HOVENSA Reaches Agreement, Changes Position At Last Minute

Governor John de Jongh called a press conference earlier today to update the media on the sales process of the shuttered HOVENSA refinery; however, the company’s owners changed their minds on the deal that had been reached at the last minute, forcing the governor to cancel the press conference.

The press conference was to “provide the public an update on the Hovensa sales process,” according to Government House, adding that the governor would “make an opening statement and will then be available for questions.”

But, just before the Governor’s announcement came, HOVENSA’s owners pulled out.

“This afternoon’s planned teleconference with reporters to facilitate an update from the governor on the Hovensa sales process has been postponed and will be rescheduled at a later date,” reads a second statement released from Government House today. “The postponement stems from a last-minute change in Hovensa’s position. The brief extension of the Fourth Amendment Agreement requested by Hovensa and approved by the Governor remains in place.”

The statement also revealed that Government House would soon have a new date to announce to the public. It is unclear why the owners did not go through with the deal.

The Back and Forth Continues

Earlier today, Government House said an announcement on the HOVENSA sales status would be made mid-week, but a breakthrough in negotiations caused the governor to call the press conference, only to cancel it as HOVENSA reneged.

Virgin Islanders were greeted with difficult news in January 2012 when the owners of HOVENSA announced the refinery would shut down, a reality that saw over 2,000 employees being made jobless. The decision led to talks between refinery owners and the Government of the Virgin Islands, and after a lengthy deliberation process, which lasted over a year, the Fourth Amendment Agreement became a reality.

The document had HOVENSA agreeing to a sales process for the refinery with aid from an established investment banking firm, Lazard. As part of the deal, the Government of the Virgin Islands would allow HOVENSA to operate in the interim as an oil-storage terminal.

The Fourth Amendment Agreement between the Government of the Virgin Islands and HOVENSA expired on August 15, 2014; however, it was extended by 15 days to allow for more talks. The last day of the extension was Friday, August 29—the day HOVENSA owners requested even more time, which was granted by Governor de Jongh.