remote locations of the Refinery’s operations. 

The proposed project seeks to construct a new state-of-the-art laboratory; 

to address the existing environmental issues and meet international 

testing standards. 




2008/9 PERFORMANCE REVIEW FINANCIAL PERFORMANCE 

ITEMS Target at March 09 March 09 

Refinery Gross Margin 4,995 1,631 

Other Operating Income 121 (137) 

Admin and Operating Expenses (3,121) (3,372) 

Other Operating Expenses (1,360) (1,959) 

INCOME FROM OPERATIONS 635 (4,302) 

Non-operating Income 65 (2873) 

PROFIT/(LOSS) Before Tax 700 (7,176) 

Taxation (235) 2,456 

NET PROFIT/ (LOSS) 456 (4,719) 

Before tax losses of J$7.2 billion was recorded in 

the year being reviewed; losses comprised of 

operating losses of J$4.3 billion and non operating 

losses of J$2.9 billion. This loss was significantly less 

than profits of 663 million earned in 2007/8 and 

profit target of $700 million in 2008/9. The bulk of the 

losses were incurred during the period September 

to December 2009. Steep decreases in crude 

and product prices; devaluation of the Jamaica 

dollar and valuation of inventory contributed to 

the poor financial performance. This was due to 

strong refinery margins amidst improved market 

conditions and processing efficiencies. 

The main areas affected are discussed below: 

Pertojam Financial Performance 

1000 

0 

-1000 

-2000 

-3000 

-4000 

-5000 

-6000 

-7000 

311 

164 

208 

437 

1180 

694 1,042 

-102 

2004/05 

2005/06 

2006/07 

2007/08 

2008/09 

-4,302 

-2,873 

-8000 

Non-Operating Income 

Operating Income 


27


PRICE MOVEMENT 

The extreme, dramatic and consistent fall-off 

in prices during the period affected sales to 

customers who are served on a contractual basis 

as well as those served on a non-contractual 

arrangement such as the marketing companies. 

Petrojam sells approximately 65 % of its output 

under fixed contractual arrangements with 

customers such as the JPSCo and the other 

Independent Power Providers, the Airline Industry 

and major bunker customer Aegean Marine. 

Under these contractual terms, the prices are 

established at market price plus a premium which 

is normally sufficient to cover market movements 

and still ensure a profit; however during the period 

September to December 2008 the rapid weekly 

price decreases eroded the premium and losses 

were incurred. 

We closed the year on a positive note as profits 

rebounded in March where gains of $438M versus 

a loss of $81M in February were posted. 

EXPENSES 

Total Operating and Admin expenses including 

financing charges and PCJ commission was 

J$5.7 billion compared to target of J$4.5 billion or 

US$3.96/bbl. The primary factors affecting this less 

than favorable situation were: 

Maintenance expenses were $435.7 million or $50 

million above the budget. On a dollar per barrel 

basis expenses were US$0.32/bbl, US $0.04 cents 

5,000 

above the target of US$0.28/bbl. Maintenance 

expenses were primarily impacted by additional 

work done during the plant shut down in May 

and the regeneration exercise in October. The 

unusually high increase in steel prices up to the 

second quarter affected the cost of critical 

imported repair material such as piping, pump, 

spares etc. 

Other operating expenses above target was 

utilities which exceeded budget due to a 31% rate 

increase by JPSCO; demurrage due to congestion 

at the dock caused by delays and issues with 

scheduling of crude cargoes. 

Expenses 

FX Losses 

During the year under review, the Jamaican 

dollar experienced severe volatility against its US 

counterpart in trading. The JMD devalued by 25%, 

moving from 71.05 to 88.82 against the US dollar 

resulting in foreign exchange losses totalling J$2B. 

In instances of a consistently devaluing currency 

as was the case in 2008/9, the ninety-day credit 

term availed to us by financiers created foreign 

exchange exposure and resulted in foreign 

exchange losses. 

J$M 

4,000 

3,000 

2,000 

1,000 

0 

2004/05 2005/06 2006/07 2007/08 2008/09 




Other operating expenses experienced adverse 

variances with actual expenditure of J$1.96 billion 

compared to target of J$1.36 billion. The main 

categories affected were: 

PCJ Commission J$1.02 billion compared to 

J$757 million, this was due to the high oil prices in 

the first half of the year. 

Trade Loan interest, was J$935 million compared 

to J$603 million. This adverse position was due 

to increased draw-down on trade loan facilities 

at higher rates, driven by the shut down of the 

plant in October 2008 for routine maintenance 

which required importation of increased finished 

products and increased rates on some credit 

facilities due to the global financial crisis. 

OPERATING HIGHLIGHTS 

Local Sales 

Total sales for the period was 17.37 million barrels, 

which is .87 million barrels below target. The below 

target sales volume was due to reduction in total 

demand as a result of high prices in the first quarter 

and the global recession in the second half of the 

year. 

Market Share 

Petrojam’s overall share of the non-bauxite market 

for fiscal year 2008/9 was 80% which is 3% below 

the target of 83%. The below target performance 

was primarily due to a reduction in LPG demand. 

Better than target sales performance (69 vs. 60%) 

was achieved for gasoline due to an increased 

uptake of E-10 gasoline. Sales of Automotive 

Diesel oil and jet fuel were comparable to target. 

