Valero Energy Corporation Sells Aruba Refinery to Petrobras


American oil giant Valero sells refinery in Aruba to Brazilian semi-government company Petrobras stating that the refinery in Aruba no longer fits in their industrial strategy. Interestingly enough, many tourists have made that same value judgement that Aruba does not fit in their vacation strategy either.

Prime Minister Nelson Oduber said late last year that the government will state conditions to new buyers.  “They must guarantee that they won’t force any dismissals; that the new owner will invest at least 1.5 milliard dollars in the refinery, so that it also produces white products, like gasoline.” 

Valero sells refinery in second quarter (Amigoe: 4/2/08)

The refinery of Valero in Aruba does no longer fit in the industrial strategy and will be sold in the second quarter of this year.

ORANJESTAD — Valero Energy Corporation sells the refinery in San Nicolas in the second quarter of this year, confirmed the spokesperson of the biggest American oil-distiller Valero, Bill Day today.  It already leaked out earlier that ‘a mainline agreement’ was signed with the Brazilian semi-government company Petrobras.  

Day says that the refinery in Aruba does no longer fit in the industrial plan of Valero.  “It’s not so that we throw out the foreign establishments.  We are also closing an American plant.  But with our new strategy, we focus on refineries that are ’big and complex’, and plants that are located on water.”   It is not strange that Valero is selling plant, just now that the oil prices are high.  “We mark out our market to become stronger.  Besides, selling these refineries will yield us a lot of money.”

Valero’s top executive Bill Klesse told American journalists right before the weekend:  “Aruba’s number is up, I believe.  We have a buyer and everything fits perfect in our plan.”  Amigoe learned in December already from very reliable sources that the take-over purchase by Petrobras is a done deal.  There was no longer a joint venture – a cooperation agreement – between Valero and Petrobras and the entire refinery is sold. For that matter, the American media reported that the Swiss company Petroplus Holdings AG is also a potential buyer. 

What this take-over purchase is going to mean for the employment and the development of the earnings of the employees of the refinery is therefore not clear yet.  Neither is known yet whether conditions are going to be attached to the environmental performance of the company, or which products Petrobras is going to refine and for which market.

Prime Minister Nelson Oduber said late last year that the government will state conditions to new buyers.  “They must guarantee that they won’t force any dismissals; that the new owner will invest at least 1.5 milliard dollars in the refinery, so that it also produces white products, like gasoline.”  The refinery in San Nicolas only produces diesel at this moment, and because of this, there is no chance to fall back on the production of gasoline when the market for diesel diminishes.

Other refineries that Valero wants to sell are the ones in Krotz Springs (Louisiana), Memphis (Tennessee), and Ardmore (Oklahoma).  All these plants according to the company ‘have yielded less money than the year before’.  A 120-year old refinery in Lima (Ohio) was sold for 1.9 milliard dollars last year. 

Posted April 2, 2008 by
Aruba, Energy, Travel, World | 12 comments

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  • Comments

    12 Responses to “Valero Energy Corporation Sells Aruba Refinery to Petrobras”

    1. oldhippychik on April 2nd, 2008 11:11 am

      Yes, Aruba’s number is up in more than one way.

    2. Karel on April 2nd, 2008 11:59 am

      Yeah right. “American oil giant Valero”. Sure !

      Compared to the the real giant PetroBras, Valero compares like an ant ! Both in profit, revenues and number of employees.

    3. charly on April 2nd, 2008 12:20 pm

      it needs to go to south america,cause we are south americans….

      valero has no value for aruba; does not pay any taxes….
      valero hires only immigrants to work,lower salaries….
      contaminate 24/7 siol,water and air…..

      farwell bye bye …….

    4. JusticeforNatalee on April 2nd, 2008 1:08 pm
    5. Richard on April 2nd, 2008 8:23 pm

      “Aruba’s number is up, I believe.”

      Don’t we love to see quotes like that!

      A month ago or so I wrote to Aruba’s PR people suggesting that they contribute to the costs of the Persistence … I think I’ll write back, reminding them that whoever owns Valero’s refinery on that island … it still is considered Aruba-based, and so is still subject to the impact of the boycott.

    6. on April 2nd, 2008 8:33 pm

      Is this fals information!!!???
      SM Show me the exact link to that article ..
      because I didn’t heard NOTHING about it..??

    7. EURobert on April 3rd, 2008 4:55 am

      Off topic:

      Translation of this article:

      ‘Mother Natalee summons family Van der Sloot’

      Thursday, April 3, 2008 08:53

      Beth Twitty, the mother of Natalee Holloway, has summoned the whole family of Joran van der Sloot. Peter R. De Vries and Patrick van der Eem are heard under oath about their role before the court.

      That reports the Telegraaf. Joran and his parents have to appear before the court and will be heard under oath about their role in the disappearance of Holloway.

      The summons are part of a series of injunctions, in which the struggle of Twitty now officially has begun. She demands a substantial damage from Joran, a compensation for the “shockdamage” that Joran has given her.

      Her lawyers, Bram Moszkovwicz and Roger Schmidt, have summoned all the involved, including Peter R. De Vries and Patrick van der Eem. With the questioning under oath Twitty wants to gather evidence needed for the conduct of civil proceedings against Van der Sloot.

      Psychiatrist ?Joran van der Sloot has put himself under treatment at a psychiatric institution, according to the newspaper. Doings so he would like to escape his questioning.

      Read all about the mysterious disappearance of Natalee Holloway and the confessions of Joran van der Sloot in the dossier

      By Maartje Willems

    8. EURobert on April 3rd, 2008 5:06 am

      According to this funny article (note the Adam’s Family Picture) Joran is at this mental institution:


    9. Richard on April 3rd, 2008 2:07 pm

      EURobert, good to hear from you again. On the latest thread, on top of this, I was just wondering where you have been.

      The news about the sale of the Valero refinery in Aruba apparently is genuine; according to an industry alert out this morning, the sale will be completed in the second quarter (i.e., by June).

    10. The man on May 2nd, 2008 1:15 pm

      Valero has been absolutely awful for Aruba. All the previous oil companies that were there like Exxon, Coastal and El Paso invested in their workers and the community. But Valero measured every single dollar.
      Personally I have begged Valero many times to give me a scholarship and instead they gave scholarship to rich kids that were not even from Aruba. While we Arubian students here studying in the US with plans to return to Aruba struggle to pay tuition and fees.

      We are very happy to see Petrobas come in and fill the huge gap left by Valero.

    11. Francisco on September 9th, 2009 1:06 am

      I would like to see and know the definite decision. Is Valero Refinery for sale and which giant is buying over these complexes? And when?

    12. negro on September 17th, 2009 10:49 am

      I would like to see, that Valero stay away from politic of Aruba

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