The government is stalling the sale of Esso (Bahamas) to a Caribbean company for the time being, aiming to ensure that Bahamians are given “first right of refusal” in any potential deal, Guardian Business can confirm.
Esso (Bahamas) has been seeking government approval to sell its operations in The Bahamas to SOL – Simpson Oil Limited – which has operations in 19 Caribbean countries/territories.
The sale of the Bahamian Esso operations has already been negotiated as part of a larger deal in which SOL would acquire the downstream (retail) operations of Exxon Mobil in seven territories across the Caribbean, Guardian Business understands.
Minister of State for Investments Khaalis Rolle confirmed yesterday that the deal has not received approval, and the government is considering exactly what approach it will take to the matter.
“We believe that Bahamians should be given the opportunity to participate in the process. The biggest complaint we’re getting is that Bahamians are not getting opportunity to participate in process, so we will evaluate it based on that premise.
One of the companies who might be in a position to consider a restructured Esso deal would be FOCOL, the BISX-listed petroleum producer’s supplier which acquired Shell’s operations in The Bahamas in 2006.
Yesterday, Franklyn Wilson, FOCOL’s largest shareholder, said he was not aware of the position the government had taken with respect to the Esso/SOL deal.
Asked if FOCOL would consider bidding on the opportunity were it restructured, Wilson said: “Our board of directors didn’t consider it (previously) because we didn’t consider it an option. If things changed the board would consider the implications.”
SOL has been in expansion mode across the Caribbean for around a decade, acquiring Shell Antilles and Guianas Limited for $400 million in 2004.
That acquisition gives the company control over Shell’s retail and commercial fuels business in Barbados, St. Lucia, Antigua, Anguilla, Guyana, Suriname, Belize, St. Kitts/Nevis, St. Vincent, Grenada, British Virgin Islands, Netherlands Antilles and Dominica.
