& Tobago

Very usefull links


News links




Dow Jones

Oil price



Views and News




Jamaica to pay into escrow for PDVSA's Petrojam refinery stake



By Argus

Petroleumworld 02 26 2019

Jamaica´s government will deposit its payments for Venezuelan national oil company PDVSA's (PdV) 49pc stake in the island´s 35,000 b/d Petrojam refinery into an escrow account, effectively keeping the funds out of the hands of the increasingly isolated government in Caracas.

Jamaica, unlike most of its larger neighbors in Latin America, does not recognize Venezuelan opposition leader Juan Guaidó as interim president, and continues to recognize Nicolas Maduro as president.

The island´s acquisition of the refinery stake could nonetheless become the first sale of an overseas Venezuelan asset whose proceeds go to the political opposition.

Payment for the refinery stake will go into an escrow account that "will allow Venezuela to have the funds whenever it wants it," Jamaica´s finance ministry told Argus today, declining to name the financial institution holding the account, its location or the name of the account.

The escrow account will "insulate" Jamaica from US sanctions on Venezuela, a ministry official said.

The US has a broad array of sanctions on Venezuela, most recently levying oil sanctions on PdV and today expanding a list of Venezuelan officials subject to targeted sanctions. Jamaica´s escrow payment shows the impact of Washington´s actions even outside of its legal jurisdiction.

Jamaica had allocated $280mn to pay for the PdV stake, according to the government's budget plans published in February 2018. But Petrojam's value has been "severely eroded" by the delay in upgrading the refinery, energy minister Fayval Williams said.

The February 2018 payment amount "is now way beyond the reality of what is being offered to the Venezuelans," the energy ministry official told Argus , declining to give a new figure.

The PdV refinery stake is a legacy of Venezuela´s flush years when the late President Hugo Chavez promised to upgrade refineries abroad. None of the pledges came to fruition, leaving majority partners or government owners in Jamaica, the Dominican Republic, Curacao and Aruba with abandoned projects.

Jamaica plans to shut down its refinery and convert it to a fuel import terminal at the end of 2019 if it fails to carry out an upgrade. The island's legislators on 22 February approved the government's plan to take over PdV's 49pc stake. The remaining 51pc interest is held by Jamaica's state-owned PCJ.

Jamaica needs "total control of the refinery in order to make urgent decisions" about its future, the government said on 19 February.

Jamaica cannot seek a partner to help with the upgrade "until the untidy relationship with PdV is properly concluded," the energy ministry official said.

The plant will be "redundant" in a few months as it will lose markets for most of its products, the official said, referring to local power plant conversions from oil to gas from LNG, and looming sulfur limits on marine fuel.

PdV and PCJ agreed in 2008 to expand Petrojam's capacity to 50,000 b/d, and to install new units to produce cleaner products.

PdV has quietly acknowledged that it failed to meet its commitments and expected Jamaica to acquire its stake.

At an ongoing meeting of the Lima Group in Bogotá today, US vice president Mike Pence urged members to freeze PdV assets and transfer ownership to the opposition. Jamaica is not a member of the group.



We invite you to join us as a sponsor.

Circulated Videos, Articles, Opinions and Reports which carry your name and brand are used to target Entrepreneurs through our site, promoting your organization’s services. The opportunity is to insert in our stories pages short attention-grabbing videos, or to publish your own feature stories.



Story from Argus Media.

argusmedia.com 02 25 2019


Hit your target - Advertise with us

PW 300.000 plus request per week

Copyright© 1999-2019 Petroleumworld or respective author or news agency. All rights reserved.

We welcome the use of Petroleumworld™ (PW) stories by anyone provided it mentions Petroleumworld.com as the source.

Other stories you have to get authorization by its authors. Internet web links to http://www.petroleumworld.com are appreciated.

Petroleumworld welcomes your feedback and comments, share your thoughts on this article, your feedback is important to us!

We invite all our readers to share with us
their views and comments about this article.

Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

Twitter: @petroleumworld1



Contact: editor@petroleumworld.com,

Editor & Publisher: Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2019, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2019, Petroleumworld   / Elio Ohep - All rights reserved



This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.