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.