Santo Domingo.– The Dominican Republic has bought out Royal
Dutch Shell PLC's share of a jointly owned oil refinery in a bid to stabilize
fuel prices, the government said.
The Caribbean nation paid $110 million for Shell's stake in
the Refidomsa refinery, Treasury Minister Vicente Bengoa said. The source of
the funds will be announced soon, according to Bengoa.
Business and opposition leaders have criticized the
government for the plan, saying it should not meddle in the private sector.
Dominican officials say co-ownership prevented them from
expanding the refinery and importing the country's full fuel quota under
Petrocaribe, a Venezuelan program that supplies cheap fuel to poor nations.
The Dominican Republic can import up to 50,000 barrels per
day under the program, but has been able to bring in only about 35,000 a day, according to
the government.
Newly re-elected president Leonel Fernandez has proposed
investing in domestic ethanol production and natural gas to slash oil
dependence.
Refidomsa, on the outskirts of the Dominican capital, has
been in operation since 1973 and produces 30,000 barrels of fuel per day –just
under a fifth of daily consumption.
Written by: BLANCO, 14 Jun 2008 5:18 AM
From: Dominican Republic
Treasury Minister Vicente Bengoa said. The source of the funds will be announced soon, according to Bengoa.
I see one of those special taxes coming, I trhought Shell owed the gov't 75 million, net cost 64 million on my calculator, cheaper to borrow 64 than 110...oops sorry commision is higher on one than the other,
From: Cuba, it is a secret the censors are looking for me
this could turn out to be a big mistake....that pile of junk they bought is not worth 50 cents ...why did they not just negotiate a better deal with shell...and anybody who thinks nutty hugo is going to be around in the future better check the odds on that one....also government corruption and mismanagement will eat up any any potential gains..... that you can bet on ...double the employees half the work for sure
Written by: Belial, 14 Jun 2008 8:11 AM
From: United States, Texas
The pile of junk Shell left in the DR has to be undated and expanded both quantitatively and qualitatively.
If this is done with Venezuelan help rather than that of the inefficient and corrupt private sector ... in other words, the same old stealing bourgeoisie ... the prelim studies, procurement (certain CAFTA provisions may complicate procurement process), and the rebuilding work itself can be done fairly quickly and cheaply like with the Cuban refinery at Cienfuegos which after lying dormant for about 30 years was in worst shape that the former Shell refinery at Santo Domingo.
The first stage of re-construction at Cienfuegos, resulting in a 60,000 barrels daily refinery capacity from zero , was done in about 15 months for under $200 million. Amazing. The second stage of reconstruction is supposed to complete in late 2009, raising capacity to 120,000.
If the bourgeoisie gets in the DR refinery, renovation will take 3 years and about $3 billion dollars.
A rip off.
Written by: Belial, 14 Jun 2008 8:25 AM
From: United States, Texas
"... and anybody who thinks nutty hugo is going to be around in the future better check the odds on that one... " GC conjectures.
0000
Chavez has lost only election in the ten years between 1998 and 2008, the Dec. 2007 referendum on constitutional reform. So, rumors and bourgeois lies about the electoral demise may prove once again premature.
On the other hand, when the bourgeois scum, slime, trash, and filth, especially the Canadian varieties, hint that Chavez may not "be around" because of something other than electoral setbacks, but because bourgeois scum is plotting to murder Chavez, a common subject of discourse among slime, then the filthy pro-capitalist ... or "cappie" ... fecal discharges should be wiped out or, at least, away.
From: Cuba, it is a secret the censors are looking for me
Written by: Belial, 14 Jun 2008 8:45 AM
From: United States, Texas
"also government corruption and mismanagement will eat up any any potential gains"
0000
If the integrity and management skills of the private bourgeoisie are so good, then why did Shell get kicked out.
Shell was repeatedly caught stealing by accounting fraud [ the art of capitalism], ripping off the DR state which nominally owed a 50% stake for which the state was commonly paid not a penny in dividends by Shell, the sole managing partner. Shell often "CHARGED' the state for owning a stake, demanding that the DR state pay Shell for the fraudulent "losses" at the refinery.
In 34 years as the sole manager of the refinery, Shell never increase the refining capacity above 33,000 barrels per day, the capacity at start-up in 1975, although the DR has been importing over a 100,000 barrels of oil since the 1990s.
