Despite the extension, refinery owners are looking to end the 34-year cooperation under pressure from US sanctions.

Mérida, December 2, 2019 (venezuelanalysis.com) – Venezuela’s state-run oil company PDVSA has managed to temporarily extend its lease on Curacao’s Isla Refinery.

Venezuela’s PDVSA Secures Temporary Lease Extension for Curacao Refinery

Despite the extension, refinery owners are looking to end the 34-year cooperation under pressure from US sanctions.

Dec 2nd 2019 at 6.41pm

The agreement will allow PDVSA to continue to use the refinery for a maximum of one additional year as part of a “transition” to a new operator, according to a statement from the state-run refinery owner Refineria di Koursou (RdK) on Sunday.

The deal was reached during a meeting between PDVSA President Manuel Quevedo and RdK representative Marcelino de Lannoy in Caracas Saturday, and reportedly includes a commitment by PDVSA to invest in maintenance during 2020.

Sitting a mere 140 kilometres of Venezuela’s northern coast, the Isla Refineryhas a capacity to process 335,000 barrels per day (bpd) of crude oil into conventional fuels, polymers, petrochemicals, asphalt and raw waxes, as well as lubricating oils. It also provides storage facilities for Venezuelan oil-based products.

PDVSA has leased the premises continuously since 1985, but RdK is considering switching operators to avoid coercive measures from Washington. The firm began talks with European industrial conglomerate Klesch Group in September, but no further details have yet been disclosed.

#Curaçao’s Isla #refinery negotiating with Klesch to replace #PDVSA as operator #OOTT

Refinery (RdK) Curacao has chosen Klesch Petroleum as the possible new operator of its stalled Isla Refinery, replacing Venezuela's PDVSA.  Now they have to come an agreement on price—and up to how much they would be liable for with regards to the environmental liability onsite.

Negotiations between RdK and Klesch, based in London and Geneva, are scheduled to continue for three months with the intention of reaching a final agreement in November, RdK said in a statement.

The Isla Refinery has been operated by Venezuelan state PDVSA since 1985 under a rental agreement with the Dutch Caribbean autonomous island government. The agreement has been renewed periodically and the current contract expires in 2019.

See the whole piece here:  Curacao refinery negotiating with Klesch to replace PDVSA as operator: