Oando Plc has won the bid to lease the Guaracara Refinery in Trinidad and Tobago, outperforming competitors like CRO Consortium and INCA Energy. Minister of Energy, Stuart Young, cited Oando’s strong financial history, particularly its $1.5 billion acquisition in Nigeria. The government aims to protect domestic fuel supplies amid the decline of Petrotrin, as highlighted in a recent Cabinet meeting.
Oando Plc has emerged as the preferred bidder for leasing the Guaracara Refinery located in Trinidad and Tobago. Reports indicate that Oando triumphed over competitors, including Trinidad’s CRO Consortium and the American firm INCA Energy. The Minister of Energy, Stuart Young, praised Oando’s robust financial history, specifically referencing its $1.5 billion acquisition of ConocoPhillips’ assets in Nigeria back in 2014.
During a media briefing, Minister Young affirmed that the Cabinet had extensively deliberated the decision, stating, “We had robust conversations and interrogations.” He underscored the importance of this decision amidst concerns over the declining state of Petrotrin, the local energy company, which had accumulated considerable financial losses since 2015.
In 2014, Petrotrin reported losses of $361.5 million, a figure that unfortunately rose to $1.2 billion by 2016, coinciding with a stark reduction in domestic oil production. The Prime Minister’s office announced through a Facebook post that the Cabinet had granted approval to Trinidad Petroleum Holdings Limited to initiate discussions with Oando regarding the refinery lease.
An Evaluation Committee was constituted to assess proposals for the Guaracara refinery, leading to the recommendation of Oando Trading DMCC as the preferred bidder. Minister Young reiterated the government’s commitment to protecting the assets of Paria Fuel Trading Company Limited while ensuring a consistent domestic fuel supply during the refinery’s restart.
Earlier this year, Oando was also awarded the operatorship of Block KON 13 in Angola’s Onshore Kwanza Basin, a result of competitive bidding by the Angolan National Agency for Petroleum, Gas, and Biofuels. The company’s Secretary, Mrs. Ayotola Jagun, elaborated on Block KON 13’s location within the Kwanza Onshore Basin, which harbors significant exploration prospects for oil.
In conclusion, Oando Plc’s selection as the preferred bidder for the Guaracara Refinery highlights its strong financial credentials and the government’s focus on revitalizing the local energy sector. Minister Young’s remarks and the establishment of an Evaluation Committee underscore the significance of this decision in addressing the decline of Petrotrin and safeguarding domestic fuel supplies. Moreover, Oando’s recent achievements in Angola further solidify its standing in the energy industry.
Original Source: punchng.com