Local Sales (000 bbl) 

Local Market Share 

129 17 

841 

3,531 

1,605 

1,940 

626 

552 

LPG 

87 Gas 

90 Gas 

E-10 

Diesel 

HFO 2% 

HFO 3% 

Asphalt 

Kero/Jet 

% 

100 

80 

60 

40 

HFO 

Turbo Fuel 

LPG Asphalt 

Overall 

ADO 

Total Mogas 

2,891 

20 

2004/05 2005/06 2006/07 2007/08 2008/09 


29


Export Sales 

Export sales were below target by approximately 

700, 000 barrels, due to a reduction in demand 

from the bauxite companies as they reduced and 

closed operations due to the financial crisis. Sale 

of Bunker fuels was also affected as the number of 

ships calling in the port of Kingston was reduced. 

Production 

8.6 million barrels of crude oil were processed to 

produce 8.2 million barrels of finished products. 

This was achieved at an average daily rate of 23.5 

Kb per day compared to target of 26.7 Kb/day. 

Lower than target production was impacted by 

a refinery shutdown of 41 days to effect catalyst 

regeneration and effect major mechanical 

maintenance. 

Safety Performance 

Inherent in our operations are hazards that require 

continuous oversight and control. Therefore 

we continue to be vigilant about our safety 

performance by measuring and monitoring our 

safety performance continuously. 

Export Sales 2008/9 

YTD Coordinator's Crude Target YTD Crude Charge % Productivity 

Volume (kbbl) 

3,500 

3,000 

2,500 

2,000 

1,500 

1,000 

500 

245 

3,186 

1,218 

483 

105 

40 

35 

30 

25 

20 

15 

10 

100 

90 

80 

70 

60 

50 

40 

30 

0 

MGO IFO 380 Jet ADO HFO 3% 

Product 

5 

2004/05 2005/06 2006/07 2007/08 2008/09 

20 

MGO IFO 380 Jet ADO HFO 3% 

Export sales were below target by approximately 700, 000 barrels, due to a reduction in demand 

from the bauxite companies as they reduced and closed operations due to the financial crisis. Sale of 

Bunker fuels was also affected as the number of ships calling in the port of Kingston was reduced. 




Our safety performance in fiscal year 2008/09, 

deteriorated when compared to last year and 

the two previous years in terms of the number 

and cost of incidents. In this year there were 24 

major incidents, which included 13 fires, 10 oil 

spills and 1 referred medical case. We had zero 

lost time incidents. Costs associated with the 

incidents increased from J$1.2 million in 2007/8 to 

approximately J$70 million. 

Two major incidents occurred during the year; 

the atmospheric pipestill tower (T-1) exceeded 

its maximum set pressure and released crude oil 

into the atmosphere. Communities adjacent the 

refinery were affected. The other major incident 

was a fire which occurred when a piece of 

equipment was being removed from the cooling 

tower. The cooling tower was destroyed. The cost 

05/06 06/07 07/08 08/09 

of these two incidents exceeded USD 750,000 

and significantly impacted the safety index. 

The incidents were thoroughly investigated and 

we have implemented and are implementing 

measures to boost plant safety. 

Lost time incidents (YTD) 0 1 2 0 

Incidents with loss of 0 0 0 0 

life (YTD) 

Cost of incident (YTD) J$4.6 M J$3.24M J$1.18M Approx. 

J$70 M 

No. of major incidents: 23 18 21 24 

(fires, oil spills > 1bbl, 

referred medical cases, 

other major incidents) 

Safety Index 

(target is 100 min.) 

60 48 20 20 

In fiscal year 2009/10, we intend to continue 

investing in improving the safety and reliability 

of our operations, therefore, the development 

and implementation of training programmes for 

contractors and employees; 

enforcement of the Process 

Safety 

Management 

Programme; implementation 

of 

recommendations 

from incident reports and 

improvement of mechanical 

integrity of vessels are 

some of the activities being 

undertaken by the company 

to reduce the number of 

incidents. 

Human Resources 

Our employees are among our most significant 

stakeholders. Throughout the year, our HR 

Department continued to maintain an open 

relationship with staff, encouraging interaction, 

thereby minimizing morale issue while keeping 

staff turnover within acceptable levels. 

Negotiations between Management and the 

Petroleum Workers Association (PWA) were lively 

as employees sought adjustments to their wages 

and benefits packages; however, a successful 

settlement without industrial action is expected in 

early 2009/10. 

Management Information System 

The MIS department updated existing systems 

and worked on several efficiency and security 

improvement projects. 

One major project that was undertaken was the 

implementation of the SAP Sales and Distribution 

Module (SAP SD). SAP SD is the module of our 

Enterprise Resource Planning (ERP) system, used to 

manage customer-focused activities, from selling 

to delivery, including sales order and pricing. The 

system will now integrate the sales and billing 

process with the other SAP Modules. It will also 

enable real time retrieval of data on customers’ 

accounts. 

The project is well underway to completion as the 

design and build phases and user acceptance 

testing were completed during the year. The 

project is scheduled to “go live” in September 

2009. 

Of significance was also the development and 

launch of Petrojam’s website www.petrojam.com 

on December 22, 2009. 


31


MAJOR PROJECTS 

• Refinery Upgrade Project (RUP) 

Overview 

Petrojam Limited is currently engaged in upgrading 

its Kingston refinery, from 36,000 to 50,000 barrels 

per day. The overall complexity of the refinery will 

also be significantly increased, with the addition 

of a Catalyst Cracker Reformer (CCR), an Ultra 

Low Sulphur Diesel (ULSD) Hydrotreater, a Delayed 

Coker Unit (DCU) and associated environmental 

and utility units. The upgraded refinery will process 

relatively heavy, lower cost crude than currently 

processed. 

