Refineria di Aruba N.V. was established on October 1, 2016 as an organization functioning primarily as the executive of several agreements signed with CITGO Aruba. The Refinery and Terminal Lease Agreements have a duration of fifteen (15) years, with a ten (10) years extension option.
CITGO Aruba, a group of operating companies under PDV Holding (a PDVSA subsidiary), will operate the facility with CITGO Petroleum Corporation providing management services to the group. CITGO Aruba committed an investment of $715 million to transform the refinery into a plant designed exclusively to upgrade Venezuelan extra-heavy crude oil. This means that the refinery in Aruba will not be a traditional refinery in the downstream but is considered a crude upgrader in the upstream sector.
Refineria di Aruba N.V. as an organization is therefore charged with the important task of overseeing the adherence to the contractual obligations between CITGO Aruba and the Government of Aruba.
The Transfer and Master Settlement Agreement with Valero Energy Corporation and the Government of Aruba includes the Aruba Refinery, terminal facilities and also the shares of Valero Marketing and Supply Aruba N.V. (VMSA) and related assets. Having switched parent company, VMSA was renamed to Fuels Marketing and Supply Aruba N.V. (FMSA).
Fuels Marketing and Supply Aruba N.V. functions as the sole supplier of gasoline, diesel, aviation fuels and fuel oil to the island of Aruba. The purchase of Fuels Marketing and Supply Aruba N.V. by Refineria di Aruba N.V. changes the operating nature of the company. Fuels Marketing and Supply Aruba N.V. needs to actively look for new business strategies and opportunities to fit current market demands as well as challenges, both locally and regionally.
It is important to mention that Fuels Marketing and Supply Aruba N.V.’s margins are predetermined by the Government, limiting its financial expandability. These factors require urgent attention, as they are catalysts for a change within the local market.
Also requiring urgent attention are the refinery lands, which were significantly exposed and environmentally affected by day to day operations. Over the years with several owners/operators, the environmental conditions were not adequately addressed as required. These conditions have now been identified as Pre-existing Environmental conditions and as such a base-line investigation will be conducted in 2018.