Inspectioneering
News

Citgo Petroleum Slows Aruba Refinery Revamp Due to U.S. Sanctions

Reuters, February 21, 2018
Reuters

Houston-based Citgo Petroleum has slowed work on an overhaul of its 235,000-barrel-per-day Aruba refinery due to a lack of financing stemming from U.S. sanctions on Venezuela’s state-run PDVSA, the refining firm said. Sanctions imposed last year by the United States on Venezuela have limited access to long-term credit for PDVSA and its subsidiaries, affecting many oil projects in the South American country and Caribbean islands where they operate.

Citgo Aruba ... needs to slow down the refinery revamp project due to sanctions by the U.S. government on PDVSA which are not allowing us to get additional financing for the project,” the unit said in a press release late on Tuesday.

The Caribbean refinery has been leased since 2016 by Citgo, the U.S. refining subsidiary of PDVSA, under a 25-year agreement with the Aruba government that also includes an extensive $685 million overhaul aimed at restarting operations at the inactive refinery and converting the facility to a crude upgrader.

We are working hard to find a solution and hope to fully resume the project in the near future,” said James Cristman, Citgo’s refining vice president, in the release, adding that 600 workers had been hired for the project.

Citgo Aruba did not say how long work would be delayed at the refinery, which has remained idle since 2012. The Aruba government declined to comment. At the end of 2016 two consortia, including Japanese engineering firm JGC Corp and French oil services company Technip, were shortlisted to handle the refurbishment. Months later Citgo asked its cash-strapped parent company PDVSA to provide initial funding of $100 million, according to an internal document seen by Reuters, but the credit was not granted and there has been little progress since then due to the lack of financing.

(Reporting by Sailu Urribarri in Jacksonville, written by Marianna Parraga; Editing by Tom Brown)

Click here to read the full article from Reuters.

Copyright 2019 Thomson Reuters. Click for restrictions.

Comments and Discussion

There are no comments yet.

Add a Comment

Please log in or register to participate in comments and discussions.


Inspectioneering Journal

Explore over 20 years of articles written by our team of subject matter experts.

Company Directory

Find relevant products, services, and technologies.

Job Postings

Discover job opportunities that match your skillset.

Case Studies

Learn from the experience of others in the industry.

Event Calendar

Find upcoming conferences, training sessions, online events, and more.

Industry News

Stay up-to-date with the latest inspection and asset integrity management news.

Blog

Read short articles and insights authored by industry experts.

Acronyms

Commonly used asset integrity management and inspection acronyms.

Asset Intelligence Reports

Download brief primers on various asset integrity management topics.

Videos

Watch educational and informative videos directly related to your profession.

Expert Interviews

Inspectioneering's archive of interviews with industry subject matter experts.