Refinery starting up again

[ash]

Interesting turn of events. So the former government leaked correspondence? How corrupt! Oh wait, it's Aruba, so that is BAU (business as usual) and pehaps this will mean lucrative jobs for friendly former government officials? But not locals? The Chinese have a very backward view of the environmental gains the world has made and will force their ways on Aruba. Mark my words!

[pratoman]

i thought there was a law in Aruba that a foreigner cannot move to Aruba and take a job that a native Aruban can do?

[Andrea J.]

folks it is important that we do not hijack this thread into a political forum.
please, if you have issues or concerns that are of the political nature ,with whomever and want to talk politics , please bring it over to"off topic" give it the correct title and post there. re" this topic, i ask that we keep our eyes on the ball and move forward.
andrea

[Tim nel]

It is important to keep the refinery open. It is a source for job's. The more job's the better the economy will be.

[lizzardo]

Latest post shows no progress
http://www.amigoe.com/artman/publish/artikel_66622.php

Negotiations with PetroChina have foundered
19 Dec, 2009, 07:15 (GMT -04:00)

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ORANJESTAD — Aruba has not heard anything from oil concern PetroChina yet regarding the negotiations on the take-over of the Valero-refinery. Minister Mike de Meza (AVP) of Finances, Utilities, Communication and Energy announced the aforementioned.

The Chinese state-owned company has not been in touch since De Meza’s visit to the American office of PetroChina in New York and the subsequent conference call. “It is a pity though,” says De Meza, “but we contact them regularly with the message that we would gladly continue the negotiations”. For the time being, Aruba and PetroChina have reached agreement on a number of points, amongst which the payment of tax on profits, upholding the Aruban legislation, where and when arbitration should be applied, and the precedence to Aruban employees. However, important moot points had regarded the extent of PetroChina’s investment in the refinery, and if the refinery should be operated continuously or during the seasons.
Premier Mike Eman (AVP) points out that a take-over starts and ends with Valero. “They are the owner of the refinery. We had only gotten around the table with them after their signal that they were making progress with PetroChina, so that the negotiations would coincide from that moment.” However, Eman also states that the Aruban Government had simultaneously indicated towards the Dutch as well as the Mexican and Brazilian governments, that Aruba would be interested in a take-over by PeMex or Petrobas, or a partnership with Valero. “That fact is known to them and it is possible that we will receive a message from one of them.” The Premier points out that it is awkward to negotiate with a deadlock now. That is why he wants to ask Valero to negotiate with PetroChina as well, or give other potential partners some more time before deciding to close down the refinery permanently. However, Eman remains hopeful. “There are several options. Until now, Valero has not precluded the possibility to put the activities on a backburner. There is also the possibility that they would proceed with only storage, and re-start production, once the situation becomes more favorable.”

[Arubalisa]

Jan. 6, 2010, 7:27 a.m. EST
http://www.marketwatch.com/story/val...ale-2010-01-06
"Valero confirms talks for Aruba complex sale


NEW YORK (MarketWatch) -- Valero Energy Corp. (NYSE:VLO) has confirmed that it's in talks to sell its 235,000 barrel-a-day refinery in the Caribbean nation of Aruba, according to reports late Tuesday. Recently-elected Aruba Prime Minister Mike Eman said through a spokesman that Valero is in talks with PetroChina (NYSE:PTR) , but the refining giant declined to identify the prospective buyer. The facility, which accounts for about a third of Aruba's gross domestic product, has been on the sales block for more than a year."

(Reuters) Aruba says Valero, PetroChina talking refinery sale
Tue, Jan 5 2010

[lizzardo]

‘2010: think about future without refinery’
2 Jan, 2010, 07:36 (GMT -04:00)

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ORANJESTAD — In his New Year’s speech, Governor Fredis Refunjol requested attention for the environment, the youth and the economical situation. Regarding the latter, he states that Aruba should ‘seriously’ start considering in 2010 on a future without refinery.

