WILLEMSTAD - Oryx Midstream, a company founded in Hong Kong, has officially taken on the role of operator for Curaçao’s oil refinery. This follows the recent signing of a 30-year lease agreement with Refineria di Kòrsou (RdK). The contract covers both the facilities in Emmastad and at Bullenbaai.
Initial Plans and Investments
For the first three years, Oryx will conduct detailed technical, economic, and environmental studies. These investigations will inform a comprehensive roadmap for restarting the refinery operations. To ensure compliance with all international and local safety and environmental regulations, Oryx plans to invest over $70 million over the next five years.
According to RdK Director Patrick Newton, the agreement with Oryx is both beneficial and fair. Ghanim M Al Saad, Chairman of the Oryx Group, expressed optimism about further collaboration, highlighting potential opportunities in sectors such as education, real estate, hotels, aviation, and healthcare.
Historical Context and Challenges
The history of Curaçao’s refinery dates back to 1918 when it was opened by the Royal Dutch Petroleum Company, later known as Shell. From 1985 to 2019, the Venezuelan state company PdVSA operated the petroleum facilities. The quest for a new operator has been fraught with difficulties.
An initial agreement with the Chinese company Guangdong Zhenrong was annulled by the Rhuggenaath cabinet in 2018. The previous preferred candidate, Caribbean Petroleum Refinery, is currently embroiled in numerous lawsuits and is the target of a criminal investigation for forgery.
Oryx Midstream’s Role and Vision
Oryx Midstream’s entry as the new operator marks a significant turning point for the refinery. The company's investment strategy and focus on rigorous initial studies are aimed at setting a solid foundation for future operations. This approach is expected to ensure that the refinery meets stringent international standards while also revitalizing the local economy.
Broader Impact and Future Prospects
The investment by Oryx is seen as a positive development not just for the refinery but also for the broader economic landscape of Curaçao. By exploring further collaboration in various sectors, Oryx aims to foster sustainable growth and development on the island.
The $70 million investment over five years is a testament to Oryx’s commitment to complying with environmental and safety regulations, which is crucial for gaining local and international trust. The detailed studies planned for the initial phase will help address any potential issues and pave the way for efficient and safe operations.
