Trinidad confirms talks with preferred bidder for oil refinery
PRIME MINISTER of Trinidad & Tobago Dr Keith Rowley confirmed Tuesday that negotiations have started with a preferred bidder regarding the purchase or lease of the oil refinery at Point-a-Pierre that’s owned by Petrotrin.
Rowley, addressing the three-day Energy Conference of Trinidad and Tobago, told delegates that three final bids were received in April 2022 and were evaluated by Trinidad Petroleum Holdings Limited, TPHL, and government officials.
One of the bidders has since entered into exclusive negotiations with TPHL and the T&T government with the aim of negotiating a definitive agreement and securing committed financing.
The bidder was not disclosed.
“We expect that the process and selection of the preferred bidder will be soon finalised. In keeping with our commitment to transparency and accountability, the relevant details of the outcome of the evaluation of the bids will be disclosed on the completion of the exercise,” Rowley said.
The government closed the oil refinery in south Trinidad in 2018 after complaining that it had been losing billions of dollars annually.
Patriotic Energies, a company formed by the Oilfield Workers Trade Union, had sought to buy the refinery, but that plan collapsed in January 2021.
Over the weekend, Opposition Senator Wade Mark told a news conference his political party, the United National Congress, understands that an American company called Quanten was the preferred bidder for the refinery.
“Government argument to close the refinery … we want to tell Trinidad & Tobago, was flawed and based on a misunderstanding of Petrotrin’s business model, as well as a misunderstanding of the accounts of that company,” Mark told reporters..
Mark, who asserted that the refinery was valued at US$7 billion, said the question for shareholders and owners of Trinidad Petroleum Holdings Limited, which was formed after Petrotrin was shut down, “is who is Quanten Inc?”
“What qualifies this company to operate our US$7 billion asset refinery? What is this entity’s claim to fame to become the successful bidder?” he said.
Minister of Energy Stuart Young issued a statement describing Mark’s comments as “destructive UNC mischief”.
Young said the sale of the refinery is being handled by THPL advisers and international experts, who periodically report progress to the Ministry of Finance and the Ministry of Energy.