Oando Plc has emerged as the preferred bidder for the lease of the Guaracara Refinery in Trinidad and Tobago, defeating Trinidad’s CRO Consortium and INCA Energy, an American company.
This development was announced by Trinidad’s Minister of Energy, Stuart Young, who cited Oando’s strong financial track record as the primary reason for the decision.
Young highlighted Oando’s $1.5 billion acquisition of ConocoPhillips’ assets in Nigeria in 2014 as a testament to the company’s financial capabilities. The minister also emphasized that the decision was made after “robust conversations and interrogations” by the Cabinet, underscoring the significance of the decision.
The Guaracara Refinery, located in Pointe-a-Pierre, Trinidad, has been closed since 2018 due to significant losses. The refinery’s decline is attributed to Petrotrin, the country’s energy firm, which struggled with losses of $361.5 million in 2014, escalating to $1.2 billion by 2016. Domestic oil production also plummeted from 144,000 barrels per day in 2005 to 78,000 barrels by 2015.
The Evaluation Committee, comprising industry professionals, reviewed expressions of interest from multiple companies and shortlisted three, including Oando Trading DMCC. The committee recommended Oando as the preferred bidder for the lease of the Guaracara refinery.
Prime Minister Young assured that the government is committed to protecting Paria Fuel Trading Company Limited’s assets, ensuring a stable supply of domestic fuel, and safeguarding Paria’s resources during the refinery restart process.
In related news, Oando recently acquired NAOC Ltd in Nigeria and was awarded operatorship of Block KON 13 in Angola’s Onshore Kwanza Basin.