Oando Plc has won the bid for leasing the Guaracara Refinery in Trinidad, outpacing competition from Trinidad’s CRO Consortium and American firm INCA Energy. The decision was announced by Minister Stuart Young, who cited Oando’s financial strength as a determinant. The government is committed to ensuring a stable fuel supply while safeguarding resources during the refinery’s restart.
Oando Plc has emerged as the preferred bidder for the lease of the Guaracara Refinery located in Trinidad and Tobago. Local media reports indicate that Oando successfully outbid the Trinidad’s CRO Consortium and American company INCA Energy. The Minister of Energy, Stuart Young, announced this decision, citing Oando’s strong financial performance and the company’s notable $1.5 billion acquisition of ConocoPhillips’ assets in Nigeria in 2014 as significant factors.
During a media briefing, Minister Young highlighted that the Cabinet deliberated extensively before reaching this decision, emphasizing the importance of thorough discussions regarding the matter. He expressed concerns regarding the decline of the local energy firm, Petrotrin, which suffered severe financial losses, escalating from $361.5 million in 2014 to $1.2 billion by 2016 while domestic oil production fell dramatically from 144,000 barrels per day in 2005 to just 78,000 barrels by 2015.
The Office of the Prime Minister shared via Facebook that the Cabinet has informed Trinidad Petroleum Holdings Limited of their non-objection to Oando’s negotiations for the Guaracara refinery lease. An Evaluation Committee was created to assess proposals for the refinery, which led to Oando Trading DMCC being recommended as the preferred bidder. Prime Minister Young stressed the government’s commitment to ensuring the protection of the assets of Paria Fuel Trading Company Limited and ensuring a continuous domestic fuel supply during the refinery’s restart process.
In January, Oando announced its successful operatorship acquisition of Block KON 13 in Angola’s Onshore Kwanza Basin following a competitive bidding organized by the Angolan National Agency for Petroleum, Gas, and Biofuels. Mrs. Ayotola Jagun, the company’s Secretary, reported that Block KON 13 holds substantial exploration potential with estimated prospective resources of 770 to 1,100 million barrels of oil, reinforcing the firm’s recent achievements following the acquisition of NAOC Ltd in Nigeria.
In summary, Oando Plc’s victory in securing the lease for the Guaracara Refinery highlights its strong financial standing and commitment to revitalizing Trinidad’s energy sector. The process involved careful consideration by government officials, who recognized the need for stability in domestic fuel supply amidst declining production. Moreover, Oando’s recent activities in Angola further underscore its growing influence in the energy industry.
Original Source: punchng.com
