WHEREAS the state owned company PETROTRIN is responsible for petroleum operations including the exploration for, development of and production of hydrocarbons, and the manufacturing and marketing of petroleum products;
AND WHEREAS over the last ten years there has been a steady decline in the revenue generated from the energy sector due to the decline in the price of oil and gas and also a reduction in oil production;
AND WHEREAS it was reported in the media that one of PETROTRIN's operators, A&V Oil and Gas Limited overstated its level of production during the period of January 2017 to 11th July 2017 resulting in PETROTRIN having paid royalties for crude oil that was not received;
AND WHEREAS recommendations were made by PETROTRIN?s Audit Committee that payments to A&V Oil and Gas Limited be withheld and the contract terminated due to the alleged misrepresentation of the operator;
BE IT RESOLVED that immediate action be taken by the Ministry of Finance, as Corporation Sole, to suspend this operator's contract while investigations into the Audit Committee's Report are ongoing;
AND BE IT FURTHER RESOLVED that the matter of the overstating of oil production be referred to the Joint Select Committee on State Enterprises for inquiry and report.
(By Senator Wade Mark)
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