PETROConnectConnectConnectConnectConnectCorporate News at a glance No. 120 - November 2011

PETROConnectConnectConnectConnectConnect

Chairman Lindsay Gillette congratulates Debendranath Hardial on attaining 45 years service

Employee Awards 2011

Employee Awards 2011

CREDITS We would like to print your views, Department highlights, personal stories etc.Send your comments to:PetroConnect,Corporate Communications Department, Casuarina Avenue, Pointe-a-Pierre, Republic of Trinidad and Tobago.Fax: (868) 658-1825 / Phone: 658-4200 Ext. 2811 / 2823For more info visit www.petrotrin.com

Editor: Gillian Friday Editorial Team: George Comissiong, Walford Coker, Elmo Griffith, Afiya Butler-Ray, Lisa Williams-Lewis, Larry Lalchan, Meagan MonseguePhotography: Elmo Griffith, Kerri-Ann Joseph, Lisa Williams-Lewis Layout+Design: Kishore Raghoobar

The PetroConnect is published monthly for employees, retirees and other stakeholders.

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in this issue

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Petrotrin Employee Awards 2011

years is a long time. I am told that there are 40 employees receiving awards for 40 years’ service, and 6 employees receiving awards for 45 years’ service. This is remarkable. As far as I am concerned, this is a tangible demonstration of your loyalty and love to our Company. Your dedication has directly influenced the formative years of the energy industry, giving rise to the rich industrial landscape that surrounds us today.” Following Mr. Allum’s presentation, the Chairman of the Board of Directors, Lindsay Gillette delivered the feature address. He congratulated the awardees

In a recent interview with the PetroCon-nect, Manager Exploration and Geophys-ics Mr. Victor Young On provided an update on the extensive 3D seismic survey conducted by Petrotrin earlier this year. The 3D Seismic, which covered a land mass of 312 km², has been described as one of the most extensive surveys conducted on land in the history

of the organization. Its perim-eter ran from San Fernando to Point Fortin to Erin to Siparia to Debe and back to San Fernando. Young On said that all the fieldwork and land rehabilitation has been completed. “All equipment, explo-sives and blasting cap wires have been removed and the land cleared of associated garbage, so that we have ensured that there are no more hazards in the area,” he said. “The homes and lands that were affected by the survey were nominal and

we have addressed most of these as well.” He confirmed that the data gathered from the survey is currently being processed by GX Technology with the first data volume expected by the end of January 2012. “The interpretation will start in-house from then,” he confirmed. “The test data that we have processed so far seems to be encouraging.”

The dynamic and volatile global oil market-place has challenged the Company to revisit its business fundamentals. Petrotrin has responded to this challenge by redoubling its efforts to increase efficiency, eliminate waste and boost oil production. Additionally, the Company continues to improve its manage-ment and control systems in order to affect increased efficiencies in its cost performance. The Company has also developed a short term strategy to quickly improve its economic outlook. Basically, Petrotrin’s overall strategy focuses on the following core deliverables:

• Increasing Equity Crude Production• Improving Refinery Efficiencies• Completing the Clean Fuels Program • Reducing Cost throughout the organiza-

tion and • Improving its HSE Performance

Petrotrin has just completed an extensive 3D seismic survey on its mature land acreage in the North Western District and has since commenced interpretation of the vital data collected in order to guide and refine its land drilling programs. In March 2011, Petrotrin resumed an aggressive round of drilling activities in Trinmar’s Soldado Fields after a hiatus of almost three years. During the first year of the forward drilling programme, a total of 21 wells are carded to be drilled in Soldado’s North, Main and East Fields. The production from these new wells is expected to yield an increase of 2,000 barrels per day in the first instance. The Trinmar Forward Drilling Programme is of key strategic importance to Petrotrin and to the country as a whole. Petrotrin is also proud to be one of the first upstream operators to return to active offshore drilling after the steep decline in offshore activity of the last few years. Petrotrin continues to use joint venture arrangements to conduct most of its explora-tion activities. This strategy allows the Company to increase its indigenous crude and gas supply; spread risk and harness the experience, technology and capital resources of other major players in the upstream business. At Pointe-a-Pierre Refinery the Clean Fuels Program which comprises the Gasoline Optimisation Project and the Ultra Low Sulphur Diesel Project, is well on its way. The GOP which started 4 years ago is nearing completion, while the ULSD project which commenced construction earlier this year will be completed by mid 2012. Oil and gas prices have improved and Petrotrin is moving quickly to take advantage of market opportunities which are available.

