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Refinery Sold, DeJongh, G.O.A.T?

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Rowdy802
(@Rowdy802)
Trusted Member

The latest...

"St. Croix senators want to hear what residents think of the proposed HOVENSA operating agreement."

http://virginislandsdailynews.com/news/st-croix-senators-want-to-hear-what-residents-think-about-the-proposed-hovensa-operating-agreement-1.1781928

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Posted : November 4, 2014 2:20 pm
vicanuck
(@vicanuck)
Expert

I read the entire agreement this morning and found nothing that compels the new owners to buy locally whenever possible in return for the tax breaks. Hovensa was very considerate of local businesses so this concerns me.

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Posted : November 4, 2014 3:20 pm
CruzanIron
(@cruzaniron)
Expert

I read the entire agreement this morning and found nothing that compels the new owners to buy locally whenever possible in return for the tax breaks. Hovensa was very considerate of local businesses so this concerns me.

Why would any business buy locally when the cost is higher than buying elsewhere and shipping it in? If you had a business, would you cut your pay solely to buy locally? Do you do it as an individual?

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Posted : November 4, 2014 3:58 pm
singlefin
(@singlefin)
Trusted Member

*"They're buying everything. The assets and liabilities always go with the company," Sen. Judi Buckley said.
*Under the agreement, the fixed payments would be $14 million annually for the first six years, $32 million annually for the seventh through 10th years, $36 million for years 11 to 15, and $40 million annually for years 16 to 22. (in lieu of taxes)
*The agreement also sets a minimum commitment for Atlantic Basin Refining to employ 600 full-time equivalent employees, including contractors, beginning at the restart date. At least 500 of them are to be full-time employees, and within a year, at least 75 percent of those are to be V.I. residents. (how could local buisnesses not be positively affected?)
*Under the agreement, Atlantic Basin Refining would have to establish a site restoration fund account "to fund the future deconstruction and rehabilitation of the oil refinery and related facilities," to be managed by a qualified third-party trustee who would provide financial statements to the government.
*It notes that aviation fuel, gasoline and diesel fuel are to be made available to the public and the government at a discounted price, under a funding formula that is mentioned in the agreement.

Highlights from the Virgin Island Daily News article.
Sounds pretty good to me.
Lets get it done!

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Posted : November 4, 2014 3:59 pm
Rowdy802
(@Rowdy802)
Trusted Member

Just sharing information I received today via e-mail out of a report from Opis.

This is the only thing John Hess has said, so far:

Hess Corp. CEO John Hess last week acknowledged the governor's announcement in a
conference call, but said that Hess continues to negotiate with a potential
buyer for the sale of the refinery, "which we hope to complete in the near
future."

Meanwhile, Hess announced Monday that it would hold an Investor Day on Nov. 10
in Houston, during which the company leadership team will provide an overview of
its growth strategy and key assets.

The Oil & Gas Journal reported that a website for ABR (since deleted) recently
stated that the new owners intend to reconfigure the plant to run U.S. light,
sweet crude. As a "mid-complexity refinery with no catalytic cracking or coking
operations," the plant would initially operate at about 300,000 b/d, the website
said.

Finally, an article that doesn't say that the reason for not using the FCC and the Coker Unit is because of sweet crude oil. One thing has nothing to do with the other.

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Posted : November 5, 2014 11:18 am
vicanuck
(@vicanuck)
Expert

I read the entire agreement but found no mention of any intent to by the new owners to procure locally as is often a requirement of EDC beneficiaries.

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Posted : November 5, 2014 11:27 am
CruzanIron
(@cruzaniron)
Expert

But they are not going to be EDC beneficiaries.

Are EDC beneficiaries required to purchase locally when the cost is 50% more than stateside plus shipping?

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Posted : November 5, 2014 11:37 am
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