Nigerian oil giant Oando Plc has emerged as one of the final three contenders to assume control of Trinidad and Tobago’s state-owned refinery, Petrotrin, as announced by the Trinidadian government.
During the recent national budget presentation, Trinidad’s Finance Minister confirmed that Oando Plc, alongside CRO Consortium and INCA Energy, has been shortlisted from an initial group of ten proposals. The bidding process, which commenced in February 2024, aims to find a suitable party for the procurement and revitalization of the defunct refinery.
The Minister indicated that a formal Request for Proposals process will soon be launched to select the winning bidder, with a focus on developing a feasible restart plan for the refinery. This evaluation will take into consideration essential criteria including asset integrity assessments, utility requirements (such as power, natural gas, and water), and reliable crude supply sources.
Oando’s expertise may play a critical role as the Pointe-a-Pierre refinery has remained closed since 2018 due to significant financial losses, which have accumulated to a staggering $15 billion. Public debt linked to the refinery amounts to $3 billion, creating notable challenges for the Trinidadian government.
Historically, the refinery has been a crucial component of Trinidad’s oil sector since its establishment in 1917, once serving as the primary supplier of oil across the Caribbean. After being nationalized in 1984, it operated under various iterations until its closure by Petrotrin in 2018.
Oando Plc, following its recent acquisition of Nigerian Agip Oil Company for $783 million, has significantly expanded its portfolio, now managing 40 oil and gas fields, with 24 currently in production. This strategic move positions Oando as a formidable player in the energy sector, not only in Nigeria but also in the Caribbean market.
As Oando Plc vies for the Petrotrin opportunity, attention will be on its capability to deliver a sustainable and profitable operational framework for the long-closed refinery, ultimately influencing Trinidad and Tobago’s energy landscape.
