A Nigerian energy company, Oando, has been identified as a major player in the ongoing bid for a multi-billion-dollar refinery deal in Trinidad and Tobago.
According to Acting Prime Minister Stuart Young, Oando’s strong financial backing and experience in the upstream oil sector positioned it ahead of other competitors vying for the project.
According to africa.businessinsider.com, Young, who is also the Minister of Energy, stated that the decision was largely based on Oando’s strong financial track record, particularly its notable $1.5 billion acquisition of ConocoPhillips’ assets in Nigeria.
This significant acquisition showcased Oando’s financial capabilities, making it an attractive choice for the refinery ownership.
The Guaracara refinery
The Guaracara Refinery, formerly part of Trinidad and Tobago’s state-owned Petrotrin, has remained inactive since its closure in late 2018 due to significant financial losses.
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Now under the management of Guaracara Refining Company, a subsidiary of Trinidad Petroleum Holdings Limited (TPHL), the refinery has been maintained in “preservation mode” as the government seeks investors to restart operations.
In 2023, the government announced its search for an operator for the 165,000-barrel-per-day facility and set an August deadline to review multiple offers.
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Officials reported receiving expressions of interest from domestic and international companies for the purchase or lease of the refinery.
According to a government official cited by Argus Media, restarting the refinery is viable only if there are agreements for competitively priced imported crude to ensure profitable operating margins.
Additionally, the prospective operator must demonstrate financial capability and expertise in asset management to sustain operations, the country’s acting prime minister noted.
Oando emerges preferred bidder
During a national budget presentation last year, Trinidad and Tobago’s Finance Minister, Colm Imbert, announced that Nigerian oil company Oando Plc had been shortlisted as one of three final contenders to acquire the state-owned Petrotrin refinery.
The initial 10 proposals included CRO Consortium, IEM Refinery Company, GN Fenceline, Columbus Refining Trinidad and Tobago, Integritus Group of Companies, Oando PLC, Nautical Partners, Patriotic Energies and INCA Refining.
The three shortlisted companies included CRO Consortium (comprising three Trinidadian firms), INCA Energy (an American company), and Nigeria’s Oando Plc.
Confirming Oando’s selection as the preferred bidder, Energy Minister Stuart Young, speaking at a media briefing at Whitehall on February 27, stated that the Cabinet took “considerable time” to deliberate on the decision.
Young stated that the Guaracara Refinery would operate under a lease-type commercial model, where Oando would lease and manage the facility while maintaining a commercial partnership with Paria Fuel Trading Company Ltd., the state-owned entity responsible for fuel importation and distribution in Trinidad and Tobago.
He emphasized that the discussions were thorough and underscored the importance of the refinery’s future.
Young further noted that Oando’s proposal aligned with the government’s objectives of reducing the state’s financial burden while ensuring flexibility in the refinery’s operations. He added that restarting the facility remains a priority.
