WILLEMSTAD - Government owned company Refineria di Kòrsou (RdK), owner of the refinery, will never make its assets available to another company for commercial activities without receiving any income back. "We could not accept that," said the Prime Minister of Curaçao Eugene Rhuggenaath.
Rhuggenaath emphasizes that there is no indication that such a construction is involved in the negotiations with the American company Klesch Group whereby the installations are operated without having to pay a lease amount or otherwise generate income. "We naturally consider Klesch as a good candidate and are still intensively involved in the negotiations."
Last week Rhuggenaath spoke at a press conference of "crucial weeks" and "the final phase". Everything is aimed at signing an agreement as quickly as possible with the exclusive candidate who is to take over from Refineria Isla, a subsidiary of the Venezuelan state oil company PdVSA.
"Our goal is to be able to provide more clarity for the December holidays," Rhuggenaath said last week. Both Klesch Group and the Curaçao government carry out a due diligence to get a good picture of the exploitation possibilities and situation of the refinery. "That happens with full cooperation from Isla and its employees," says Rhuggenaath. The lease agreement with the current operator Refineria Isla expires on December 31.
Recently it became known that Klesch Group was not selected as a takeover candidate for a refinery in Trinidad and Tobago.
According to Finance Minister Colm Imbert, the Klesch Group proposed that "future taxes", for example the wage tax that must be paid for employees, be seen as payment. The government of Trinidad has opted for the company founded by the unions Pet, which has taken over the Point-a-Pierre refinery for $ 700 million.
Prime Minister Rhuggenaath says that something similar does not play a role in Curaçao and has only taken note of the role of Klesch in the sale of the refinery in Trinidad & Tobago through the media. "But this is an example of what would not be acceptable to us."
Refineria Isla pays a lease amount of 100 million guilders per year to Refineria di Kòrsou (RdK). In addition, there is a 'take or pay' fee that is charged for the use of the utilities supplied by Curaçao Refinery Utilities (CRU). CRU falls under RdK. Rhuggenaath pointed out that RdK is dependent on this income and that the approach is correct to reach a better deal with the new party.
The Prime Minister also said that Curaçao has competition from other countries in the region where a refinery is offered for sale.
The Prime Minister reiterated that given the current situation of the market, the chance of attracting big names is small. But good, smaller "mid-tier" operators and traders are interested. And yes, speculators who want to make a profit in the short term."
