Nigerian oil giant Oando PLC has been announced as the preferred bidder for the ownership of Trinidad and Tobago's 165,000 barrel-per-day refinery, marking a significant milestone in the Caribbean nation's efforts to revitalize its energy sector. The deal, worth billions of dollars, is expected to breathe new life into the Guaracara Refinery, which has remained inactive since its closure in late 2018 due to significant financial losses.

The decision to award the bid to Oando PLC was based on the company's strong financial track record, particularly its notable $1.5 billion acquisition of ConocoPhillips' assets in Nigeria. According to Trinidad and Tobago's Acting Prime Minister, Stuart Young, Oando's ability to secure substantial financing in the upstream oil sector gave it a competitive edge over other refinery bidders.

The Guaracara Refinery, formerly part of Trinidad and Tobago's state-owned Petrotrin, has been maintained in "preservation mode" since its closure, as the government sought investors to restart operations. In 2023, the government announced its search for an operator for the facility, setting an August deadline to review multiple offers. Officials reported receiving expressions of interest from domestic and international companies for the purchase or lease of the refinery.

Restarting the refinery is viable only if there are agreements for competitively priced imported crude to ensure profitable operating margins, according to a government official cited by Argus Media. Additionally, the prospective operator must demonstrate financial capability and expertise in asset management to sustain operations, the country's acting prime minister noted.

Oando PLC emerged as the preferred bidder after a thorough evaluation process, which saw 10 initial proposals narrowed down to three shortlisted companies. The other two shortlisted companies were CRO Consortium, comprising three Trinidadian firms, and INCA Energy, an American company.

Under the terms of the deal, Oando PLC will lease and manage the facility while maintaining a commercial partnership with Paria Fuel Trading Company Ltd., the state-owned entity responsible for fuel importation and distribution in Trinidad and Tobago. The agreement is expected to reduce the state's financial burden while ensuring flexibility in the refinery's operations.

The deal is a significant win for Oando PLC, which has been expanding its operations in Africa and beyond. The company's ability to secure substantial financing and demonstrate expertise in asset management has given it a competitive edge in the global energy market.

The revival of the Guaracara Refinery is expected to have a positive impact on Trinidad and Tobago's economy, creating jobs and stimulating economic growth. The deal is also seen as a significant milestone in the country's efforts to diversify its energy sector and reduce its dependence on imported fuel.

As the deal moves forward, industry experts will be watching closely to see how Oando PLC plans to revitalize the refinery and ensure its long-term sustainability. With the global energy landscape undergoing significant changes, the success of this deal could have far-reaching implications for the industry as a whole.