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Thread: Any refinery news?

  1. #11
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    There is an article in Dutch:

    http://www.bearingpointcaribbean.com...mou-met-aruba/

    Here is the google translation:

    Citgo signs MoU with Aruba

    23 SEPTEMBER 2015

    Oranjestad - Aruba yesterday afternoon has signed a Memorandum of Understanding (MoU) signed with the US company Citgo, a subsidiary of the Venezuelan state oil company PdVSA. Minister Mike de Meza of Economic Affairs, Communications, Energy and the Environment and Minister of Labour Paul Croes have put their signature in Houston.

    This is a first step to a possible acquisition of the Aruba refinery by Citgo. Technical and economic studies are now being conducted on the possible participation of Citgo in the operation of the refinery. The American company will now send several delegations to Aruba for annual examination of the refinery in San Nicolas. During the negotiation period, Aruba will support the Ministry of Foreign Affairs of the Netherlands, as the Aruban government says.

    For the government is a strong requirement that the future owner is willing to invest hundreds of millions of dollars. De Meza has indicated that they are optimistic about the developments. However, he stressed that if there is an agreement with Citgo, there can be no talk of a contract for at least twenty years. An advantage of Citgo is said De Meza, that it is a professional company that is internationally recognized.

  2. #12
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    thank you

  3. #13
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    Quote Originally Posted by Andrea J. View Post
    thank you
    My pleasure

  4. #14
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    from Liz-Aruba Lover

    UPDATE 1-Aruba signs agreement with Citgo Petroleum to operate idled refinery

    4 Hours AgoReuters
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    (Updates with context, details on agreement)
    ORANJESTAD, Sept 25 (Reuters) - Aruba's Energy Ministry said on Friday it has signed a memorandum of understanding with PDVSA's U.S. unit Citgo Petroleum to explore reopening and operating the island's refinery, idled since 2012.
    The 235,000-barrel-per-day refinery, which was operated by U.S. firm Valero Energy Corp., closed because of high operating costs and low margins. Attempts to reopen some of its processing units or sell it to firms including Venezuela's PDVSA and PetroChina have been unsuccessful.
    "Citgo will send a group to evaluate the refinery technically and financially," Aruba's government said in a statement.
    The facility is currently used as an oil storage terminal, with state-run oil company PDVSA among its main clients.
    Valero's CEO said last year that the firm was not interested in reopening it, but PDVSA and Citgo could use the nearby refinery to produce much needed heavy naphtha, used as diluent to make oil more marketable.
    But lack of enough deep conversion capacity to transform heavy crudes into light products has been one of the main obstacles to any sale.
    PDVSA and Valero were not immediately available to comment.
    Negotiations with Aruba would involve Valero and the Netherland's government in a later feasibility stage, the memorandum signed in Houston said.
    "Citgo would guarantee crude supply (for the refinery) and experience," the statement said, adding that the contract could cover at least 20 years of operations.
    (Reporting by Sailu Urribarri, with additional reporting by Alexandra Ulmer in Caracas. Written by Marianna Parraga; Editing by David Gregorio)




  5. #15
    Senior Member Arubalisa's Avatar
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    Aruba, Citgo to decide refinery fate by November

    Don't apply for a refinery job just yet?

    Aruba, Citgo to decide refinery fate by November
    29 Sep 2015, 8.26 pm GMT

    Kingston, 29 September (Argus) — Venezuelan state-owned PdV´s US downstream subsidiary Citgo and the Aruba government will decide "by the end of November" whether to reopen and operate the 280,000 b/d refinery on the island, an Aruban official close to the negotiations tells Argus.

    Citgo is sending a technical team to Aruba to determine the feasibility of operating the refinery that US firm Valero shut down for economic reasons in March 2012. The independent refiner has not commented on the current negotiation, deferring to Aruban and Citgo representatives.

    "The government is keen for the refinery to be reopened because of the economic benefits to the island's economy," said Andin Bikker, president of Aruba's senate committee that has been investigating the prospects for reopening the refinery. "But the discussions will also be influenced by concerns about the environmental impact of the refinery's operations on the island."

    Aruba and Citgo signed a memorandum of understanding to examine the reopening of the facility, the island's energy ministry said on 25 September.

