Energy Chamber Welcomes Oando’s Decision to Lease Guaracara Oil Refinery

Energy Chamber Welcomes Oando’s Decision to Lease Guaracara Oil Refinery

The Energy Chamber of Trinidad & Tobago has welcomed the decision to lease the Guaracara oil refinery to Oando PLC, one of Africa’s largest integrated energy solutions providers.

Background

The refinery was closed in 2018 due to a lack of oil and high import costs. The government restructured the company and invited proposals to restart the refinery. The government defended the decision, insisting that the company was losing billions of dollars annually.

Energy Chamber’s Position

The Energy Chamber has long supported refinery privatization to put the asset to productive use. According to the Chamber, significant capital investment is required to return the refinery’s assets to productive and profitable operation. This investment must be carefully deployed and managed, as it involves substantial risk.

The private sector group believes that no additional taxpayer funds from Trinidad and Tobago should be allocated to this investment; instead, the required capital should come from the private sector. Given the scale of the investment needed, most of this capital is expected to originate from international sources. However, the Energy Chamber has strongly supported and encouraged local private-sector participation.

Benefits of Refinery Restart

Reviving operations at the Guaracara refinery will generate new jobs, create business opportunities, and increase tax revenue for the government. Additionally, foreign direct investment in these assets will contribute to greater foreign currency circulation within the local economy. South Trinidad is home to many skilled workers and experienced contractors, who will play a crucial role in safely and efficiently restarting operations.

Chamber’s Collaboration with Oando

The Energy Chamber is prepared to collaborate closely with Oando Trading to ensure the safe resumption of refinery operations. "We warmly welcome them to the Trinidad & Tobago energy industry," the Chamber said, noting that this marks the beginning of a long and mutually beneficial relationship.

Conclusion

The Energy Chamber’s decision to welcome Oando’s lease of the Guaracara oil refinery is a significant step towards reviving the refinery’s operations. This partnership is expected to generate new jobs, create business opportunities, and increase tax revenue for the government.

FAQs

Q: Why did the government decide to lease the Guaracara oil refinery to Oando?
A: The decision was based mainly on Oando’s strong financial track record, particularly its US$1.5 billion acquisition of ConocoPhillips’ assets in Nigeria.

Q: What are the benefits of reviving the refinery’s operations?
A: Reviving operations at the Guaracara refinery will generate new jobs, create business opportunities, and increase tax revenue for the government. It will also contribute to greater foreign currency circulation within the local economy.

Q: How will the Energy Chamber collaborate with Oando?
A: The Energy Chamber is prepared to collaborate closely with Oando Trading to ensure the safe resumption of refinery operations and ensure a long and mutually beneficial relationship.