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Thread: sadness~~ VALERO REFINERY to close ~~

  1. #21
    Senior Member charles's Avatar
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    ..................that being said, the refinery in aruba holds much history, provides many paychecks and has been a fixture there for 50+ yrs....or more......................

    You have to know how much I love ya but

    the same applies to cancer and guns.
    THERE ARE PLACES TO SEE - STORIES TO TELL
    IMAGES TO HARNESS - AND MORE STORIES ON caribbean.tv
    be well
    charles

  2. #22
    Aruba since 1979
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    Andrea J.'s Avatar
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    and that is what this forum is about........friendly chatter even when there are disagreements

  3. #23
    Senior Member Arubalisa's Avatar
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    PetroChina Offers $350 Million For Idled Valero Aruba Refinery -Source

    Published May 09, 2012
    Dow Jones Newswires


    HOUSTON Valero Energy Corp. (VLO) has received an offer of $350 million from PetroChina (PTR) for the idled refinery in Aruba it has been trying to sell for years, a person familiar with the situation said Wednesday.

    An acquisition would give state-owned PetroChina a refining foothold near the U.S. Gulf Coast refining hub while allowing Valero, the largest independent U.S. refiner, to get rid of an unprofitable asset.

    The U.S. refining industry is in the throes of major shifts in fuel demand and energy production that have wiped out the profitability of former refining hubs such as the U.S. East Coast and the Caribbean. Poor refining margins forced Valero to suspend operations at the 235,000-barrel-a-day Aruba refinery in March and Hovensa LLC to shut down its St. Croix refinery in the Virgin Islands earlier this year.

    Valero used the Aruba refinery to only partially refine crude oil, sending the half-finished product to its Gulf Coast operations to finish the process. If PetroChina buys the refinery to produce fuels, it may mean the company plans to expand its footprint in the region, said Sam Margolin, an analyst at Dahlman Rose & Co.

    "It might signal that Petrochina would be interested in other U.S. assets," Margolin said.

    PetroChina processed more than 900 million barrels a day in 2010, according to the company' website.

    PetroChina has shown interest in the Aruba refinery for years, a source in the investment banking industry said. The Aruba plant has a relatively large coker unit able to process the heavy oil PetroChina would receive from Venezuela into asphalt or coke for industrial furnaces. At $350 million -- nearly $600 million lower than what Valero listed as its book price -- the facility could also be used as an oil and fuel storage terminal.

    Valero in a filing with the U.S. Securities and Exchange commission said it had received a $350 million offer for the refinery but only described it as coming from a party with "experience in the refining and marketing industry.

    "Due diligence process is currently ongoing and no final agreement has been reached to sell the refinery," Valero said in the filing.

    Copyright 2012 Dow Jones Newswires


    PetroChina in talks to buy Valero's Aruba refinery-sources

    "...Sources said PetroChina has reached a deal with Petroleos de Venezuela (PDVSA) to supply the Aruba plant with heavy crude."PetroChina has a presence in the Venezuelan upstream. This is related to them looking for an upgrader for that heavy crude," said John Auers, a refinery specialist with Houston-based Turner Mason.
    The Aruba plant has two fairly new coker units to handle the heavy Venezuelan crude as well as recently upgraded hydrotreating capability, sources familiar with the refinery said.
    This would allow PetroChina to semi-process heavy crude and then ship the product to China for finishing in the mainland refineries there, which can only run lighter grades.
    Venezuela is currently supplying 460,000 barrels of oil per day to China, and is set to increase its shipments to 1 million barrels per day by 2015, according to government officials. ..."


  4. #24
    Aruba since 1979
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    Andrea J.'s Avatar
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    much talk of the valero/chinese prospective deal.
    no one seems overjoyed.
    concern of bringing in many chinese workers, leaving arubans and americans out of the picture?
    one of the things they are talking about is the manufacturing of gasoline.

    wait and see i guess.

  5. #25
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    andrea, is correct new company wants work visa's for over 400 chinese to relocate to work at the refinery.
    if the government makes that deal, i believe it will be a mistake for the island for many years to come.
    my guess, the chinese company will get the work visa's.

  6. #26
    Senior Member Arubalisa's Avatar
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    Exclamation The latest news- or at least the latest "talk"

    PDVSA and Valero in talks to restart 5 units at Aruba refinery

    * Venezuelan oil company would pay the lease with crude
    * Companies are running tests, PDVSA would produce more heavy naphtha
    * Valero receiving an increasing volume of Venezuelan oil

    By Marianna Parraga
    HOUSTON, Dec 2 (Reuters) - Venezuela's state-run oil company PDVSA and U.S. refiner Valero Energy Corp are running tests to evaluate the restart of five units at the 235,000 barrel per day (bpd) Aruba refinery, which was shut last year over high costs, according to three sources familiar with the situation.

    The Aruba refinery was closed in September 2012 when its owner, Valero, reduced its workforce and stopped units at the plant - which cannot convert heavy crudes into light products because of a lack of deep conversion plants.

    Since then, Valero has been using the facility in the Caribbean to store its own refined products and also some PDVSA feedstocks, mainly heavy naphtha going out from the 955,000 bpd Paraguana Refining Center (CRP) in western Venezuela, traders with knowledge of the operations told Reuters.

    The Aruba refinery would offer PDVSA output of heavy fuels to mix with its own heavy crudes, along with storage space it partially lost in 2012 after several fires in its domestic refining network.
    The sources said PDVSA could lease the units from Valero and pay for their use in oil.

    "PDVSA is interested in two crude distillation units, one hydrotreater, one hydrocracker and one coker. The company is asking Valero to restart those units to process Venezuelan crude," a source from the refinery told Reuters.

    PDVSA, which has well-known cashflow problems, is already leasing tanks in Aruba from Valero and paying for the space with crude sent directly to the United States, the sources added.
    Valero declined to comment about possible transactions or current business arrangements, but said it has been using the refinery as a storage terminal and has maintained equipment so the plant could be restarted if a buyer were found. Valero said it buys 100 types of oil, including Venezuelan.

    PDVSA did not immediately respond to a request for comment from Reuters.

    NEED FOR NAPHTHA
    Aruba's prime minister, Mike Eman, told local media last month that the government was interested in the restart of the refinery and that PDVSA would operate it if talks with Valero were successful, but that a deal was still far from being reached.

    Previous talks between Valero and companies interested in buying the refinery, including PetroChina and PDVSA, did not succeed.

    Having sold several international facilities starting in 2007 and with shipments to many Caribbean countries growing, PDVSA needs an additional place to store its crude and products.

    "PDVSA is delivering the crude to Valero at Venezuelan ports and Valero is sending most of it to its refineries in the United States," a trader said.

    Valero imported an average of 177,830 bpd of Venezuelan crude this year, a 28.5 percent rise from last year, according to U.S. Energy Information Administration figures updated until August.
    The source added that under the agreement terms, Valero is not allowed to resell the Venezuelan crude.

    PDVSA and its private partners in Venezuela need to obtain heavy naphtha to mix it with increasing output of heavy crudes in the Orinoco belt and create diluted crude oil (DCO), as production of light crudes that were used to generate blends such as Merey 16 declines. (Reporting by Marianna Parraga; Editing by Terry Wade and Marguerita Choy)

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