Wed | Feb 21, 2018

Government makes offer to buy back stake in Petrojam

Published:Tuesday | December 19, 2017 | 12:36 PM

Energy Minister, Dr Andrew Wheatley, says the government has written to the authorities in Venezuela making an offer to buy back Jamaica’s stake in Petrojam as the country seeks to cauterise any further financial fallout.

A state-owned Venezuelan company has a 49 per cent stake in Petrojam.

Wheatley told Power Talk on Power 106 this morning that the government is awaiting a response from Venezuela on its offer.

He says an evaluation of the refinery was conducted over the summer where its value was ascertained.

He declined to disclose the figure.

 

Energy Minister, Dr.Andrew Wheatley

Island’s oil refinery has been experiencing financial challenges arising from an executive order by US President Donald Trump on the South American country.

The Order essentially prevents US entities from engaging in transactions involving the Venezuelan government and companies owned by the state.

As a result, foreign banks have expressed concerns about conducting financial transactions for Petrojam.

The Energy Minister said the government is still pursuing diplomatic channels to resolve the issue.