A report from the Jamaican government states that they have made considerable progress with negotiations over Petrojam. Petrojam is the State refinery and the government is seeking to take over 49% stake which was initially purchased by PDV Caribe. The company is based in Venezuela.
The announcement was made by Sen. Kamina Johnson Smith, the Foreign Trade and Foreign Affairs minister. She spear-headed the negotiation team from Jamaica. He said that PDV Caribe had agreed to the negotiation price by both parties. The negotiations held for several weeks before arriving at this communique.
She, however, said they were yet to come to a conclusion on the terms of the agreement. This means that they have to keep on with the negotiation discussions. She further emphasized the government’s decision to repossess the refinery. According to her, it was based on the need to protect the country’s interests.
The Venezuelan government let by Nicholas Maduro is already facing several sanctions. The first of those sanctions was by the US and the latest by Canada. The minister said the issues have begun causing unrest among partners and suppliers of the refinery. They have been asking questions and seeking indemnity before they can keep their investments with the refinery.
The Minister went ahead to state clearly that Petrojam is not under any sanctions. The structure of the refinery, based on the Article of Incorporation requires an equal number of Jamaicans and Venezuelans on the board. As a result of this, the Jamaican government seeks to reacquire 49% of the shares of Petrojam. This is to protect her energy sector and the interest of the Jamaican people.
Senator Smith said PDV have already received a written memo on the issue and are expected to respond soonest.