WILLEMSTAD - Issues regarding the origin of the oil stored in Tank 9099 at Bullenbaai are preventing the already paid oil from being delivered to the buyer, Count Energy from Suriname.
The Venezuelan oil may lack the required OFAC license, which is essential due to the United States sanctions against Venezuela. An OFAC license is a permit issued by the Office of Foreign Assets Control (OFAC), a division of the U.S. Department of the Treasury. This license is necessary for transactions that would otherwise be prohibited under U.S. sanctions.
Correspondent Banks
Uncertainty about the origin of the oil and compliance with sanctions has led to hesitation and issues with correspondent banks. These banks are crucial for processing international transactions but are reluctant to get involved in transactions that may violate sanctions.
Without the proper documentation proving that the transactions comply with U.S. regulations, these banks risk sanctions or legal consequences themselves.
"Colon"
Earlier, our news partner Curacao.nu reported that Colon, a tanker sailing under the Togo flag, unloaded 600,000 barrels of fuel oil at Bullenbaai in 2022. This cargo, owned by CPR, was identified as originating from Venezuela, which would violate sanctions. The exemption from these sanctions was valid until January 15, 2020.
At that time, Patrick Newton, director of RdK, stated that his company fully complies with U.S. sanctions and that their contracts require their customers to abide by the same laws. However, correspondent banks are apparently not convinced.
CPR
Surinamese company Count Energy paid $28.5 million for the 496,028 barrels of fuel oil, but the payment has not been completed. The transaction was part of an attempt by Refineria di Kòrsou (RdK) to collect an $8 million debt from Caribbean Petroleum Refinery (CPR) for the storage of the oil.
A previous auction of the oil on November 1, won by I&E Petroleum Group, was canceled after the company failed to deposit the required amount of $28.6 million.