WILLEMSTAD - The Isla oil refinery has captured the attention of no fewer than fifteen oil companies that are willing to reopen it. Within two weeks, the owner of the refinery, Refineria di Kòrsou (RdK), will select the final two candidates, after which the ultimate preferred bidder will be chosen. This was reported by Patrick Newton, the director of RdK, in an interview with the Dutch newspaper Antilliaans Dagblad.
The director is confident that the refinery will finally become operational after numerous attempts. His optimism is fueled by geopolitical shifts and, above all, the shorter contract duration.
The earlier requirement of a 30-year contract has been discarded by the government. RdK is currently negotiating with existing oil companies to make the deal more attractive to potential future operators.
"With the relaxation of the conditions, we are making the deal more attractive. The entry is shorter and one no longer needs to commit to a 30-year contract. Five or ten years is now the norm," explains Newton. He predicts that the oil refinery will gain relevance in the next twenty to thirty years due to current developments in the demand for oil products. Newton points to shifts in the United States, where crude oil is being sourced from Venezuela, indicating a possible easing of sanctions.
Years in the Making
The search for a reliable partner has proven to be a complex process for RdK, which has owned the petroleum facilities on the island since 2013. "It's not easy, but I firmly believe in it," emphasizes Newton.
The initiation of refining activities occurs in three phases. Firstly, RdK will start with the activities of the American company Global Oil, specialized in asphalt production for the U.S. market. The choice of propane gas instead of asphalt for combustion processes will also comply with environmental requirements and be operational earlier.
A selection process is currently underway for the second and third phases of the oil refinery.
CPR
Recent issues surrounding the last preferred bidder, Caribbean Petroleum Refinery (CPR), are still remembered. The Public Prosecution Service (OM) is investigating the forgery of bank documents in this case.
Newton welcomes the court's ruling that CPR must pay over eight million dollars to RdK for overdue rent of storage tanks at Bullenbaai.
However, he emphasizes that CPR is likely not to fulfill its obligations. RdK has alternative options to collect the claim, including the right of retention for revenues from the sale of stored oil.