Oando PLC has been chosen as the preferred bidder for the Guaracara Refinery in Trinidad and Tobago, a facility that has been dormant since late 2018. The decision was influenced by Oando’s strong financial history, particularly its acquisition of ConocoPhillips’ assets. The refinery’s management will be based on a lease-type model in collaboration with the state-owned Paria Fuel Trading Company.
Oando PLC, the Nigerian oil company, has been designated as the preferred bidder for the acquisition of the 165,000 barrel-per-day refinery in Trinidad and Tobago. This decision was influenced by Oando’s impressive financial track record, particularly highlighted by its $1.5 billion acquisition of ConocoPhillips’ assets in Nigeria. The refinery, known as the Guaracara Refinery, has been inactive since its closure in late 2018 owing to substantial financial losses.
The Guaracara Refinery, which was formerly owned by Trinidad and Tobago’s state-owned Petrotrin, is presently managed by the Guaracara Refining Company, a subsidiary of Trinidad Petroleum Holdings Limited. As part of its strategy, the government is seeking investors to revive operations at the facility, which has been kept in “preservation mode” since its closure. In 2023, the government opened a bidding process, resulting in several domestic and international interests in restarting operations at the refinery.
Stuart Young, Trinidad and Tobago’s Acting Prime Minister and Minister of Energy, noted that Oando’s ability to secure significant financing, particularly in the upstream oil sector, provided a competitive advantage in the bidding process. He emphasized the importance of Oando’s financial capability in ensuring the refinery’s successful operation if competitively priced imported crude can be arranged, contributing to profitable margins.
Additionally, the prospective operator is required to demonstrate financial viability and expertise in asset management for successful operations. Energy Minister Stuart Young expressed that the Cabinet deliberated extensively before selecting Oando as the preferred bidder for managing the Guaracara Refinery under a lease-type commercial model in partnership with Paria Fuel Trading Company Ltd.
The discussions regarding Oando’s proposal were noted to align with the government’s objectives, particularly in reducing state financial burdens while preserving operational flexibility at the refinery. The revival of the Guaracara Refinery remains a top priority for the government of Trinidad and Tobago as they continue to navigate the future operations of this pivotal facility.
Oando PLC has emerged as the preferred bidder for Trinidad and Tobago’s Guaracara Refinery, with its financial strength and past acquisitions playing a crucial role in this decision. The refinery’s revival, which has been inactive since late 2018, is vital for the government, and Oando’s proposal aims to achieve operational efficiency and financial viability. The partnership between Oando and state entities points towards a focused approach in revitalizing this key asset in the oil sector.
Original Source: africa.businessinsider.com
