The T&T government has won its long-standing
dispute with the American Oil Company, FW Oil over a botched
effort to restart oil production in Trinmar’s Soldado
field.
In a ruling handed down by the International
Centre for the Settlement of Investment disputes it was decided
that the FW Oil should not be awarded US$100 million which it
was demanding from the State.
Texas-based FW Oil had accused a former government
minister and executives at State-owned Petrotrin of requesting
bribes while it was bidding for an oil exploration contract.
In its ruling the Centre noted that it was unable
to accept that FW Oil had acquired any legal right to the Soldado
field and therefore it rejected the oil company’s claim.
“The Tribunal is unable to accept that
FWO had acquired any legal right to that effect either vis-a-vis
Trinmar and (Petrotrin) or vis-a-vis the state. The claimant’s
application must therefore be dismissed,” the Center ruled.
It was also noted that there were serious allegations
of corruption but that those allegations could not be dealt
with by the centre.
The ruling however pointed to major fighting
between Petrotrin and Trinmar and in particular between the
then Chairmen of the two companies, Donald Baldeosingh and Gordon
Bartlet.
In its findings the tribunal noted: “The
dealings between Petrotrin and Trinmar at this stage remain
somewhat obscure; what is certain, however is that, despite
having apparently sought and obtained approval from the upper
management of Petrotrin that the bidding process should be suspended,
Trinmar went ahead with it all the same.
At that time Trinmar had its own board of directors
even though Petrotrin was the major shareholder.
In fact, Petrotrin had instructed Trinmar not
to proceed with a bid round for the Soldado field but was ignored
by Trinmar.
Trinmar then awarded FW Oil the bid but subsequently
changed its mind and quashed the process.
FW
Oil sued saying it had a right to the development of the Soldado
field but since a final agreement had not been negotiated the
state was spared and FW Oil’s claim refused.
Trinidad
Guardian
Tuesday
7th March, 2006
Copyright © 2006 Trinidad Guardian. All Rights Reserved
