Oando Secures Lease for Guaracara Refinery in Trinidad and Tobago

Oando Plc has been chosen as the preferred bidder for the Guaracara Refinery lease in Trinidad and Tobago, outbidding both local and international competitors. Minister of Energy Stuart Young emphasized Oando’s solid financial performance as a key factor in this decision. The government is committed to stabilizing the energy sector amid challenges faced by Petrotrin, and Oando continues to expand its presence in the energy market, including operations in Angola.

Oando Plc has emerged as the preferred bidder for the lease of the Guaracara Refinery located in Trinidad and Tobago. Local media reports indicate that Oando outbid Trinidad’s CRO Consortium and American firm INCA Energy for this opportunity. The decision, announced by Minister of Energy Stuart Young, was significantly influenced by Oando’s proven financial stability, notably its $1.5 billion acquisition of ConocoPhillips’ assets in Nigeria in 2014.

During a media briefing, Minister Young highlighted the thorough discussions held by the Cabinet regarding this decision. He expressed his concerns about the deterioration of Petrotrin, the national energy firm, which faced a staggering loss of $361.5 million in 2014 that escalated to $1.2 billion by 2016. Young noted the dramatic decline in domestic oil production, which plummeted from 144,000 barrels per day in 2005 to 78,000 barrels by 2015.

In a statement posted to the Office of the Prime Minister’s Facebook page, it was revealed that the Cabinet approved a non-objection to Trinidad Petroleum Holdings Limited to engage with Oando for the lease negotiations of the Guaracara refinery. An Evaluation Committee had been appointed to assess proposals for the refinery’s potential use, ultimately recommending Oando Trading DMCC as the preferred bidder.

Prime Minister Young reiterated the government’s commitment to safeguarding assets belonging to Paria Fuel Trading Company Limited, ensuring a stable domestic fuel supply, and protecting Paria’s resources as the refinery is set for a restart. Additionally, Oando recently announced its acquisition of operatorship for Block KON 13 in Angola’s Onshore Kwanza Basin, highlighting its ongoing growth in the energy sector.

Oando’s Secretary, Mrs. Ayotola Jagun, noted that this acquisition followed a competitive bidding process administered by the Angolan National Agency for Petroleum, Gas, and Biofuels. Block KON 13 is strategically situated in the Kwanza Onshore Basin, which offers substantial exploration potential in pre-salt and post-salt plays, with estimated resources ranging from 770 to 1,100 million barrels of oil. This bid follows Oando’s recent successful acquisition of NAOC Ltd in Nigeria.

In summary, Oando’s successful bid for the Guaracara Refinery lease marks a significant achievement, attributed to its robust financial history and growth within the energy sector. The government of Trinidad and Tobago has expressed its commitment to supporting the renewal of the domestic energy landscape. Oando’s recent activities in Angola further demonstrate its ambitious expansion strategy as it seeks to capitalize on new opportunities.

Original Source: punchng.com