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Oando Plc Shortlisted To Acquire Trinidad Refinery

Published

3 months ago

Oct 8, 2024.

Nigerian oil company Oando Plc has been shortlisted by the Trinidad and Tobago government as one of three finalists to acquire the state-owned Petrotrin refinery.

The announcement was made by Trinidadian Finance Minister Colm Imbert during the presentation of the national budget on September 30, 2024.

The defunct Petrotrin refinery, located in Pointe-a-Pierre, has been closed since 2018 after suffering significant financial losses, with accumulated debts of $15 billion and annual losses of up to $2 billion.

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EKO HOT BLOG reports that the government is now in the process of selecting a company to revive the refinery, which was once a key player in the Caribbean’s oil supply.

Out of the initial 10 proposals, three companies made it to the final round: Nigeria’s Oando Plc, the CRO Consortium (comprising three Trinidadian companies), and INCA Energy, an American firm.

The Trinidadian government has engaged the services of U.S.-based Scotia Capital to manage the bidding process, which began in February 2024 with an invitation for expressions of interest.

Minister Imbert stated that a formal Request for Proposals (RFP) will now be initiated among the three finalists to determine the winning bid. The government is aiming for a restart of the refinery, provided it is deemed financially and technically feasible.

The proposals were evaluated on five key criteria, including a clear restart plan, an asset integrity assessment, utility requirements (such as power, natural gas, and water), and crude oil supply sources.

Another critical factor was the financial viability of the bidders, including their ability to secure working capital and maintain an agreement with Trinidad’s state-owned oil company, Paria, ensuring fuel security and proper management of crude supplies from Heritage Petroleum, another state entity.

The Pointe-a-Pierre refinery was originally built in 1917 and has undergone several ownership changes, including being acquired by Texaco in 1956 and later nationalized in 1984.

Oando Plc Trinidad Refinery

Petrotrin, formed in 1993, controlled the refinery until it was shut down in 2018, and the assets were divided into several entities, including Guaracara Refining Company, which currently holds the refinery.

Oando’s selection comes on the heels of its recent $783 million acquisition of Nigerian Agip Oil Company, a deal that increased its control over 40 oil and gas fields, including 24 currently in production. This latest development positions Oando as a significant player in both local and international oil markets.

The Trinidadian government hopes to have the refinery operational again soon, provided the selected bidder meets the outlined requirements, ensuring both profitability and fuel security for the country.