PROJECT UPDATE 

The Refinery Upgrade Project is currently in the 

Front End Engineering Design (FEED) phase, 

from which the basic engineering design and a 

±15% capital cost estimate for the project will be 

obtained. These deliverables will be used as inputs 

to the detailed Engineering, Procurement and 

Construction (EPC) phase, and to raise financing 

for the project 

• FEED study – Work continues on all aspects 

of the FEED study which is 86% complete. Target 

completion date of the FEED is end of May 2009. 

• Environmental Activities – The first 

draft of the Environmental Impact Assessment 

(EIA) report was reviewed by financial and risk 

consultants. An updated report was issued and 

is being reviewed. Submission of the report to 

the National Environment & Planning Agency 

(NEPA) is expected by the first week of May 

2009. Collaboration with JPS on the ambient air 

monitoring programme, to meet the requirements 

of the new Air Quality Control Act continues. The 

Memorandum of Understanding (MOU) is to be 

finalized between JPS and Petrojam Limited. 

• Facilities Preparation – Work continues 

on the plans for upgrading the supporting 

infrastructure facilities (control room, workshop 

etc) in line with the project schedule. Relocation 

of some of the Administrative staff to the new 

Corporate Office facilities has been completed 

with accounting staff to follow by 1st Q2009/10. 

The prequalification exercise is now finished and 

tender documents for execution of repairs to 

the ground floor and building externals have 

been sent to pre-qualified contractors. Financial 

proposals were received on January 2009. RSS 

Engineering was retained to conduct an explosion 

risk assessment study for facilities with respect to 

location of buildings. Further work on this project 

was delayed pending availability of funds to 

complete said project. 

• Land Reclamation – The report from 

the pre-feasibility study was received from the 

Consultant on March 18, 2009 and is being 

reviewed by Petrojam’s technical personnel. The 

Civil consultant is to be advised of the preferred 

option and the way forward for the feasibility 

study on conclusion of the report. 

• Joint Venture Activities – PDVSA continues 

to provide support, however additional personnel 

support has been requested to assist with project 

management and other aspects of the FEED. 

• Jamaica Public Service Company (JPSCo) 

The focus team comprising representatives from 

JPSCo, PCJ and Petrojam agreed on the technical 

aspects of the MOU, which has now been sent for 

legal input. The MOU is required for the supply 

of petcoke, electricity, steam and condensate 

between the parties. 

• Project Economics and Financing 

The latest project Capital Expenditure (CAPEX) 

estimate obtained from SNC Lavalin is 

approximately US$758 million excluding owner’s 

costs. This latest estimate is still being refined. Ernst 

and Young have, indicated that the refinery cash 

flows will not be able to service the debt load of 

the current total project cost estimate ($1.1 – 1.6 

billion) including financing costs, in the 70/30 debt 

to equity ratio assumed. The Board of Directors 

(BOD) have subsequently approved a Value 

Engineering Exercise to be undertaken with the 

objective of identifying opportunities for reducing 

the cost of the project. 




• Ethanol in Gasoline (E-10 Project) 

The project involves the installation of a new 

loading bay at the Montego Bay Loading Terminal 

and modification of the loading bays at the 

Kingston Loading Terminal in order to facilitate 

the expected increase in sales volume for E-10 

(87& 90) gasoline. Detailed mechanical & process 

engineering designs were completed for changes 

to Montego Bay and Kingston Industrial Loading 

Racks (KILR). Conversion of KILR to enable delivery 

of E-10 from 4 bays versus 2 bays is scheduled to 

be completed by end of May 2009. All aspects of 

the project are scheduled to be completed by 

the end of October 2009. 

23,500 barrels of crude oil per day to Jamaica at 

world market prices. In addition, the Agreement 

Since the commencement of the initiative in July 

2005 to the end of March 2009, a total of US$ 

also allowed a favourable purchasing/loan 804 million in concessional financing has been 

arrangement for Jamaica to purchase a mix provided to the Government of Jamaica. 

of finished products and crude oil at prevailing 

prices, and to convert 40% of payment due to a 

loan at a 1% interest rate over 25 years. 

MAIN PERFORMANCE TARGETS FOR FINANCIAL 

YEAR 2009/10 

Below is a summary of the main performance targets. 

Performance Targets 2009/10 

Performance Measure Target 2009/10 

FINANCIAL Gross Margin Ratio 6.19% 

Profit before tax 

$770,161 mil 

ROCE 5.18% 

Rehabilitation of the Kingston Terminal (EKT) 

This project is well underway as civil rehabilitation 

of the ESSO dock was completed. Major 

electrical design for the rehabilitation works was 

also completed. We await Cabinet decision on 

awarding the construction services contract 

to proceed with installation of piping between 

land and the rehabilitated dock. Commissioning 

of product piping including electrical work is 

expected in July 2009. 