    It is not known when the Citgo officials will begin their evaluation. But the Dutch government will be asked to assist in the environmental impact assessment, the island's energy ministry said on 25 September.

    Citgo has not commented.

    Citgo would guarantee crude supply for the reopened refinery under a possible 20-year contract, Aruba´s energy ministry said.

    "The energy ministry is 90pc certain that Citgo will breathe new life into the refinery," Bikker said.

    The facility is currently used as an oil storage terminal, with 63 storage tanks with almost 12mn bl of total capacity.

    The facility also has two deepwater marine docks capable of receiving ultra-large crude carriers and six refined product docks, as well as a truck rack for local deliveries.

    Discussions between Aruba and Citgo over the refinery's future started in July 2015 after Valero agreed to a pause in the dismantling of the refinery.

    When it was in operation, the refinery processed heavy sour crude into distillates and intermediate feedstock. It did not produce finished products.

    Aruba's prime minister Mike Eman said in August 2012 that China's state-run PetroChina had concluded an "agreement in principle" with Valero to purchase the refinery.

    The transaction did not materialize, leading Valero to close the facility.

    Valero at one time had considered building an LNG import terminal on the island, but the project did not come to fruition.

    Copyright © 2015 Argus Media Ltd - www.argusmedia.com - All rights reserved.

    Argus is a media company specializing in physical energy and related commodity markets.

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    Was really hoping that it would be dismantled. Remove that and you start being bale to open some hotels down on that side of the island instead of stuffing them on top of each other in the high rise and low rise district.

  7. #17
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    Markets | Fri Sep 25, 2015 3:57pm EDT Related: Stocks, Markets, Energy, Industrials

    UPDATE 2-Aruba, Citgo Petroleum to explore reactivating refinery


    (Reuters) - Aruba's Energy Ministry said on Friday it has signed a memorandum of understanding with PDVSA's U.S. unit Citgo Petroleum to explore reopening and operating the island's refinery, idled since 2012 because of low margins.


    The 235,000-barrel-per-day refinery had been operated by U.S. firm Valero Energy Corp.. Attempts to reopen some processing units or sell it to firms including Venezuela's PDVSA and PetroChina have been unsuccessful.


    "Citgo will send a group to evaluate the refinery technically and financially," Aruba's government said in a statement.
    The facility is currently used as an oil storage terminal, with state-run oil company PDVSA among its main clients.


    Valero's CEO said last year that the company was not interested in reopening it. But PDVSA and Citgo could use the nearby refinery to run different types of crude and produce much needed heavy naphtha, used by Venezuela as diluent to make oil more marketable.


    Lack of enough deep conversion capacity to transform heavy crudes into light products has been one of the main obstacles to any sale.
    Valero, which purchased the refinery equipment in 2004 for $465 million, declined to comment on the specific agreement, but its spokesman said that the company "has been working with the government to explore options, including a sale, for several years."
    PDVSA and Citgo did not reply to requests for comments.


    Negotiations with Aruba would involve Valero and the Netherland's government in a later feasibility stage, the memorandum signed in Houston said.
    "Citgo would guarantee crude supply (for the refinery) and experience," the statement said, adding that the contract could cover at least 20 years of operations.


    Cash-strapped PDVSA offered Citgo for sale in 2014. It received bids, but ultimately decided not to sell, and terminated the process. The company in June sold the Chalmette refinery in Louisiana jointly owned with ExxonMobil and is also trying to sell the 500,000-barrel per-day Hovensa refinery in the U.S. Virgin Islands.


    While selling refining assets in the United States, PDVSA is trying to expand its operations along the Caribbean. It currently owns, operate or use refineries and terminals in eight islands.

    (Reporting by Sailu Urribarri in Oranjestad and Marianna Parraga in Houston. With additional reporting by Alexandra Ulmer in Caracas; Editing by David Gregorio)

    http://www.reuters.com/article/2015/...11V1F320150925

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    Apparently CITGO and the Aruba Government will undertake a feasibility study of the viability of the takeover of the refinery following the recently signed Memorandum of Understanding. Study should be completed by the end of November when a decision should then be hopefully made..

    https://www.argusmedia.com/pages/New...11121&menu=yes

  9. #19
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  10. #20
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    "paying rent with products from the refinery" I wonder what that is.
    Jacki ~ loving Aruba from NJ

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