(PDV Holding, 1.May.2020) — PDV Holding, Inc., and the Government of Aruba/Refineria di Aruba (RDA) today executed an amicable termination agreement in relation to the contract for the San Nicolás Aruba Refinery Project. The agreement was completed following parliamentary approval. The final agreement provides that PDV Holdings and its subsidiaries are relieved of all their responsibilities and obligations under Aruban law.
PDV Holding and the Government of Aruba/RDA have been in negotiations about the future of the San Nicolás Refinery, its Terminal, and Maritime Operations since April 2019. In October 2019, the two parties signed a Memorandum of Understanding, agreeing to suspend the contract and work towards a responsible and non-disruptive transition in operations. On February 28, as part of the transition, and termination process, PDV Holding, through its subsidiary CITGO Aruba Holding (CAH) and RDA signed a transfer of operatorship contract.
Throughout the negotiation process, the two parties prioritized the financial well-being of workers, as reflected in the final agreement. In accordance with Aruba’s labor laws, the Refinery and Terminal’s workers received a severance package.
The termination of the San Nicolás Aruba Refinery Project will potentially save PDV Holding’s shareholder up to US$150 million.
PDV Holding is committed to continued cooperation with investigations into irregularities in the Aruba Project under the prior management’s control.
The termination of San Nicolás Aruba Project agreement by the Government of Aruba/RDA and PDV Holding/CAH does not impact the contractual relationship between Fuels Marketing & Supply Aruba and CITGO Petroleum Corporation, which is a separate entity. CITGO Petroleum Corporation will continue to provide its product and services to all gas stations on the island, as well as continue to supply jet fuel to the Queen Beatrix International Airport.