Chamber pleased with lease for refinery

THE Energy Chamber has expressed its support for Trinidad Petroleum Holdings Ltd (TPHL) to discuss the lease of the former Petrotrin refinery to Nigerian company Oando PLC.

Petrotrin was restructured in 2018 into TPHL.

On February 27, Energy Minister Stuart Young said Oando PLC has been selected as the preferred bidder for the lease of the refinery.

He added Cabinet had informed TPHL of its non-objection to proceeding with discussions with Oando.

"The ball is now in TPHL's court. The Cabinet is satisfied with this decision, and I urge the public to stay informed and make decisions with the country's future in mind."

In an opinion published on the same day, the chamber said it has long supported the privatisation of the refinery to put the asset to productive use.

"Significant capital investment is required to bring the refinery’s assets back into productive and profitable operation. This investment must be carefully deployed and managed, as it involves substantial risk."

For this reason, the chamber said no additional taxpayer funds from TT should be allocated to this investment.

"The required capital should come from the private sector. Given the scale of the investment needed, the majority of this capital was always expected to originate from international sources."

The chamber said it has also strongly supported and encouraged local private-sector participation as well.

"Reviving operations at the Guaracara refinery will generate new jobs, create business opportunities, and increase tax revenue for the government."

The chamber added it is prepared to work with Oando to ensure the safe resumption of refinery operations.

"We are confident that this marks the beginning of a long and mutually beneficial relationship."