•News 2/3

•3D Seismic Data Encouraging 3

•News 4/5

•Corporate Social Responsibility in Action 6/7

•Employee Awards 2011 8/9/10

•Focus on People 11

•Corporate Social Responsibility in Action 12/13

•Parang 14

•Employee Awards 2011 15/16

On Saturday 2011 November 12, Petrotrin held its Employee Awards Ceremony at the Ballroom of the Trinidad Hilton Hotel, Port of Spain. On this occasion, 462 employees who have completed 20, 25, 30, 35 40 and 45 years’ service, in 2010, were given tangible recognition and rewards for their contribution to the Company. Members of the Board of Directors, the Executive Leadership Team, past Managing Directors, Senior Managers and their wives were on hand to share the joy of the awardees at this gala ceremony. Addressing the gathering, President Kenneth Allum said: “Twenty to forty-five

NEWS NEWSNEWSNEWSNEWS

and all who have supported them. He then remarked: “I wish to focus our attention on the achievements and improvements that we have made over the last fiscal year, October 2010 to the present time. On the financial front, I am pleased to report that the Company has been able to maintain our Investment Grade Rating by Moody’s who have indicated that we have retained a (Baaa3- BBB) Stable Outlook. The Company has recovered from falling commodity prices and we have also benefited from high refinery margins.” He also informed the large gather-ing that, subject to final audit reports, the Company made a healthy profit for the year 2010-2011. He commented that this was very positive news for Petrotrin. He also outlined a list of accomplishments that the Company had attained over the last fiscal year in Exploration & Production as well as the Refining and Marketing Divisions. Employees were treated to a wide selection of quality entertainment from top local artistes such as Kay Alleyne; the Shiv Sangeet Band; Soloists: Dexter Theophile; Marie Cartar and Emmett Hennessy. 40 year recipient, Reginald Dipchan brought the “Expression of Appreciation.”

3D Seismic Dataencouraging

ReinventingPetrotrin

Editorial

Proud recipients pose for a photo opportunity

Manager Exploration and Geophysics, Victor Young On

Employee Awards 2011

Awarding Loyalty and Dedication

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NEWS NEWSNEWSNEWSNEWS

VP E&P Represents Petrotrin in Doha, QatarVice President Exploration and Production, Steve Baldeosingh has been chosen to facilitate Petrotrin’s participation in a joint Energy Pavil-ion at the 20th World Petroleum Congress (WPC) to be held in Doha, Qatar from December 4 to 8. The companies represented by the state energy sector had been asked to mount a joint exhibi-tion at the 20th WPC, under the leadership of the Ministry of Energy and Energy Affairs. The triennial World Petroleum Congress is held over five days with more than 4000 delegates, 600 media and 550 presenters

participating in a program that covers all aspects of the industry, from technological advances in upstream and downstream opera-tions, to the role of natural gas, renewable and alternative energy, the management of the industry and its social, economic and envi-ronmental impact. Known as the “Olympian Event of the Oil and Gas Industry”, it is attended by a global oil and gas audience and outside stakeholders such as governments, other indus-try sectors, NGOs and international institutions who also join in the dialogue

Five Petrotrin engineers attended the Society of Petroleum Engineers (SPE) Annual Technical Conference and Exhibition which was held in Denver, Colorado from 2011 October 30 to November 2.

D. J. Jaggernauth, Technical Specialist, was among those representing Petro-trin at the Conference. Jaggernauth, who served on the executive of the local chapter of SPE for 20 years, and continues to serve on the international body in various committees agreed that this year’s conference theme, “New Perspectives”, was timely and that the papers presented collectively offered novel ideas for dealing with current trends in the industry.

