WILLEMSTAD - Prime Minister Gilmar Pisas has come under fire for his handling of the deal with Venezuelan state oil company PDVSA, leaving Curaçao back at square one. After multiple delays, Pisas finally appeared before Parliament to address questions about the agreement between Refineria di Korsou (RdK) and PDVSA. Despite his history of broken promises concerning RdK, the revelation about the deal with PDVSA shocked even his staunchest supporters.
Pisas explained that it wasn’t PDVSA that failed to meet the terms of the agreement, but rather Curaçao itself, as it found itself stuck in an impossible situation and unable to meet the contract’s requirements. The real surprise came when Pisas admitted that on December 19, 2023, he "gambled" by signing an agreement with PDVSA, fully aware that the agreement could not be executed unless there was a significant change in the U.S. sanctions against Venezuela.
After attempting to negotiate a payment arrangement for the $1.05 billion claim against PDVSA, the Venezuelan company proposed that RdK sell PDVSA’s crude oil, pay 70% of the proceeds to PDVSA, and keep the remaining 30% to cover the outstanding debt. However, since January 2019, U.S. sanctions have prohibited any transfer of funds to PDVSA, making the agreement impossible to carry out. Pisas was aware of this when he signed the deal.
Pisas gambled on Venezuela fulfilling promises made during discussions in Barbados and hoped that an OFAC (Office of Foreign Assets Control) license would be granted to allow business transactions with PDVSA. As a result, Curaçao took on the responsibility of obtaining this license to meet the agreement's terms. However, this gamble backfired. Venezuela failed to deliver on its promises, and U.S. sanctions became even stricter from April 17, 2024.
As a result, Curaçao has been left empty-handed, fighting a nearly two-year-long battle to secure an OFAC license while Venezuela hides behind the signed agreement. Curaçao has seen no return on its efforts and no access to PDVSA’s oil.
Pisas, who previously admitted to "not reading any documents and merely repeating what others say," once again stumbled with RdK’s claim. Venezuela, knowing this, left Curaçao in the lurch, costing the island two years without being able to collect the billion-dollar damage claim from PDVSA.