The Trinidad and Tobago Cabinet has selected Oando Trading as the preferred bidder for the Petrotrin refinery at Pointe a Pierre, following a recommendation from an Evaluation Committee. The deal is now in the hands of Trinidad Petroleum Holdings Limited to negotiate with Oando Trading, which has the financial capacity to restore refinery operations. Prime Minister Rowley discussed the historical context of Petrotrin’s challenges and the Government’s restructuring efforts, emphasizing fiscal improvements since the intervention.
The Cabinet of Trinidad and Tobago has reached a decision regarding the Pointe a Pierre refinery. Acting Prime Minister Stuart Young announced that an Evaluation Committee has recommended Oando Trading as the preferred bidder for the Petrotrin refinery, and the Cabinet has accepted this recommendation. Subsequently, the Cabinet has directed Trinidad Petroleum Holdings Limited (TPHL) concerning the Evaluation Committee’s non-objection to the refinery’s sale or lease to Oando Trading.
Prime Minister Young emphasized that TPHL is now responsible for negotiating the deal with Oando Trading, which possesses the financial resources necessary to restart and operationalize the refinery. This announcement was made during a post-Cabinet press conference held in Port of Spain, where Young also cautioned against potential attempts to disrupt the deal. Oando PLC is recognized as a leading energy solutions provider in Africa, listed on both the Nigerian Stock Exchange and the Johannesburg Stock Exchange.
The evaluation process included proposals from three candidates: CRO Consortium, a local group; INCA Energy LLC based in the USA; and Nigeria’s Oando PLC. Prime Minister Dr. Keith Rowley previously stated that the Petrotrin refinery was closed due to inadequate oil supply and significant financial losses incurred from oil imports. He explained that accounting rule changes led the company to write off $15 billion in debt, projecting substantial future losses for Petrotrin.
Prime Minister Rowley further noted that the Government’s intervention and restructuring have allowed the Minister of Finance to receive royalties and taxes from Petrotrin, which were previously unpaid. He pointed out that Paria is currently making profits under the new arrangement. The first option to manage the refinery was offered to the Oilfields Workers’ Trade Union (OWTU), but their affiliated company, Patriotic Energies and Technologies, was unable to meet operational requirements, including failing to pay legal and accounting fees, and even requested $500 million from the Government to purchase the refinery.
The Trinidad and Tobago Cabinet has endorsed Oando Trading as the preferred bidder for the Petrotrin refinery, tasked with reviving operations at the facility. With Oando’s financial capabilities, TPHL must now coordinate the negotiation for the sale or lease of the refinery. This move comes after a comprehensive evaluation of potential bidders, amidst ongoing challenges faced by Petrotrin and efforts to stabilize the national energy sector.
Original Source: trinidadexpress.com
