Nigerian oil company, Oando Plc, has been shortlisted by the Trinidadian government as one of the top three companies in the running to purchase the country’s state-owned oil refinery, Petrotrin. The refinery, located in Pointe-a-Pierre, Trinidad, has been inactive since 2018, and the government is now seeking a buyer to restart its operations.
Trinidad and Tobago’s Finance Minister, Colm Imbert, announced the final shortlist during a national budget presentation on September 30, 2024.
Speaking about the development, Imbert disclosed, “Of the initial 10 proposals received, only three companies have been shortlisted: Nigeria’s Oando Plc, CRO Consortium—made up of three Trinidadian companies—and American firm INCA Energy.”
The bidding process began earlier this year in February 2024, with the Trinidadian government appointing US-based firm Scotia Capital to manage the sale. The government invited interested companies to submit “expressions of interest” for the acquisition of Petrotrin.
“A formal selective Request for Proposals process will now be initiated to determine the winner among these three companies,” Imbert explained, adding that the main goal is to restart the refinery, if it is deemed feasible.
Key Evaluation Criteria
The Trinidadian government evaluated the proposals based on five key criteria. These included a clear restart plan and timeline, an assessment of the refinery’s current condition (asset integrity), and the utility needs such as power, natural gas, and water. Each bidder was also required to outline their crude oil supply sources and present a viable financing plan to cover operational costs.
Another important factor in the evaluation was ensuring fuel security for the nation. This required the selected bidder to reach an agreement with Paria, Trinidad’s state oil company, which oversees crude supply management.
The refinery, which was built in 1917, has historically played a significant role in the oil supply to the Caribbean region. However, it was shut down in 2018 after years of poor performance. Prime Minister Keith Rowley had stated that the refinery was losing up to $2 billion annually, leading to its closure. Since then, the government has been looking for ways to restart operations.
Imbert revealed in his budget presentation that Petrotrin’s accumulated losses totaled $15 billion as of the last audit, with the country taking on $3 billion in public debt to support the refinery.
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Oando’s Growing Influence
Oando’s bid for the Petrotrin refinery comes shortly after its major acquisition of the Nigerian Agip Oil Company in August. The $783 million deal significantly boosted Oando’s portfolio, giving the company control over 40 oil and gas fields, including 24 that are currently producing.