• 6 minutes WTI @ 67.50, charts show $62.50 next
  • 11 minutes Saudi Fund Wants to Take Tesla Private?
  • 17 minutes Why hydrogen economics is does not work
  • 4 hours Starvation, horror in Venezuela
  • 12 mins The EU Loses The Principles On Which It Was Built
  • 34 mins Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 3 hours Crude Price going to $62.50
  • 3 hours WSJ *still* refuses to acknowledge U.S. Shale Oil industry's horrible economics and debts
  • 20 hours Anyone Worried About the Lira Dragging EVERYTHING Else Down?
  • 13 hours Chinese EV Startup Nio Files for $1.8 billion IPO
  • 24 hours Oil prices---Tug of War: Sanctions vs. Trade War
  • 1 day Correlation does not equal causation, but they do tend to tango on occasion
  • 1 day WTI @ 69.33 headed for $70s - $80s end of August
  • 24 hours Russia retaliate: Our Response to U.S. Sanctions Will Be Precise And Painful
  • 1 day California Solar Mandate Based on False Facts
  • 1 day Monsanto hit by $289 Million for cancerous weedkiller
Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

Jamaican Refinery Expansion Stalls Due To Venezuela’s Financial Woes

Refiner

The Petrojam refinery in Jamaica cannot be renovated as planned due to the acute shortage of funds in Venezuelan coffers, according to reports from local media.

Jamaican Prime Minister Andrew Holness said the project, which had financial support from Venezuela, now faces an uncertain future.

The Petroleum Refinery Expansion Project had been signed off on by both Venezuela and Jamaica in Caracas back in February at a cost of $1 billion.

Currently, Petrojam refines 36,000 barrels of oil per day, but the upgrade would have brought maximum capacity up to 50,000 barrels per day.

The Jamaican government owns a 51 percent stake in Petrojam, while Caracas holds the remaining stake.

Last month, UK-based Tullow announced plans to return to offshore locations off the southern coast of Jamaica to explore a field of “live oil” that was brought to their attention by local fisherman earlier this year. The firm will ramp up their 3D seismic surveys this year in hopes that the floating oil will lead them to vast oil fields the likes of their neighbors to the south and the nearby Gulf of Mexico.

Venezuela, Jamaica’s financial overseer, was hit by U.S. sanctions last month, which prevent American financial institutions from offering new funds to Caracas or to its state oil company, PDVSA. The oil firm’s U.S. subsidiary, Citgo, was also barred from repatriating profits – further isolating Caracas from international financial markets.

With cash drying up, PDVSA is also struggling to import lighter fuels that are necessary to blend with the country’s heavy oil. Some ships are sitting off the Venezuelan coast because of unpaid bills. Meanwhile, because of obligations to creditors, PDVSA is sending crude abroad, leaving little for domestic refining.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News