Home › Forums › Coking › News: DCU, Upgrader › 1.Coker (registered users only) › Valero talks with PetroChina & others sell Aruba › RE: Valero talks with PetroChina & Baidu sell Aruba
Yes you are right it is a complete misinterpertation of the information. Clearly Edge was listing several (and completely separate) investment opportunities the full article reported on.
My focus was on the PetroChina & “several other” offers interest in the Aruba refinery and at the time I only remembered that the lead in article had also mentioned the Baidu viedo endeavor. I said if Baidu was one interested parties it would not be creditable because they have no integrated interest or overlaping products.
Both Petrobras & PetroChina had been mentioned in the past as creditable interest for a refining purchase but Petrobras had walked away due to Valero asking price + need for substantial investment for a FCC+Alky unit. Aruba refinery is like donught refinery lot front end capability + back end capability with coker but no middle units to make any gasoline and that is significant problem. I also mentioned that I see Aruba being sold or restarted in the future but the short term is going to hurt due to problems with lack cheap heavy crude discount (both Maya & Venezuelan) that is due to more miss-management/re-investment and not lack reserves to develop. Once crude margins & cost discount return the the purchase interest Aruba will too. Both Mexico & Venezuela cannot stay on thier current course since the Crude provides both countries base revenue and tax base and they were arlready in critical condition before the financial crisis due to large decrease in annual sales volume of heavy crude.
I believe the Aruba folks believe PetroChina is more likely to use Aruba as transhipment base and were hoping for any new or creditable name to encourage thier folks and the government since the refinery provides 35% of their tax base & provides over 750 folks with jobs.
I declined to be used as source on this article and that I only posted the article from public sector and had no inside information on any of the deals being discussed by Valero.
Communication is tricky at best & I am very sorry for my part in the miscommunication. But I dont think having the wrong name on the right eventual conclusion that also gives folks in Aruba a little hope now, warrents a lot of self flagulation for the error at this point.
I do thank you for helping us correct the info in timely fashion however.