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View Full Version : Refinery sold to Venezuela



NewsWhore
05-06-2010, 06:30 PM
President Leonel Fernandez and President Hugo Chavez of Venezuela witnessed the signing of the deal in which Venezuela's PDV Caribe purchased a 49% stake in the Dominican Petroleum Refinery yesterday afternoon at the Presidential Palace. The contract was signed by Hacienda Minsiter Vicente Bengoa and Rafael Dario Ramirez, Minister of Energy and Petroleum and president of Petroleos de Venezuela (PDVSA).
It covers the purchase of the Nizao terminal, the oleoduct and the monobouy SBM and the Haina refinery. PDV Caribe will now own 49% of the shares of the company, and the Dominican government will own 51%. In 2009, the Dominican government purchased a 50% share in the refinery from the Shell Company.
Chavez said that studies will be carried out to increase the capacity of the refinery from 34,000 barrels a day to 50,000 barrels in a first phase, and then to 100,000 barrels, so it can export to other Caribbean islands. This would involve a US$2 billion investment.
He commented the DR currently consumes 130,000 barrels of fuel, and only has the capacity to refine less than 30% of this, arguing the need to expand the refinery.
Prior to the signing at the Presidential Palace, Chavez said: "This is the first strategic step towards an alliance that will powerfully contribute to what is called the energy sovereignty of all the people of the western Caribbean - Jamaica, Cuba, Haiti and Puerto Rico." Chavez promised that, "All the petroleum that the region needs is in Venezuela."
The contract now needs to be ratified by Congress. The ruling party has the majority in Congress.
On the occasion of the signing, President Chavez praised Fernandez as one of the best political strategists.

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