9 FIRMS SQUARE OFF FOR PETROTRIN

NINE industrial companies, most with Trinidad and Tobago-based ties, have put in bids to operate the Petrotrin refinery.

A decision is expected within the next few months on the lease of the idle petrochemical facility.

“The Government is projecting to pick up political dividends on the divestment of Petrotrin ahead of the general election,” an informed source said.

The restart will create hundreds of jobs, which the Government is planning to hype.

More than 5,500 workers lost their jobs when the Pointe-Pierre operations were mothballed in November 2018.

Most bidders are involved in industrial production in T&T and have international business partners.

The tendering companies are proposing to recruit local and foreign-based petrochemical professionals.

The Oilfields Workers’ Trade Union (OWTU)-owned Patriotic Energies and Technologies Company Ltd has put in its third bid.

Patriotic’s tender reportedly has a US $1 billion financing proposal, an employment plan, and details of the source of raw material and expected markets.

The bidders are Integritus Group of Companies, Oando PLC, Nautical Partners, Patriotic Energies, CRO Consortium, IEM Refinery Company Ltd., GN Fenceline, Columbus Refining Trinidad and Tobago, and INCA Refining.

An official of one of the prospective operators said the competitive edge of his firm is the technical proposal for a phased restart.

“It is a unique proposition and gives us the cutting edge,” he stated.

He said that the plan will “reduce investors’ risks.”

Most interested firms are proposing to bring the refinery to peak capacity within a year.

Energy experts of Scotiabank’s Houston, USA operations will evaluate the various bids.

A due diligence examination of the Petrotrin facilities is likely to precede the evaluation process.

That exercise, to be funded by Trinidad Petroleum Holdings Ltd., is expected to be costly.

There is anxiety about the current condition of the plan in light of its age and the fact that it has been non-operational for almost four years.

Trinidad Leaseholds Ltd. built the plant in 1917.

Industry sources said the Government is particularly interested in the proposed financing of the start-up plan.

As much as US $1 billion could be the cost of funding the resumption of operations for three years, it was explained.

The sources said that with available local and international energy professionals and modern technology, there are no major concerns about the technical aspect of restarting the production process.

But they said the prospective financiers are uneasy about the cost-intensive start-up of an aged decommissioned plant.

Investigations found that the bidders shopped around on the international financial market before securing funding commitments.

“The financial proposal will make or break a tender,” one source stressed.

Patriotic’s 2021 bid was rejected on the matters of purchase price and restart financing.

The Government was then demanding an upfront payment of US $500 million.

Investment bankers Credit Suisse was Patrotic’s then-financiers.

Sources say Patriotic’s current bid is backed by an European financial services corporation.

There is optimism in local energy circles at the prospect of Petrotrin returning to operations but all industry sources acknowledged the financial risks.

The current cost of maintaining the plant has been put at $500,000 a month, but critics claimed that figure is in US currency.

With nine firms squaring off for the legacy petrochemical plant, keen rivalry is expected leading to the granting of an operator’s licence.

Industry insiders expect the new lease operator will be able to begin work within the next few months.