ENERGY Giant ConocoPhillips has changed its mind and withdrawn its offer to sell its shares in Pheonix Park Gas Processors Ltd.

This was revealed by president of the National Gas Company Ltd, Frank Look Kin who told Express Business that the offer was withdrawn thereby preventing the NGC from purchasing the assets.

"We have been informed by ConocoPhillips that they are no longer willing to sell their assets in Pheonix Park and as a result we have no choice but to allow the status quo to continue," he said.

Look Kin said the NGC was disappointed that it could not increase its assets in the company.

"It is no secret that we wanted to increase our investment in the plant but what can we do?" Look Kin said.

The NGC currently owns 51 per cent Pheonix Park while ConocoPhillips hold a

39 per cent. Pan West Engineers and Constructors, Inc has the additional ten per cent stake in the enterprise.

Express Business was the first to report the intended sale and two weeks after the announcement one of the world's largest investor ratings firm, Moody's downgraded the credit worthiness of Phoenix Park Gas Processors Limited.

At that time, Moody's said the decision by ConocoPhillips to sell its shares increased the risk of the company since a new investor may not have the credit worthiness of the multi-billion-dollar multinational.

Daniel Gates, managing director, Corporate Finance Group at Moody's Investors Service told Express Business that "Moody's revised the rating outlook for Phoenix Park Gas Processors Ltd and Phoenix Park Funding Ltd (together Phoenix Park, senior secured rating of Baa3) to developing from positive."

This effectively meant that PPGPL had to pay higher interest rates on its outstanding loans and significantly increased the cost on any future borrowings.

Phoenix Park is a joint venture, established in 1989 which owns and operates a cryogenic natural gas processing plant in Point Lisas, as well as storage and dock facilities.

The project processes natural gas from the Natural Gas Company of Trinidad and Tobago Ltd (NGC), to produce propane, butane and natural gasoline (NGL's) for the export market. It also has contracts to process associated gas from certain offshore oil production and NGL's from the Atlantic LNG facilities.

Although a small operation, Phoenix Park is important in the continuing expansion of the downstream petrochemical sector and other growth areas requiring natural gas for either feedstock or power generation.

Last year, ConocoPhillips had argued that its decision to sell was based on its reorganization strategies.

At that time the company's representative said: "We are continually looking for opportunities to improve our business holdings and portfolio around the world. This possible sale is part of accompany wide and global effort to streamline our business and to realise the full value of the recent merger.

The interest in PPGPL is ConocoPhillips' sole interest in Trinidad and Tobago. While Phoenix Park has performed attractively both financially and operationally and is located in a stable environment and has an excellent outlook, others may see it as a more beneficial to their portfolios.