Oil and Gas

Curacao reaches deal with CORC B.V. for management of Isla refinery

CARACAS, May 21 (Reuters) - Curacao’s state-run refining company Refineria di Korsou (RdK) said on Friday it had reached a closing agreement with CORC B.V. to operate the 335,000 barrel-per-day (bpd) Isla refinery and neighboring facilities.

The deal comes after RdK in January selected CORC as its preferred partner to operate Isla, the Bullenbay oil terminal and a linked utility company. Isla and Bullenbay had been run by Venezuelan state oil company Petroleos de Venezuela through the end of 2019, when its lease expired.

CORC, which is short for Curacao Oil Refinery Complex, will now negotiate fiscal terms and other aspects of the deal with the Dutch Caribbean island’s government and other state-owned entities before the definitive handover of the facilities, RdK said.

While the negotiations have been underway, Geneva-based firm Mercuria Energy Trading had received oil for storage at Bullenbay under a short-term deal. That came after a prior deal with oil firm SPS Drilling E&P to rent about 6 million barrels of Bullenbay’s 15-million barrel capacity fell apart due to a disagreement about fees.

An entry in the Curacao Commercial register shows CORC B.V. was established on Sept. 29, 2020 and that its directors are Spanish-born Dutch citizen Francisco Javier Modesto Santos Hernandez Rodriguez and Curacao-born Manoel Hussein De Silva De Freitas. (Reporting by Luc Cohen; Editing by Stephen Coates)