PORT OF SPAIN, Trinidad – The Trinidad and Tobago government has dismissed “spurious, wild allegations and insinuations” by the main opposition United National Congress (UNC) regarding the current procurement process for a prospective purchaser or lessee for the oil refinery at Point-a-Pierre, south of here.
Speaking at a news conference on Sunday, Opposition Senator Wade Mark said that the party understands that the US-based company, Quanten, is the preferred bidder for the refinery owned by the state-owned oil company PETROTRIN.
“Government argument to close the refinery…we want to tell Trinidad and Tobago was flawed and based on a misunderstanding of PETROTRIN’s business model and a misunderstanding of the accounts of that company,” he told reporters.
Mark said that the country had been “repeatedly told up to 2018 that PETROTRIN was heavily dependent on taxpayers’ support. According to Dr (Keith) Rowley, a ward of the state”.
But he aid based on a Freedom of Information (FOI) requests that have not been the case. In fact, between 2016 and 2018, the government did not contribute to the loss-making company, while in 2019, “the only contribution to PETROTRIN was to provide…TT$1.2 billion (One TT dollar=US$0.16 cents) to retrench….lover 6,000 employees.
Mark, who valued the refinery at seven billion US dollars, said the question for shareholders and owners of Trinidad Petroleum Company Limited, which was formed after PETROTRIN was shut down, “is who is Quanten Inc?
“What qualifies this company to operate our seven billion US dollar asset refinery? What is this entity’s claim to fame to become the successful bidder,” he added.
But in a statement, Energy and Energy related Industries Minister Stuart Young described Mark’s statements as “destructive UNC mischief.”
He said the refinery sale is being handled by Trinidad Petroleum Holdings Limited (TPH) advisers and international experts, who periodically report progress to the Ministry of Finance and Ministry of Energy.
He confirmed that the process has thus far been narrowed down to one entity. The government was awaiting the outcome and dismissed as “spurious allegations” Mark’s concerns regarding the legitimacy of the US-based company.
Young said he has communicated with the United States government about the company’s interest in acquiring the refinery.
“Quanten LLC is an American company engaged in the RFP process for the refinery. Various arms of the United States government have communicated with me, as the Minister of Energy and Energy Industries, concerning Quanten LLC, indicating its (Quanten’s) interest in the RFP process for the refinery, and there has been support for the company as being an American-based entity.”
“The company has also been pursuing the acquisition of other oil refineries in other world areas. The company is engaged with TPHL and has to go through the standard and required processes in these matters. “Young added; there is nothing further to be said,” Young added.
He told Trinidad and Tobago population to take note of an “attack” on foreign companies who want to invest in the country, stating that this was an “opposition attack on foreign investors.”
“The UNC opposition has established a track record of attacking foreign investors who wish to invest in our country since September 2015. This is yet another brazen example. I remind citizens of the UNC-led attacks on the Sandals Resorts International’s attempt to build a Sandals and Beaches Resort in Tobago.
“It still pains me as a citizen to have lost that opportunity and then see the Sandals Resorts group invest in hotels in Curacao, St Vincent and the Grenadines, Jamaica, and St Lucia when Tobago could have been included. The UNC Opposition’s continued attack on foreign investors knows no boundary and must be rejected as we should want to encourage legitimate foreign investment in Trinidad and Tobago,” Young said.
“It is most unfortunate that the UNC opposition continues with its mischief to harm Trinidad and Tobago, and I condemn this behavior,” Young said.
Meanwhile, the Ministry of Finance, in a statement as “corporation sole,” said it had taken note of the “spurious, wild allegations and insinuations made by members of the opposition UNC at a press conference …which were intended to cast doubt on and discredit the current procurement process for a prospective purchaser or lessee for the Point-a-Pierre Refinery”.
Finance Minister Colm Imbert said he wanted to inform the public that contrary to the “baseless allegations of the opposition, the current procurement process being carried out by TPHI for the sale or lease of the refinery has been closely monitored. The Ministry of Finance for the last twelve.”
Imbert said that the Ministry “is satisfied that the process has been robust, rigorous, and completely above board and consistent with best practice.”
He said he has no doubt that TPHL will make the best decision in the best interest of the people of Trinidad and Tobago concerning the sale or lease of the refinery “and wishes to assure all concerned that the Ministry will ensure that this process will be taken to completion with the highest levels of due diligence and integrity.”
The government closed the oil refinery in south Trinidad in 2018 after complaining that it lost billions of dollars annually.
Patriotic Energies, a company formed by the Oilfield Workers Trade Union (OWTU), had entered a bid for the refinery, but the interest collapsed in January 2021.
Earlier this month, Prime Minister Rowley told Parliament that a preferred bidder had been selected to take over the oil refinery operations.
Rowley, responding to a question from opposition legislator David Lee that the four bidders had been given until April to submit revised proposals, said, “further bids from the bidders were received and evaluated.
“After evaluation, TPHL has identified a preferred bidder and is currently pursuing discussions with this equity. The process is ongoing,” Rowley said, adding he could not provide a timeline as to when the preferred bidder would be evaluated.
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