PETROCARIBE 

Under the PetroCaribe Energy Cooperation 

Agreement, negotiated between the 

Governments of Venezuela and Jamaica in 

2005, it was agreed that Venezuela would supply 

CUSTOMER/MARKET Local Mkt. Share 85% 

Export Volume 

5,985 Kbbls 

Customer Satisfaction 80% 

Delivery Downtime 


33 

0 days 

INTERNAL BUSINESS Gross Margin US$3.51/b 

ORGANIZATIONAL 

EFFECTIVENESS, LEARNING 

& GROWTH 

Productivity 

Oil Loss 

EII 

Service Factor 

Safety Index 

95% min 

0.4% max 

96 max 

88.5% min 

100 min 

Environmental Compliance 66% 

Receivables Past Due 

Maintenance Expenses 

Other Admin Expenses 

Employee Satisfaction Index 

Training Hours per 

employee 

5.0% max 

US$0.33/b 

US$2.00/b 

80% min 

40 min

W I G T O N W I N D FA R M L I M I T E D 

A n n u a l R e p o r t F i n a n c i a l Y e a r 2 0 0 8 - 2 0 0 9 

The new Wigton Board was appointed in July 2008 

and convened the first meeting on August 27, 

2008. 

At this meeting the Board reviewed past 

performances of Wigton and concluded that the 

company was only able to remain in operation 

because of the financial support provided by 

parent company PCJ. Over the period, from 

its inception to the end of the financial year – 

2008/2009 PCJ had provided US$4.2M in financial 

support. 

The losses being sustained by Wigton was the result 

of two factors, the first being the extremely low 

rate paid by JPSCo, which in accordance with the 

Power Interchange Agreement (PIA) was to be 

reduced even further after the first five years of the 

20 year life of the agreement. The second factor 

was the high penalties being imposed by JPSCo 

for reactive power. The Board was of the view that 

this situation could not continue and gave priority 

to addressing first, the matter of reactive power. In 

as much as the price paid by JPSCo is contractual, 

it was felt that an increase would only be possible 

with Ministerial Intervention. 

Priority was also given to the development of 

Wigton 2, for which a down payment was made 

and a commitment given by PCJ. Given these 

challenges the Board decided that Wigton 

required the services of full time management 

as well as the need for an experienced electrical 

engineer/Operations Manager to be on staff and 

located on site at the wind farm in Manchester. 

Discussions with JPSCo for an upward adjustment 

in the rate paid to Wigton for the electricity have 

taken a positive turn with an offer of US 8¢ /kWh. It 

is expected that a new agreement will be signed 

in the first quarter of the financial year 2009/2010. 

Wigton has been charged for reactive power 

importation on an industrial customer demand 

charge basis from JPSCo since inception. In 

August 2008, Wigton worked with the capacitor 

bank installation company, QVARx and the wind 

farm designer, RES, and a reconfiguration of the 

capacitor banks was done in September 2008. 

This solution eliminated the frequent switching 

and associated transients, resulting in better 

operational performance from the system and 

kVA imported 

10000.0 

8000.0 

6000.0 

4000.0 

2000.0 

0.0 

a reduction in JPSCo demand as shown in figure 

below. 

Also, in October 2008, a selective tender process 

was conducted for a consultant electrical 

engineer to assess the demand charges and 

system configuration at Wigton and Ryan 

Ebanks, Orchard Electrical was selected. He 

recommended that Wigton keep the current 

configuration with the 2 steps always on and pursue 

a system and technology study to determine if a 

dynamic reactive power compensation system 

will add value to Wigton’s operations. Since 

December 2008, Wigton has also been working 

with a consultant who is of the view that JPSCo’s 

methodology for demand charges at Wigton is 

incorrect. Therefore, discussions with JPSCo are 

ongoing and a resolution is anticipated in financial 

year 2009-2010. 

Monthly Actual (Peak) and Billed Reactive Power Importation 

Capacitor bank installed 

Capacitor bank 

reconfiguration 


Actual Peak 

Billed 


W I G T O N W I N D FA R M L I M I T E D C O N T D . 

An application was made to the Office of Utilities 

Regulation for a Licence to connect and sell the 

power from the expansion to Jamaica Public 

Service Company. At the end of the period of 

public consultation it is expected that the Licence 

will be granted. 

All the contracts for supply, installation and 

commissioning of the expansion equipment have 

been finalized. Plans are being developed for 

ground breaking ceremony in July, 2009. 

Report of Board of Directors 

Operations - For the financial year 2008/2009 the 

operational objectives were to: 

• Expand the Wigton Wind farm. 

• Pursue feasibility of low wind technology 

through a demonstration project. 

• Continue Wind data collection. 

• Develop Staff Capacity in renewables. 

• Negotiate Carbon Credits through wind 

farm expansion. 

• Develop a small hydroelectric plant. 

Achievements - The key achievements are 

discussed in the items below. 

i. Diversification of Jamaica’s energy mix 

• Wind represents approximately 2.5% of 

Jamaica’s energy mix with renewable 

(wind and hydro) representing 

approximately 5% of installed capacity. 

ii. Environmental Benefits 

• Wigton wind farm is a clean development 

mechanism registered project and based 

on actual production between April 

2008 and March 2009 the emission of 

approximately 38,306 tonnes of carbon 

dioxide (CO2, a greenhouse gas) have 

been avoided. Since commencement to 

March 2009, 208,934 tonnes CO2 emissions 

have been avoided, thus 147,365 barrels of 

oil import have also been avoided which 

translates to savings of US$9,495,978 1 in the 

nation’s oil import bill. 

iii. Technology Transfer 

• Local technicians (university graduates) 

trained in the field of wind energy and 

substation operations. 

• A summer internship programme was 

conducted with 2 university students. 

• Technical assistance was offered to the 

Port Authority as a potential wind site as 

well as an MOU was executed with the 

Munro Dickensen Trust to develop the 

Munro College site. 

iv. Expansion 

• Wigton Windfarm Limited obtained 

government approvals for an 18 MW 

expansion of the Wigton facility. The contracts 

have been developed and negotiated with 

suppliers. 

