The recent announcement of a deal between Curaçao's Refinery (RdK) and PDVSA to manage the Isla refinery has sparked both skepticism and laughter among the public. The narrative surrounding this agreement seems to be woven with threads of absurdity and dubious promises.
The essence of the agreement lies in PDVSA supposedly settling a portion of a $1 billion debt accrued over the years, primarily attributed to the negligence in maintaining the refinery. This debt, meticulously documented by former RdK director Marcelino de Lannoy and presented in a Supreme Court case in The Hague against PDVSA, paints a stark picture of the company's disregard for proper maintenance practices.
Surprisingly, RdK has chosen to pardon nearly half of the total debt, opting instead for a 10-year agreement wherein PDVSA commits to paying $471 million. However, the catch is that this payment won't be in cash but rather in petroleum, equating to 600,000 barrels of oil annually. A quick calculation reveals this amounts to a mere 1,644 barrels per day, barely sufficient to keep the asphalt plant running.
For context, an optimally functioning refinery requires a daily intake ranging from 100,000 to 200,000 barrels. The fundamental issue here is that while signing agreements appears facile, the real challenge lies in their actual fulfillment.
History has shown that a significant number of agreements with PDVSA remain unfulfilled, with only a fraction seeing any form of compliance. It's reiterated that dealing with entities tainted by criminal associations, such as those linked to Nicolas Maduro's regime, often leads to outcomes akin to fool's gold – an illusion of prosperity.
Curaçao and RdK, regardless of agreements, are unlikely to receive any substantial benefits, whether in monetary terms or oil reserves. Those who put faith in these agreements, like Pik Pisas, Patrick Newton, and the overly optimistic Charles Cooper, may find themselves disillusioned. Time will ultimately reveal who stands on the right side of reality – those with cautious skepticism or the participants in this seemingly endless and dubious show.
