Communications Minister Stuart Young said government intends to submit Requests for Proposals (RFPs) to the ‘world at large’ for the Petrotrin refinery, following the vesting of the company’s assets.
Speaking during a post-Cabinet briefing on Thursday, Young said the vesting of Petrotrin’s assets will be undertaken in Parliament on November 14, 2018, during which the assets of Trintoc and Trintopec will be transferred to the Guaracara Refining Company, which will oversee all of Petrotrin’s refinery operations.
Young said the vesting will oversee the creation of three new companies, namely the Heritage Petroleum Company Ltd., Paria Fuel Trading Company, and Guaracara Refining Company Ltd.
Young said these various entities will carry out restructured operations from November 30, 2018.
He said government will be transferring the assets of Palo Seco Agricultural Enterprises Ltd (PSAEL), to the Heritage Petroleum Company Ltd., to oversee exploration and production, while the non-core assets of Trintoc and Trintopec will be transferred to the Guaracara Refining Company.
He said Petrotrin will then invite RFPs to see whether there is ‘business viability to take that forward’.
“Petrotrin is going to have a RFP process to the world at large…it is going to be put in a standalone company set up for that purpose and Petrotrin is going to invite to request for proposals, and then there will be an evaluation of proposals.”
“This invitation will be to the world so anybody who is interested in making that refinery a viable entity…there is going to be an RFP process set up…and it will be evaluated by the experts,” he said.
He also criticised the ‘distortion of reality’ being circulated, adding that at no point did government indicate that the company was being shut down.
“At no stage did the Prime Minister, the chairman of Petrotrin or anyone say that Petrotrin is being shut down. From day one we’ve told the population it was the refinery that was being shut down. Petrotrin is not being shut down.”
He added that all issues and outstanding shares in Petrotrin will be transferred to a new holding company, Trinidad Petroleum Holding Ltd.
“Petrotrin has not been shut down. Petrotrin continues for legacy items and legacy issues….Opposition continues to mislead the population, (it’s) absolutely not true,” he said.
Young said Petrotrin will remain as an entity in the group of subsidiaries owned by the Trinidad Holding Company Ltd.
The four subsidiaries of the Trinidad Holding Company will be as follows:
Heritage Petroleum Company Ltd
Heritage Petroleum will oversee exploration and production (located at Santa Flora and Pt Fortin), with revenue generated through crude sales and crude storage.
Paria Fuel Trading Company Ltd
Paria Fuel Trading will oversee terminalling, fuel trading, product supply and logistics, and will be located in Pointe-a-Pierre.
Guaracara Refining Company Ltd
Guaracara Refining will oversee the preservation of refinery assets which are being mothballed. There will be an RFP for this entity. The refinery will also provide ‘utility services’ to Paria Fuel Trading.
Petrotrin will remain as a ‘member group of subsidiaries’ of Trinidad Petroleum Holdings.
The new structure will take effect from November 30, 2018, Young said.
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