Oando Plc Selected as Preferred Bidder for Guaracara Refinery Lease in Trinidad

Oando Plc has won the preferred bid for the Guaracara Refinery lease in Trinidad, surpassing competitors due to its strong financial history. Energy Minister Stuart Young emphasized the Cabinet’s careful consideration during the selection process and highlighted the financial struggles faced by Petrotrin. The government aims to ensure fuel supply stability and has committed to further discussions with Oando about the refinery lease.

Oando Plc has emerged as the preferred bidder for the lease of the Guaracara Refinery in Trinidad and Tobago. Reports indicate that Oando outperformed competitors, including Trinidad’s CRO Consortium and the American company INCA Energy. Energy Minister Stuart Young credited the decision to Oando’s robust financial history, particularly emphasizing the company’s significant $1.5 billion acquisition of ConocoPhillips’ assets in Nigeria in 2014.

During a media briefing, Minister Young expressed that the Cabinet gave considerable attention to the decision process, stating, “We had robust conversations and interrogations.” He expressed concerns regarding the downturn of Petrotrin, the nation’s energy corporation, as it faced considerable financial losses, escalating from $361.5 million in 2014 to $1.2 billion by 2016, alongside a drop in domestic oil production.

A post from the Office of the Prime Minister on Facebook noted that the Cabinet had communicated its non-objection to Trinidad Petroleum Holdings Limited regarding discussions with Oando for the refinery lease. An Evaluation Committee, composed of industry experts, reviewed expressions of interest from three shortlisted companies, ultimately recommending Oando Trading DMCC for the lease.

Prime Minister Young affirmed the government’s dedication to safeguarding Paria Fuel Trading Company Limited’s assets, ensuring a stable domestic fuel supply. In January, Oando was also awarded operatorship of Block KON 13 in Angola’s Onshore Kwanza Basin, a significant development following a competitive bidding process. The Block is recognized for its substantial exploration potential with estimated resources of 770 to 1,100 million barrels of oil.

Oando Plc has been awarded the preferred bid to lease the Guaracara Refinery, outperforming other bidders due to its strong financial track record. Concerns regarding Petrotrin’s declining performance and financial losses were highlighted during the decision-making process. The government remains committed to securing energy resources and promoting stability within domestic fuel supply, with Oando also advancing in Angolan oil exploration.

Original Source: punchng.com