The Trinidad and Tobago government has reaped US$3.4 billion (TT$21 billion) in oil taxes and royalty from BP Trinidad and Tobago (BPTT).

The revenue, covering more than two years of receipts - January 2007 to March 2009 - reflect payments on the petroleum profit tax, unemployment levy and supplemental petroleum tax on its revenue from crude oil and condensate production.

BPTT's net profit from its hydrocarbon production is also subject to additional taxes including the green-levy fund, petroleum levy, petroleum impost and deemed remittance tax.

"Based on the company's overall tax and royalty payment under its exploration and production licence, BPTT's average tax payment on its net profit is 70 cents for every TT dollar earned by the company," said BPTT, a subsidiary of BP Global.

BPTT accounts for about 55 per cent of Trinidad and Tobago's national hydrocarbon production and continues to contribute approximately 25 per cent of annual national revenue.

The company, whose production portfolio is primarily natural gas, said it is faced with natural gas prices that are 56 per cent lower than 2008 prices while its operating and development costs have increased significantly over the last five years.

Costs increased 12 per cent

Unit operating costs have increased by 12 per cent per annum, while the cost of developing reserves has increased by 42 per cent per project.

"As a result of this inflated operating and development-cost profile, which is not yet reflecting the decrease in commodity prices and the cost of raw material in the international market, BPTT's focus in 2009 and beyond is on increasing efficiency in the way we work, managing our margins and our costs to ensure we continue to deliver value for the global BP organisation and the country," the company said.

As a major contributor to the country's revenue, BPTT said it recognises the urgency and importance of maintaining its competitiveness during the economic downturn and was already seeing the positive impacts of its efforts to increase efficiency and which will ensure the company is in a strong position when economic growth returns and for the future.

BPTT's 2008 production totalled 457,000 barrels of oil, equivalent, per day. Some 96 per cent of production was natural gas and 4.0 per cent crude oil and condensate.

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