Published On: Tue, Dec 4th, 2018

RdK selects preferred bidder for long term lease oil refinery

Refineria di KorsouWILLEMSTAD - In a press release, the Refineria di Kòrsou, Curaçao Refinery (RdK) indicated it has selected a preferred bidder, a preferred candidate, to further negotiate for the acquisition and modernization of the refinery next year.

The candidate has been informed, as has the Venezuelan state-owned oil company PDVSA, which now operates the refinery and the other companies that have shown interest.

The RdK also indicates that the intention is to continue negotiations and to sign a Memorandum of Understanding (MoU) in January 2019. "If the negotiations do not result in an MoU, one of the other candidates will be approached." If it leads to a MoU in January, then the intention is to sign a principle agreement in May and a contract later in the year. "The name of the company is only announced when the MoU is signed."

In the meantime, the process of creating a partner that could serve the refinery in the short term has been stopped. The RdK says in its press release that the time is too short to realize this. The party that the RdK is now continuing with is the long-term, with the possibility to start next year, the so-called ‘early step in’.

Another one of RdK’s priority is to restart the CRU plant which provides power to the refinery. The government is responsible for this plant and will invest in new boilers to ensure that the plant is operational again. This, in turn, will normalize the refinery’s operations.

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