Oando PLC has been chosen as the preferred bidder for the Trinidad and Tobago refinery, attributed to its financial strength and a successful past acquisition. The Guaracara Refinery remains inactive since 2018, and Oando’s selection is intended to revitalize this crucial facility. The partnership is expected to align with governmental objectives by reducing financial burdens while ensuring operational flexibility.
Oando PLC, a prominent Nigerian oil company, has been designated as the preferred bidder for the 165,000 barrel-per-day refinery located in Trinidad and Tobago. This decision arises from Oando’s impressive financial history and its successful $1.5 billion acquisition of ConocoPhillips’ assets in Nigeria. The refinery has faced inactivity since its closure in late 2018, primarily due to significant financial losses.
Trinidad and Tobago’s Acting Prime Minister, Stuart Young, emphasized that Oando’s capacity to secure substantial financing in the upstream oil sector afforded it a competitive advantage over rival bidders. Young, also serving as Minister of Energy, highlighted Oando’s strong financial track record as a pivotal factor in the decision-making process. The company’s acquisition of ConocoPhillips’ assets served to underscore Oando’s financial viability, positioning it as the top candidate for refinery ownership.
The Guaracara Refinery, formerly a component of Petrotrin, has been inactive since its closure in late 2018 following considerable financial losses. Currently managed by Guaracara Refining Company, a subsidiary of Trinidad Petroleum Holdings Limited (TPHL), the facility is under preservation mode as the government actively seeks investors for resuming operations. In 2023, the government initiated efforts to identify an operator, with an August deadline established for reviewing competing offers.
According to a source cited by Argus Media, the resurgence of the refinery hinges on securing competitively priced imported crude to ensure profitable operational margins. Moreover, prospective operators must showcase both financial capability and expertise in asset management to sustain successful operations, according to the Acting Prime Minister’s statement.
During a national budget presentation last year, Trinidad and Tobago’s Finance Minister, Colm Imbert, revealed that Oando was among three finalists to acquire the state-owned Petrotrin refinery. The shortlisted contenders initially included multiple firms, with Oando ultimately triumphing in the selection process alongside CRO Consortium and INCA Energy.
The decision to select Oando PLC as the preferred bidder for Trinidad and Tobago’s refinery underscores the company’s strong financial standing and operational expertise. The revival of the Guaracara Refinery is pivotal for the local economy, and Oando’s leasing arrangement is anticipated to streamline operations while alleviating financial burdens on the government. This strategic partnership aims to reignite the refinery and enhance fuel distribution in the region.
Original Source: africa.businessinsider.com
