Oil firm led by Nigerian President’s nephew wins bid for Caribbean refinery

Key Points

• Oando Plc has been selected as the preferred bidder for Trinidad’s Guaracara refinery, expanding its refining footprint in the Caribbean.
• Oando’s strong upstream financing and operational expertise gave it an edge over competitors, reinforcing its global expansion strategy.
• The refinery bid aligns with Oando’s aggressive growth, following acquisitions in Angola and Nigeria, and a 45% revenue surge to $2.76 billion in 2024.

Oando Plc, one of Nigeria’s top oil companies led by Wale Tinubu—an oil mogul and nephew of Nigerian President Bola Ahmed Tinubu—has been selected as the preferred bidder for the lease of the Guaracara refinery in Pointe-à-Pierre, Trinidad and Tobago. The deal marks a major step in Oando’s push into the Caribbean refining sector, strengthening its international presence.

Trinidad and Tobago’s Acting Prime Minister Stuart Young, who also serves as the Minister of Energy, announced the decision during a post-Cabinet media briefing in Port of Spain. He pointed to Oando’s financial strength and operational expertise as key reasons for the selection, citing the company’s $1.5 billion acquisition of ConocoPhillips’ Nigerian assets as proof of its ability to handle large-scale transactions.

Financial strength gives Oando the edge

Oando’s bid was evaluated alongside the CRO Consortium, with both firms demonstrating the capability to operate a refinery. However, Oando’s track record in securing upstream financing gave it a clear advantage.

“We have to protect the assets of Paria Fuel Trading Company to ensure a steady supply of domestic fuel,” Young said. “Any potential bidder must commit to restarting the refinery, not just acquiring assets for bunkering purposes.”

The deal is structured as a lease, allowing Trinidad’s Guaracara Refining Company Ltd—which owns the former Petrotrin refinery—to operate alongside Paria Fuel Trading. This arrangement gives Oando access to logistics assets under a commercial agreement while keeping the refinery under state ownership.

Negotiations over financial terms are still underway between Oando and Trinidad Petroleum Holdings Ltd, the state-owned entity overseeing the refinery.

Oando’s expansion strategy and market impact

Under Wale Tinubu, Oando has aggressively expanded across the upstream, midstream, and downstream markets, cementing its influence in Nigeria’s energy sector. The company, which rebranded from Unipetrol in 2003, operates through Ocean and Oil Development Partners (OODP)—a joint venture with Omamofe Boyo—where Tinubu holds a 66.67 percent stake.

The Guaracara bid follows Oando’s acquisition of Angola’s Block KON 13 and its $783 million takeover of Nigerian Agip Oil Company, reinforcing its standing as a major player in Africa’s energy industry. Oando’s revenue surged 45 percent in 2024 to $2.76 billion, boosted by higher crude oil volumes, rising gas prices, and favorable exchange rates.