This shows the extreme incompetence of the slimy cappies in the private sector if Shell is part of the private sector.
Written by: Belial, 14 Jun 2008 8:56 AM
From: United States, Texas
" I trhought Shell owed the gov't 75 million ..."
oooo
A lot more than 75 M.
All of Shell's top people should be in DR prisons. They stole the DR blind for almost 40 years.
As for the price, Shell initially [two years ago] offered to sell for about $187 M.
An appraiser recommended about $140 M, which was outrageously high.
The deal was made at $110 M.
Written by: TheTruth, 14 Jun 2008 10:19 AM
From: United States, Boston
110 million would have bought 11 wind turbines that would pay for themselves within 3 years and the rest is frree. Who got the pay off ???. The amount of cooking oil (bio diesel) used in the DR that is thrown in the gutter is about 10 + million gallons per year . That is enough to run la Vega and Santiago free zones all year . PA LANTE.........................
From: United States
Like father, like son. Mr. Fernandez is following on Mr. Chavez footsteps and Nationalizing an industry that has been co-partner. The question will be; how will that help the energy crisis in the short termed and what will comtribute in the future? All that has been taking place is a lot of investments but from where is all of these money coming from? A so called third world country that is underdeveloped with a multiibillions dollars budget and everyday they talked about millions and billions of dollars being invested or injected into ane area or another. No talks of how they will create more jobs and raise the minimun wage to meet the high costs of living. Lets spend money, hide some here and hide some there, who cares, people are just too dumb to know the different plus with are their role models. See how they critized Chavez, his their modern Robinhood. Who cares about the poor people no one wants to elliminate poverty thats just to give them some hope.
Written by: Belial, 14 Jun 2008 1:25 PM
From: United States, Texas
Hectorvargas, good post.
I however disagree with just about all of it.
When a bourgeois state, (DR), nationalizes, the property stays within the capitalist corpus. But when a fine proletarian state nationalizes, the people retake only what belongs or what should belong to them. Cappies lose.
The energy crisis largely results from speculation, a perceived lack of oil, politics, and a real lack of refinery capacity. This state can update and expand the refinery better than stupid pinned-stripped bourgeoisie. If this weren't the case, Shell would have done so. It's better for the DR to count on its own capacities than the "good will" of speculators who are gouging everybody.
Debt is everywhere. But what's it for is another question. There is a real and legitmate need for oil.
Opponents of the takeover fear that the takeover will create jobs even without an expansion of the plant.
Even with these big discounts, Petrocaribe still makes a lot of money for Venezuela.
Written by: Belial, 14 Jun 2008 1:45 PM
From: United States, Texas
Quite a few people very properly prefer energy from wind, water, earth, and sun over stinky, greasy fossils.
But some people have to fly today and if you were one of them, would you fly if the plane used sun and water for fuel?
Cars are some of the dirtiest things on earth, but few people let their driving license expire.
The price of gas may soon change some minds however. I hope so.
From: Cuba, it is a secret the censors are looking for me
not for long fool...hugo will take the gaspipe soon and then what ? end of freebie....and we get a rusting circa 1967 refinery....OH goody.....you are just bitter belial because Enron kicked you to the curb with nothing but your overalls
Written by: Belial, 14 Jun 2008 1:53 PM
From: United States, Texas
"you are just bitter belial because Enron kicked you to the curb with nothing but your overalls ..."
oooo
I didn't lose a dime on Enron. I knew they were a bunch of crooks, using accounting fraud and securities fraud to get over, like most big cappie companies.
Today, accounting fraud and securities fraud are synonyms for "management."
Can you manage this?
Need a profit? No problem. Cook the books.
Ain't capitalism dynamic?
From: Cuba, it is a secret the censors are looking for me
Dont worry they found the Una Bomber and they will come and drag you through the keyhole of that rats nest where you are existing then lock you up in the home for the criminally insane at Rusk and throw away the key
Written by: DennisC, 14 Jun 2008 2:39 PM
From: United States
You guys don't follow this correctly, Shell Oil Co have been doing whatever they pleased
at that refinery, and charging money that was not entitled to make,
this refinery is full operational, the equipment working there have been updated by Shell with time,
and have the capacity for a larger production, the only negative part is only produces regular gasoline, not premium,
in the end this could a good thing is managed properly, and that is the only doubtful proposition,
the inability of the state to operate this huge business have been well known, since it has been
used throughtout many admisnistrations for political positions.
