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Trinity Exploration & Production welcomes “good news” Trinidad tax plans

Published: 15:41 03 Oct 2017 BST

oil and gas operations
Tax changes could boost the bottom line economics and the company's valuation

Trinity Exploration & Production PLC (LON:TRIN) has highlighted that its business may be boosted by new tax proposals in Trinidad.

The company, in a stock market statement, highlighted passages from Monday’s budget statement which specifically discusses changes to the regime.

“We have started a review of the energy tax regime in order to simplify and rationalise the terms of both Production licences and Production Sharing contracts. The main objectives of this reform are to encourage investment in the energy sector and raise the Government's revenue-take,” the government said.

It noted that the government seeks to make supplemental petroleum taxes responsive to underlying profitability, rather than oil prices, and it intends to extend the supplemental tax to cover gas.

The plan is also to reconcile and simplify fiscal regimes for exploration and production sharing systems, and it wants to standardise royalty rates on crude oil, condensate and gas.

Bruce Dingwall, Trinity chief executive, said: "This could prove to be an extremely important change for the company in terms of bottom line economics and company valuation. 

“The government is aligned with Trinity in seeking to increase oil production and once the terms of the changes to SPT are clear we will then be in a position to quantify what the effect on the company will be. “

"On the face of it this announcement looks like good news and we continue to work hard on building on the strong first half and look forward to updating the market further in due course."

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