Published On: Wed, Oct 18th, 2017

Guangdong Zhenrong Energy concerned about lack of cooperation Venezuelan PdVSA

Guangdong Zhenrong EnergyWILLEMSTAD - The Chinese State Company Guangdong Zhenrong Energy (GZE) gave a presentation this morning to the Members of Parliament. The Chinese company that wants to take over the oil refinery in Curaçao has been under fire in recent weeks.

One of the issues that were treated was the fear of the loss of thousands of jobs on the island. This fear was expressed by the Small and Medium Enterprises (SME) as GZE's decision to extract its resources directly from China.

GZE indicated that as specified in the Heads of Agreement, signed on November 19 last year, GZE shall maximize the workforce utilization prior to bringing in workforce from outside the island. At a GZE sponsored expanded meeting in last December with the workers in Renaissance Hotel, GZE made solemn commitment accordingly.

During the Central Committee meeting, the GZE representatives also voiced their concern about the worrying situation at the oil refinery and the need for an emergency plan. The Chinese company asked the Members of Parliament for their support. Bingyan Chen expressed his concern to the fact that the Venezuelan State Oil Company PdVSA is not cooperating in any way with the agreement between Curaçao and GZE to take over the exploitation of the refinery.

For more than a year, PdVSA in Caracas does not respond at all to attempts at communication, according to GZE. A letter was sent in February this year, which has not been answered until today.

GZE understands that 'PdVSA has problems', both internally and externally, with sanctions imposed by the United States. And the Chinese state enterprise continues to welcome PdVSA to participate in the 'Curaçao project', even though there is now a "binding" Heads of Agreement with British Petroleum (BP) for both the supply of crude oil (for refining) as well as the removal of (refined) fuel products.

PdVSA has not yet granted any cooperation to access the installations. GZE also receives no documentation. What the risks are for an actual shutdown is currently difficult to estimate, but according to the Chinese company, the throughput is currently very low. “We, therefore, request the help of the Multi-Disciplinary Project Team (MDPT), the RdK and the Government of Curaçao."

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