2007 - Central Bank of Trinidad and Tobago

CENTRAL BANK OF TRINIDAD & TOBAGOANNUAL ECONOMIC SURVEY 2007acceptable sugar content. As a consequence, SMCLproduced 25.3 thousand tonnes of raw sugar for the2007 crop season, which represented a decline of 27.5per cent from 2006.BOX 1DEVELOPMENTS IN THE ENERGY SECTORPetroleum• In 2007, the Production Sharing Contract (PSC) applicable to the ultra-deep horizons as well as theonshore/nearshore auction was significantly revised requiring companies to pay a PetroleumProfits Tax (PPT), an Unemployment Levy, a Green Fund Levy and a Withholding Tax directly tothe Board of Inland Revenue. In the auction for the eleven onshore/nearshore blocks, twelvecompanies submitted bids. However, no bids were received for the two Herrera blocks orfor the North Coast Marine Area (NCMA). Some analysts have suggested that the changesto the Production Sharing Contract could have impacted the response to these auctions.• The Ministry of Energy intends to offer for auction the seven blocks leftover from the Trinidad DeepAtlantic Area (TDAA) sometime in 2008. Poor geological information and adverse fiscal termswere advanced for the failure of the previous bid round. As such, the Ministry may be preparedto sanction a 3D seismic survey in order to encourage companies to bid. (Energy Caribbean)• Production Sharing Contracts were signed with Tullow Oil (formerly Hardman Oiland Gas) for the Guayaguayare Shallow Horizon and the Guayaguayare DeepHorizon blocks. The blocks hold prospects for both oil and natural gas discoveries.20