In his opinion,

• The conference broaden members’ mind on the new technology that can be incorporated in Petrotrin’s operations to enhance production.

• One significant learning was shale gas technology and its impact on

were varied and included “Enhancing Standards and Best Practices in the Oil Industry”, “Economic Modeling in Oil and Gas Markets”, “Building and Using Career Teams to Achieve Success”, “Role of the Petroleum Industry in the Progress of Capture, Storage and Use of Carbon Dioxide”, “Discovering My Potential: Technical or Managerial.

the sale of LNG from Trinidad.• Some of the things Petrotrin can

benefit from are~ Ceramic screens in sand control~ Strategies to minimize frac spac-

ing~ Wells for refracturing using

production data~ Cement bond evaluation~ Drill pipe dynamics~ Drilling and under-reaming in

offshore~ History matching and production

forecasting with logs

Also attending the conference were Dhanpaul Parag (SMJV), Richard Jebodhsingh, Reservoir Engineer, Gwenneth Graham, Reservoir Engi-neer and Celia Garcia-James, Petro-leum Engineer. Over the four-day period, partici-pants were exposed to exhibits from 300 companies, several short courses and workshops, as well as the presentation of approximately 400 technical papers. Topics presented

D. J. Jaggernauth, Technical SpecialistVice President Exploration and Production,

Steve Baldeosingh

In the month of October, Petrotrin’s Exploration and Production (E&P) division recorded a net profit of $124.6 million. This achievement was higher than budgeted by $28.3 million and senior Company officials credit a higher than budgeted revenue and lower than budgeted operating expenses as some of the key factors contributing to the final figure. The following is a summary of E&P’s actual performance in the month of October. The total oil production from its Petrotrin’s operations (incl. Farmouts) in October was 47,426 barrels of oil per day (bopd), an increase of 248 bopd from the previous month. Total equity oil production (excl Farmouts) for the period was 46,095 bopd, which was 177 bopd higher than the previous month and 96 bopd lower than the corresponding month’s budget for the start of the 2011-2012 fiscal period. Compared to the rolling 3-Month Action Plan, total Land and Trinmar oil production for the month was slightly lower than the target of 36,779 bopd,

Petrotrin sees increases in E&P oil production

missing the mark by 15 bopd. Land was above the target of 13, 779 bopd by 25 bopd while Trinmar was below the target of 23,000 bopd by 40 bopd. Land production increased by 20 bopd from the previous month. Produc-tion gains from recent drilling and workovers on land, particularly in the North East District (NED), were partly offset by production losses due to low and off wells and held stock in the South East District. Wells awaiting workovers and the new oil decline from other recently drilled wells in NED also affected overall production levels on land. Trinmar’s production increased by 109 bopd from the previous month. This increase was mainly due to less system losses, with the majority of these system losses coming from compressor downtime. Petrotrin’s total equity gas production, inclusive of Lease Opera-tors and Trintomar/ EOGR, averaged 183.05 million cubic feet per day (mmcfd) for the month, an increase of 10.78 mmcfd from the previous month and higher than budget by 1.36 mmcfd.

Bridging the Quality GapQuality Management Training for Contractors

New Perspectives

The Ultra Low Sulphur Diesel Plant - Outside Battery Limits (ULSD-OSBL) Project Team held a Quality Management Awareness Session for contractors on the 28 October 2011 at PLC. The session was attended by representatives from approximately 15 contractor companies who are either working on the project or may be invited to tender in the future. Project Manager, Mr. Michael Charles delivered the presentation

which focused on sensitizing contrac-tors toward total quality management during project execution. The session was established based on the team’s observation of the tenders received and the works executed. There was an obvious gap in the quality knowledge area and contractors’ performance in some areas was sub-standard. Emphasis was placed on the Company’s Quality Specification

Manual and Procedure Manual among other documents. The contractual requirements and the importance of preparing complete turnover dossier packages were also highlighted. The project team’s intention was to close gaps with respect to quality management and documentation on the project and to assist contractors in understanding the Company’s position on Quality Manage-ment so there can be seamless Mechani-cal Completion.

