Forgery allegations slow Curacao refinery deal

Negotiations between Dutch-controlled Curacao's state holding company RdK and a consortium of US and Brazilian firms aimed at restarting the island's refinery have been slowed by questions over the credibility of documentation produced by prospective investors, RdK said.

RdK was targeting an early September 2022 agreement with US-Brazilian consortium CPR that it earlier named the preferred bidder for the reopening of the island's 335,000 b/d Isla refinery and 17.7mn bl Bullen Bay products terminal, it said in June.

CPR is led by former president of Venezuela's state oil company PdV Luis Giusti.

The century-old Isla refinery was operated by PdV under a long-term lease that expired in December 2019.

The negotiations are based on CPR's proposal of a 30-year lease of the refinery and terminal with a possible extension of 10 years.

"One of the possible investors has presented some documents that looked suspicious," RdK said, without naming the investor.

The documents were examined by the Dutch state forensic investigator NFI "that confirmed the forgeries," RdK said. "The NFI has now intercepted dozens of forged documents."

There are no indications that CPR is involved in the forgeries, RdK said.

The documents included what appeared to be a "comfort letter" from a London-based international bank saying one investor had $5.5bn to support the refinery project. The bank has denied it provided the letter.

Curacao's opposition parties are seeking a meeting with prime minister Gilmar Pisas "to get more information about the current process to reopen the refinery and the reports about the forged documents," they said.

But Pisas has asked for "calm about the negotiations surrounding the refinery."

"The priority for all of us is to reopen the refinery," he said.

Negotiations between RdK and CPR to operate the refinery and Bullen Bay terminal "are proceeding in a transparent and thoughtful manner," RdK said on 3 January.

Curacao has failed several times to find an operator since the expiry of PdV's license.

RdK has promoted the refinery as potentially able to resume refining crude from Venezuela, and to take feedstock from growing producer Guyana.

RdK and CPR reached an agreement in August to restart the Bullen Bay terminal for storage and transhipment. This is independent of the long-term agreement for the operation of the refinery, RdK said.

By Canute James