In his speech, the Governor draws a comparison with his garden and the process of planting and care. The garden, which had been laid out by his parents sixty years ago, has much value he says, and simultaneously makes him realize that it is also a responsible field to continue to care for the trees and plants, animals and the environment. “I therefore call on citizens to also be responsible for the small piece of Aruba on which they live, and to do so for their children and theirs, because Aruba does not only belong to you, but it will also be the home base of many future generations.” Regarding the youth, Refunjol states that he is especially concerned about the considerable number of premature school dropouts. “The consequences of these dropouts, youngsters without counseling and without social integration, will become visible in the long-term, and often when it is already too late.” Therefore, the Governor pleads for sturdy social structures and a well-educated population as ‘roots’ to count on and being efficient.
In his New Year’s speech, the Governor compares the oil-refinery in San Nicolas with manure. “Too much manure works as poison.” According to him, the refinery has been a substantial economical support for a long time. “Many state that the refinery has inflicted substantial damage to the environment on our island during all those years. It therefore appears inevitable that in 2010, we must seriously consider a possible future without refinery.”
Crisis
In his speech, the Governor also talked about the ‘difficult’ times. For example, just as plants should not be watered too much during the dry season, as they would otherwise become less resistant, thus the population should not become too dependent on the government, according to Refunjol. “We should not call on the government too quickly so that they will turn on the tap. We should personally do our utmost in difficult times, and in that way we will lay the foundation for future growth.”
Refunjol also quoted the changeover in government. He compared such with the gardener who supports him. “Each gardener has his own opinion and his priorities, but always with a hart and love for the garden”. In this, each government also has its opinions and its priorities, according to the Governor, ‘which is not always bad or inferior’. Refunjol also asked attention for agriculture and cited a young Aruban entrepreneur who had started with hothouse planting on his terrain. On conclusion, the Governor warned the road users not to drive especially after having consumed alcohol. “Aruba has already lost much too many children due to unsafe traffic.”
Positive
Premier Mike Eman (AVP) had also held his speech on the radio. Amongst others, he thanked the police who are having a ‘difficult’ time these days with the stricter performance for the sake of security. In spite of the difficult economical times, Eman still expressed his hope for the future. As example, he mentioned the burden relief enabling more buying power for the population. Eventually, the citizens will also notice the difference regarding the investment in alternative energy, which will be followed-up next year. The Premier is also pleased with the new relationship with the Netherlands, which will have positive results, according to him. As an example, Eman cites the return of the KLM next year.

[Arubalisa]

I just find it interesting...Sounds like politics to me...Old government accusing new government ??? "Oduber also reveals a thing or two from his negotiations with the Chinese state-owned oil company." Why would he not have come out with this before?

‘Aruban government does not want a refinery’
6 Jan, 2010, 07:20 (GMT -04:00)
http://www.amigoe.com/artman/publish/artikel_67092.php

ORANJESTAD — Party leader Nelson Oduber (MEP) states that Minister Mike de Meza (AVP) of Finances, Utilities, Communication and Energy is not capable of negotiating with Valero and PetroChina on the take-over of the refinery at San Nicolas at all. “He is even on the payroll of Valero. How could an employee of Valero negotiate with that company?”

The party-leader presumes that Aruba is willfully delaying the negotiations with PetroChina, which have come to a standstill since the past two months, so that PetroChina will loose interest. According to Oduber, the government supposedly wants to rebuild the refinery to a harbor or storage place for containers. The Dutch government is supposedly also involved in this, according to the former premier.

According to Oduber, who compares the marketing- and propaganda-machine of the current government with that of the Third Reich in the same interview, Valero had requested cancellation of the bbo investment allowance and complete rebate of the losses connected with the cancellation of the indirect taxes of one percent on export in exchange for their offer of 50 million. These arrangements were too much in the opinion of the former government. “For that matter, that bbo-regulation is still valid. The government has not cancelled it yet”, Oduber adds. According to the former premier, at the time, Valero had wanted to sell the refinery to PetroChina against an even higher price with these new surtaxes. “We had indicated that there were more interested parties. However, Valero had insisted that they wanted to negotiate with PetroChina on their own.”

Oduber also reveals a thing or two from his negotiations with the Chinese state-owned oil company. “When we had asked for their contract with Venezuela for heavy sour crude against a favorable price, they were not prepared to show us this contract. Nor had they given us an investment plan as to when they would install new parts in the refinery. The only thing PetroChina revealed to us was that they were prepared to pay some taxes anyway, unlike Valero. I had told them that this did not regard Valero and that they had to contribute anyhow.”

According to Oduber, the Aruban government had not had any contact with the Mexican oil company PeMex. “I had also contacted them for as far as I could. The Aruban government had not approached them in writing at all.” The former premier assumes that Premier Mike Eman had ‘lied’ about the fact that PeMex and the Mexican government had lobbied for Aruba during the trade mission which Queen Beatrix and Minister of Foreign Affairs Maxime Verhagen had delegated to that country last year.