Venezuela’s PDVSA device in the United States, Citgo Petroleum, and Aruba on Friday signed an arrangement to reactivate a 235,000-barrel-per-day refinery on the Caribbean island, a financial investment developed to help process the South American’s oil producer’s extra heavy crude. The Aruban federal government reported last month that the contract includes a 25-year lease to allow Citgo to operate the refinery, after investments amounting to at least $1 billion. The “Conclusive Participation Agreement” structure checked in Caracas said that Citgo will invest in the refinery and that Aruba will cultivate a positive environment for foreign investment, but did not provide information.
” We have the funding, Citgo has actually gotten funding to begin works we hope will last 12 months,” PDVSA president Eulogio Del Pino informed Reuters on Friday night, adding the funds came from “global banks” in a project finance scheme.
” In 12 months we’ll be sending out diluted crude from Venezuela there, we’ll upgrade it and we’ll have a closed circuit of upgraders in the Caribbean,” included Del Pino, who is likewise Oil Minister. Although PDVSA’s monetary condition is weak amid low crude rates, its subsidiary Citgo took pleasure in some relief last year due to greater refining margins, which would allow it to direct a portion of its profit to Aruba.
( Extra reporting by Deisy Buitrago; Writing by Girish Gupta; Editing by Simon Cameron-Moore).