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Categories: Business

OWTU IN THIRD BID FOR PETROTRIN

OILFIELDS Workers’ Trade Union (OWTU) is working on a third bid to operate the mothballed Petrotrin refinery.

OWTU is currently negotiating with financial and technical partners to submit a proposal within the next few weeks.

Through its wholly-owned Patriotic Energies and Technologies Company Ltd., the union would send in the tender for purchase, lease or a joint venture.

Four international companies are in separate talks with OWTU, of which a French firm is “leading at this time,” according to a well-informed source.

The union is hoping to secure a commitment of some US $1 billion (just under TT $7 billion) from its confirmed partner to cover refurbishment, employee payroll, and a three-year supply of crude oil.

The tender will indicate a return to full capacity between nine to 12 months after start-up, the source said.

Representatives of OWTU are expected to soon conduct an inspection, evaluation and scoping of the Pointe-a-Pierre facility, which was shut down in November 2018.

Beck International, a global product sourcing company, would seek the union’s interest during that exercise, which would include a visit to the important “data room.”

Key discussions are taking place with prospective financial collaborators on operating costs and overall feasibility.

The union is working with a projected monthly cost for the purchase of the crude oil feedstock.

With Trinidad and Tobago producing around 40,000 barrels of oil a day, most raw material must be sourced internationally.

Technical companies are considering the cost and source of the raw material, while weighing the vagaries of the market.

“A vital matter is providing verifiable evidence of financing and technical capacity,” the source explained.

“That could swing the deal.”

Two weeks ago, Michael Quamina, Chairman of Trinidad Petroleum Holdings Ltd., parent company of Petrotrin, told the media that a preferred bidder should be identified soon.

Trinidad Petroleum had previously written to previous bidders asking if they had fresh interest.

Prime Minister Dr. Keith Rowley recently said the refinery was still a viable business.

In its most recent submission, Patriotic offered US $500 million for the refinery and fuel trading assets.

The Government rejected the bid, saying that no evidence was provided of the ability to pay the proposed sum.

Only a general bank statement was tendered, according to Government officials.

Patriotic’s first tender was favourably received but OWTU’s leader Ancel Roget later claimed it was “mamaguy” during a then-local government election period.

Sources close to OWTU said the union is optimistic about its latest proposal, and confirmed that its success hinged on watertight proof of the ability to raise the relevant sum.

The shutdown of the facility threw 3,500 full-time and hundreds of part-time and casual workers on the breadline.

The thriving oil servicing industry and fenceline communities were also badly affected.

Several professionals have since secured jobs in Guyana, Suriname, Texas, Africa and the Middle East.

T&T is currently an importer of refined fuel.

Guyana, which has a booming energy sector, has rebuffed Rowley’s invitation to enter into a partnership to operate the refinery.

Ken Ali

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