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and Tobago, the Company has also extended its corporate philanthropy to benefit the wider national community. In its thrust to build communities, the Company regularly provides material, financial and/ or technical support for commu-nities either directly or through volunteerism efforts. Special emphasis is given to programmes and projects that -

• Encourage self reliance and promote the self help philoso-phy

• Are designed to enhance knowledge, skill and expertise• Focus on youth development - particularly through educa-

tion, training and sport and cultural programmes

Members of staff and Company suppliers are also encouraged to foster and build strategic partnerships with organizations in

Petrotrin, through its predecessor companies, has a history of longstanding support for the national community, engaging in various community relations activities and corporate philanthropy over the years. This foundation has served as an excellent launching pad for the organization as it continues to build its positive profile with stake-holders, ensuring that it remains a leader in the national community in terms of its dedication to the holistic development o all. While Petrotrin today stands as the pulse of development for many communities, the Company sees the stakeholder engage-ment process as critical to its long term sustainability and viability. The Company has therefore developed a formal system to manage its Corporate Social Responsibility (CSR) engagements, ensuring that CSR remains an integral part of the Company’s business planning and operations. Petrotrin’s CSR continues to be guided by a knowledge of and adherence to applicable financial standards, practices and require-ments as well as a commitment to sound corporate governance principles.

A Partner in the Community

With operations stretching across the southwestern peninsula of Trinidad, Petrotrin has fostered and maintained close paternal relations with all its fenceline communities. Mindful of its role as a major state enterprise with a responsibility to the people of Trinidad

fenceline communities and in the wider society for projects that focus on education, sports, culture, education, capacity develop-ment as well as health, safety and the environment.

Education & Training

Petrotrin is heavily involved in the implementation of various skills development programmes and initiatives throughout the country. Among the many opportunities that the company affords the youth of the nation are annual scholarships to students entering The University of the West Indies (UWI) and other universities, on the job training for secondary school graduates, corporate training for post 2nd Year university students and apprenticeship training (internship) for selected graduates.

For the Children’s Sake

The Prime Minister’s Children’s Life Fund received a welcome financial boost recently from The Energy Sector Corporate Social Responsibility Coordinating Task Force. The Task Force, which comprise of representatives from Petrotrin, The National Gas Company and Lake Asphalt, donated over $100,000 to the Fund. The sum was realized from the hosting of an Energy Sector Brunch at the Sevilla Club House on November 20. The event was well attended and attracted a wide cross-section of top officials, not only from the Energy Sector but also from various other Sectors of the economy. Prominent among those present were Minister of Energy and Energy Industries, Kevin Ramnarine and Petrotrin’s President, Kenneth Allum. In an ambience ideal for relaxation and mingling, patrons were entertained by Petrotrin Siparia Deltones, the Petrotrin Boodoosingh Tassa Group and the Petrotrin Levantamientos Parang Goup.

Petrotrin Supports the Prime Minister’s Children Life Fund

Corporate Social Responsibility in Action

Corporate Social Responsibility in Action

Palo Seco Games2011

Petrotrin at the ICT Road Showcontinued on page 12

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Reginald Dipchan, an employee with 40 years’ service to Petrotrin and predecessor companies brought the Remarks of Appreciation at the Employee Awards Ceremony. In it he called for a reintroduction of the Apprenticeship Program as a means to help ensure the Company’s viability by providing a skilled workforce for many years to come. The following is the full text of his speech: “It is with a deep sense of appreciation and humility that I have accepted the honour to speak on behalf of all of us who have successfully completed 20, 25 30 35 40 and 45 years of service to our beloved Companies Tesoro Texaco Trintoc Trintopec now Petrotrin. As I reflect on our President Mr. Allum’s memorandum of January 27 2010, in regard to the five year strategic plan where he said, and I quote “ we are facing difficult times and I recognize that you and your family must be concerned as to the future of the Company. I believe that through our combined efforts and commitment, we will make the decisions that are in the best interest of all stakeholders. I have no doubt that by working together, we can reshape Petrotrin to ensure it survives, remains viable and grows into a company of which we can all be proud.” End of quote. May I say especially to him, although the difficult times are still with us, the fact that we continue to have workers enduring for so many years, bears witness to our combined efforts and commitment to this company. I would like though, to appeal for the reintroduction of the Apprenticeship program, the means by which many of the longer serving employees entered the work place. Statistics would reveal that the multiple trades learnt by this august group, benefitted not only the tradesmen themselves but the company and all stakeholders as well and would continue to play no small part in its viability. Voltaire tell us that work spares us from three evils, boredom, vice and need. Thank you Petrotrin for providing us with employment and sparing us from those evils. This evening cannot be complete until we recognize the people who traversed the path with us. Special thanks to our spouses, parents, children, neighbours, friends and co-workers for being with us through this journey. Last but not least thank you God for sustaining us and bringing us to this point in our lives, and whose blessings I ask to take us safely through the rest of the evening and to our respective homes at its end.”

