Oando PLC has been named the preferred bidder for the Guaracara Refinery in Trinidad and Tobago, leveraging its strong financial history, particularly its $1.5 billion acquisition of ConocoPhillips’ assets in Nigeria. The refinery has been inactive since 2018 due to financial losses. The partnership will involve Oando managing operations while working with Paria Fuel Trading Company.
Oando PLC, a prominent Nigerian oil company, has been designated as the preferred bidder for the 165,000-barrel-per-day refinery in Trinidad and Tobago. This decision stems from the company’s robust financial background and its successful $1.5 billion acquisition of ConocoPhillips’ assets in Nigeria. The refinery, known as the Guaracara Refinery, has remained idle since its closure in late 2018 due to significant financial difficulties.
Trinidad and Tobago’s Acting Prime Minister, Stuart Young, emphasized that Oando’s competitive edge was bolstered by its capacity to secure substantial financing in the upstream oil sector. This assessment highlights Oando’s financial stability, marked by its notable acquisition of ConocoPhillips, which added weight to their bid.
The Guaracara Refinery, once part of the state-owned Petrotrin, is currently managed by Guaracara Refining Company, a subsidiary of Trinidad Petroleum Holdings Limited (TPHL). The facility has been kept in “preservation mode” as the government actively seeks investors to restart operations, with the aim of returning the refinery to profitable function.
In 2023, the Trinidadian government initiated a search for operators for the facility, setting an August deadline to evaluate various offers. The government received interest from both domestic and international firms regarding the acquisition or leasing of the refinery, contingent upon agreements for competitively priced imported crude oil.
Oando PLC emerged as the preferred bidder from an initial list of ten proposals, confirmed by Energy Minister Stuart Young. The shortlisted contenders included three Trinidad firms and INCA Energy from the U.S. Young noted that the selection process involved considerable scrutiny to ensure the best outcome for the refinery.
The operational model proposed will see Oando managing the refinery on a lease basis, partnering with Paria Fuel Trading Company Ltd. This arrangement is aimed at alleviating the state’s financial burdens while ensuring operational flexibility. Young reiterated the goal of revitalizing the facility to improve the nation’s energy sector.
Oando PLC has been selected as the preferred bidder for Trinidad and Tobago’s inactive Guaracara Refinery, leveraging its strong financial standing and recent acquisitions as critical factors in the decision. This bid reflects a strategic move to revive a facility that has been dormant since 2018 due to financial losses. The collaboration with state-owned entities aims to ensure profitable operations while reducing financial burdens on the government.
Original Source: africa.businessinsider.com
