Technip & Venezuelan Firms Will Refurbish Aruba RefinerySource: Reuters 12/29/2016, Location: South America
A consortium formed by France's Technip and Venezuela's Tecnoconsult and Y&V Group was picked to refurbish Aruba's 225,000-barrel-per day refinery, the Caribbean island's government said.
The facility will be overhauled in a $700 million project that is expected to take 18 months starting in early 2017. It has been idle since 2012 when it was shut by the previous operator, U.S. Valero Energy.
"The refinery's refurbish project will start in the short term, including inspections, rehabilitation and preparation for the restart," Aruba's economy minister, Richard Arends, said in a speech broadcast on local television.
The Aruba refinery's new operator, Venezuelan-owned Citgo Petroleum, plans to process up to 209,000 barrels per day (bpd) of Venezuelan diluted crude for shipment to its U.S. Gulf refineries in Corpus Christi, Texas, and Lake Charles, Louisiana.
Citgo, a unit of Venezuela's state-run oil company Petroleos de Venezuela S.A., or PDVSA, did not immediately respond to a request for comment. Neither did Tecnoconsult, Y&V or Technip.
In November, Citgo's unit in Aruba shortlisted the Technip consortium and another group formed by Japan's JGC Corp and Spain's Pentech to do the revamp.
Earlier this year, the government of the Caribbean island signed a 25-year lease with Citgo that would allow the new subsidiary Citgo Aruba Refining (CAR) to operate the refinery and an attached terminal.
Supplies to the Caribbean have been a key part of PDVSA's exports for more than a decade, after numerous island nations reached agreements with Venezuela for financed oil. However, its cash flow problems and declining production have caused disruptions, cutting crude shipments to the region.
The company is expecting the Aruba refinery to help curb its diluent shortage, which has limited its ability to formulate exportable crude blends.
Citgo in August asked its parent company to provide an initial investment of $100 million, but a larger credit will be needed to fund the project, according to a internal document seen by Reuters in September.
A source from a bidding firm, who was not authorized to speak to the media, said on condition of anonymity this week that financial group Rothschild was acting as Citgo's advisor for the credit.
Oil Treating & Refining News in Venezuela >>
Russia >> 3/17/2017 - Gazprom Neft has begun construction of a standalone 12,300-tonne-per-year-capacity hydrogen production unit at its Omsk Refinery. This processing faci...
Austria >> 3/14/2017 - Product markets in the Atlantic Basin exhibited a mixed performance during February, as higher gasoline export opportunities to East of Suez, along wi...
China >> 3/10/2017 - Privately-run conglomerate CEFC China Energy has approached several independent Chinese oil processors seeking to acquire its first domestic refinery ...
Iraq >> 3/8/2017 - Iraq has added a processing unit to the Kirkuk oil refinery, increasing the plant's capacity by 10,000 barrels per day, the oil ministry said in a sta...
Ghana >> 3/7/2017 - The operator of Ghana’s sole oil refinery said the planned capacity of a proposed second plant could be doubled as the West African nation targets exp...
Austria >> 3/2/2017 - Refinery utilisation in the US averaged around 90% in January, corresponding to 16.4 mb/d, around 160 tb/d lower than the previous month and around 30...
Fluids Drilling, Completion, Workover & Stimulation
Gasoline (Lead free)
Kerosene. Domestic use
Lubricants, Oils & Greases
Oil Treating & Refining
Related Articles: Aromatic Solvents Butene Cleaning Corrosion Inhibiting Crude Oil Diesel Fuel Ethylene Fluids Drilling, Completion, Workover & Stimulation Fluids/Chemicals Fracturing Sand Fuel oil Gasoline (Lead free) General Jet fuel Kerosene. Domestic use Lubricants, Oils & Greases Nitrogen Oil Treating & Refining Polyethylene Polyvinyl chloride Propane Sand, Sandblast Surfactants
|Venezuela Oil & Gas 1 >> 2 | 3 ||