Shell to sell Dominican refinery stake
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Royal Dutch Shell is planning to sell its 50 per cent stake in an oil refinery co-owned with the government of the Dominican Republic, it has emerged.
The oil company is expecting to receive a buyout offer for its share of Refidomsa, the remainder of which is owned by the Dominican Republic state, finance minister Vicente Bengoa said yesterday.
A figure has not been disclosed, although following an appraisal by the Venezuelan energy company Vetra, it has been suggested that the offer could be a little over $140 million (£70 million), according to Reuters.
"We have called for a meeting next Monday with Shell representatives who will be arriving from Houston to make [the negotiators] the offer," Mr Bengoa said, according to the news agency.
President Leonel Fernandez, who last weekend won his third term in office, met with the commission that is negotiating the government's buyout of the rest of the oil company.
"That the government of the Dominican Republic is looking at purchasing this oil/energy asset is a further sign of its commitment to an aggressive economic policy.
"As such, its commitments to the tourist industry should not be underestimated. Further construction projects, as well as consolidation of its existing market position, should certainly be expected," Matt Legg, Emerging Earth.
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