分类： business

The Court of Appeal has deferred its decision on an appeal lodged by Eastman Enterprises Ltd, a former contractor of the Cepep Company, challenging a High Court order to halt its lawsuit. The lawsuit pertains to the termination of over 300 contracts by Cepep shortly after the April 28 general election. Justices Peter Rajkumar, James Aboud, and Ricky Rahim heard arguments on October 31 before reserving their ruling. The central issue revolves around whether the High Court was correct in staying Eastman’s lawsuit due to an alternative dispute resolution (ADR) clause in the contract. Eastman’s legal team, led by Larry Lalla, SC, argued that the trial judge erred by treating the ADR clause as mandatory and failing to consider the contractor’s right to seek urgent injunctive relief. Lalla emphasized that a mediator could not grant such emergency relief and contended that the referral to the Director of Public Prosecutions (DPP) was premature. Representing Cepep, Anand Ramlogan, SC, defended the trial judge’s decision, asserting that the ADR process should precede court intervention and highlighting the alleged $1.4 billion in unauthorized contract extensions. The appeal stems from a High Court ruling by Justice Margaret Mohammed, who stayed Eastman’s lawsuit in August, directed case documents to the DPP, and ordered Eastman to pay Cepep’s legal costs. Eastman seeks to have its lawsuit and injunction application returned to the High Court, a declaration that the DPP referral was improper, and, if successful, for the Appeal Court’s decision to be forwarded to the DPP. The case underscores broader concerns over contract management and dispute resolution in public procurement.

Energy Minister Dr. Roodal Moonilal has assured that the Manatee gas project remains on track and secure, despite recent statements from Venezuelan officials. Speaking on the matter, Moonilal emphasized that infrastructure developments related to the project are ongoing, with continued collaboration with Shell and other stakeholders to expand gas production from Manatee. When questioned about his interactions with Venezuelan officials, Moonilal clarified that all discussions are conducted through diplomatic channels and state-to-state relations, facilitated by the Ministry of Foreign and Caricom Affairs. He reiterated Prime Minister Kamla Persad-Bissessar’s stance, highlighting that Trinidad and Tobago is not reliant on Venezuelan gas. The country has a robust strategy for oil and gas exploration, particularly with Heritage Petroleum onshore and several multinationals offshore. Moonilal also noted that there are currently no commercial ties with Venezuela regarding gas, and no financial losses are being incurred. The Manatee project, part of the Loran-Manatee field agreement reached in 2019, is expected to commence production in 2027, with a peak output of 104,000 barrels of oil equivalent per day. Additionally, Moonilal addressed Nutrien’s recent shutdown in Trinidad and Tobago, stating that the company remains interested in future investments, particularly in the agricultural sector, with further discussions anticipated in the coming days.

The escalating tensions between the United States and Venezuela, coupled with the presence of warships in the region, have sparked widespread concern in Trinidad and Tobago (TT). The economic implications of such conflicts are profound, as highlighted by a recent study from Germany’s Kiel Institute. Analyzing data from over 150 wars since 1870, the study reveals that war zones experience a 30% decline in GDP and a 15% rise in inflation over five years. Neighboring countries, even if not directly involved, face a 10% GDP drop and a 5% inflation increase. For TT, these figures are particularly alarming due to its close economic ties with Venezuela, which has already suspended energy deals with TT. The energy sector is a cornerstone of TT’s economy, and the suspension has already impacted local fishermen and businesses. The country, still recovering from an 8.8% economic contraction in 2020 due to the COVID-19 pandemic, cannot afford another significant downturn. A 10% decline in output would devastate households, businesses, and the broader social fabric. Moreover, TT’s relationship with Venezuela is strained, with the latter declaring TT’s Prime Minister persona non grata. This tension could lead to a loss of confidence among Caricom members and investors, further destabilizing TT’s economy. While some large economies, like the US, Russia, and Israel, have historically grown during wars, smaller neighboring countries bear the brunt of the economic fallout. The presence of the USS Gravely in TT underscores the region’s volatility. As Dr. Jamelia Harris, an economist, aptly notes, ‘Nobody wins a war,’ yet the economic and social costs for smaller nations like TT are disproportionately high.