THE HAGUE - In a letter dated December 21, 2023, the Dutch Parliament requested from the State Secretary of Kingdom Relations Alexandra van Huffelen to provide information on the consequences of the settlement reached with Venezuela in the arbitration case at the European Court concerning the Isla Refinery. The State Secretary informs that it is crucial to highlight that this matter involves the Curaçao government-owned company Refineria di Kòrsou (RdK) as a party and does not directly concern the Netherlands. However, says van Huffelen, she has engaged in discussions on this topic during one of her periodic consultations with the Prime Minister of Curaçao, and it has also been a subject of dialogue with other departments in their interactions with Curaçao.
Van Huffelen writes that Refineria di Kòrsou (RdK) has successfully negotiated a settlement agreement with Petróleos de Venezuela (PdVSA) to resolve the legal disputes they were entangled in. These disputes encompassed legal proceedings related to the financial settlement of PdVSA, the former operator of the Isla Refinery. The United States played a pivotal role in facilitating the resolution by granting an exception to their sanction policy in September 2023.
The settlement comprises three key elements. Firstly, an oil-for-debt agreement has been established, amounting to $450 million, spread over a duration of 10 years. Furthermore, PdVSA, in its capacity as the former employer, is committed to fulfilling remaining severance and pension obligations towards employees, inclusive of an additional one-time contribution. Lastly, there is an outlined intention to construct a gas pipeline connecting Venezuela to Curaçao (Gasoducto). RdK has clarified that this gas pipeline, originating from Estado Falcón, will supply the refinery with gas, enabling a shift to gas operations and a substantial reduction in sulfur dioxide (SO2) emissions.
Throughout the discussions regarding the refinery, Van Huffelen says, she has actively encouraged Curaçao to explore sustainable alternatives, such as engaging in green hydrogen production based on offshore wind energy.
