Oando PLC has been named the preferred bidder for the Guaracara Refinery in Trinidad and Tobago, thanks to its solid financial track record exemplified by its $1.5 billion acquisition of ConocoPhillips’ assets. The refinery, inactive since late 2018, is set to operate under a leasing model where Oando will manage it in partnership with a state-owned entity.
Oando PLC, a prominent Nigerian oil company, has been designated as the preferred bidder to acquire Trinidad and Tobago’s Guaracara Refinery, with a capacity of 165,000 barrels per day. This decision was influenced significantly by Oando’s impressive financial record, particularly highlighted by its acquisition of ConocoPhillips’ assets in Nigeria for $1.5 billion. This acquisition underlines Oando’s financial strength and capabilities, distinguishing it from other candidates for the refinery management.
The Guaracara Refinery, previously owned by Trinidad and Tobago’s state-operated Petrotrin, has been inactive since its closure in late 2018 due to considerable financial setbacks. Now, managed by Guaracara Refining Company, a subsidiary of Trinidad Petroleum Holdings Limited, the facility is currently in preservation mode while the government seeks potential investors to revive its operations. Earlier in 2023, the government initiated a search for an operator with a deadline in August to consider the various proposals received.
Oando’s preference was confirmed by Trinidad and Tobago’s Energy Minister, Stuart Young, following a thorough deliberation process by the Cabinet. He stated that the selected model for the refinery’s operation would be a lease-type agreement, where Oando would manage the refinery while working in partnership with Paria Fuel Trading Company Ltd., which oversees fuel importation and distribution in the region. Young emphasized the importance of ensuring that the facility’s future was carefully planned and aligned with government goals.
Restarting the Guaracara Refinery necessitates agreements for affordable imported crude to secure profitable operational margins. The prospective operator, including Oando, must also prove its financial viability and knowledge in asset management to ensure sustainability in operations. This strategic move indicates a significant step towards revitalizing the refinery and reducing the state’s financial obligations.
In conclusion, Oando PLC’s selection as the preferred bidder for Trinidad and Tobago’s Guaracara Refinery signals a new chapter for the facility after years of inactivity. With its strong financial background and commitment to operating the refinery under a lease agreement, Oando aims to revive the refinery while meeting the government’s objectives. The collaborative effort between Oando and local entities represents a significant opportunity for both parties in the oil sector.
Original Source: africa.businessinsider.com
