Khan: No politics in refinery sale to OWTU

ENERGY Minister Franklin Khan has no politics was involved in accepting the US$700 million offer for the Pointe-a-Pierre refinery from a company owned by the Oilfield Workers Trade Union.

Questions have been swirling about the “master-stroke” by the People’s National Movement (PNM) in an election season for Patriotic Energies and Technologies Co Ltd to be named as the preferred bidder from among a list of 77 companies which originally expressed an interest the refinery.

The assets were once owned by former state oil company Petrotrin which Government shut down last November.

Given that Patriotic was incorporated less than a year ago, and Government's decision to grant concessions to the company, including a three-year moratorium on payments of principal and interest, talk of the move being more political than economical have come to the fore.

However, Khan speaking to the media in the Parliament on Friday, after the announcement was made by Finance Minister Colm Imbert, affirmed, “no politics was involved.”

He said Government and the OWTU are now partners in this exercise.

OWTU’s president general Ancel Roget, also reacting in Point Fortin on Friday to the news that Patriotic was named as the preferred bidder to operate the refinery, also asserted the acquisition was not a gift from the Government.

“Nobody did us any favour. We deserve it. The people deserve it.”

Khan said he is confident that the selection process was transparent and recalled that in one of his early addresses to the nation, after the decision to shut down the refinery was taken, the Prime Minister did indicate that due consideration would be given to the OWTU if the union wanted to operate it. He said once they made their bid, stood up to scrutiny and proved to be economically robust they were successful.

Khan said once the purchase agreement comes into the place the plant will belong to Patriotic .

“The OWTU has now gotten a very strategic, national asset and we hope to bring it into operation at the shortest possible time.”

He said he hopes that with the start-up of the refinery, the community of Marabella, Pointe-a-Pierre, San Fernando, Gasparillo and other surrounding areas will see an economic revitalisation.

“This whole project can now regenerate serious economic activity,” Khan said.

Former energy minister Kevin Ramnarine yesterday said while the evaluation team comprised “some very reputable people, I think the hands of politics is certainly at play here.”

In a telephone interview from London, Ramnarine said when Government closed Petrotrin and announced its decision to sell or lease the refinery, he expected interest from major international players, not minor players shortlisted.

“We were given the impression by government there was great excitement about it. I would have thought, the way government behaved, they had significant offers from companies like Shell and Valero.”

He said Government had itself to blame after bad mouthing the refinery, dissuading potential buyers.

“The last four years has really been a period of a lot of decay and decline in the energy sector and I think this Petrotrin is simply now coming full circle. It is really a sad day for TT to see a company that wasn’t perfect, that had a lot of room for improvement being brought to where it has today."

Ramnarine also raised questions on the decision to put the country’s fuel supply in the hands of a private entity.

“As far as I am aware, OWTU’s Patriotic is a private company, so why are we putting a right to distribute fuel in this country, why are we giving the monopoly right to a private company?”