Colm: 70 bids for refinery

FINANCE Minister Colm Imbert said some 70 bids had been made to take over the former Petrotrin refinery, mothballed by the Government over its high operating costs. Imbert, acting for Energy Minister Franklin Khan, replied to several listed questions in the Senate on Tuesday.

“To date, expressions of interest have been received from 70 interested parties consisting of a wide spectrum of companies in the energy industry.”

He said all 70 parties are eligible to access a data room at the refinery once they show their technical and financial capacity, and sign a non-disclosure agreement.

“The data room will be available to the end of April 2019 to allow preliminary submissions from interested parties, at which time a short list of qualified bidders will be prepared.”

He added that final proposals from qualified bidders must be sent in by June 15. “An international investment banker with extensive experience in the industry, namely the Bank of Nova Scotia of Houston, Texas, USA, has been engaged to provide technical advice in the short listing and evaluation of proposals for the sale and/or lease of the Pointe-a-Pierre refinery.”

Mark asked how the bank had been selected, but Imbert did not know although he promised an answer if the query was filed as a fresh question.

Mark asked if Scotiabank (TT) former head Richard Young had recommended the bank, but Senate President Christine Kangaloo disallowed the query.

Opposition senator Saddam Hosein, in a new question, asked of the fortunes of Petrotrin’s successor companies from December 1, 2018 to February 15, 2019. Imbert said the Heritage Petroleum Company, which handles exploration and production of crude oil for export, has made a US$2.76 million loss.

He added that for a similar (but unstated) two month period, the former Petrotrin had incurred a loss of US$50 million (although he did not say if this was for E&P operations or also included refinery operations.)

Conversely, Imbert said Paria Fuel Trading Company which imports refined fuels had made a US$46 million profit.

His replies pertained to the period December 1, 2018 to January 31, 2019.

Imbert blamed Heritage’s loss on teething problems.

“I expect it will move from a very small loss into profitability.”

Wade Mark has asked an urgent question about a pungent smell from gasoline sold at the pump by NP.

Imbert said an NP shipment on March 7 had been tested and met all requirements of quality, but had a pungent smell.

A chemical scavenger had some effect on removing the problem from super gasoline but not from diesel.

He said a fresh batch of oil received yesterday (Tuesday) had met the standards, although there would be a residual odour in the tanks.

Asked the fate of the Petrotrin Sports Club, Imbert said the company’s board is looking at commercially viable options while the Government is examining its use in the public interest, even as he himself mulled a hybrid approach.

Otherwise he said a request for proposals document is being prepared for the lease and/or sale of the Augustus Long Hospital, decommissioned since last November.