Can you provide us with some background information about Carillion Caribbean?

Carillion Caribbean started its operations in 1954, trading under the name George Wimpey in the oil and gas sector. Over the years, the company has evolved, expanding its services to include civil infrastructure and building projects. In 1999, Carillion merged with the Tarmac Group and began large-scale construction projects in the energy sector. After de-merging from Tarmac in 2001, the company was branded as Carillion Caribbean. While Carillion still remains active in the traditional building and service sectors, the company has been focusing its growth on the energy sector. Carillion provides asset maintenance services for the offshore industry, which is crucial due to the age of assets in the market that require constant maintenance.

Do you see a return to the high levels of activity experienced in the past decade in the industry, given the decline in activity in recent years?

While some operators are drilling more wells to extract gas quickly, the gas supply is limited by what the government decides to do with it. The viability of building further platforms needs to be examined first before moving forward with that option. The industry needs to focus on pushing more into the local market to develop the downstream sector. Additionally, exploring other markets in the region like the eastern Caribbean pipeline, where gas can be sold at reasonable prices instead of competing with the US market, could facilitate more exports. The deepwater acreage has to produce some significant finds, and the follow-up to those finds will determine whether we see increased activity or not.

What is the reason for the shutdown of many of the big plants in the Point Lisas Estate for maintenance, and how does it relate to the downturn in production?

It is not a coincidence that many plants are going down for maintenance at the same time. It makes sense to take advantage of decreased supply from offshore to shut down and undergo maintenance. Atlantic LNG and several other providers in the Point Lisas estate are using this opportunity to upgrade their facilities. This period of maintenance is occurring because of decreased supply, but supply is even lower than usual because of maintenance occurring. Therefore, even in the absence of further development in the industry, the services that Carillion Caribbean provides remain in high demand.

Are there any other challenges that the industry is currently facing that you would like to discuss?

The sector needs to open up the conversation on shale gas and examine emerging trends. The relocation of a Methanex plant from Chile to Louisiana, for example, sends a strong signal. When gas is not only available in the US but also in significant quantities and at a cheaper price, it may not make sense for companies to come to Trinidad. This is an issue that needs to be examined. We need to assess how we have attracted investment thus far and how we will continue to attract investment moving forward. China has ambitious plans to produce 200 million BTU of shale gas per year by 2015. If they attract US investment to their industry, then Trinidad and Tobago will face further threats. There are concerns about investors continuing to come to the market, and maintaining the competitive edge that we have always had moving forward is the main challenge facing the industry.

What are Carillion Caribbean’s goals for its operations in Trinidad and Tobago in the next few years, in light of the industry’s challenges?

Carillion Caribbean will be looking at the synergies that it can create throughout the business. Opportunities exist not only with its Canada offices but throughout the region. The company is examining its present fabrication capability in the context of external markets. Although Carillion is looking at investment and growth within Trinidad, it recognizes that there are opportunities outside the country that any fabricator would consider.