Nigerian oil giant Oando Plc has emerged as one of three final contenders for the acquisition of Trinidad and Tobago’s state-owned refinery, Petrotrin. The announcement was made by Trinidadian Finance Minister Colm Imbert during the presentation of the national budget on September 30, 2024.
Oando Plc joins two other companies in the final shortlist: the CRO Consortium, a coalition of three Trinidadian firms, and INCA Energy, a U.S.-based company. The selection follows an initial pool of ten proposals submitted as part of the bidding process that began in February 2024, overseen by U.S. financial firm Scotia Capital.
Minister Imbert stated, “A formal selective Request for Proposals process will now be initiated to determine the winner among these three companies, with a view to restarting the refinery, if found feasible.”
Proposals were evaluated based on several key criteria, including a clear restart plan and timeline, an asset integrity assessment, utility requirements such as power and water, and a viable financing plan to support working capital. Additionally, the plans needed to align with the national interest in fuel security and management of Heritage’s crude supply.
The Petrotrin refinery, located in Pointe-a-Pierre, has been out of operation since 2018 after incurring significant losses of up to $2 billion annually. According to the last audit, accumulated losses stood at $15 billion, with the government bearing a public debt of $3 billion on behalf of the company. Minister Imbert highlighted that the refinery was struggling with low productivity levels at the time of its closure.
Built in 1917, the refinery has historical significance as Trinidad’s major oil supplier in the Caribbean region. After being nationalized in 1984, it came under the control of the Petroleum Company of Trinidad and Tobago (Petrotrin) in 1993. However, by 2018, Petrotrin was restructured into four companies, with Guaracara Refining Company now serving as the holding entity for the refinery and its associated assets.
Oando Plc recently strengthened its position in the oil sector by completing a $783 million acquisition of the Nigerian Agip Oil Company in August, further enhancing its portfolio in various joint venture assets. The outcome of the current bidding process will be closely watched, as it could signal a new chapter for the beleaguered refinery and the energy landscape in Trinidad and Tobago.
