Wale Tinubu’s Oando Plc Makes List Of Three Finalists To Acquire Trinidad’s National Refinery
Trinidad’s finance minister, Colm Imbert, made this known during the presentation of the country’s national budget on September 30.
Oando Plc, led by Wale Tinubu, the nephew of Nigerian President Bola Tinubu, has advanced to the final round of bidders competing to acquire Trinidad and Tobago’s former national refinery, Petrotrin.
Trinidad’s finance minister, Colm Imbert, made this known during the presentation of the country’s national budget on September 30.
Oando Plc is one of the top three contenders, narrowed down from an initial pool of ten bidders.
The other two companies still in the race are CRO Consortium, based in Trinidad, and INCA Energy, an American firm.
The bidding process is being overseen by Scotia Capital (USA) Inc., which has been appointed by the Trinidadian government to manage the sale.
Peoples Gazette reports that according to Mr. Imbert, the formal selection process will now move forward to determine which of the three finalists will acquire the refinery and lead its potential restart.
“The government is committed to selecting the best possible candidate to take over the refinery, ensuring that it will be operational again if feasible.”
The minister explained that the government had no intention of subjecting taxpayers to the repeated billion-dollar losses previously incurred from operating the Petrotrin refinery.
Bidders for the refinery were assessed based on five key criteria: a plan and timeline for restarting operations, asset integrity evaluation, crude oil sourcing, utility requirements (such as power, water, and natural gas), and financial backing. Each bidder was required to present a credible financing plan supported by one or more reputable institutions to demonstrate working capital.
“Based on these criteria, Scotia and the Evaluation Committee found three proposals worthy of further consideration,” Imbert noted.
The Petrotrin refinery had become a significant financial burden for the Trinidadian government, with yearly losses reaching billions of dollars.
This financial strain prompted Prime Minister Keith Rowley to close the facility in 2018 after a $2billion loss.
To avoid another failed sale, the government imposed stringent conditions to ensure bidders had the financial strength to reopen and operate the refinery.
“In that context, since 2018, there have been two attempts to sell or lease the refinery. Both efforts failed because the preferred bidders could not provide tangible proof of their ability to raise the necessary capital,” Imbert explained.
The minister also highlighted that reopening the refinery would generate jobs, offering a major economic boost to Trinidad.
Meanwhile, Oando Plc’s market value surged to an unprecedented $1trillion from $74billion as of September 2024, placing the company among the top 10 most capitalised on the Nigerian stock exchange.
The company recently acquired Nigerian Agip Oil Company (NAOC) from Italian energy giant Eni for about $783 million, including reimbursements and consideration for assets.
However, with financial stability being crucial to the Petrotrin acquisition, Oando Plc appears to be in a strong position to secure the deal.
Hyperlink – https://gazettengr.com/wale-tinubus-oando-shortlisted-to-buy-trinidads-national-refinery/
