The Government of Curaçao ("GoC") owns an oil refinery, oil terminal and a utility company (CRU), jointly the "Oil facilities", through its wholly controlled limited liability company Refineria di Kòrsou N.V. ("RdK"). These Oil facilities are presently operated by RdK. These Oil facilities were operated for the last 34 years by a subsidiary of Petróleos de Venezuela S.A. ("PDVSA") under long-term lease agreements that expired on December 31, 2019.
The GoC and RdK are presently looking for one or more strategic partners that will use, operate, maintain, and modernize the Oil Facilities. The partnership models offered are; long-term lease, sale of the assets with land in long lease, Joint venture or Tolling in combination with one of the aforementioned options. The plan to start-up operations is expected to be in the first quarter 2021. This project is executed under the code name "Project Arawak".
The Oil facilities are an important contributor to the local economy as it is a large contributor to the GDP, employment, forex, and taxes.
Some of the positive points for marketing this specific oil facilities is that it is located outside the Caribbean hurricane belt and it is favorably positioned on major international crude oil and refined products trade lanes of the Americas, with natural port and deep still waters. Another favorable consideration is the stable legal system based on Dutch Supreme Court in The Hague and an investor friendly tax system. They provide a physical platform for trading and for manufacturing, as well as an opportunity to access refining facilities that can produce the fuel complying with the new IMO 0.5% S bunker regulation.