Effects of the worsening crisis in Venezuela can be felt throughout the region. As reported in Saturday’s paper, Statia Terminals is being sold for US $250 million. Immediate reason was the US sanctions in January forcing outgoing owner NuStar Energy LP to wind down its contracts with “Petroleos de Venezuela” PDVSA by the end of February.
Management reported that despite “diligently” looking for ways to make up this “significant loss” it soon became clear that a new business model was needed. Investment firm Prostar now intends to make use of its acquisition’s strategic location to take advantage of changing global crude oil trade patterns.
This is no doubt a big deal for St. Eustatius. The transhipment and storage facility remains the island’s biggest private-sector employer and income-earner.
NuStar said the new owners will be required to keep all employees in their current positions with comparable pay and benefits. That sounds like good news, but the reality is that all ultimately depends on the future results.
The deteriorating situation in Venezuela obviously has a huge impact on the so-called ABC islands (Aruba, Bonaire, Curaçao) directly off its coast, in terms of not just their respective oil industries and related shipping activities, but also tourism, food imports and illegal migration. The embattled Maduro regime in Caracas seemingly tried to divide the Southern Caribbean territories by announcing it would reopen the closed border with Aruba but not the other two.
However, Aruban Prime Minister Evelyn Wever-Croes quickly declined the offer, mainly because it could spark a new flow of refugees the country can’t handle. However, her government also expressed solidarity with Aruba’s “sister islands.”
Besides, she correctly argued, there is in fact only one single border between them and the troubled South American nation: That of the Kingdom of the Netherlands.
