Venezuelan state-owned PdV is preparing to resume oil supply to Curacao's fuel distributor Curoil
Lawyers for PdV and ConocoPhillips met yesterday in the Dutch-controlled island to hammer out execution of an 18 May local court order that partially lifted liens that the US firm had levied on PdV's local assets in a bid to collect a $2bn arbitration award.
The court decision and a parallel ruling in the Dutch island of Bonaire, where PdV owns the 10mn bl Bopec storage terminal, were aimed at ensuring fuel supply for local utilities.
The Curacao government expects that PdV will restart the 330,000 b/d Isla refinery by early June in order to fulfill its commitment to meet demand as locally stored fuel is drawn down. The court ruling effectively cleared PdV to resume crude shipments to Curacao, without the risk of court-ordered seizure.
The arrangement takes operational pressure off of PdV, even though the Venezuelan company will be forced to give up revenue, and risks other creditors following in the lead of ConocoPhillips. PdV officials told Argus that a prolonged dispute would have eventually led the firm to shut in production because of limited storage in Venezuela.