World

In a significant development for the global oil and gas industry, Nigerian oil giant Oando Plc has been shortlisted as one of three final contenders to acquire Trinidad and Tobago’s state-owned Petrotrin refinery. This announcement was made by Trinidad’s Finance Minister, Colm Imbert, during his presentation of the country’s national budget on September 30, 2024. Oando is competing alongside two other bidders: the CRO Consortium, composed of three Trinidadian companies, and U.S.-based INCA Energy.

The bidding process, which started in February 2024, was overseen by U.S.-based Scotia Capital, which invited “expressions of interest” from potential buyers. Out of ten initial proposals, Oando and the two other companies emerged as the final contenders. The Trinidadian government will now move forward with a formal Request for Proposals (RFP) to determine the winner, with the aim of restarting the refinery if deemed feasible.

The Petrotrin refinery, located in Pointe-a-Pierre, has been closed since 2018, primarily due to significant financial losses, which reached $2 billion per year before its shutdown. As of the last audit, the refinery’s accumulated losses totaled $15 billion, while the country carries $3 billion in public debt on behalf of the company. When operational, Petrotrin was a key supplier of oil products to the Caribbean region, and its closure has had a considerable impact on Trinidad and Tobago’s energy sector.

Minister Imbert outlined that proposals were assessed on five key criteria, including a clear restart plan and timeline, asset integrity assessments, utility requirements, sources of crude supply, and a viable financing plan. The government also emphasized the importance of securing an agreement with Paria, the state oil company, to protect national interests and ensure fuel security.

Oando Plc, fresh off its $783 million acquisition of Nigerian Agip Oil Company in August, is well-positioned for this next potential acquisition. The Agip deal significantly increased Oando’s stake in Nigerian joint venture assets, giving the company control over 40 oil and gas fields, 24 of which are producing. Securing the Petrotrin refinery would be a strategic move for Oando, as it continues to expand its presence in the global oil and gas market.

Trinidad and Tobago, much like Nigeria, is a crude oil producer that depends heavily on imported petroleum products. Reviving the Petrotrin refinery could not only reduce this dependence but also restore its historical role as a major energy supplier to the Caribbean.

This potential acquisition marks a pivotal moment for Oando and the future of energy production in the Caribbean. As the global oil landscape evolves, the final outcome of this bidding process will be closely watched by industry experts and stakeholders alike.