In light of the ongoing fake oil fiasco at state-owned Petrotrin, the company has now instituted more stringent measures for the custody transfer measurements of its crude oil.
The cash-strapped company also intends “to recover any amounts of money that may have been overpaid to the contractor in the Catshill field and take action it may deem necessary.”
This was relayed in a memo dated September 12 and sent to Petrotrin staff by its president Fitzroy Harewood, which was leaked to the T&T Guardian.
The message explained that within the first quarter of 2017, the company’s vice presidents of exploration, production and refining and marketing were tasked with reviewing the custody transfer measurements within the divisions, since abnormal variance was observed with the reported volumes of crude oil delivered and what was received at its Pointe-a-Pierre refinery.
In January, Harewood said there was an internal audit of the custody transfer operations within the divisions, which involved several field visits, examinations of records, interviews and reviews of existing measurement practices.
By July, it was determined by the internal audit team that its oil volumes from the eastern district and the Catshill field in particular, which operated under an incremental production service contract, were the main sources of the discrepancies and corrective action was needed.
As a result, Petrotrin instituted “a more rigorous management” Harewood stated, of its custody transfer measurements within the eastern district and the division. Harewood said from inception, Petrotrin’s management has remained steadfast in its determination to ascertain the facts, have regard to due process, recover such sums as may have been overpaid and take such other action as it may deem appropriate in the circumstances.
Among the measures management has taken are:
· A further technical review of the adequacy and accuracy of its measurements within exploration and production is to be undertaken by an external firm.
· Industrial relations investigation into the conduct of any of its employees involved in this matter to determine accountabilities and disciplinary action.
· Investigation to determine if any fraudulent activity occurred and to identify any culpable individuals, whether internal or external to Petrotrin.