Unrest roils Curacao, refinery deal in limbo

Unrest erupted in Curacao this week in response to austerity measures and oil refinery layoffs.

The Dutch-controlled island's economy has suffered from the closure of an oil refinery at the end of 2019 and the collapse of tourism because of the Covid-19 pandemic.

Financial help from the Netherlands was tied to salary cuts for civil servants, sparking protests that devolved into vandalism, looting and arson in recent days.

Some laid-off workers from the 335,000 b/d Isla oil refinery, which had been operated by Venezuela's state-owned PdV until its lease expired in December, joined the protests.

The local government closed off the center of the capital Willemstad and imposed a curfew to try to quell the unrest.

Curacao's state-owned RdK, which took over the refinery and related Bullen Bay terminal after PdV's withdrawal, is seeking to lease oil storage.

The government has an exclusive negotiating agreement for the refinery and terminal operation with German refiner and commodities trader Klesch, which was extended to December from June. But island officials have expressed concern that Klesch will take over the assets.

Klesch has not commented on the status of the talks in Curacao.

By Patricia Garip