NewsWhore
06-18-2009, 04:20 PM
Hacienda Minister Vicente Bengoa has provided some initial details of the proposed sale of 49% of Refidomsa to Venezuela. According to Bengoa, Venezuela will pay US$130 million for a 49% stake in the company within a three-month period, as long as the price of a barrel of crude oil stays below US$70.
He said that as part of the PetroCaribe agreement, Venezuela is already financing 40% of the price of fuel purchased by the DR, and the remaining 60% would go to the Dominican government as payment for the 49% stake.
According to Bengoa, the sale of a minority stake in the company would have twelve direct benefits, including the chance of increasing the long term financing of the PetroCaribe agreement by US$201.6 million, based on a price per barrel of US$70.
Currently long-term financing is US$302.4 million and this would increase to US$504 million over the lifetime of the agreement.
Fuel output could also increase from 30,000 to 50,000 barrels per day. Bengoa proposed that the sale would allow Refidomsa to become a center for the export of refined petroleum products and a distribution center to other Caribbean nations.
The sale would also grant the DR access to technological advances in the area of petroleum.
Marino German, who was also at the meeting, said that there was no need for public bidding as the sale is being defined as a commercial transaction.
Bengoa continued to defend the sale by saying that the DR is selling the stake for US$20 million more than it was purchased for and argued that the sale does not threaten the country's sovereignty as the DR is still the majority stakeholder. Bengoa mentioned that another of the benefits of the refinery sale to Venezuela would be that the credit line for fuel purchases would be increased.
More... (http://www.dr1.com/index.html#1)
He said that as part of the PetroCaribe agreement, Venezuela is already financing 40% of the price of fuel purchased by the DR, and the remaining 60% would go to the Dominican government as payment for the 49% stake.
According to Bengoa, the sale of a minority stake in the company would have twelve direct benefits, including the chance of increasing the long term financing of the PetroCaribe agreement by US$201.6 million, based on a price per barrel of US$70.
Currently long-term financing is US$302.4 million and this would increase to US$504 million over the lifetime of the agreement.
Fuel output could also increase from 30,000 to 50,000 barrels per day. Bengoa proposed that the sale would allow Refidomsa to become a center for the export of refined petroleum products and a distribution center to other Caribbean nations.
The sale would also grant the DR access to technological advances in the area of petroleum.
Marino German, who was also at the meeting, said that there was no need for public bidding as the sale is being defined as a commercial transaction.
Bengoa continued to defend the sale by saying that the DR is selling the stake for US$20 million more than it was purchased for and argued that the sale does not threaten the country's sovereignty as the DR is still the majority stakeholder. Bengoa mentioned that another of the benefits of the refinery sale to Venezuela would be that the credit line for fuel purchases would be increased.
More... (http://www.dr1.com/index.html#1)