Oando PLC has emerged as the preferred bidder for the lease of the Guaracara refinery, solidifying its position as a major player in the global energy sector.
Acting Prime Minister and Minister of Energy, Stuart Young, announced the decision, highlighting Oando’s impressive financial track record. A key factor in the selection was the company’s $1.5 billion acquisition of ConocoPhillips’ assets in Nigeria, which demonstrated its ability to handle large-scale energy investments.
According to the evaluation committee, both Oando and the CRO Consortium showcased strong refinery operation expertise. However, Oando’s superior capacity to secure significant financing in the upstream oil sector gave it a competitive edge, making it the government’s top choice for the refinery lease.
Young emphasized the importance of safeguarding Paria Fuel Trading Company’s assets to ensure a steady supply of domestic fuel. He also made it clear that any bidder must be committed to restarting the refinery, rather than merely acquiring Paria’s assets for bunkering purposes.
Read Also: Nigeria needs visionary leaders to check ‘japa’ syndrome, says Braimoh
“We have to protect the assets of Paria to always ensure that we can provide domestic fuel to our population,” Young stated.
He further noted that Oando’s proposal aligns with the government’s long-term vision of reducing the financial burden on the state while ensuring flexibility in the refinery’s operations. The lease agreement is expected to pave the way for the refinery’s revival, boosting energy security and economic growth in the region.
This landmark deal marks another major win for Oando PLC, reinforcing Nigeria’s influence in the global oil and gas industry.
