Forgery allegations slow Curacao refinery deal

: Crude oil, Oil products
23/01/04

Negotiations between Dutch-controlled Curacao's state holding company RdK and a consortium of US and Brazilian firms aimed at restarting the island's refinery have been slowed by questions over the credibility of documentation produced by prospective investors, RdK said.

RdK was targeting an early September 2022 agreement with US-Brazilian consortium CPR that it earlier named the preferred bidder for the reopening of the island's 335,000 b/d Isla refinery and 17.7mn bl Bullen Bay products terminal, it said in June.

CPR is led by former president of Venezuela's state oil company PdV Luis Giusti.

The century-old Isla refinery was operated by PdV under a long-term lease that expired in December 2019.

The negotiations are based on CPR's proposal of a 30-year lease of the refinery and terminal with a possible extension of 10 years.

"One of the possible investors has presented some documents that looked suspicious," RdK said, without naming the investor.

The documents were examined by the Dutch state forensic investigator NFI "that confirmed the forgeries," RdK said. "The NFI has now intercepted dozens of forged documents."

There are no indications that CPR is involved in the forgeries, RdK said.

The documents included what appeared to be a "comfort letter" from a London-based international bank saying one investor had $5.5bn to support the refinery project. The bank has denied it provided the letter.

Curacao's opposition parties are seeking a meeting with prime minister Gilmar Pisas "to get more information about the current process to reopen the refinery and the reports about the forged documents," they said.

But Pisas has asked for "calm about the negotiations surrounding the refinery."

"The priority for all of us is to reopen the refinery," he said.

Negotiations between RdK and CPR to operate the refinery and Bullen Bay terminal "are proceeding in a transparent and thoughtful manner," RdK said on 3 January.

Curacao has failed several times to find an operator since the expiry of PdV's license.

RdK has promoted the refinery as potentially able to resume refining crude from Venezuela, and to take feedstock from growing producer Guyana.

RdK and CPR reached an agreement in August to restart the Bullen Bay terminal for storage and transhipment. This is independent of the long-term agreement for the operation of the refinery, RdK said.

By Canute James

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24/12/20

US House votes to avert government shutdown

Washington, 20 December (Argus) — The US House of Representatives voted overwhelmingly today to extend funding for US federal government agencies and avoid a partial government shutdown. The Republican-controlled House, by a 366-34 vote, approved a measure that would maintain funding for the government at current levels until 14 March, deliver $10bn in agricultural aid and provide $100bn in disaster relief. Its passage was in doubt until voting began in the House at 5pm ET, following a chaotic intervention two days earlier by president-elect Donald Trump and his allies, including Tesla chief executive Elon Musk. The Democratic-led Senate is expected to approve the measure, and President Joe Biden has promised to sign it. Trump and Musk on 18 December derailed a spending deal House speaker Mike Johnson (R-Louisiana) had negotiated with Democratic lawmakers in the House and the Senate. Trump lobbied for a more streamlined version that would have suspended the ceiling on federal debt until 30 January 2027. But that version of the bill failed in the House on Thursday, because of opposition from 38 Republicans who bucked the preference of their party leader. Trump and Musk opposed the bipartisan spending package, contending that it would fund Democratic priorities, such as rebuilding the collapsed Francis Scott Key Bridge in Baltimore, Maryland. But doing away with that bill killed many other initiatives that his party members have advanced, including a provision authorizing year-round 15pc ethanol gasoline (E15) sales. Depending on the timing of the Senate action and the presidential signature, funding for US government agencies could lapse briefly beginning on Saturday. Key US agencies tasked with energy sector regulatory oversight and permitting activities have indicated that a brief shutdown would not significantly interfere with their operations. But the episode previews potential legislative disarray when Republicans take full control of Congress on 3 January and Trump returns to the White House on 20 January. Extending government funding beyond 14 March is likely to feature as an element in the Republicans' attempts to extend corporate tax cuts set to expire at the end of 2025, which is a key priority for Trump. The Republicans will have a 53-47 majority in the Senate next month, but their hold on the House will be even narrower than this year, at 219-215 initially. Trump has picked two House Republican members to serve in his administration, so the House Republican majority could briefly drop to 217-215 just as funding for the government would expire in mid-March. Congress will separately have to tackle the issue of raising the debt limit. Conservative advocacy group Economic Policy Innovation Center projects that US borrowing could reach that limit as early as June. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US government agencies set to shut down

24/12/20

US government agencies set to shut down

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Viewpoint: More changes for Dated crude benchmark ahead

24/12/20

Viewpoint: More changes for Dated crude benchmark ahead

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Shell and Prax call off deal on German refinery stake

24/12/20

Shell and Prax call off deal on German refinery stake

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Trump backs new deal to avoid shutdown: Update

24/12/19

Trump backs new deal to avoid shutdown: Update

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