April 2024: if Global receives an OFAC license, they will begin shipping crude oil from Isla.
WILLEMSTAD - Global Oil Management company has approached OFAC, the U.S. Office of Foreign Asset Control, to request a license. Global has a firm contract with Refineria di Kòrsou and Curaçao Refinery Utilities for asphalt production. To produce asphalt, the company requires crude oil, and there is a good chance it will come from Venezuela.
Contrary to what happened in Bullenbaai under the management of RdK and CRU, Global approached OFAC in August for an OFAC license. The petition was officially filed by Global Oil Management LCC, registered in Boca Raton, United States. At present, OFAC has approved the petition, and Venezuelan crude oil is set to arrive in Sint Anna Bay. Through the intervention of their local branch established in Curaçao (CORT), the official petition was submitted to OFAC (Office of Foreign Asset Control) for a license.
The petition is being processed by CORT, which, if granted the OFAC permit, would be able to begin importing crude oil and petroleum products from Venezuela. At the moment, Global has a 5-year contract with Refineria di Kòrsou (RdK) and Curaçao Refinery Utilities (CRU). The contract secures the use of facilities and services of both companies in exchange for a monthly payment of at least 2 million guilders to RdK and CRU, split accordingly.
As mentioned, Global's petition is aimed at commencing the importation of crude oil from Venezuela. The consideration for the permit is to improve the quality of asphalt found on roads in the United States. According to Global, Venezuela's crude oil is better for producing asphalt due to its composition. The United States is facing an asphalt shortage, with low-quality asphalt primarily found in the southern states of the country.
Global Oil has already demonstrated its seriousness by depositing substantial amounts into its local bank account to initiate the upgrading of the facilities. In their contract, Global precisely outlined the sectors and the quantity of tanks needed, specifying every productive facility on Isla's premises. Apart from signing with Refineria di Kòrsou, Global also entered into a service contract with CRU. However, the monthly sum they must pay does not include CRU's services. This is why a separate payment table was created, depending on the services that Global utilizes. These services include items such as firefighting, jetty and terminal operations, as well as laboratory services. The sums for each service range from 240,000 dollars monthly to 50,000 dollars monthly.
The commencement of preliminary phases and the signing of a contract between CUR and Global provide more assurance that CRU can continue its process of signing permanent employment contracts. CRU has already announced that as of September 1, 2023, the current personnel of CRU will receive a definitive contract.
Global has requested to receive a similar OFAC permit as Chevron, which is authorized to purchase crude oil from Venezuela. As of January 2023, Chevron has received authorization to extract crude oil from Venezuela to transport to the United States. The contract between Global Oil Management and Refineria di Kòrsou obligates Global Oil to pay a monthly sum of around half a million dollars for renting facilities on Isla's premises. This amounts to approximately 900,000 guilders per month. The contracts come with improved secondary conditions, as indicated in a presentation by CRU on the "Start-up of Asphalt Train" project. According to the presentation, contract execution began on July 10. CRU also has a contract with Global, commencing a 9-month-long reconstruction phase. The reconstruction phase has been ongoing for 4 months, and it encompasses the completion of inspections for all the facilities that Global will use, the procurement of necessary materials, the execution of all necessary repairs on the utilized facilities, and the installation of new equipment to provide the vaporization structure (Propane and Butane).