Caribbean’s Largest Oil Refinery Sold
St Vincent and the Grenadines
Trinidad and Tobago
Turks and Caicos
US Virgin Islands
Caribbean’s Largest Oil Refinery Bought
Above: US Virgin Islands Governor John de Jongh
By the Caribbean Journal workers
HOVENSA, the St Croix-primarily based oil refinery that was the largest within the Caribbean until it shuttered in 2012, has a new purchaser.
And it petroleum equipment international a porter could imply an economic rebirth for the island of St Croix.
The US Virgin Islands authorities introduced that Atlantic Basin Refinery had reached a tentative agreement with the homeowners of the location, Venezuela’s PDVSA and Hess Corporation.
US Virgin Islands Governor John de Jongh mentioned the federal government had reached an settlement with the patrons on a “detailed working agreement” that will define their rights and obligations going forward.
The settlement marks the fruits of a sales course of that first began in November 2013.
Under the working agreement, the brand new owners are required to rebuild and restart the refinery, employ “hundreds” of Virgin Islanders and make “substantial funds to the government” totaling over $1.6 billion in fixed funds over the life of the settlement.
The deal would additionally embody further variable funds depending on the refinery’s profitability.
If the refinery isn’t restarted, the house owners will probably be required to take the facility down and clean petroleum equipment international a porter up the positioning.
“This will be certain that, whatever the circumstances, if there’s to not be an operating refinery, we is not going to be left with an eyesore and a wasting asset,” de Jongh said.
Atlantic Basin Refining is a company formed specifically to accumulate the property.
The transaction requires approval of the operating agreement by the legislature.
Under the deal, Atlantic Basin Refining will even be required to retain a “reputable refinery engineering firm with expertise reconfiguring and rehabilitating world-scale oil refineries to develop a complete rehabilitation and restart plan,” which would take an estimated nine to 12 months.
Earlier than it shuttered, HOVENSA was the biggest employer within the US Virgin Islands. On the time of its closure, de Jongh called its closure a “catastrophic determination.”
Certainly, in addition to its employment impact, HOVENSA paid tens of thousands and thousands in taxes as properly.
“After the restart, the refinery is anticipated to employ over seven-hundred workers, with over 500 full-time workers and over 200 contractors,” de Jongh mentioned. “Once restarted, the refinery will provide a tremendous boost to the St. Croix economic system and generate hundreds of further jobs to support the refinery’s operations and workers.”