Written by: Belial, 14 Jun 2008 3:07 PM
From: United States, Texas
I'm not sure about the regular vs premium thing.
This is the first time I heard about it. It's interesting because I know the refinery is diversified and turns out about 500 tankers trucks of at least 8 different refined products every day.
From time to time, Shell transplanted parts from de-commissioned refineries around the world to Santo Domingo, but I don't believe this should be called "updating."
What's big now is the capacity to process heavy crude as the light sweet stuff peaks. The refinery can't do this. An updating should result in both capacities at the refinery.
The cheapest crude that the private sector can get is market price at somewhere like $115 a barrel. The state can get more crude than the refinery can process for only $50 a barrel.
The state is astonishingly apt.
The row between Shell and the state originated chiefly over Shell refusal to process the cheaper crude that the state procured. Shell preferred its own expensive stuff from Mexico.
Written by: Belial, 14 Jun 2008 3:29 PM
From: United States, Texas
"And have the capacity for a larger production," that's a gripper or a grabber and I heard that too, here in Houston.
0000
During the early part of the prolong negotiations, Shell -- Houston, the Dominican branch, and the refinery [I'm not sure about Royal Dutch] made statements to that effect, suggesting that the refinery could do 40,000 barrels a day.
Some of Shell's commercial propaganda mentions 40,000 when it solicited offers from buyers.
People ask "Well, if you could do 40,000, why didn't do it in over 30 years of running the plant?"
Shell was between a rock and hard place [or, rather, a hard thing] because if Shell persisted with its output claim, Shell admits that it really cheated the state out of a big share of profits as well as taxes, a huge accounting fraud case.
So, I believe, the $110 deal is premised about 33,000 barrels capacity.
Written by: DonDiego, 15 Jun 2008 5:00 PM
From: United States
Written by: Belial, 14 Jun 2008 1:25 PM
From: United States
Hectorvargas, good post.
I however disagree with just about all of it.
When a bourgeois state, (DR), nationalizes, the property stays within the capitalist corpus. But when a fine proletarian state nationalizes, the people retake only what belongs or what should belong to them. Cappies lose.
Fine proletarian state? Gimme a break. Commies are bigger fascists than the Fascists. The commie bosses of China and Cuba are criminals, so are the wannabes in Central and South Americal. Hopefully, they will face justice one day.
From: Cuba, it is a secret the censors are looking for me
you mean" Danny The Diddler " of Nigaragua is a criminal I am shocked yes shocked !
Written by: Belial, 15 Jun 2008 6:14 PM
From: United States, Texas
GC, where did you find that one -- in the doctor's office or in the cuckoo nest.
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I see one of those special taxes coming, I trhought Shell owed the gov't 75 million, net cost 64 million on my calculator, cheaper to borrow 64 than 110...oops sorry commision is higher on one than the other,
If this is done with Venezuelan help rather than that of the inefficient and corrupt private sector ... in other words, the same old stealing bourgeoisie ... the prelim studies, procurement (certain CAFTA provisions may complicate procurement process), and the rebuilding work itself can be done fairly quickly and cheaply like with the Cuban refinery at Cienfuegos which after lying dormant for about 30 years was in worst shape that the former Shell refinery at Santo Domingo.
The first stage of re-construction at Cienfuegos, resulting in a 60,000 barrels daily refinery capacity from zero , was done in about 15 months for under $200 million. Amazing. The second stage of reconstruction is supposed to complete in late 2009, raising capacity to 120,000.
If the bourgeoisie gets in the DR refinery, renovation will take 3 years and about $3 billion dollars.
A rip off.
0000
Chavez has lost only election in the ten years between 1998 and 2008, the Dec. 2007 referendum on constitutional reform. So, rumors and bourgeois lies about the electoral demise may prove once again premature.
On the other hand, when the bourgeois scum, slime, trash, and filth, especially the Canadian varieties, hint that Chavez may not "be around" because of something other than electoral setbacks, but because bourgeois scum is plotting to murder Chavez, a common subject of discourse among slime, then the filthy pro-capitalist ... or "cappie" ... fecal discharges should be wiped out or, at least, away.
0000
If the integrity and management skills of the private bourgeoisie are so good, then why did Shell get kicked out.
