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Finally, REFIDOMSA shares sold to Venezuela
posted on: May 7 2010 17:11 by Royston. Viewed 626 times.
Finally, almost a year since the idea was first mooted, the Dominican oil refinery business REFIDOMSA now has a 49% stake owned by the Venezuelan government. After several stalled attempts, the deal was signed yesterday in Santo Domingo by the Presidents of both countries.
The company president, Angel Rosario Vias, said the sale to the government of Venezuela will result in the reduction of fuel prices.
"It's a fact. Yes, prices will go down, but that is a process which will be created if we increase the refining capacity, " said Rosario Vias.
However, Vines said that it will be possible only when the country is able to purchase fuel direct from Petroleos de Venezuela (PDVSA) and eliminate the middleman.
"When you eliminate the middlemen, the prices are lower. That is an advantage that would help consumers who can buy the oil a little cheaper," he said.
According to the authorities, the first step is to increase to 30000-60000 barrels of oil processed daily in the Refinery and the second phase aims to reach 150,000 barrels.
For this purpose the government should invest $2 billion dollars to upgrade the facilities of Refidomsa, said Vinas. The domestic market consumes 110,000 barrels of oil daily, but only 30,000 are produced locally. Once the refinery is ready to process the estimated amount, the government will seek to make the Dominican Republic an exporter of refined oil to Haiti, Puerto Rico and Jamaica, he added
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