• The project is in train but construction did not 

commence during the financial year due 

to delays with the approvals and financial 

closing process partially due to the economic 

downturn in market conditions. 

v. Carbon Credits 

• Based on an executed Emission Reduction 

Purchasing Agreement (ERPA) between WWFL 

and the Kingdom of the Netherlands, Wigton 

Windfarm Limited has successfully sold carbon 

credits realized from the operation of the 

plant between April 29, 2004 and March 31, 

2009. The term of the contract is nine years at 

a price of Euro 5.5 per ton of carbon dioxide. 

• As the design of the Wigton expansion has 

not been completed, the negotiations for 

carbon credits for the expanded plant were 

postponed to financial year 2009/2010. 

vi. Small Hydroelectric Plants (SHP) 

• Wigton Windfarm Limited short-listed three 

(3) hydropower development companies 

as potential partners for hydroelectric 

development and invited the companies to 

participate in a Request for Proposal process 

in December 2008 for the development of 

4 MW of hydropower within 2 years and a 

long term plan for the development of an 

additional 20 MW. 

• Only one proposal was received from BPR Canada 

and the proposal was evaluated in May 2008. 

1 Using US$ per barrel of oil as follows 2004/05: $36, 2005/06: $51, 2006/07: $61, 2007/08: 80, 2008/09: $ 93 


35


• Wigton Windfarm Limited Board of Directors 

subsequently directed that Wigton 

would focus on wind projects and hydro 

development was to be transferred to the 

Petroleum Corporation of Jamaica - Centre 

of Excellence for Renewable Energy. 

vii Wind Mapping 

• Wigton Windfarm Limited started wind data 

collection at Great Valley - Manchester, 

Hellshire Hills – St. Catherine and Munro – 

St. Elizabeth during 2008. These sites were 

selected as high potential areas for further 

study based on an electronic wind map of 

the island previously procured by Wigton 

Windfarm. For bankable project data, at least 

one year of on-site wind data collection is 

recommended. Therefore, for these sites, one 

year of data collection will be obtained in the 

summer of 2009. 

• Wigton Windfarm Limited Board of Directors 

recommended that Petroleum Corporation 

of Jamaica - Centre of Excellence for 

Renewable Energy (PCJ-CERE) continue wind 

mapping of the island. Wigton Windfarm had 

selected over 25 high potential wind sites for 

further study. Therefore, PCJ- CERE is in the 

process of procuring equipment to conduct 

these studies. 

viii Research Collaboration 

• Wigton Wind Farm Limited and the Petroleum 

Corporation of Jamaica – Centre of Excellence 

for Renewable Energy signed a Memorandum 

of Understanding with the University of the 

West Indies, Mona in July 2008 for Research 

and Development in Renewable Energy. The 

work programme is being determined. 

ix Wigton Plant Production 

• Wigton supplied the following kilowatt hours 

of energy (kWh) to the JPSCo grid: 

Proposed Change in the nature and scope of 

Activities of the Company 

• During the year, the Board of Directors took 

the decision that the Wigton operational plan 

should be adjusted to place emphasis on the 

current wind farm and the 18 MW expansion 

same. The hydro project development 

and wind mapping were to be assigned to 

Petroleum Corporation of Jamaica, Centre of 

Excellence for Renewable Energy (CERE). 

Year kWh sold to grid Electricity Production 

Income US$M 

April 2004 – March 2005 44,204,036 2.48 

April 2005 – March 2006 51,433,650 2.89 

April 2006 – March 2007 55,734,200 2.94 

April 2007 – March 2008 53,216,750 2.94 

April 2008 – March 2009 45,930,100 2.57 

Total 250,518,736 13.82 

Modification to Corporate Plan 

• The proposed modification to the 3 year 

corporate plan 2008-2010 is for Wigton to 

focus on wind energy and remove the hydro 

development projects. 




Performance Review 

Priority Policy 

Issues 

Small Hydro 

Wind Energy 

Objectives 

Construct 2MW 

Laughlands Great 

River Hydro project. 

The project budget is 

US$4.1Million. 

18 MW expansion on 

Wigton Lands (phase 

II). Project budget is 

US$ 49.9 Million. 

Major Tasks, Targets and Resources 

First Quarter Second Quarter Third Quarter Fourth Quarter 

April 1 – June 

30, 2008 

Wigton conducted 

an EOI and RFP 

process and 

obtained 1 bidder, 

SCP Canada. 

However, as the 

O.U.R. posted a 

Renewable Energy, 

RFP in March 2008, 

with a deadline 

date of July 24, 

2008, the PCJ Group 

decided to await the 

outcome of this RFP. 

The 18MW expansion 

was endorsed/ 

approved by the 

Board of Directors 

of PCJ and 

National Contracts 

Commission. 

However, Wigton 

Windfarm Limited 

(WWFL) was awaiting 

final approval 

from Cabinet 

to commence 

negotiations and 

supply contract 

agreements. 

Jul 1 – Sep 30, 

2008 

Oct 1 – Dec 31, 

2008 

Jan 1 – Mar 31, 

2009 

WWFL Board of Directors has instructed the Wigton team not to 

pursue hydro or any other RE at this time, but to only focus on Wind 

energy development. 

Cabinet approved 

the Wigton expansion 

project. PIA 

discussion underway 

at the board level. 

Loan agreement was 

pursued. Reservation 

fee to secure turbines 

was paid. 