Shell was repeatedly caught stealing by accounting fraud [ the art of capitalism], ripping off the DR state which nominally owed a 50% stake for which the state was commonly paid not a penny in dividends by Shell, the sole managing partner. Shell often "CHARGED' the state for owning a stake, demanding that the DR state pay Shell for the fraudulent "losses" at the refinery.
In 34 years as the sole manager of the refinery, Shell never increase the refining capacity above 33,000 barrels per day, the capacity at start-up in 1975, although the DR has been importing over a 100,000 barrels of oil since the 1990s.
This shows the extreme incompetence of the slimy cappies in the private sector if Shell is part of the private sector.
oooo
A lot more than 75 M.
All of Shell's top people should be in DR prisons. They stole the DR blind for almost 40 years.
As for the price, Shell initially [two years ago] offered to sell for about $187 M.
An appraiser recommended about $140 M, which was outrageously high.
The deal was made at $110 M.
I however disagree with just about all of it.
When a bourgeois state, (DR), nationalizes, the property stays within the capitalist corpus. But when a fine proletarian state nationalizes, the people retake only what belongs or what should belong to them. Cappies lose.
The energy crisis largely results from speculation, a perceived lack of oil, politics, and a real lack of refinery capacity. This state can update and expand the refinery better than stupid pinned-stripped bourgeoisie. If this weren't the case, Shell would have done so. It's better for the DR to count on its own capacities than the "good will" of speculators who are gouging everybody.
Debt is everywhere. But what's it for is another question. There is a real and legitmate need for oil.
Opponents of the takeover fear that the takeover will create jobs even without an expansion of the plant.
Even with these big discounts, Petrocaribe still makes a lot of money for Venezuela.
But some people have to fly today and if you were one of them, would you fly if the plane used sun and water for fuel?
Cars are some of the dirtiest things on earth, but few people let their driving license expire.
The price of gas may soon change some minds however. I hope so.
oooo
I didn't lose a dime on Enron. I knew they were a bunch of crooks, using accounting fraud and securities fraud to get over, like most big cappie companies.
Today, accounting fraud and securities fraud are synonyms for "management."
Can you manage this?
Need a profit? No problem. Cook the books.
Ain't capitalism dynamic?
at that refinery, and charging money that was not entitled to make,
this refinery is full operational, the equipment working there have been updated by Shell with time,
and have the capacity for a larger production, the only negative part is only produces regular gasoline, not premium,
in the end this could a good thing is managed properly, and that is the only doubtful proposition,
the inability of the state to operate this huge business have been well known, since it has been
used throughtout many admisnistrations for political positions.
This is the first time I heard about it. It's interesting because I know the refinery is diversified and turns out about 500 tankers trucks of at least 8 different refined products every day.
From time to time, Shell transplanted parts from de-commissioned refineries around the world to Santo Domingo, but I don't believe this should be called "updating."
What's big now is the capacity to process heavy crude as the light sweet stuff peaks. The refinery can't do this. An updating should result in both capacities at the refinery.
The cheapest crude that the private sector can get is market price at somewhere like $115 a barrel. The state can get more crude than the refinery can process for only $50 a barrel.
The state is astonishingly apt.
The row between Shell and the state originated chiefly over Shell refusal to process the cheaper crude that the state procured. Shell preferred its own expensive stuff from Mexico.
0000
During the early part of the prolong negotiations, Shell -- Houston, the Dominican branch, and the refinery [I'm not sure about Royal Dutch] made statements to that effect, suggesting that the refinery could do 40,000 barrels a day.
Some of Shell's commercial propaganda mentions 40,000 when it solicited offers from buyers.
People ask "Well, if you could do 40,000, why didn't do it in over 30 years of running the plant?"
Shell was between a rock and hard place [or, rather, a hard thing] because if Shell persisted with its output claim, Shell admits that it really cheated the state out of a big share of profits as well as taxes, a huge accounting fraud case.
So, I believe, the $110 deal is premised about 33,000 barrels capacity.
From: United States
Hectorvargas, good post.
I however disagree with just about all of it.
When a bourgeois state, (DR), nationalizes, the property stays within the capitalist corpus. But when a fine proletarian state nationalizes, the people retake only what belongs or what should belong to them. Cappies lose.
Fine proletarian state? Gimme a break. Commies are bigger fascists than the Fascists. The commie bosses of China and Cuba are criminals, so are the wannabes in Central and South Americal. Hopefully, they will face justice one day.