Oando Plc has won the lease for the Guaracara Refinery in Trinidad, surpassing competitors such as CRO Consortium and INCA Energy. The decision, announced by Minister of Energy Stuart Young, was based on Oando’s strong financial record and includes discussions about safeguarding Paria Fuel Trading Company’s assets. Oando continues to expand its influence in the energy sector with operations in Angola.
Oando Plc has been chosen as the preferred bidder to lease the Guaracara Refinery in Trinidad and Tobago. This decision came after Oando surpassed competitors, including Trinidad’s CRO Consortium and American company INCA Energy. The Minister of Energy, Stuart Young, attributed the selection to Oando’s robust financial history, notably the $1.5 billion acquisition of ConocoPhillips’ assets in Nigeria in 2014.
During a media briefing, Minister Young mentioned that the Cabinet had invested substantial time in deliberating this decision. He stated, “We had robust conversations and interrogations,” underlining the importance of this strategic choice. Young also expressed worries regarding the deterioration of Petrotrin, the nation’s oil company, which suffered losses of $361.5 million in 2014, escalating to $1.2 billion by 2016, during which domestic oil production plummeted from 144,000 barrels per day in 2005 to 78,000 barrels in 2015.
The Office of the Prime Minister announced on Facebook that the Cabinet had approved the negotiations between Trinidad Petroleum Holdings Limited and Oando for the Guaracara refinery lease. An Evaluation Committee was created to assess proposals, leading to Oando Trading DMCC being recommended as the preferred bidder after a thorough review process involving industry experts.
Prime Minister Young reiterated the government’s commitment to safeguarding the assets of Paria Fuel Trading Company Limited, ensuring a reliable domestic fuel supply during the refinery’s restart. Recently, in January, Oando secured operatorship of Block KON 13 in Angola’s Onshore Kwanza Basin through a competitive bidding process. This block is strategically important due to its potential for significant oil resources, estimated between 770 to 1,100 million barrels.
This positive development follows Oando’s recent acquisition of NAOC Ltd in Nigeria, further establishing its strong position in the energy sector.
In conclusion, Oando Plc’s selection as the preferred bidder for the Guaracara Refinery signifies a pivotal moment in Trinidad and Tobago’s energy sector. The decision reflects Oando’s financial strength and commitment to revitalizing domestic fuel supplies. Furthermore, this move aligns with the government’s strategy to safeguard energy resources and explore new opportunities in oil exploration, as evidenced by Oando’s recent endeavors in Angola.
Original Source: punchng.com