Contract 

negotiations started 

with Vestas to provide 

a turnkey service 

for the wind farm 

expansion. Cabinet 

submission for long 

term financing 

from PetroCaribe 

Development Fund. 

Negotiations to close 

the Wind Turbine 

Equipment contracts 

with Vestas were 

ongoing during the 

quarter. Approval 

obtained for long 

term financing from 

the PetroCaribe 

Development fund 

from the cabinet and 

Office of the Prime 

Minister received 

in February 2009. 

Solicitor General 

and MOFP indicated 

that PCJ could offer 

a Parent Company 

Guarantee required 

by Vestas. NEPA 

permit obtained. 


37


Priority Policy 

Issues 

Wind Energy 

Wind Energy 

Capacity 

Development 

Objectives/ 

Demonstration 

project to investigate 

and test low wind 

technology wind 

turbines for an 

estimated 4 MW 

project. The project 

budget is US$9.6 

Million. 

Study additional sites 

across the island for 

wind farm expansion 

using 20 met. Stations. 

The project budget is 

US$ 0.43 Million. 

Capacity building 

of WWF staff, to 

ensure continued 

productivity and 

sustainability of 

WWFL’s operations 

through professional 

and personal 

development. 

Projected budget is 

J$1.645Million. 

Collaboration with 

tertiary institutions 

in joint R&D of 

Renewable Energy. 

Projected cost is 

J$1Million. 

WWFL commenced 

discussion with 

the Port Authority 

of Jamaica to 

access their site for 

wind energy. Civil 

Aviation Authority 

has approved the 

site. WWFL applied 

for grant funding to 

support the project; 

however, WWFL 

awaits the responses. 

WWFL installed three 

wind measuring 

instruments on three 

sites and also applied 

for grant funding to 

procure additional 

wind measuring 

equipment. 

Generation switching 

certification for 

engineering 

technicians on site. 

Training seminars &/ 

or workshops for 

Accounting, Human 

Resource Front-Line 

& Operations Staff. 

Local Conferences. 

Recruitment and 

selection of 3 tertiary 

level students to 

enter summer 

internship program 

and 2 for year-long 

program. 


Major Tasks, Targets and Resources 

Application made to 

the IADB Sustainable 

Energy and Climate 

Change Initiative 

(SECCI) for funding. 

Permission to 

collect data has 

been granted for 

Hellshire Hills, Munro 

and, Great Valley. 

Application made to 

the IADB Sustainable 

Energy and Climate 

Change Initiative for 

funding. 

One employee 

completed cross 

training in September. 

SECCI unable to 

fund project at 

this time; however, 

the PetroCaribe 

Development fund 

has indicated a 

partial fund for this 

initiative. Awaiting 

final confirmation. 

Data collection was 

ongoing at Munro 

and Great Valley. 

Subsequent board 

decision called for 

further wind studies 

to be conducted by 

PCJ’s-CERE; however 

the application 

is currently under 

review. 

One employee 

commenced 

rotational training on 

Oct 8, through to end 

of quarter. 

No grant funding 

has been obtained. 

However, Wigton 

met with several 

companies 

interested in setting 

up pilot projects 

in Jamaica to test 

low wind speed 

wind technologies. 

However, a policy 

is being crafted 

by the PCJ to 

streamline and bring 

transparency to how 

such companies and 

technologies are 

selected. 

Data collection was 

ongoing at Munro 

and Great Valley and 

now managed by 

PCJ’s-CERE. 

One employee 

commenced 

rotational training on 

Jan. 25, 2009 through 

to end of quarter. 

Two employees 

attended an 

Occupational Health 

and Safety Workshop 

and two employees 

attended HIV 

sensitization training. 

Board decision called 

for further wind 

studies and feasibility 

assessment to be 

conducted by PCJ’s- 

CERE. 



Forecasts and Projection of Key Financial and Operating Measures for 2009-10 

FINANCIAL PERFORMANCE FOR THE YEAR 2008/2009 

Purpose 

Actual 

Ja$’000 

Budgeted 

Ja$’000 

Variance 

Ja$’000 

General Administrative Expenses: 203,203 226,360 23,157 

Inclusive of utilities, staffing, taxes, 

insurance, stationery, maintenance, 

professional fees, project management, 

business charges, community outreach, 

board expenses and depreciation 

Project Expenses: Including contracted 320,765 101,149 (219,615) 

services and purchases, seminars, 

regulatory fees, finance charges and 

promotions. 

Total 523,968 327,509 (196,458) 

OPERATING MEASURES FOR 2009-2010 

• Execute a Power Purchase Agreement for an 

expanded wind farm. 

• 70% Completion of the 18 MW expansion 

(estimated commissioning is July 2010). 

• Secure a relationship for carbon credits 

trading for the additional production. 

• Obtain a rate increase to enable financial 

viability of both the 20.7 MW wind farm and 

the expanded facility. 

• Develop a policy for joint venture partnering 

to develop Wigton phase III. 

Notification of Payment of Dividends 

• Not Applicable 

BUDGETARY PROPOSAL FOR FINANCIAL YEAR 2009/2010 

Purpose 

Budgeted Ja$’000 

General Administrative Expenses: 

Inclusive of utilities, staffing, taxes, 

insurance, stationery, maintenance, 

247,789 

professional fees, project management, 

business charges, community outreach, 

board expenses and depreciation 

Project Expenses: Including contracted 

services and purchases, seminars, 

324,302 

regulatory fees, finance charges and 

promotions. 

