WILLEMSTAD – The government of Curaçao is reassessing whether the long-standing effort to attract a new operator for the Isla refinery and the Bullenbaai oil terminal remains realistic.
According to internal documents from the Ministry of Finance, more than a decade of attempts to replace Petróleos de Venezuela (PdVSA) as operator of the refinery have not produced results.
PdVSA managed the facility for decades until its lease expired in 2019, after which the refinery—once capable of processing about 335,000 barrels of oil per day—remained largely inactive.
The documents indicate that efforts to secure a new operator date back to 2013 and have cost tens of millions of guilders. Despite multiple negotiations with potential partners, none of the initiatives have resulted in a long-term operational agreement.
A recent attempt involving energy company Vigor Group also collapsed. The company, originally selected by state-owned company 2Bays Curaçao to manage and operate the petroleum facilities, was sidelined after failing to meet financial obligations.
Officials say the difficulties are partly due to the deteriorated condition of the refinery infrastructure. According to the Finance Ministry, the facility suffers from significant maintenance deficiencies and outdated technology, requiring very large investments with uncertain prospects for financial recovery.
Stricter environmental standards and global overcapacity in refining also complicate the search for investors. Many modern refineries elsewhere already meet updated environmental requirements, making Curaçao’s aging installation less attractive to potential operators.
“These circumstances make attracting a new operator extremely challenging, as the past twelve years have demonstrated,” the document concludes.