RdK: Half million paid for 850 thousand barrels

WILLEMSTAD - The public company Curaçao Refinery (RdK) recently bought no less than 850 thousand barrels of oil products for half a million guilders during an auction. That can be resold on the oil market for no less than 50 million guilders. This was announced by the RdK. Two other interested parties withdrew at the last minute, allowing the RDK to immediately bid on the starting bid.

The two interested parties were MCC Group nv, acting on behalf of MCC Petroleum DMCC in Dubai, and Alphaville Holdings in the Seychelles. They tried to stop the auction at the very last minute. In vain, because the summary proceedings that they filed two days earlier and which were still being served the day before the auction did not go well for them.

It was MCC's second summary proceedings against the auction, which had to be adjourned for at least ten days on May 27 by order of the judge. At that time, MCC's objection was directed against the auction conditions and, in particular, that the buyer, in addition to the purchase price, would have to pay another 39 million in 'custody fee' to the retentor CRU (Curaçao Refinery Utilities).

CRU is a subsidiary of government owned RdK and the latter has now bought the petroleum products at the auction. The public sale took place pursuant to a December 2020 ruling in a case between Refineria Isla as defendant and CRU as plaintiff. At the end of April 2021, an execution attachment was made at the expense of Isla, a subsidiary of the Venezuelan state oil group PdVSA.

MCC once again made a serious effort, namely that CRU had to be prohibited by the court from continuing the auction based on the present auction conditions, on pain of forfeiting a penalty of 15 million dollars. MCC also wanted RdK to be ordered to use the obtained Ofac license – a special exemption from the US in connection with the sanctions against Venezuela – for the benefit of buyers other than RdK. Alphaville wanted a delay of at least three weeks.

According to the court, no good explanation for the fact that MCC and Alphaville only come up with further objections and claims a few days before the new auction date has been given. If the objections really mattered, they would certainly have raised them sooner. According to MCC and Alphaville, this concerns 50 million guilders.

Regarding the Ofac license, CRU and RdK have made it clear that what MCC wants is impossible: an obtained Ofac license may not be used for another. Furthermore, CRU does not act in violation of legal regulations.

The court is of the opinion that CRU is not abusing its powers to enforce the judgment it obtained against Isla/PdVSA and, in that context, its power to auction the seized oil.

RdK is now the new owner of the more than 850,000 barrels. De Lannoy says that RdK is going to put these on the market. It may first be 'blended' to make the product to be offered more attractive and to increase the income. It is still oil of Venezuelan origin. Trading on the international market is only possible with an Ofac license.




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