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Hovensa closure is becoming reality----today being reported on local and national news(see below). HESS stock up, highest its been since Oct 2011.
Feb 21 (Reuters) - Hovensa LLC completed shutdown of its 350,000 barrel-per-day St. Croix, U.S. Virgin Islands refinery on Tuesday, the company said in a statement.
The complex will be operated as an oil storage terminal.
"Hovensa's operation of the complex as an oil storage terminal is subject to the completion of negotiations with the Government of the Virgin Islands," the company said.
Losses at the Hovensa refinery, owned by Hess and Venezuelan state oil company Petroleos de Venezuela, totaled $1.3 billion in the past three years and were projected to continue.
The company had announced the refinery shutdown on Jan 18. (Reporting by Soma Das in Bangalore; Editing by Bob Burgdorfer
Posted : February 21, 2012 8:35 pm
$1.3 Billion in loss versus the recently spent $1.8 billion to purchase of several hundred acres of "oil sands" in the US!!!
Is there a lossr, perceived loss, or a tax-credit issue!!
With all the government's "oil industry tax and credits"...we are the only loosers!
Posted : February 23, 2012 4:10 pm
The problem for Hess is that credits don't offset net losses. Shareholders of Hess stock have paid the price with lower than industry standard returns for years. I'd say USVI residents, Hovensa employees, and Hess shareholders have all lost out on this one (note I didn't include PDVSA as they had a pretty good contract allowing them to sell disadvantaged crude at better than market rates to Hovensa for years.)
$1.3 Billion in loss versus the recently spent $1.8 billion to purchase of several hundred acres of "oil sands" in the US!!!
Is there a lossr, perceived loss, or a tax-credit issue!!
With all the government's "oil industry tax and credits"...we are the only loosers!
Posted : February 23, 2012 5:43 pm
