Venezuela to buy large share of DR oil refinery
Dominica’s finance minister Vicente Bengoa
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Associated Press
Venezuela to buy large share of DR oil refinery
Associated Press, 10.30.09, 12:38 PM EDT
SANTO DOMINGO, Dominican Republic — The Dominican Republic agreed Friday to sell nearly half the shares of its oil refinery to Venezuela for $132 million in a bid to boost production, officials said.
The sale of 49 percent of shares of Refineria Dominicana de Petroleo SA also would allow the country to become an oil distribution center for the Caribbean and possibly Central America, Treasury Minister Vicente Bengoa said.
As part of the agreement, the Dominican Republic will buy an additional 30,000 barrels of oil a day from Venezuela.
It already receives 50,000 barrels daily under the Petrocaribe accord - which provides oil and gas at preferential prices - to meet the country’s demand of 140,000 barrels a day.
Opposition legislators and business owners have criticized the deal, saying Fernandez should have sought congressional approval.
Bengoa did not say how the $132 million will be paid, saying he would release details at a later date.
In 2008, the Dominican Republic paid $110 million to buy Royal Dutch Shell PLC ( RDSA - news - people )’s share of the jointly owned refinery to stabilize fuel prices.
Refidomsa, on the outskirts of the Dominican capital, has been in operation since 1973 and produces 30,000 barrels of fuel per day.
