PDVSA and Hess Corp. entered a tentative agreement to sell the idled Hovensa refinery to Atlantic Basin Refining. Via Reuters, Atlantic Basin Refining — a company formed specifically to buy, rebuild and restart the Saint Croix facility — will pay the government more than $1.6 billion over 22 years. PDVSA and Hess have been using the site as a terminal since 2012.
A statement from U.S. Virgin Islands Gov. John de Jongh said an engineering analysis and restart plan would take nine to 12 months and construction and rehabilitation would take another 2 years, at a cost of $1 billion.
It was reported in September that PDVSA and Hess had received an offer to buy the 350,000-barrel-per-day refinery.
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