Refidomsa sale postponed - again

The much vaunted sale of 49% of the Dominican oil refinery (Refidomsa) to Venezuela appears to be mired in confusion - again.

President Fernandez returned to the country last night without the signatures on the contract.
Dominican Finance Minister Vicente Bengoa, announced on April 5 that Fernandez would travel to Caracas to sign the deal with his Venezuelan counterpart, Hugo Chavez. The Dominican president, however, today issued a statement indicating that Fernandez's trip to Caracas responded to an invitation from the Venezuelan government to attend the bicentennial celebration of the country's independence.

Fernandez said he believes that any other bilateral issue between the two governments should be deferred due to "the solemnity of the event," which requires "the greatest attention of the invited delegations," The statement added that Fernandez had communicated his feelings to the Venezuelan Foreign Minister Nicolas Maduro.
Reports from the president's office suggest that the Venezuelan leader will now travel to the Dominican Republic for the signing, but no date has been mentioned.
The agreement for the sale of 49 percent of the shares of Refidomsa Venezuela for US$131.5 million was originally announced last summer by the Dominican government and was scheduled for June 30, 2009.

However, the international crisis unleashed in Honduras two days earlier, on June 28 by the coup against Manuel Zelaya, stopped the process because of the impossibility of Chavez's proposed trip to the Dominican Republic for signature.
Subsequently, in early 2010, the Dominican government announced that the operation was nearly completed, but a few weeks after Caracas, through the Minister of Energy and Petroleum of Venezuela, Rafael Ramirez, ruled out the purchase, saying that it was not "convenient" to their interests.
The Dominican government responded by reporting that they had never officially received the position of Venezuela, although it acknowledged that the country was in its rights not to proceed with the purchase.

The agreement, however, apparently became final after Maduro's visit and his meeting with the Dominican authorities, but the sale still had to be endorsed by parliaments of both countries.
Dominican Republic, under the agreement, will retain 51 percent of the shares and therefore control of Refidomsa administration, which has a refining capacity of 34,000 barrels per day.
The  government paid 110 million dollars to the oil company, Shell Netherlands, in 2008 to acquire 50 percent of the shares in the Refidomsa, of which it already owned the other half.
The deal has met with negative reactions from opposition politicians and various business leaders in the country.

12 related news articles

Lack of quorum blocks approval of REFIDOMSA sale: Jun 25 2010

Government seeks to transfer funds for electricity sector: Jun 25 2010

Finally, REFIDOMSA shares sold to Venezuela: May 7 2010

Chavez arrives today to sign purchase agreement for REFIDOMSA: May 5 2010

Venezuela confirms it will (finally) buy 49% of REFIDOMSA: Apr 6 2010

Fernandez on Economy, Electricity, Refidomsa and Agosto: Feb 25 2010

Refidomsa shows profits and private sector interest grows: Feb 3 2010

To buy or not to buy - is Venezuela stalling on REFIDOMSA?: Feb 3 2010

Venezuela drops out of deal to buy Refidomsa: Jan 22 2010

Shell sells - to Sol: Nov 22 2009

Venezuela buys 49% stake in Dominican Republic’s refinery for US$131.5M: Nov 1 2009

Dominican Republic receives US$20 million loan from Petrocaribe – starts to pay off debts: Sep 27 2009

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