By Curtis Williams, Express TT

A conflict is brewing between Prime Minister Patrick Manning and technocrats in the Ministry of Energy over the PM’s decision to overrule them in a $250 million fight with oil giant Exxon/Mobil.

The Express has been reliably informed that senior members of the Ministry were unhappy with the Cabinet’s decision to negotiate with Exxon/Mobil regarding the non-payment of penalties for the oil giant’s failure to complete its drilling programme in its deep water blocks.

In exchange, the company has offered to perform some 3-D seismic interpretation and developmental drilling in Trinmar’s acreage and to partner with Petrotrin in producing any additional reserves it may identify.

Sources indicate that the technocrats were further incensed that Exxon/ Mobil went above the heads of the Ministry and the Energy Minister Eric Williams, to the Prime Minister when it became apparent that the technocrats would not allow the oil giant to escape the penalty payment.

In an interview in Energy Caribbean Magazine, Permanent Secretary in the Minister of Energy, Andrew Jupiter was quoted as saying that Exxon/Mobil would be held to the terms of its contract unless it could provide an acceptable excuse.

He said: “Trinidad and Tobago government believes in sanctity of contracts, and Exxon/Mobil has a contract to drill seven wells.”

Jupiter noted that when the Blocks were advertised Exxon/Mobil outbid five other companies and paid US $68 million or TT$428 million as a signature bonus.

The Express has been further informed that the technocrats were of the view that casting aside the contracts would set a bad precedent.

Additionally, they were concerned that the cost might be inflated by the oil giant and were, in any case, convinced that Petrotrin could do the job at a lower cost.

Responding to these reports last week, Manning claimed that the technocrats “were seeing things only in black and white and not looking at the big picture.”

He also denied usurping the role of the Minister of Energy saying it was common for companies to approach the Prime Minister when they were unable to resolve a conflict with a given Ministry.

In addition, Manning claimed Williams did not share the view of his technocrats on this matter and the government was not bound to take their advice.

Cabinet sources also tell the Express that at least two members of Petrotrin’s board have objected to the move.

The members reportedly told the rest of the Board that there was no need for new seismic data but rather for re-interpretation of existing data using modern techniques.

This has reportedly so angered Manning he is considering a change to the State Board.

But the sources say at the heart of Manning’s thinking is that he does not want one of the world’s largest oil companies to leave Trinidad and Tobago and that he wants an increased role for Exxon/Mobil in Trinidad and Tobago- in other areas of the energy sector, possibly aluminum, the Petrotrin refinery and even ethylene.