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US Virgin Islands and HOVENSA Reach Interim Agreement

Above: the HOVENSA refinery

By the Caribbean Journal staff

The United States Virgin Islands and HOVENSA have reached an agreement in principle regarding the process for the sale of the refinery, Government House announced this weekend.

The deal, which was announced by USVI Governor John de Jongh, covers the sale process and HOVENSA’s operations during the period of the sale process.

Hess Oil Virgin Islands, which jointly owns HOVENSA with PDVSA VI, announced that it would shutter the facility last year. HOVENSA is the largest oil refinery in the Caribbean

The fate of the facility is crucial for the US Virgin Islands — as it was both its primary supplier of fuel and single-largest private employer.

HOVENSA has requested a “very brief” extension to finalize the written document setting for the agreement, the Governor’s office said.

Once the agreement is signed by all parties, it will be presented to the legislature for approval.

Hess is also selling another of its Caribbean facilities, a storage terminal in St Lucia.

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