“Reintroduce the Apprenticeship Program”

Celebrating employees who achieved 20, 25, 30, 35, 40 and 45 years of serviceCelebrating employees who achieved 20, 25, 30, 35, 40 and 45 years of service

Remarks of Appreciation by Reginald Dipchan

Employee Awards 2011

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Focus on People

Surrounded by family, friends and numerous work colleagues, Ms. Arlene Hodge-Dipchan said a fond farewell after serving Petrotrin and predecessor companies for over three decades.

Arlene Hodge Dipchan is congratulated by a colleague Dancing with her husband Reginald Dipchan

Employee Awards 2011Arlene Hodge-Dipchan Says Goodbye

Forty years’ service with one organization is a significant investment, and it is one that a few Petrotrin employees have contributed to the development of the organization over the years. Most recently, Stephen Joseph of the Utilities Section joined this esteemed rank as he clocked 40 years just before retirement. His unstinting support for the organization, earned him the respect of his colleagues in the presence of his wife and children at a retirement function held in his honor at the Lake Shore Restaurant, Pointe-a-Pierre recently. At the function, Joseph regaled co-workers and well-wishers with stories from the past, reflecting on his growth in the organization and sharing light anecdotes, much to the entertainment of all present. The Utilities Department presented Joseph and his wife with two recliners and a plaque marking his forty years of accident free service.

Stephen Joseph Retires

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Petrotrin is a major benefactor to all schools in its areas of operation, to the Ministry of Education generally and to institutions of tertiary learning including the University of Trinidad and Tobago, Technical Institutes throughout the country and the University of the West Indies. Schools that were previously operated by the Company, now benefit from a stipulated annual subvention, infrastructure works and the purchase of equipment. In addition, Petrotrin provides support for students participat-ing in the Global Young Leaders Conference as well as other national and international conferences. The Company also hosts its own Young Achievers programme, which honors outstanding students for their achievements in the Primary and Secondary Schools Final Examinations as well as in the field of sports. Though emphasis is given to programmes that target young persons, particularly at risk youths, Petrotrin’s support for training and development is not limited to schools. The Company also provides training support for external organizations and its Petrotrin Learning Centre (PLC) is often accessed by some of these organi-zations for personnel training.

Sports

Petrotrin’s commitment to the development of sport in Trinidad and Tobago is rooted in its predecessors’ relationships in the community, where southern communities were the mecca of sporting meets in Trinidad and Tobago. Some of the country’s most prominent national athletes today can trace their own foundation to the early days of the energy sector, Petrotrin’s predecessors and the commu-nity. Petrotrin continues to carry this beacon with pride, standing today as the benchmark for many other organizations now actively involved in the development of sport throughout Trinidad and Tobago. Today, the Company continues to promote the wellness of its employees and dependents and to invest in organized sport, espe-cially team sport, in its fenceline communities. National sporting bodies seeking support for programmes that satisfy criteria outlined in our CSR policy are also considered. The Company also provides subsidized access to our sporting facilities throughout southern Trinidad for national and company sporting events. Employees are encouraged to provide coaching and administrative expertise both at the community and national level.

