Cabinet Endorses Oando Trading as Preferred Bidder for Petrotrin Refinery

The Cabinet has recommended Oando Trading as the preferred bidder for the Petrotrin refinery at Pointe a Pierre, which is necessary for the reopening of operations. Trinidad Petroleum Holdings Limited (TPHL) is now tasked with finalizing the deal with Oando, which has the financial capability to restart the refinery amid prior challenges faced by Petrotrin.

The Cabinet has made a vital decision regarding the operation of the Pointe a Pierre refinery. Acting Prime Minister Stuart Young announced that the Evaluation Committee has selected Oando Trading as the preferred bidder for the Petrotrin refinery, a recommendation that Cabinet has embraced.

Moreover, Cabinet has resolved to notify Trinidad Petroleum Holdings Limited (TPHL) of the Evaluation Committee’s recommendation regarding the sale or lease of the refinery. Young emphasized the responsibility now lies with TPHL to advance negotiations with Oando, which possesses the necessary financial resources to restart and operationalize the refinery.

During a press conference in Port of Spain, Young cautioned against potential disruptions to the deal, highlighting the significance of securing this partnership. Oando PLC is recognized as one of Africa’s premier energy solution providers, holding a primary listing on the Nigeria Stock Exchange and a secondary listing on the Johannesburg Stock Exchange.

The Evaluation Committee reviewed proposals from three entities: the locally based CRO Consortium, USA-based INCA Energy LLC, and Nigeria’s Oando PLC. Previously, Prime Minister Dr. Keith Rowley explained that Petrotrin’s closure stemmed from inadequate oil supply and the exorbitant costs incurred from oil imports, resulting in significant financial losses for the country.

Rowley elaborated that after a critical change in accounting rules, Petrotrin had to write off $15 billion of its debt, foreseeing further annual losses of approximately one billion dollars from 2019. This dire financial situation prompted governmental intervention and a restructuring of the company, leading to an improvement in royalty and tax payments alongside profitability from ownership.

Earlier options to manage the refinery were presented to the Oilfields Workers’ Trade Union (OWTU); however, the proposal from Patriotic Energies and Technologies was deemed inadequate due to their inability to meet basic financial obligations.

In summary, the Cabinet’s endorsement of Oando Trading as the preferred bidder for the Pointe a Pierre refinery marks a significant advancement towards revitalizing operations at Petrotrin. This decision aligns with ongoing governmental efforts to stabilize the energy sector and enhance its profitability after a challenging economic period. The responsibility now shifts to TPHL to finalize the arrangement with Oando, aiming to reinstate the refinery’s functionality.

Original Source: trinidadexpress.com