The Aruban unit of oil company Citgo and the Aruban government have reached an agreement to re-open one of the Caribbean’s largest oil refineries in San Nicolas, Aruba, the Caribbean Journal reported Sunday. The refinery had previously been operated by San Antonio-based energy company Valero Energy, and had sat idle for years prior to the agreement. The new deal is for a 15-year lease with the option for a 10-year extension. The signing ceremony took place in Caracas with Venezuelan President Nicolás Maduro and Aruba Prime Minister Mike Eman present. “This project will transform the refinery into an upgrader for Venezuelan extra-heavy crude within 18 months to two years. This process—which will require an investment ranging from $450 [million] to $650 million, to be obtained from external financing sources—can be compared to a large turnaround,” Citgo CEO Nelson Martínez said. After an initial “adaptation” process, the facility will upgrade to refining extra-heavy crude from the Orinoco Oil Belt and transforming it into intermediate crude. Citgo is owned by PDV America, an indirect subsidiary of Venezuela’s PDVSA.
By The Dialogue
More Top Reads From Oilprice.com: