OANDO PLC SHORTLISTED AS FINAL CONTENDER FOR TRINIDAD'S PETROTRIN REFINERY
Overview: Oando Plc, a leading Nigerian oil company, has been selected as one of three final contenders to acquire the defunct Petrotrin refinery in Trinidad and Tobago. This development marks a significant milestone in the ongoing bidding process aimed at revitalizing the refinery, which has been inactive since 2018 due to financial losses.
Background: Petrotrin, the state-owned refinery of Trinidad and Tobago, ceased operations in 2018 after reporting losses of up to $2 billion annually. The accumulated losses, as of the last audit, were $15 billion. The country’s government, carrying a public debt of $3 billion for Petrotrin, is now working to restart the refinery.
Bidding Process: The bidding process began in February 2024, overseen by US-based Scotia Capital. Oando Plc was shortlisted alongside CRO Consortium (Trinidadian companies) and INCA Energy (an American company) from an initial pool of 10 proposals.
Selection Criteria: The finalists were evaluated based on several factors, including:
- A detailed restart plan and timeline, including an asset integrity assessment.
Securing resources such as power, natural gas, and water.
- A financing plan for working capital.
- An agreement with Paria, Trinidad’s state oil company, that ensures national fuel security while managing Heritage’s crude supply.
Future Steps: A selective Request for Proposals (RFP) process will determine the winner, with a focus on finding the best strategy to restart the refinery, making it viable for the long term.
Significance: For Oando Plc, this opportunity follows its recent $783 million acquisition of Nigerian Agip Oil Company. The company now controls 40 oil and gas fields, with 24 actively producing, expanding its operations and reinforcing its foothold in the energy sector.
This acquisition and the bid for Petrotrin are poised to strengthen Oando's influence in the global oil market.
Overview: Oando Plc, a leading Nigerian oil company, has been selected as one of three final contenders to acquire the defunct Petrotrin refinery in Trinidad and Tobago. This development marks a significant milestone in the ongoing bidding process aimed at revitalizing the refinery, which has been inactive since 2018 due to financial losses.
Background: Petrotrin, the state-owned refinery of Trinidad and Tobago, ceased operations in 2018 after reporting losses of up to $2 billion annually. The accumulated losses, as of the last audit, were $15 billion. The country’s government, carrying a public debt of $3 billion for Petrotrin, is now working to restart the refinery.
Bidding Process: The bidding process began in February 2024, overseen by US-based Scotia Capital. Oando Plc was shortlisted alongside CRO Consortium (Trinidadian companies) and INCA Energy (an American company) from an initial pool of 10 proposals.
Selection Criteria: The finalists were evaluated based on several factors, including:
- A detailed restart plan and timeline, including an asset integrity assessment.
Securing resources such as power, natural gas, and water.
- A financing plan for working capital.
- An agreement with Paria, Trinidad’s state oil company, that ensures national fuel security while managing Heritage’s crude supply.
Future Steps: A selective Request for Proposals (RFP) process will determine the winner, with a focus on finding the best strategy to restart the refinery, making it viable for the long term.
Significance: For Oando Plc, this opportunity follows its recent $783 million acquisition of Nigerian Agip Oil Company. The company now controls 40 oil and gas fields, with 24 actively producing, expanding its operations and reinforcing its foothold in the energy sector.
This acquisition and the bid for Petrotrin are poised to strengthen Oando's influence in the global oil market.
