Petrojam pursuing additional oil suppliers amid Ukraine crisis

Jamaica's oil refinery Petrojam is now in talks with several source markets to ensure uninterrupted fuel supply during the Russia-Ukraine war. 

According to general manager Winston Watson, a Petrojam team is now in the United States attending the annual American Fuel Petrochemical Manufacturers Conference to meet with oil traders and national oil companies to secure additional options for both crude oil and refined products.

At present, Petrojam sources crude oil from Petrobas in Brazil and from Colombia and Ecuador.

Small quantities of crude are also bought from Barbados.

However, Watson said since the Ukraine crisis, the refinery has reached out to other countries in the region including Guyana and Argentina.

At the same time, Petrojam is in talks with PetroEcuador in Ecuador and Ecopetrol in Colombia to establish supply agreements.

Talks are also underway with the Nigerian National Petroleum Corporation with a view to securing around four million barrels of crude oil per annum.

Meanwhile, Watson said Petrojam is making every effort to ensure fuel supply to Jamaica at the most competitive prices. 

“During these types of geopolitical events, smaller countries such as Jamaica may experience greater challenges in sourcing both crude oil and refined products.  However, we are sparing no efforts to ensure that we have access to reliable crude and product supply,” said Watson.

Petrojam has additional crude oil storage in St Eustatius, where up to one million barrels of crude oil can be stored and Watson said alternative storage arrangements are being explored.

Petrojam Limited, Jamaica's sole oil refinery, commemorates 40 years of service this year.

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