Español

 

Guyana


Trinidad
& Tobago




Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

TT selling Pointe-a-Pierre refinery to OWTU workers union

Looptt

The government shut the former Petrotrin money-losing refinery in November 2018.

By Argus

PORT SPAIN
Petroleumworld 09 24 2019

Trinidad and Tobago's government agreed to sell its mothballed 160,000 b/d Pointe-a-Pierre refinery to a company partly owned by the oil workers' union.

Finance minister Colm Imbert confirmed the $700mn sale to Pet, a firm created by the labor group OWTU in December 2018 as a special purpose vehicle to acquire the refinery, in a bid to reopen it. At the time, the union said the new company's shareholders would include Suriname-based private equity firm SunStone Energy and UK independent Mak England. Neither company has responded to a request for comment or confirmation of participation in the company that will buy the refinery.

The union has not indicated when the refinery would reopen or how it would finance the purchase, asserting that it is constrained by a non-disclosure agreement.

The government shut the money-losing refinery in November 2018.

Pet outbid two short-listed competitors in the refinery sale US private equity firm Beowulf Energy and private-sector commodities trader Klesch Group, Trinidad's government said.

"We saw Pet as the most suitable buyer over Beowulf Energy and the Klesch Group," Imbert said.

While Pet had offered $700mn for the refinery, Beowulf offered a $45,000 monthly lease over 15 years and Klesch proposed to pay for the facility through future taxes, Imbert said.

Besides Pet, Beowulf and Klesch, proposals were presented by Swiss commodity trader Glencore and US private equity firm Edgewood Holdings, the government said.

Pet has until the end of October to tell the government how it intends to complete the transaction.

The company has received a three-year moratorium on all payments of principal and interest towards the purchase of the refinery, and a further 10 years to complete the payment, the government said.

The government received 77 expressions of interest to operate the Pointe-a-Pierre facility, it said in July 2019. This was narrowed down to 25 bidders, then reduced to eight that were invited to submit non-binding offers.

While in operation, the refinery supplied domestic and neighboring island markets with gasoline, kerosene, aviation fuel, diesel, fuel oil and LPG.

But the century-old facility's plans for upgrading several units fell behind schedule and went over budget, with the government saying the complex could be viable only if the upgrades were done.

The most significant of these is an incomplete 40,000 b/d ultra-low sulphur diesel unit that the refinery's former owner, state-owned Petrotrin, had contracted Korea's Samsung Engineering to deliver for $200mn.

Petrotrin cancelled the deal in 2016 after the energy ministry said the partially competed unit was defective. But the company had already spent $421mn on the plant, and said it would need another $300mn to complete it.

In closing the refinery, Petrotrin said the facility needed a cash injection of $3.9bn to stay alive, "and even if it got this, left as it is, it is projected to continue losing about $310mn/yr."

Among the challenges for Pet is access to feedstock. Trinidad produced 59,300 b/d of crude in January-July 2019, down by 11.5pc from a year earlier, according to the energy ministry.

Trinidad last imported crude for the refinery in October 2018. Among the imported grades were Russian Urals, Gabon's Oguendjo, Brazil's Lula and Roncador, and Colombia's Vasconia.

"The new operators will have to solve the problems that have stifled the necessary upgrade of the refinery, and access to imported crude," the energy ministry told Argus today.

"These are two matters that will challenge the refinery's profitability, even with a planned reduction in operational capacity to 140,000 b/d."

Caribbean refinery woes

Trinidad is one of several Caribbean countries that has been looking for new investors or operators for their aging refineries.

In Dutch-controlled Curacao, state-owned RdK has contracted Klesch to enter into exclusive negotiations for a contract to operate its dormant 335,000 b/d Isla refinery.

The plant is operated by Venezuela's struggling national oil company PdV whose lease expires in December.

In Jamaica, the government has taken over PdV's minority stake in 35,000 b/d Petrojam in anticipation of a likely shutdown and conversion into a fuel terminal. The future of the refinery was made more doubtful this month with the government's decision to shut down state-owned PCJ that owns and operates the refinery.

The Dominican Republic has also indicated interest in offloading its 34,000 b/d Refidomsa refinery in which PdV retains a minority stake.

A project by PdV subsidiary Citgo to refurbish a mothballed 280,000 b/d refinery and terminal on Aruba has stalled.



Reporting from Argus Media.

argusmedia.com / 09 23 2019

________________________


We invite you to join us as a sponsor.

Circulated Videos, Articles, Opinions and Reports which carry your name and brand are used to target Entrepreneurs through our site, promoting your organization’s services. The opportunity is to insert in our stories pages short attention-grabbing videos, or to publish your own feature stories.
________________________

Copyright© 1999-2019 Petroleumworld or respective author or news agency. All rights reserved.

We welcome the use of Petroleumworld™ (PW) stories by anyone provided it mentions Petroleumworld.com as the source.

Other stories you have to get authorization by its authors. Internet web links to http://www.petroleumworld.com are appreciated.

Petroleumworld welcomes your feedback and comments, share your thoughts on this article, your feedback is important to us!

We invite all our readers to share with us
their views and comments about this article.

Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

Twitter: @petroleumworld1


TOP

Contact: editor@petroleumworld.com,

Editor & Publisher: Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2019, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2019, Petroleumworld   / Elio Ohep - All rights reserved

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.