Pretty cool stuff!!! Who would of thought of the amount of water used in the process!!!!

Thanks

Thank-you Lou for the pictures and info

Neat pics!

I agree Valero WILL sell the refinery, but they have put enough money into upgrades that it will not be shutdown.

Reading the Texas newspapers, sale is imminent.

Aruba Bound! ~ Hoosier Kitties ~ Our-Cruises ~ Blogging to Aruba
Back to paradise Trip #18

been reading in Amigoe that the refinery in Curacao has been having problems also, and looking for buyers,remember the Aruba refinery was built in the '20's Lago closed in'85 reopened in 91 as Coastal, my father and uncle both worked there in the 60's and 70's.had alot of good times living in the "Colony" for the history and many neet pics of old Aruba see Lago-colony.com

The refineries in Aruba and Curacao are evolving in different dynamics. The biggest different between the two refineries is that the government of the island of Curacao owns the refinery, where it then leases it to Venezuelan state oil company PDVSA.

In Aruba on the other hand, the refinery is owned by Valero. Some time back it was announced by the head office in San Antonio, Texas that the refinery was for sale. Valero Aruba never unequivocally admitted the refinery was for sale, but rather said something in the direction of "all options are open". In reality the head office already hired a business bank to explore the options.

Several potential buyers have been named, from which Brazilian state owned oil giant Petrobras is rumored to be favored by local officials. Then again it is still in the early stages, so further speculation as to which company is going to be the next buyer is premature.

I'm sure that the refinery is going to be sold before January of 2011, because then the tax holiday this refinery enjoys in Aruba expires. That gives Valero some 2.5 years to finalize the sale.

Gabriel
arubabeaches.net

Please, please, please keep us in the loop!!! The refinery is huge to the economy!!!

Thanks to everybody!

If anyone was curious WHY Valero wants to sell the refinery here is the answer...they don't want to put anymore money investing in upgrading the equipment...either way, imo, I am happy that the refinery will have a buyer and will not simply shut down.Valero Plans to Sell Aruba Refinery in Second Quarter
By Victor Epstein
March 26 (Bloomberg) -- Valero Energy Corp., the largest U.S. refiner, plans to sell its Aruba refinery in the second quarter to focus on improvements to plants that can process cheaper oil.

The list of plants Valero has identified for possible sale also includes those in Krotz Springs, Louisiana, Memphis, and Ardmore, Oklahoma. Bill Klesse, chief executive officer of the San Antonio-based company, said refineries fetched more money a year ago.

The company plans to bankroll improvements at its most complex plants by selling off its least desirable assets. Valero sold its 120-year-old refinery in Lima, Ohio, for $1.9 billion in July 2007.

``Aruba, I believe is going to happen,'' Klesse said today during a presentation to analysts and investors in New York. ``We have a transaction and we have a buyer and everything here fits very nicely.''

The Aruba buyer may be Rio De Janeiro-based Petroleo Brasileiro SA or Switzerland-based Petroplus Holdings AG, Roger Read, an analyst at Natixis Bleichroeder Inc. in New York, said in a telephone interview.

Refineries are selling for less this year than they did in 2007 because high oil prices have narrowed processing margins, making the business look less attractive, Read said. Financing is also more difficult because of the credit crunch, he said.

``The upper range potential for what you could sell a refinery for is less now than a year ago, but Valero's still going to sell every one of these refineries for more than they paid for them,'' said Read, who has a ``buy'' rating on Valero shares and doesn't own them.

No Investments
Klesse also said Valero has no plans to invest in the Krotz Springs and Memphis plants. Memphis needs a new fluid catalytic cracker because the unit must be shut for repairs every 18 months instead of the four-to-five-year timeframe Valero considers normal, he said. Crackers are a refinery's primary gasoline-processing unit.

Valero shares rose 86 cents, or 1.8 percent, to $48.96 in New York Stock Exchange composite trading. The shares have dropped 30 percent this year.

``The challenge to selling Aruba is that it needs a lot of additional investment,'' Read said.
``Whoever buys it is going to have to put a lot of money into it.''

To contact the reporter on this story: Victor Epstein in Houston at vepstein@bloomberg.net.
Last Updated: March 26, 2008 16:17 EDT

Aruba Bound! ~ Hoosier Kitties ~ Our-Cruises ~ Blogging to Aruba
Back to paradise Trip #18

Thank-you so much Arubalisa for all your help and information, you certainly are a valuable wealth of knowledge.......and to everyone else who have contributed so wonderfully...thank-you!!!!!!!!!!!!! Please update as info arises........LG

Valero sells refinery in second quarter
Monday, March 31, 2008 http://www.amigoe.com/english/
The refinery of Valero in Aruba does no longer fit in the industrial strategy and will be sold in the second quarter of this year.

ORANJESTAD -- Valero Energy Corporation sells the refinery in San Nicolas in the second quarter of this year, confirmed the spokesperson of the biggest American oil-distiller Valero, Bill Day today. It already leaked out earlier that ‘a mainline agreement’ was signed with the Brazilian semi-government company Petrobras.

Day says that the refinery in Aruba does no longer fit in the industrial plan of Valero. “It’s not so that we throw out the foreign establishments. We are also closing an American plant. But with our new strategy, we focus on refineries that are ’big and complex’, and plants that are located on water.” It is not strange that Valero is selling plant, just now that the oil prices are high. “We mark out our market to become stronger. Besides, selling these refineries will yield us a lot of money.”

Valero’s top executive Bill Klesse told American journalists right before the weekend: “Aruba’s number is up, I believe. We have a buyer and everything fits perfect in our plan.” Amigoe learned in December already from very reliable sources that the take-over purchase by Petrobras is a done deal. There was no longer a joint venture – a cooperation agreement – between Valero and Petrobras and the entire refinery is sold. For that matter, the American media reported that the Swiss company Petroplus Holdings AG is also a potential buyer.

What this take-over purchase is going to mean for the employment and the development of the earnings of the employees of the refinery is therefore not clear yet. Neither is known yet whether conditions are going to be attached to the environmental performance of the company, or which products Petrobras is going to refine and for which market.

Prime Minister Nelson Oduber said late last year that the government will state conditions to new buyers. “They must guarantee that they won’t force any dismissals; that the new owner will invest at least 1.5 milliard dollars in the refinery, so that it also produces white products, like gasoline.” The refinery in San Nicolas only produces diesel at this moment, and because of this, there is no chance to fall back on the production of gasoline when the market for diesel diminishes.

Other refineries that Valero wants to sell are the ones in Krotz Springs (Louisiana), Memphis (Tennessee), and Ardmore (Oklahoma). All these plants according to the company ‘have yielded less money than the year before’. A 120-year old refinery in Lima (Ohio) was sold for 1.9 milliard dollars last year.

Aruba Bound! ~ Hoosier Kitties ~ Our-Cruises ~ Blogging to Aruba
Back to paradise Trip #18

Hopefully the new owners will use my company! I want a trip to Aruba, but it looks like only my boss will be flying down on Tuesday (4/8).

Aruba History:
Lou: Visited on a cruise in 2005
Lou&Nay: Will visit on our honeymoon 9/2008