Cabinet Endorses Oando Trading to Revitalize Petrotrin Refinery
The Cabinet of Trinidad and Tobago has recommended Oando Trading to revitalize the Petrotrin refinery. Acting Prime Minister Stuart Young stated that the next steps rely on Trinidad Petroleum Holdings Limited pursuing a deal with the financially capable Oando. Prime Minister Dr. Keith Rowley emphasized Petrotrin’s previous financial losses and governmental restructuring efforts. Oando’s bid was selected over those from local and U.S.-based companies, reflecting confidence in its capabilities.
The Cabinet of Trinidad and Tobago has recommended Oando Trading as the preferred bidder for the Petrotrin refinery at Pointe a Pierre. Acting Prime Minister Stuart Young announced the Evaluation Committee’s endorsement during a post-Cabinet press conference, affirming that the next steps depend on Trinidad Petroleum Holdings Limited (TPHL) moving forward with Oando, which has the financial capability to restart the refinery.
Mr. Young cautioned against any individuals or entities attempting to disrupt the deal while providing insights into Oando PLC’s credibility as a leading energy solutions provider in Africa. The committee evaluated proposals from three competitors: the CRO Consortium, a locally based consortium; INCA Energy LLC from the USA; and Nigeria’s Oando PLC.
Earlier this year, Prime Minister Dr. Keith Rowley explained that the Petrotrin refinery was closed due to a lack of oil supply and financial losses from importing oil. He noted that the company had incurred significant debts and losses after changes in accounting rules in 2017 or 2018, prompting governmental intervention to restructure the company. The government is now benefiting from royalties and profits that Petrotrin had previously failed to pay.
Dr. Rowley indicated that the Oilfields Workers’ Trade Union was initially offered the option to operate the refinery. However, the proposal from Patriotic Energies and Technologies fell short, as the entity was unable to cover basic operational costs and sought a substantial government loan to facilitate the purchase of the refinery.
In summary, the Cabinet’s decision to endorse Oando Trading for the Petrotrin refinery marks a significant step toward revitalizing the facility. The successful negotiation with TPHL may lead to a beneficial outcome for the government and the local economy. The history of Petrotrin’s financial struggles highlights the necessity for careful and strategic management moving forward.
Original Source: trinidadexpress.com
