WILLEMSTAD - Refineria di Kòrsou (RdK) has reached an agreement with PdVSA for the settlement of debts left by Refineria Isla BV after ceasing operations in 2019. The debt settlement will occur through the supply of oil products instead of cash payments.
After Refineria Isla BV halted its operations, debts remained both in Curaçao and Bonaire, where the oil company managed BOPEC facilities. On Curaçao, certain products of Refineria Isla BV were sold to cover part of the overdue debts. RdK also covered some of the employee salaries.
However, an outstanding amount of over 100 million dollars remains unpaid, as does a debt in the form of wages to employees and services provided in Bonaire. The governments of both Curaçao and the Netherlands have initiated negotiations to secure payment for these outstanding debts following the lifting of U.S. sanctions against Venezuela.
PdVSA has now agreed to settle the remaining amount in the form of oil products. This agreement is part of a broader framework that includes future negotiations for the resumption of relations between Venezuela, Curaçao, and Bonaire. Initially, this involves utilizing storage capacities in Bullenbaai and BOPEC, as well as the possibility of processing Venezuelan crude oil in Curaçao.
Qatar
International reports in November highlighted Qatar's significant role in negotiations to lift U.S. sanctions against Venezuela. The decision to lift the sanctions was made on October 17, 2023.
Shortly after, on October 22, 2023, RdK announced signing a Memorandum of Understanding (MoU) with Oryx Petroleum Limited to find a suitable partner for managing and operating the refinery and Bullenbaai. Oryx Petroleum Group is a private company incorporated in Hong Kong but owned by Ghannim Bin Saad & Sons Group from Doha, the capital of Qatar.
Maunsell Investment Management from Vancouver, Canada, is coordinating the due diligence of Refineria Isla and Bullenbaai facilities. A definitive agreement with Curaçao is expected to be reached in 2024. Maunsell has, in turn, entered into an agreement with the local company Alternative Energy Facility BV for assistance with the due diligence.
Asphalt
The U.S.-based Global Oil Management Group is already working on upgrading certain refinery facilities to produce asphalt for the U.S. market. It is anticipated that Global Oil will start using Venezuelan crude oil for asphalt production in May 2024, although there is conflicting information indicating limited activity on the Refineria Isla site.
Oryx also plans to invest in an LNG gas plant to operate the refinery with less pollution. The lifted U.S. sanctions should enable the import of gas from Venezuela.
