Oando PLC has been designated the preferred bidder for Trinidad and Tobago’s 165,000 barrel-per-day Guaracara Refinery, thanks to its strong financial record, including a major acquisition in Nigeria. The refinery has been inactive since 2018, and prospective operators must ensure profitable operations. Oando will manage the facility under a lease model while partnering with a state-owned entity.
Oando PLC, a prominent Nigerian oil company, has been designated as the preferred bidder for the 165,000 barrel-per-day refinery in Trinidad and Tobago. This decision results from Oando’s impressive financial history, particularly highlighted by its $1.5 billion acquisition of ConocoPhillips’ assets in Nigeria. The refinery has been dormant since its closure in late 2018 due to substantial financial difficulties.
Trinidad and Tobago’s Acting Prime Minister, Stuart Young, remarked that Oando’s capacity to secure significant investment in the upstream oil sector provided it a competitive advantage over other bidders. Young, who also serves as Minister of Energy, emphasized that the selection was primarily influenced by Oando’s strong financial background, underscored by its noteworthy acquisition referred to earlier.
The Guaracara Refinery, previously managed by state-owned company Petrotrin, has not operated since its shutdown. Presently overseen by the Guaracara Refining Company, a subsidiary of Trinidad Petroleum Holdings Limited (TPHL), the facility has been maintained in “preservation mode” as the government searches for investors to rejuvenate operations.
In 2023, the government announced the initiation of its search for an operator for the refinery, setting an August deadline for evaluating proposals. Expressions of interest have been received from various domestic and international companies, indicating a significant interest in either purchasing or leasing the facility.
A government source quoted by Argus Media indicated that the refinery’s reopening hinges on securing competitively priced imported crude to ensure profitable operating margins. Additionally, prospective operators are required to demonstrate financial stability and asset management proficiency to maintain effective operations.
During a national budget presentation, Trinidad and Tobago’s Finance Minister, Colm Imbert, confirmed that Oando PLC had been shortlisted among three finalists to acquire the state-owned refinery. The initial pool of ten proposals included Oando PLC along with several other contenders.
Confirming Oando’s status as the leading bidder, Energy Minister Stuart Young announced that the Cabinet extensively deliberated the decision. He mentioned that the Guaracara Refinery would be operated under a lease-based commercial model, allowing Oando to manage the facility while partnering with Paria Fuel Trading Company Ltd., which oversees fuel importation and distribution.
Minister Young asserted the discussions regarding Oando’s proposal were comprehensive and underscored the importance of the refinery’s future. He affirmed that the proposal aligns with the government’s aim to alleviate financial constraints while maintaining operational flexibility at the refinery, which remains a priority.
In summary, Oando PLC has been selected as the preferred bidder for the Guaracara Refinery in Trinidad and Tobago due to its strong financial standing and previous successful acquisition. The refinery, which has been inactive since 2018, represents a key opportunity for revitalization, contingent upon securing appropriate crude supplies. The government emphasized the necessity for a capable operator to restore the facility’s operations efficiently.
Original Source: africa.businessinsider.com
