OWTU gets first chance

THE Oilfield Workers Trade Union (OWTU) has been given the first option to prepare to bid for the acquisition of the Pointe-a-Pierre refinery but it would have to sign a non-disclosure agreement as it becomes privy to critical data.

Trinidad Petroleum Holdings Ltd has given the OWTU three weeks exclusivity in which to do this. The offer was made to Patriotic Energies and Technologies Co. Ltd. (Patriotic), a limited liability company established by the OWTU with the aim of acquiring selected assets of Petrotrin. The former State-owned company was permanently shut down on November 31, 2018 and its assets were placed in the TPHL.

The OWTU which represented the majority of workers who were severed along with the closure of the company, had expressed an interest in operating the refinery and made an offer on the invitation of Prime Minister Dr Keith Rowley.

This advantageous offer to bid has been made as TPHL launches the process of leasing/selling the PAP refinery. The refinery assets have been placed in one of TPHL’s four subsidiary companies, Guaracara Refining Co Ltd.

TPHL said the period of exclusivity would commence two weeks before they invited other potential buyers to participate in the process.

Former Energy Minister Kevin Ramnarine explained exclusivity simply means for a specific period of time they would only treat with the OWTU on the issue of the acquisition of the refinery. He said in that period they would not treat with any other potential investors. Ramnarine said if TPHL is satisfied with Patriotic’s offer then no further investors would be considered. On the other hand, if it does not work out, they would then invite other offers.

On Tuesday of this week, TPHL wrote the union to make the offer of exclusivity to Patriotic. It also thanked the union for its preliminary non-binding cash proposal to acquire the refinery assets.

TPHL letter stated that during the exclusivity period, it would assist Patriotic to better position itself in the Process.

Accordingly, TPHL said Patriotic would be granted early access to a virtual data room containing confidential information regarding the assets. It would also have an opportunity to engage in exclusive discussions with TPHL and its financial advisor, “regarding the procedures to submit a conforming, fully-financed final proposal to acquire the assets that would meet our objectives.”

Pointing out that while the offer would put Patriotic in an advantageous position, TPHL noted the procedures, requirements and deadline for the submission of the final proposal would be the same for all interested parties, including Patriotic.

The parties have also agreed to execute a non-disclosure agreement. TPHL has initiated a broad-based sale process for the refinery assets, and is currently in the preliminary stages of execution.

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