Jamaica not able to unilaterally buy back Petrojam shares

The government has admitted it will be without options should PDVSA not agree to allow it to repurchase the 49 per cent shares in Petrojam owned by the Venezuelan company.

Jamaica’s state-owned oil refinery has encountered financial challenges arising from an executive order by US President Donald Trump which prevents US entities from engaging in transactions involving the Venezuelan government and its companies.

Energy Minister Dr Andrew Wheatley is to hold talks with his Venezuelan counterpart this month regarding proposals by the Jamaican Government to repurchase the Petrojam shares owned by PDVSA.

He was quizzed by opposition member of Parliament Fitz Jackson, during yesterday’s standing finance committee meeting, about whether the government can unilaterally acquire the shares.

Wheatley insisted the joint venture agreement signed with PDVSA was very weak, pointing to the difficulty Jamaica has had in getting the company to undertake the promised upgrade of the Petrojam refinery.

However, Wheatley said the government would examine its options for funding those upgrades once it repurchases the Petrojam shares.