Friday, 5 November 2010

Isla, adios? Is Venezuela's state oil company so compromised?


The Isla oil refinery on lease to PDVSA for decades now may be no more...

Our contact in the Dutch Antilles tells us people in Curaçao think Venezuela's state oil company PDVSA may be forced to transfer its rights for the oil refinery Isla, which it had been leasing for decades now. They say PDVSA has no money for the costly maintenance of the refinery, a refinery that has been an ecological issue for many years now. PDVSA would be looking for groups to transfer the lease and other resources there. I also got a link to a Dutch article. The article confirms, among other things, that the civic group Movementu Solushon Isla (MSI) suspects PDVSA needs to get rid of that Isla Refinery soon.

The family company Arevenca has apparently proposed to buy the Curacao refinery for 800 million dollars and invest $2.5 billion in the construction of a new one at Bullenbaai. PDVSA - the MSI group says - could be tempted to accept the offer. Many people in Curaçao would not feel happy about that either because the new refinery would mean 400 hectares of better land would be occupied and the environmental problem would simply move there.

What this tells us regarding Venezuela is PDVSA could be having more and more trouble handling things on its own.

Independently from this I wonder about this Arevenca company, a company I never heard about before: how come Arevenca says- or at least the Curacao people who claim to report that- it has so much money for such a deal? I suppose they don't. So: what are the Arevenca people really up to? Their site is really bad for the standards of a little shop, but it is just inconceivable for a multimillion dollar company. And yet they claim to be a multinational company (I suppose because they are Venezuelans and go to the Dutch islands). Are the people in Curacao just naif to believe these guys could take the refinery over or do they just want to spread those news?


  1. My sources said Arevenca has been out of the picture for months. Nobody wants Isla. When it comes down to it, Curacao has little say about what happens there. Isla is the biggest employer on the island. They can't just kick it out. And no. Arevenca won't buy.

  2. The others were saying something else, but you may be right.
    I see conflicting data.
    Another site with an oldest pieces

    declares the representative for economy, David Dick, anounced Isla was not going to be taken over as the lease goes until 2019...but that is, I suppose, if PDVSA does not find another leaser. On the other had that article says Petrobras had announced the desire to set up shop in Curacao.

    Whether Arevenca will or not here, now I am curious about that company, what's its real scope and how it has survived so well these times.


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