Cabinet has endorsed Oando Trading as the preferred bidder to revitalize the Pointe a Pierre refinery following a recommendation from the Evaluation Committee. Acting Prime Minister Stuart Young urged TPHL to complete the deal, while cautioning against potential obstruction. The refinery’s closure was due to financial difficulties, necessitating government intervention.
The Cabinet has reached a decision regarding the Pointe a Pierre refinery, endorsing an Evaluation Committee’s recommendation to select Oando Trading as the preferred bidder. Acting Prime Minister Stuart Young confirmed this decision, indicating that the responsibility now lies with Trinidad Petroleum Holdings Limited (TPHL) to finalize the deal with Oando, which possesses the requisite financial resources to resume and operate the refinery.
During a press conference in Port of Spain, Mr. Young cautioned against individuals attempting to obstruct the agreement. Oando PLC is recognized as one of Africa’s foremost energy solution providers, listed on both the Nigerian and Johannesburg Stock Exchanges.
The Evaluation Committee reviewed proposals from three contenders: the CRO Consortium, a local entity; INCA Energy LLC from the United States; and Oando PLC from Nigeria. Earlier in the year, Prime Minister Dr. Keith Rowley explained that the Petrotrin refinery ceased operations due to insufficient oil supplies and the high costs associated with oil imports, resulting in substantial financial losses for the country.
Dr. Rowley elaborated on the fiscal challenges faced by Petrotrin, including a $15 billion debt write-off mandated for account certification after rule changes in 2017 or 2018. Consequently, the Government initiated a restructuring of Petrotrin to address these issues, leading to improved royalty and tax payments to the Minister of Finance.
In summary, the Cabinet’s decision to select Oando Trading for the Pointe a Pierre refinery underscores the company’s capability to revitalize operations. This strategic move represents a significant step towards addressing previous fiscal challenges faced by Petrotrin, as highlighted by the Prime Minister. The successful execution of this deal could rejuvenate the energy sector in Trinidad and Tobago, benefiting the national economy.
Original Source: trinidadexpress.com
