Big Decisions for Hess Oil
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Big Decisions for Hess Oil
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Contact: Rose Marie Harris
Monday, March 26, 2012 – Prime Minister Honourable Dr Kenny D Anthony has weighed in on a decision by The Hess Corporation to put up for sale the crude oil and refined products storage and transhipment terminal at Cul de Sac.
Hess has retained Goldman Sachs as financial advisor in connection with the potential sale of the facility which has been in operation here since 1981.
Speaking Tuesday March 20th, 2012 the Prime Minister told the Parliament of Saint Lucia that he was informed of the decision to sell the facility by the General Manager of Hess Corporation recently. “If the sale does go through and one does not know, because in the discussion that followed the disclosure Hess Oil Corporation did indicate that if they do not get a sale in accordance with the terms they have every intention to remain here, so we shall see but they have indicated that they prefer to focus on oil exploration instead of the buying and selling or distribution of fuel”.
The Prime Minister says the time has come for Saint Lucia to consider a broader rationalisation of its energy needs and sector.
But there is good news on the horizon as Prime Minister Anthony has received authorisation from Parliament to US$2.8 million from the International Development Association for the establishment and operationalisation of the OECS Eastern Caribbean Energy Regulatory Authority project (ECERA).
“ECERA comes onboard just at the right time because very clearly as the experience of ECTEL shows not only do we need an independent regulatory regime but also we need to be pointed in the right direction where the use of alternative energy is concerned so in effect ECERA will better help us to deal with the issue of fairness in pricing and will also assist us to look at our energy sector and bring together experts and technocrats to offer advice across the region”. The Prime Minister explained to the parliament that Saint Lucia would not be required to fully repay the IDA loan not until 2046. This he says reinforces the very concessionary nature of the loan.
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