U.S. Virgin Islands legislators on Friday rejected a plan by PDVSA and Hess Corp. to sell the Hovensa refinery on the island of St. Croix. Via Reuters, the lawmakers nixed the deal out of concern that the government would have no recourse if prospective buyer Atlantic Basin Refining (ABR) were to breach the contract. ABR would be required to rebuild and restart the refinery and pay the government more than $1.6 billion over 22 years under the terms of the deal.
PDVSA and Hess shut down the refinery in 2012 and have since been using it as a terminal to supply the island with fuel. Hovensa said it would completely shut down the plant in the absence of a sale agreement.
SEE ALSO: Hovensa refinery could displace some U.S. gasoline exports
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