Trade and Industry Minister Vasant Bharath and officials from InvestTT yesterday assured that the arrival of four Transocean International drill ships into T&T waters will not pose an environmental threat. Transocean, the company responsible for the large oil spill in the Gulf of Mexico in 2010, has been granted permission to park the drill ships in T&T waters after reportedly being turned away by United States and Curacao authorities.
Bharath and InvestTT vice-president, Shyamal Chandradathsingh, who both confirmed to the T&T Guardian approval was given for the mooring of the drill ships in T&T waters, said the move will bring jobs and economic benefits to this country. Concern had been raised about the arrival of the vessels by a source who said: “Parking them in T&T waters poses an environmental risk. Our waters are already polluted with derelict ships dumped here by US offshore company, Tidewater Marine.”
The source claimed director of Maritime Services Beverly Phillip did not initially grant approval to Transocean, an international drill shipping company with offices in the US and Switzerland, but was influenced by Bharath and Transport Minister Stephen Cadiz to reverse her decision. The source said businessman, Philip Buxo, former T&T high commissioner to Canada, was the one who got Bharath and Cadiz to secure approval for Transocean. Buxo reportedly owns 50 per cent of an offshore logistics company, Peterson Integrated Logistics.
Contacted yesterday on the matter, Bharath said Buxo did indicate that Transocean was interested in parking some drilling ships in T&T waters. “I understand they wanted to move their operations,” he said. Bharath said the company will pay the Government for a lease rental of seabed space and has promised to hire nationals when the oil sector is resuscitated with higher prices.
“When that happens, they would already be here to start drilling. It was on that basis that I had no objection. That’s all there is to it, as far as I’m aware,” he said. Bharath said he was not aware that Transocean was refused approval, reportedly in writing, by Philip. “No one mentioned it to me,” he said. He added that permission to rent seabed space is granted by the Commissioner of State Lands. Bharath said he also did not understand the Transport Minister’s (Cadiz) involvement in the matter.
He recalled that when he was Minister of Land and Marine Resources, he granted a company called Oldendorf permission to park in T&T waters. “They had a huge tanker that was unable to go to Brazil for iron ore and it was moored seven miles off the coast. “They had small ships bringing the iron ore and cranes planted on the seabed took the material from them and transferred it to the big tanker. It then went to China.”
Bharath said 100 Trinidadian nationals got work with Oldendorf. “I suspect the same thing is happening here. Buxo promised there would be jobs for the local oil rig sector,” he told the T&T Guardian. As for claims that the drill ships were “obsolete,” the minister said: “I assumed they were in good order. I believe due diligence would have been done.”
Ships active, in service
Chandradathsingh said standard monitoring procedures were done by the Maritime Services Division and, as far as he knew, the drill ships were “not at all” outdated. “We would have done our due diligence and found the ships fairly new. They are all active and in service.” Chandradathsingh explained how InvestTT came into contact with Transocean.
“During the past few months, because of the decline in oil prices, they asked to cold stack in T&T waters. They were working in the Gulf of Mexico and their work finished there. “They are seeking to get seabed leases for around 45 years for which they would pay the Government a rent. They have also promised to hire locals to patrol the ships and perform other services while they are parked.”
Chandradathsingh said Transocean said it would be looking for work in the region, including in T&T, Guyana and Surinam and will be setting up a T&T office. He said “about four or five” ships are expected to arrive in T&T within the next 20 days and will have to adhere to the standard procedure for cold stacking.
Buxo, who was spending Father’s Day yesterday on the beach with his family, said his only role in the whole matter was to introduce Transocean to InvestTT. “When someone says they want to invest in this country, that’s where you send them. I suggested to Transocean they get in touch with InvestTT. That is my role.”
Buxo said he believes it was a good investment opportunity for T&T. Calls to Cadiz’ cell phone yesterday were not answered.
About Transocean
Transocean Deepwater Inc was ordered to pay the second largest environmental fine in US history, $400 million, for its role in the 2010 Deepwater Horizon explosion and spill in the Gulf of Mexico. The company pleaded guilty to violating the Clean Water Act which led to the oil spill.
In the incident, 11 workers were killed when a Transocean oil rig exploded and 4.9 million barrels spilled into the Gulf.
A Transocean International website stated it was a leading international provider of offshore contract drilling services for energy companies. It owns and operates the world’s most versatile fleets, with a particular focus on deepwater and harsh-environment drilling, the website said. “Our fleet of 65 mobile offshore drilling units includes the world's largest fleet of high-specification rigs consisting of ultra-deepwater, deepwater and premium jackup rigs.
“In addition, we have seven ultra-deepwater drill ships and five high-specification jackups under construction.” Images on the website showed ships that looked in good condition.