PORT OF SPAIN, Trinidad (Reuters) – Trinidad and Tobago’s petrotrin beginning October operations will come to an halt due to reoccurring losses from costly crude imports over the last five years.Many of the Caribbean region’s state-owned refineries have struggled in recent years as rising crude prices and high operating expenses cannot be fully recouped from fuel sales to consumers. Petrotrin currently produces 40,000 barrels per day (bpd) of crude, while its refinery operates at a capacity of 140,000 bpd, which requires the crude supplies to be imported.

“We have to go to the market to buy about 100,000 barrels of oil (per day) to make up the shortfall. This results in a net loss in foreign exchange,” Petrotrin Chairman Wilfred Espinet said in a statement Petrotrin requires a cash injection of nearly $4 billion to remain in operation, upgrade its infrastructure and repay its debt. The firm has lost over $1 billion in the last five years and racked up nearly $2 billion in debt.It also owes the government about $500 million in taxes and royalties.

Petrotrin said shutting the refinery down is expected to affect  2,600 permanent jobs, including the 1,700 direct jobs at the facility.

To provide for the Caribbean archipelago’s gasoline, diesel and aviation fuels needs, Petrotrin plans to import 25,000 barrels of oil equivalent per day. Any crude produced will be exported.