PORT OF SPAIN, Trinidad, CMC—The Trinidad and Tobago government Thursday said it had accepted the recommendation of an evaluation committee that recommended Oando PLC, one of Africa’s largest integrated energy solutions providers, as the preferred bidder for the lease of the Guaracara refinery.
In a lengthy presentation to reporters at the post-cabinet news conference, Energy and Energy Industries Minister Stuart Young said the decision was based mainly on Oando’s strong financial track record, particularly its US$1.5 billion acquisition of ConocoPhillips’ assets in Nigeria.
The evaluation committee noted that Oando and the CRO Consortium—comprising three Trinidadian companies and INCA Energy, an American company—had similar capabilities in operating refineries. Still, Oando’s ability to secure substantial financing in the upstream oil sector gave it an advantage.
“Both of these things were explored, and the evaluation committee recommended to Cabinet that Oando…be the preferred bidder for the lease of the Guaracara refinery,” in south Trinidad, Young said.
He said the evaluation committee presented that to the Cabinet committee chaired by Housing and Urban Development Minister Camille Robinson-Regis, and today, the Cabinet took certain decisions.
“We have also noted the proposal for the lease type commercial arrangement which seeks to see the Guaracara refinery operating alongside Paria Fuel Trading Company Limited by way of granting access to Paria’s associated logistic assets via a commercial arrangement …which lease arrangements would allow the government several things”.
He said these include retaining ownership while granting usage rights to the referred bidder to generate consistent revenue.
“So we are not giving up Paria,” Young said, noting that some entities along the way wanted to acquire Paria’s bunkering purposes and were not interested in restarting the refinery.
Trinidad Petroleum Holdings Limited (TPHL) owns Guaracara Refining Company Ltd, which operates the country’s only petroleum refinery. It also owns the Paria Fuel Trading Company subsidiary, which imports refined petroleum products and stores and distributes them domestically.
“We, the government, adamant in our discussions with the evaluation committee that we have to protect the assets of Paria also always to ensure that we can provide domestic fuel to our population and to make sure that anybody interested in restarting the refinery doesn’t just take Paria’s assets.”
Young said that this is “one of the problems” the company formed by the Oilfield Workers Trade Union (OWTU) to bid for the refinery had faced.
He said the preferred bidder will also reduce the state’s burden to preserve and upgrade the asset and “create avenues for flexibility in the future and several other areas.
Young said the Cabinet also decided to inform TPHL of its non-objection to the evaluation committee’s recommendation and proposals for the sale or lease of the refinery.
‘We also agreed that TPHL should consider the recommendations of the said evaluation committee and proceed accordingly,” Young said
The state-owned PETROTRIN refinery was closed in 2018 due to a lack of oil and high import costs. The government restructured the company and invited proposals to restart the refinery.
The government defended the decision, insisting that the company was losing billions of dollars (One TT dollar = US$0.16 cents) annually.
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