Oando Plc has been awarded the lease for the Guaracara Refinery in Trinidad and Tobago, outbidding competitors. The selection was based on Oando’s financial strength, particularly its past acquisition of ConocoPhillips’ assets. PM Young emphasized the importance of this decision amid challenges faced by local energy company Petrotrin. Oando is expanding further with operations in Angola’s Block KON 13, which holds significant oil reserves.
Oando Plc has been selected as the preferred bidder to lease the Guaracara Refinery in Trinidad and Tobago, surpassing competitors CRO Consortium and INCA Energy. The decision was announced by Energy Minister Stuart Young, who credited Oando’s robust financial history, particularly their $1.5 billion acquisition of ConocoPhillips’ assets in Nigeria in 2014, as a significant factor in the selection process.
During a recent media briefing, Minister Young highlighted the extensive discussions the Cabinet undertook before making the decision, signifying its importance. He noted the issues faced by Petrotrin, the nation’s energy company, which experienced losses increasing from $361.5 million in 2014 to $1.2 billion by 2016, alongside a marked decline in domestic oil production.
A Facebook announcement from the Office of the Prime Minister confirmed the Cabinet’s approval for Trinidad Petroleum Holdings Limited to engage discussions with Oando regarding the refinery lease. An Evaluation Committee recommended Oando Trading DMCC after assessing the proposals, emphasizing the involvement of industry professionals.
Prime Minister Young reaffirmed the government’s commitment to protecting the assets of Paria Fuel Trading Company Limited, ensuring a reliable domestic fuel supply and safeguarding Paria’s resources as the refinery commences operations. Additionally, in January, Oando was awarded operations in Angola’s Block KON 13, indicating the company’s expanding footprint in the energy sector.
The company’s Secretary, Mrs. Ayotola Jagun, stated that the award of Block KON 13 by Angola’s National Agency for Petroleum follows a competitive bidding process. This area is believed to harbor significant oil reserves, with estimated resources between 770 and 1,100 million barrels, reflecting substantial exploration potential in both pre-salt and post-salt plays.
In conclusion, Oando’s successful bidding for the Guaracara Refinery shows its strong financial capabilities and commitment to energy development. The government’s focus on stabilizing domestic fuel supply and addressing the decline of Petrotrin underscores the importance of this decision. Furthermore, Oando’s expanding operations in Angola highlight its strategic positioning within the global energy market.
Original Source: punchng.com
