KINGSTON, Jamaica — Minister of Foreign Affairs and Foreign Trade, Senator Kamina Johnson Smith has announced that the Government will take legislative action to take ownership of the 49 per cent share in the local oil refinery, PetroJam held by Venezuelan state-owned oil and natural gas company, PDV Caribe.

Johnson Smith, who was speaking at a press conference this morning, indicated that the move forms part of the Government’s thrust to develop and protect Jamaica’s energy security.

She outlined that PDV Caribe — an affiliate of the state-owned Petróleos de Venezuela SA (PDVSA) — and the Petroleum Corporation of Jamaica (PCJ) entered into a Joint Venture Agreement and an agreement to sell shares in Petrojam in August 2006 and February 2007, respectively.

The reasons for entering into the agreements included the upgrading and expansion of Petrojam’s Refinery so as to improve its competitiveness and meet local and international market demands.

However, as at this time, these objectives have not been met and the refinery is now a risk to the economy and the country as result of the upgrade not being undertaken, the minister disclosed.

She further revealed that Venezuela’s President Nicholas Maduro made a committment that action would be taken on the upgrade during a meeting with the Jamaican Government in 2016, however, after signing a Letter of Intent in January 2017, and the Refinery Upgrade Agreement in February 2018, Venezuela has not fulfilled their obligations.

 “Even as the Government of Jamaica acknowledges, values and appreciates the tremendous support provided to this country by the Bolivarian Republic of Venezuela to the energy sector over the years, Jamaica regretfully cannot continue negotiations in perpetuity, especially where it appears that delays are of no concern to our counterparty. Therefore, in the national and economic interest of Jamaica, the decision has been taken to commence the legislative process towards acquiring the shares in Petrojam held by PDV Caribe,” said Johnson Smith.