The Cabinet has chosen Oando Trading as the preferred bidder to restart the Pointe a Pierre refinery. Acting Prime Minister Stuart Young announced this decision, emphasizing the company’s capability to operationalize the facility. The Government’s earlier restructuring efforts have added benefits, including tax revenue that was previously neglected.
The Cabinet has made a significant decision regarding the Pointe a Pierre refinery by selecting Oando Trading as the preferred bidder. This recommendation came from an Evaluation Committee, and the Cabinet has accepted it. Furthermore, the Cabinet instructed Trinidad Petroleum Holdings Limited (TPHL) to facilitate the next steps of the deal with Oando, which is financially equipped to revitalize the refinery.
Acting Prime Minister Stuart Young announced this decision during a post-Cabinet conference held in Port of Spain, where he urged caution against those who might attempt to undermine the agreement. Oando PLC is a leading energy company in Africa, publicly listed on both the Nigerian and Johannesburg Stock Exchanges.
Among the proposals evaluated were offerings from CRO Consortium, a local group, and INCA Energy LLC from the USA, alongside Oando PLC. Prime Minister Dr. Keith Rowley previously noted that the Petrotrin refinery ceased operations due to a deficit in oil supply and unsustainable financial losses, which escalated to billions in costs for the country.
He explained that the refinery’s closure was a result of changed accounting rules that necessitated Petrotrin to write off $15 billion in debt, leading to anticipated annual losses exceeding one billion dollars from 2019. In light of these challenges, the Government intervened and restructured the company, now ensuring revenue in the form of taxes and royalties which had not been collected prior, while also stating that Paria is currently profitable.
Dr. Rowley detailed that the Oilfields Workers’ Trade Union (OWTU) was offered the opportunity to operate the refinery but was unable to meet financial obligations, including hiring legal and accounting advisors, and had requested $500 million from the Government to proceed with the acquisition.
In closing, the Cabinet’s endorsement of Oando Trading as the preferred bidder for the Pointe a Pierre refinery marks a critical step toward revitalizing the facility. With Oando’s financial capacity to undertake the operations and the Government’s restructuring of Petrotrin, there are indications of a potential turnaround in the sector. Continued vigilance against disruptors of the deal is necessary to ensure its successful realization.
Original Source: trinidadexpress.com