Among others, Petrotrin continues to sponsor the following:

• The Southern Games and Palo Seco Games - Petrotrin is the main sponsor for these track & field and cycling events which cater for established local athletes with increasing levels of regional and international participation

• Petrotrin Marabella Basketball Tournament (MBL) and Petrotrin Marabella Football League (MFL) – These events are organized annually to cater for the youth of Marabella and environs, the host community of Petrotrin’s Corporate Head-quarters and refining operations

• Petrojazz Basketball Team – Perennial southern champions, who consistently represent the region in national competitions

• Petrotrin Community Football League – Caters for Commu-nity Leagues organized in Point Fortin, La Brea, Fyzabad, Siparia and Santa Flora and serves as the nursery for budding talent and inter-community interaction. The matches are played at the various Petrotrin Club facilities

• Petrotrin Football Teams – Company Sports Clubs’ teams participate at national and regional level in Senior, Juvenile

and Women’s competitions. Besides winning national cham-pionships, several players from these teams have graduated to compete at international and professional levels

Culture

Petrotrin, a significant contributor to various national observances and festivals, partners with a broad range of cultural groups to protect and enhance the diversity of cultural expression that characterizes the nation.

Traditionally, support has been provided in the following areas:

• Steelband – The Company injects significant sums to the development of pan annually and provides sponsorship for Phase Two, Siparia Deltones and Hatters, three of the most prominent steel orchestras in Trinidad and Tobago. It also provides significant assistance to several other steel orches-tras, especially those located in communities adjacent to its operating areas.

• Calypso – In addition to funding several national junior calypso events, Petrotrin also hosts its own Petrokaiso

Competition every year. This employees’ competition has spawned several calypsonians who have graduated to the national arena and its popularity with the wider community has also earned it a niche in the national carnival calendar

• Tassa – The Boodoosingh Tassa Group from Santa Flora has won a number of national and international competitions over the years and ranks among the top tassa bands in the country.

• Classical Indian Music – The Petrotrin Rangeela Orchestra from Marabella continues to enhance its reputation as one of the better Indian Orchestras in the nation

• Parang – Apart from the use of its facilities for parang events, the Company sponsors the Levantamientos Parang Group, made up largely of employees and retirees.

• Petrotrin Cadet Corps – Over the past three decades this group has trained young musicians and provided music for ceremonies and marches throughout the nation

• Voices of Petrotrin and Trinmar Chorale– These employee and community based choirs continue to delight audiences through song

Assistance is also often provided for two of the country’s main

Jazz Festivals, The Trinidad and Tobago Pan Jazz Festival and the San Fernando Jazz Festival – Trinidad and Tobago

Environment

The Company provides tangible support to various environmental projects including the Wild Fowl Trust that is located on the same estate as our Pointe-a-Pierre refinery, a clear indication of the Company’s commitment to co-exist with nature. Petrotrin is also involved in and incorporates within its operations several environ-mental programmes.

Civic

Petrotrin supports the State in various ways by contributing Company resources for projects that enhance the well being of our citizens. Support is given to non-governmental organizations (NGOs) and community groups, especially those involved in programmes designed to improve the lives of the physically and mentally challenged as well as other disenfranchised sectors of our society. Employees are also supported and encouraged to serve at the organizational and administrative levels of these groups as well as on local government bodies.

Corporate Social Responsibility in Action

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Employee Awards 2011

The sounds of parang filled the air at the Pointe-a-Pierre Club heralding the onset of the Christmas season. Parang music lovers were treated to three Fridays of live parang music at the Club. The band Fuego Caribeno started the marac shaking, foot stumping session on Friday, November 4. Held outdoors under tents at the front of the Sportsman’s Bar, parang loving patrons braved the inclement weather and filled every available space. But it was on Friday, November 11, that the Club really rocked with the sweet, unmistakable sounds of La Divina Pastora of Siparia. Held upstairs at the main bar of the Pointe-a-Pierre Club, patrons danced and partied under jam packed conditions. Among the hundreds were President Kenneth Allum and his wife and Vice President, Finance, Sheriba Ali-Razack. Local band, Petrotrin LeVantamientos brought down the curtain on Friday, November 25. A good time was had by all.

ParangParangParangParang