TRANSPARENT PROCESS BY PMO TO ACHIEVE A POTENTIAL STRATEGIC PARTNER FOR THE CURAÇAO OIL FACILITIES
Willemstad August 31, 2020 – The Project Management Organization of the Refineria di Kòrsou is executing a transparent process, aimed at achieving a long-term and strategic solution for the Curaçao Oil facilities namely the refinery, the Bullenbay tank farm and the utility plant CRU. Thirteen (13) parties that recently expressed their interest to participate in the Arawak project, were invited to enter a non-binding proposal by October 5th, 2020. All parties signed a non-disclosure agreement when expressing their interest in participation. The selection process aims to guarantee a competitive process. The preferred bidder will be chosen no later than early December 2020, to start the negotiation for a final contract.
A non-disclosure agreement with interested parties, is normal practice in multi-million (international) arrangements. RdK will provide the parties with access to its data room containing confidential information regarding commercial and technical data of the facilities. The bidding parties also do not want competitors to know about their potential strategic moves, since it can impact their competitive advantage. Therefore, RdK has adopted a communication policy for a transparent process that will provide the required confidentiality for the partners within this process.
In the selection process interested partners must answer questions regarding their proposed operation of the facilities, their experience in running refineries, their ability to obtain crude oil and to market products. In addition, the potential partners should present proof of solid financial means to comply with future financial obligations. The process can be further divided in the following phases:
- Parties enter non-binding proposals: PMO with its advisors will evaluate before the end of October the non-binding proposals received from the interested parties.
- Selection of short list: A limited number of parties will then be selected to submit a binding proposal. This will take place the latest by mid-November 2020.
- Start negotiations: The PMO negotiating team will hereafter select the party (the preferred bidder), with which they will start negotiating in December 2020.
The aim is to finalize the negotiations in the first quarter of 2021. RdK will keep the community informed regarding the progress of project Arawak.