Valero has decided to further reduce operations and
reorganize its 235,000 bpd Aruba refinery as a refined products
terminal, the company said on Monday.
We believe that Aruba has the assets to compete as a
world-scale crude and refined products terminal, said
Valero CEO Bill Klesse. With both deepwater berths and
smaller berths, the terminal will have the flexibility to load
the very largest crude ships.
In addition, the scale and mixture of tankage will
permit commercially attractive storage opportunities for our
customers. Arubas proximity to growing markets and its
business-friendly political environment make it an ideal
location for our new terminal operations.
Terminal activities will, however, require a considerably
smaller workforce, according to the company. The reorganization
and reduction in workforce is expected to be complete before
the end of 2012.
Valero will continue to supply jet fuel, gasoline, diesel,
and fuel oil to the island, as well as engage in third-party
In the terminal operations mode, Valero will continue to
invest in Aruba with facility improvements and dock and tankage
upgrades, the company said.
Valero human resources representatives will begin meeting
with refinery employees this week to
explain the staffing selection for the terminal operations.
Valero suspended refining operations at the
refinery in March and maintained the refinery in a state that
would allow a restart, keeping its employees on payroll pending
In the near-term, the refinery will continue to be
maintained in a state that would allow a restart, should Valero
be successful in the pursuit of alternatives for the refinery prior to the terminal
We will continue to work with Prime Minister Eman and
his government in this effort, Klesse said. "Our
discussions with interested parties, including those
facilitated by the Government of Aruba, will continue, and if
successful may result in the suspension of the workforce