Venezuela to buy nearly half of Dominican Republic oil refinery
SANTO DOMINGO, Dominica Republic (AFP) – Venezuela’s state-owned oil giant PDVSA has agreed to buy nearly half of the government-owned Dominican Oil Refinery for 131.5 million dollars, Dominica’s finance minister said.
Talks to sell 49 percent of the refinery shares concluded late Thursday after negotiations with a senior Petroleos de Venezuela official, said Finance Secretary Vicente Bengoa.
"With a partner… like Venezuela, the refinery over the next years will considerably increase its production and sales," said Bengoa.
PDVSA official Amilcar Mata said both sides were still working out the final details of the plan which will be finalized at a ceremony in early November.
Until 2008, REFIDOMSA was half owned by Royal Dutch Shell, which sold its share to the government following a series of disagreements.
The Dominican Republic belongs to Petrocaribe, a regional initiative in which Venezuela offers discounted oil to friendly countries in the Caribbean basin, including Cuba.
Petrocaribe, which began in 2005, lets member countries buy oil at market value with only part of the payment needed up front. The remainder can be paid through a 25-year financing agreement on one percent annual interest.
It also allows nations to pay part of the cost with other products provided to Venezuela.
Venezuela has proven oil reserves of around 99 billion barrels and is the western hemisphere’s largest oil exporter.
Source: Caribbean Net News
