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Oando PLC, a Nigerian oil giant, has been announced as the preferred bidder for the ownership of the 165 000 barrel-per-day refinery in Trinidad and Tobago.
Trinidad and Tobago’s Acting Prime Minister, Stuart Young, stated that Oando’s ability to secure substantial financing in the upstream oil sector gave it a competitive edge over other refinery bidders.
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 US$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.
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.
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. – Business Insider Africa
Peter Tanyanyiwa