Total 572,091 


39

p c j : d i r e c t o r s ’ c o m p e n s a t i o n 2 0 0 8 - 2 0 0 9 

PETROLEUM CORPORATION OF JAMAICA: DIRECTORS COMPENSATION [2008/2009] 

Position of Director 

Fees 

($) 

per meeting 

Motor Vehicle 

Upkeep/Travelling 

or 

Value of Assignment 

of Motor Vehicle 

($) 

Honoraria 

($) 

All Other 

Compensation 

including Non-Cash 

Benefits as 

applicable 

($) 

Total 

($) 

Ian Moore 

Chairman 

16,000 N/A N/A N/A 16,000 

Wenworth Charles 8,500 N/A N/A N/A 8,500 

Don Creary 8,500 N/A N/A N/A 8,500 

Jean Dixon, Ph.D. 8,500 N/A N/A N/A 8,500 

Russell Hadeed 8,500 N/A N/A N/A 8,500 

Karl James 8,500 N/A N/A N/A 8,500 

Kathryn Phipps 8,500 N/A N/A N/A 8,500 

Ruth Potopsingh, Ph.D. 8,500 N/A N/A N/A 8,500 

William Saunders 8,500 N/A N/A N/A 8,500 

Glenford Watson 8,500 N/A N/A N/A 8,500 



p c j : e x e c u t i v e s ’ c o m p e n s a t i o n 2 0 0 8 - 2 0 0 9 

PETROLEUM CORPORATION OF JAMAICA: SENIOR EXECUTIVE COMPENSATION [2008/2009] 

Position of Director 

Salary 

($) 

Motor Vehicle 

Upkeep/Travelling 

or 

Value of Assignment 

of Motor Vehicle 

($) 

Honoraria 

($) 

All Other 

Compensation 

including Non-Cash 

Benefits as 

applicable 

($) 

Total 

($) 

Group Managing Director 9,075,656 3,818,988 N/A 2,052,340 14,946,984 

Deputy Group Managing 

Director 

Group Chief Technical 

Director 

Group Chief Financial 

Officer 

Manager, Renewable 

Energy 

6,847,215 2,843,250 N/A 1,607,689 11,298,154 

6,622,275 1,206,679 N/A 962,841 8,791,795 

3,437,498 497,813 N/A 105,875 4,041,186 

5,750,460 3,812,772 N/A 1,329,695 10,892,927 

Group Policy Manager 5,178,317 348,469 N/A 142,424 5,669,210 

Notes 

1. Where a non-cash benefit is received (e.g. government housing), the value of that benefit shall be quantified and stated 

in the appropriate column above. 


41

p e t r o j a m : d i r e c t o r s ’ c o m p e n s a t i o n 2 0 0 8 - 2 0 0 9 

DIRECTORS COMPENSATION 

Position of Director 

Angus Gordon 

Chairman 

Fees 

($) 

per meeting 

Motor Vehicle 

Upkeep/Travelling 

or 

Value of Assignment 

of Motor Vehicle 

($) 

Honoraria 

($) 

All Other 

Compensation 

including Non-‐Cash 

Benefits as applicable 

($) 

16,000 N/A N/A N/A 16,000 

Leslie Campbell 8,500 N/A N/A N/A 8,500 

Total 

($) 

Audley Darmand, 

Ph.D. 

8,500 N/A N/A N/A 8,500 

Andrew Warwar 8,500 N/A N/A N/A 8,500 

Glenford Watson 8,500 N/A N/A N/A 8,500 

Notes 

1. Where a non-‐cash benefit is received (e.g. government housing), the value of that benefit shall be quantified and stated in the 

appropriate column above. 

2. Overseas Directors are not paid for meetings. 

3. A fee of $25 per km is paid to Directors for attendance to and from Meetings. This amount is paid upon receipt of Travelling and 

Subsistence Claim Form. 

SENIOR EXECUTIVE COMPENSATION 



p e t r o j a m : s e n i o r e x e c u t i v e s ’ c o m p e n s a t i o n 2 0 0 8 - 2 0 0 9 

SENIOR EXECUTIVES’ COMPENSATION 

PETROJAM LIMITED 

Position of Senior 

Executive 

General 

Manager 

Manager , Logistics & 

Marketing 

Salary 

($) 

Gratuity or 

Performance 

Incentive 

($) 

11,092,944 According to 

Company Profit 



Travelling 

Allowance 

or 

Value of 

Assignment 

of Motor 

Vehicle 

($) 

Pension 

or 

Other 

Retirement 

Benefits 

($) 

738,300 1,109,294 

(10% of basic 

salary) 

738,300 749,790 


salary) 

Other 

Allowances 

($) 

909,621 

Saving plan -‐8.2% 

of basic salary 

614,827 



Non-‐Cash 

Benefits 

($) 

Total 

($) 

140,000 13,990,159 

318,000 

(gasoline 

subsidy) 

9,918,817 

Manager , Strategic 

Planning 

Manager, Safety, 

Environ. & Quality 

Assurance 

Manager, Technical 

Services 

Manager, Refinery 

Production 









Manager, HRD & A 5,499,996 According to 


Notes 

738,300 717,381 


salary) 

738,300 $680,000 


salary) 

738,300 648,880 


salary) 

738,300 596,166 


salary) 

738,300 549,997 


salary) 

588,252 



557,600 



532,082 



488,856 



450,997 



318,000 

(gasoline 

subsidy) 

318,000 

(gasoline 

subsidy) 

318,000 

(gasoline 

subsidy) 

318,000 

(gasoline 

subsidy) 

318,000 

(gasoline 

subsidy) 

8,889,749 

8,069,404 

8,726,070 

7,784,982 

7,557,290 

1. Where contractual obligations and allowances are stated in a foreign currency, the sum in that stated currency must be clearly provided and not the Jamaican 

equivalent. 

