WILLEMSTAD - CPR Holding has placed a lien on a substantial load of fuel oil, valued at 22 million dollars, stored in one of the tanks at Bullenbaai. With this seizure, the holding aims to secure its shares in CPR BV (Caribbean Petroleum Refinery) and prevent the sale of the oil. Judge Pieter de Kort granted permission for this seizure on June 29th.
This situation has arisen between the Curaçaoan Erchenel Doran and other former Venezuelan partners in CPR. The dispute has led to two lawsuits and now this seizure. The fundamental issue is the question of who owns the cargo of fuel oil in the Bullenbaai tanks.
Its official value has not yet been determined. Estimates range from forty million guilders to forty million dollars. However, current market prices suggest that the value would be around thirty million dollars.
Despite the ongoing legal battle, the Venezuelan partners have managed to retain control over CPR Holding, while Doran has control over the shares in CPR BV.
Interestingly, Knob Trading, which had an agreement to store fuel oil at Bullenbaai, has started paying for the rental of the storage tanks. This oil was originally owned by the United Petroleo Corporation from Panama, but that company has gone bankrupt.
This could mean that the oil is now free. The controversy surrounding CPR and the management agreement for the Isla refinery is now leading to a legal battle over this substantial load of fuel oil.
It appears that the shareholders of CPR, who were initially proposed to the Curaçao government as potential managers of the refinery, did not have the financial means to actually operate the Isla refinery.
The deal between Caribbean Petroleum Refinery and the government was canceled at the time after forgeries of financial documents by an equity partner of CPR were discovered. Debts to CRU and thus to government-owned company RdK are currently increasing.
We are awaiting September 1st when the court will consider the request based on Article 18 of the Commercial Register Regulation. A substantive case has also been filed with the aim of undoing Doran's share transaction with his own company, Birux, for 20,000 guilders.