Trinidad Petroleum Holdings Limited (TPHL) has offered the Oilfields Workers’ Trade Union an exclusive period in which to prepare its bid for the Pointe-a-Pierre refinery.
The TPHL announced this yesterday, as it launches the process of leasing /selling the Pointe- a- Pierre refinery.
Following the closure of the refinery last November and the restructuring of Petrotrin operations, the refinery assets were preserved and put into a separate company called the Guaracara Refining Co Ltd.
Government said assets would be offered globally this year to parties interested parties in leases, sale or otherwise.
TPHL said yesterday it has initiated a “broad-based sale process for the refinery assets, and is currently in the preliminary stages of execution.”
Contacted on the “broad based sale” description, TPHL officials said ,”We’re still open to any option including lease and it’s not limited only to sale.”
The TPHL was expected to obtain a firm this month to handle the international offering of the company.
The OWTU had indicated since last year that it had a proposal for the refinery assets and would have submitted its plan before TPHL offered the refinery on the international market.
OWTU established a limited liability company, Patriotic Energies and Technologies Co Ltd (Patriotic) with the aim of acquiring selected Petrotrin assets.
TPHL said it has offered Patriotic an exclusivity period of three weeks as it launches the process of leasing /selling the Pointe- a- Pierre refinery.
TPHL said,”The period of exclusivity will commence two weeks before other potential buyers are invited to participate in the process.”
TPHL sources said the period of exclusivity will be an overall three weeks since the OWTU’s company will also have a third week on the matter when bids are opened for the refinery.
TPHL wrote to the OWTU on Tuesday to make the offer of exclusivity to Patriotic “And thank the union for its preliminary non-binding cash proposal to acquire the refinery assets.”
TPHL’s letter explained: “During the exclusivity period, we would assist Patriotic to better position itself in the process, and accordingly Patriotic would: be granted early access to a virtual data room containing confidential information regarding the assets,”
“Patriotic will also have an opportunity to engage in exclusive discussions with us and our financial advisors regarding the procedures to submit a conforming, fully-financed final proposal to acquire the assets that would meet our objectives.”
While the offer would put Patriotic in an advantageous position, TPHL noted: “The procedures, requirements and deadline for the submission of the final proposal would be the same for all interested parties, including Patriotic.”
The parties have also agreed to execute a non-disclosure agreement, TPHL added.