2. Other Allowances (including laundry, entertainment, housing, utility, etc.) 

3. Where a non-‐cash benefit is received (e.g. government housing), the value of that benefit shall be quantified and stated in the appropriate column above. 


43

p e t r o j a m e t h a n o l l i m i t e d : 

d i r e c t o r s ’ C o m p e n s a t i o n 2 0 0 8 - 2 0 0 9 

DIRECTORS COMPENSATION 2008/2009 


William Saunders 

Chairman 

Karl James 

(Past Chairman) 

Fees 

($) 

(per annum) 



or 



($) 

Honoraria 

($) 

All Other 

Compensation 



($) 

132,500 N/A N/A N/A 132,500 

32,000 N/A N/A N/A 32,000 

Total 

($) 

Jean Dixon, Ph.D. 66,375 N/A N/A N/A 66,375 

Noel Osbourne 83,500 N/A N/A N/A 83,500 

Ruth Potopsingh, Ph.D. 17,000 N/A N/A N/A 17,000 

Winston Watson 71,500 N/A N/A N/A 71,500 

Notes 





p e t r o j a m e t h a n o l l i m i t e d : 

e x e c u t i v e s ’ C o m p e n s a t i o n 2 0 0 8 - 2 0 0 9 

SENIOR EXECUTIVE COMPENSATION 

Position of 

Senior 

Executive 

General 

Manager 

Salary 

($) 

Gratuity or 

Performance 

Incentive 

($) 

Travelling 

Allowance 

or 

Value of 

Assignment 

of Motor 

Vehicle 

($) 

Pension 

or 

Other 

Retirement 

Benefits 

($) 

Other 

Allowances 

($) 

Non-‐Cash 

Benefits 

($) 

Total 

($) 

5,375,480 697,907 379,599 347,767 N/A N/A 6,800,753 

Notes 

1. Where contractual obligations and allowances are stated in a foreign currency, the sum in that stated currency must be clearly 

provided and not the Jamaican equivalent. 

2. Other Allowances (including laundry, entertainment, housing, utility, etc.) 




45

p e t c o m : d i r e c t o r s ’ c o m p e n s a t i o n 2 0 0 8 - 2 0 0 9 

PETROLEUM COMPANY LIMITED – DIRECTORS’ COMPENSATION [2008/2009] 

Director 

Russell Hadeed 

Chairman 

Fees 

($) 

per annum 



or 



($) 

Honoraria 

($) 

All Other 

Compensation 



($) 

Total 

($) 

174,000 N/A N/A N/A 174,000 

John Brennan 135,650 96,400 N/A N/A 232,050 

Dwight Crawford 67,000 72,300 N/A N/A 139,300 

Desron Graham 91,000 N/A N/A N/A 91,000 

Karen Lawson 53,000 N/A N/A N/A 53,000 

Marcia Lee 104,500 N/A N/A N/A 104,500 

Leopold Nesbeth 85,500 N/A N/A N/A 85,500 

Ruth Potopsingh, 

Ph.D. 

56,500 N/A N/A N/A 56,500 

Robert Russell 108,100 60,250 N/A N/A 168,350 

Carlene Sinclair 141,000 N/A N/A N/A 141,000 

Conroy Watson 58,000 N/A N/A N/A 58,000 



w i g t o n w i n d fa r m l i m i t e d : 

d i r e c t o r s ’ c o m p e n s a t i o n 2 0 0 8 - 2 0 0 9 

 

WIGTON WINDFARM LIMITED’S DIRECTORS COMPENSATION 


William Saunders 

Chairman 

Fees 

($) 

per annum 



or 



($) 

Honoraria 

($) 

All Other 

Compensation 


Benefits as 

applicable 

($) 

Total 

($) 

112,000 N/A N/A N/A 112,000 

C. Lloyd Allen 87,500 5,600 N/A N/A 93,100 

Jean Dixon, Ph.D. 42,500 N/A N/A N/A 42,500 

Richard Hector 84,000 62,669.25 N/A N/A 146,669.25 

Ruth Potopsingh, 

Ph.D. 

61,500 N/A N/A N/A 61,500 

George Ho Sang 126,000 9,875 N/A N/A 135,875 

Timothy Scarlett 75,500 46,868 N/A N/A 122,368 


47

w i g t o n w i n d fa r m l i m i t e d : 

e x e c u t i v e s ’ c o m p e n s a t i o n 2 0 0 8 - 2 0 0 9 

WIGTON WINDFARM LIMITED’S SENIOR EXECUTIVE COMPENSATION 

Position of 

Senior 

Executive 

General 

Manager * 

Salary 

($) 

Gratuity or 

Performance 

Incentive 

($) 

1,712,500 N/A 

Travelling 

Allowance 

or 

Value of 

Assignment 

of Motor 

Vehicle 

($) 

N/A – Vehicle 

on loan by 

Parent 

Company 

Pension 

or 

Other 

Retirement 

Benefits 

($) 

Other 

Allowances 

($) 

Non-‐Cash 

Benefits 

($) 

Total 

($) 

N/A 61,825 N/A 1,774,325 

*General Manager joined Wigton in January 2009; therefore, amounts shown are prorated to March 2009.

PCJ Group Annual Report 2009 - Petroleum Corporation Of Jamaica

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