Dec 2015 Financial News

Mora Ven stops oil production

Dec 07, 2015

A dispute between local energy company Mora Ven Holdings Limited and Spanish energy giant Repsol over crude oil supply has led to the T&T company shutting down production on its oil platform.

In a statement, Mora Ven, parent company of Mora Oil Ventures Limited (MOVL), said it had been supplying crude to Repsol for some time and recently the arrangement had become a month-to-month contract. “There is a dispute as to the amount of crude that is being supplied. In recent weeks Repsol have indicated that the level of crude being supplied is no more than 1.5 per cent of the amount with the Mora certified meter states,” the company said.

“MOVL has taken steps to verify its production through meter proving and sampling that abides by the API Standard for metering through turbine meters.”

Mora Ven said it had taken “the painful decision” to stop production on the platform after months of talks with Repsol “and their recent refusal to have a third party verify their method. The company claimed there is a huge disparity between what it is producing and the amount which the Spanish energy company says its receives.

Mora Ven said the shut down of the production means a loss of jobs and the matter will be taken elsewhere to be resolved. Chairman and CEO of Mora Ven George Nicholas III said: “Mora can no longer afford to be bullied and ignored by this foreign mega company.” He accused Repsol of using “their corporate muscle for too long to try and bully Mora into submission.”

“We will not stand for this any longer,” he said. “Accordingly, the board haas made the painful decision to shut-in production on the platform, with the resultant loss of revenue and the loss of tax dollars for the Treasury. Nicolas said the company will seek a hearing and investigate a new supply line.

Mora Ven Holdings said it will continue to invest in and develops its renewable energy division which was already poinsed to overtake the oil field in its contribution to the company’s profits.

Mora Ven, an independent oil and gas company, produces and sells oil and gas from offshore and explores for and produces hydrocarbons from its field off the South-East coast of Trinidad.

It also manufactures, sells, installs, and repairs solar water heaters and photovoltaic systems. Repsol has been operating in T&T since 1995 and has made significant investments in the local energy sector through its own offshore operations, as well as its 30 per cent stake in the assets of bpTT. Up to press time, officials of Repsol could not be reached for comment on the claims made by Mora Ven.

Source:
Trinidad Guardian
Monday December 7, 2015

http://www.guardian.co.tt/business/2015-12-07/mora-ven-stops-oil-production