WILLEMSTAD – The ambitious asphalt production project initiated by Global Oil Management Group (GOMG) in partnership with Refineria di Kòrsou (RdK) has been temporarily halted, raising questions about the company's financial stability and the project's future.
Project Background and Initial Plans
In June 2023, GOMG and RdK signed a five-year agreement to restart asphalt production at the Isla refinery in Curaçao. The project aimed to produce asphalt for export, primarily to the United States, leveraging crude oil sourced from Venezuela under U.S. General License 44. The initiative was expected to create over 300 technical jobs and stimulate the local economy through infrastructure investments and maintenance activities.
Delays and Operational Challenges
Initially slated to commence operations in May 2024, the project faced delays due to the need for comprehensive inspections and repairs at the refinery. In August 2024, GOMG, RdK, and its subsidiary Curaçao Refinery Utilities (CRU) announced the next phase, involving a complete overhaul of the LPG plant, essential for the project's fuel supply. The estimated investment for this phase was ANG 50 million, with additional funds allocated for infrastructure improvements.
Despite these efforts, the project has now been temporarily suspended, with no clear timeline for resumption.
Financial Concerns and Criticism
Hensley Harms, a former trade union leader, has criticized GOMG's handling of the project, suggesting that the company may lack the financial resources to restart the asphalt plant. He described the suspension as a passive indication that GOMG is withdrawing from the project. Harms also dismissed the company's reference to U.S. sanctions on Venezuela as an excuse, arguing that the original plan did not specifically mention Venezuela but focused on sourcing crude oil where possible for asphalt production. He further stated that if GOMG were serious about its intentions, it would have already invested in the project. Harms labeled the situation as a "farce," intended to conceal failures by RdK, 2Bays, and the involved ministers.
Official Responses and Future Outlook
GOMG has not publicly addressed Harms' allegations or provided a detailed explanation for the project's suspension. The company had previously emphasized its commitment to the project, with CEO Harry Sargeant III visiting Curaçao in early 2024 to reaffirm plans and investments. However, the recent developments have cast doubt on the project's viability and the company's financial health.
The temporary halt of the asphalt production project has significant implications for Curaçao's economy, particularly in the Schottegat industrial area, which was poised to benefit from the anticipated job creation and infrastructure development. The uncertainty surrounding the project's future raises concerns about the island's ability to attract and retain foreign investment in the energy sector.
As of now, there is no official timeline for when the project might resume. Stakeholders, including local workers, contractors, and government officials, are awaiting clarification from GOMG and RdK on the next steps and the project's long-term prospects.
The situation underscores the challenges faced by large-scale industrial projects in Curaçao, where financial stability, political support, and effective management are crucial for success. The outcome of this project may serve as a critical case study for future endeavors in the island's energy and industrial sectors.
