CARACAS, WILLEMSTAD - The Venezuelan state oil company is once again trying to extend the lease of the refinery in Curacao while it is striving to produce fuel nationwide.

The president of Petróleos de Venezuela SA, Manuel Quevedo, was recently in Curaçao to confirm the Venezuelan State Company’s intention to continue operating the facility beyond 2019, when the lease expires. The company submitted a letter of intent and is participating in an ongoing tender process that aims to find a new operator by November.

PDVSA clings to the Isla refinery as it tries to recover from the imbalance caused by US sanctions. and declining crude production. In addition, the company struggles to continue operating its domestic refineries. Venezuela's refineries were operating at approximately 14% capacity before a fire at an electric substation forced the largest one to close earlier this month.

The Isla refinery used to be an important supplier of gasoline to Venezuela. It was built by Royal Dutch Shell Plc more than a century ago, has the capacity to process Venezuelan heavy oil and has a gasoline unit in working condition. It is currently closed after a series of problems, including the shortage of steam and the lack of Venezuelan crude.

The lease also includes the deepwater terminal of Bullen Bay, the largest in the Caribbean, which handles oil tankers and was used as a distribution center to store and export Venezuelan crude to Asia. PDVSA has avoided using the terminal because creditors have tried to seize the oil stored in Bullen Bay to cover unpaid debts.

Previous talks to renew the lease failed because PDVSA was not able to demonstrate that it can continue investing in the refinery. Currently, 10 companies have shown interest in leasing Island.