A deal to store oil at the Bullenbaai terminal in Curaçao in the Dutch Caribbean, between US-based oil, gas and mining company SPS Drilling E&P and Curaçao Refinery Utilities RV (CRU), an affiliate of site owner Refineria di Korsou (RdK), has collapsed.
The deal, to lease 5.8 million bbl of storage space, had been agreed in September, and it had been expected that the first oil would be delivered to the terminal in October.
According to Reuters, SPS had planned to sublease the storage space, but potential customers were not prepared to pay as much as the US firm had expected. CRU was not prepared to renegotiate the terms of the lease deal, and a source told Reuters that SPS decided to walk away.
Manuel Chinchilla, CEO of Southern Procurement Services (SPS), the parent company of SPS Drilling E&P, said to Reuters by telephone: ‘We will not move forward with the deal as there was no agreement on tariffs.’
The future of the refinery and terminal remains uncertain. The assets have been largely abandoned since the Venezuelan state oil firm PdV, which formally ran the complex, pulled out following political turmoil in Venezuela, and a deal with Klesch to operate the assets collapsed in December 2019. CRU and RdK have since spent more than ANG 5 million (€2.4 million) to bring some of the tanks back into service.