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Dominican Today: Government official balks at Shell’s asking price for Dominican refinery

November 21, 2007 
 
SANTO DOMINGO. – The President’s adviser on Energy matters, Arístides Fernandez Zucco, said the US$183 million price the company Shell set for its stake in the Dominican Petroleum Refinery (Refidomsa) is an amount which “they themselves don’t believe.”

Whereas former Refidomsa president Leopoldo Espaillat Nanita considers Shell’s price “is a maneuver which totally violates the agreement signed with the Dominican State and approved by Congress and the company’s own statutes.” He said Shell must justify it’s 50 percent of the shares, as the alliance agreement limited its participation to only 25 percent.

Fernandez Zucco said an international organism should determine the real value and in any case if they say that’s the amount it’s worth, “the ideal for the State would be for us to sell to them.”

Espaillat Nanita said Refidomsa’s facilities can’t process heavy crude, which is the only thing that could be found on Dominican soil.

Refidomsa’s main asset isn’t its ability to refine crude, instead it’s its almost absolute control of fuel imports, thanks to its storage capacity, which can accumulate the national consumption for a period of two weeks.

Refidomsa, which refines only around 10 percent of the fuel the country consumes, isn’t currently operating, as its facilities suffered some damages from Tropical Storm Noel. Shell and the Dominican State have had equal participation in Refidomsa for nearly 35 years.
 
http://www.dominicantoday.com/app/article.aspx?id=26141
 

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