WILLEMSTAD – The Trump administration has ordered Global Oil, the US-based oil-trading company owned by prominent Republican donor Harry Sargeant III, to cease operations in Venezuela by May 27, marking another escalation in Washington’s sanctions against the Nicolas Maduro regime. This development comes just weeks after Chevron received a similar directive, further isolating Venezuela’s oil sector from US businesses.
For Curaçao, where Global Oil recently took over operations of the Isla Refinery (now the Curaçao Refinery), the implications are significant. As the company winds down its Venezuelan dealings, questions arise about its long-term strategy and the future of the island’s refinery, which has historically relied on Venezuelan crude.
Global Oil’s Sudden Exit from Venezuela
According to The Wall Street Journal, the US Treasury Department issued a letter mandating that Global Oil Terminals must halt all transactions with Venezuelan entities by Wednesday and fully withdraw by May 27. The company, known for its oil trading and terminal operations, had been operating under a special license that allowed limited dealings with Venezuela’s state-owned PDVSA.
The Trump administration’s decision aligns with its broader campaign to pressure Maduro’s government by cutting off revenue streams. Global Oil’s exit follows Chevron’s forced departure last month, leaving Venezuela with even fewer international partners in its struggling oil industry.
Impact on Curaçao’s Refinery Operations
Refineria di Kòrsou (RdK), now 2Bays, took over operations of the Curaçao Refinery in 2020, ending a long partnership between PDVSA and the island. The refinery, once a key asset for Venezuela’s oil exports, had suffered from years of underinvestment and environmental concerns.
With Global Oil now barred from Venezuelan transactions, the refinery’s supply chain could face disruptions. Historically, the facility processed heavy crude from Venezuela, but in recent years, it has diversified its sources, including imports from other markets. However, losing access to Venezuelan oil entirely may force Global Oil to accelerate alternative supply agreements.
Key Questions for Curaçao:
Will the refinery shift to non-Venezuelan crude entirely?
How will Global Oil’s financial standing be affected by the loss of Venezuelan operations?
Could this impact employment and local contracts tied to the refinery?
Political and Economic Ramifications
Harry Sargeant III, Global Oil’s owner, is a well-connected Republican donor with ties to the Trump administration. His company’s expulsion from Venezuela underscores Washington’s hardline stance, even against US businesses with political influence.
For Curaçao, the situation presents both risks and opportunities. If Global Oil secures stable crude supplies from other regions, the refinery could maintain operations without reliance on Venezuela. However, if logistical or financial challenges arise, the island’s economy—which has long depended on the refinery—could face renewed instability.
Looking Ahead
As Global Oil complies with US sanctions, all eyes will be on how it adapts its Curaçao operations. The government of Curaçao has yet to issue an official statement, but industry analysts suggest that diversification will be critical for the refinery’s survival.
Meanwhile, Venezuela’s oil sector continues to deteriorate, with production hitting historic lows. For Curaçao, the end of an era in Venezuelan oil trade may signal a new chapter—one that demands innovation and strategic partnerships to keep the refinery running.
