The local oil refinery Petrojam, which has served Jamaica for a generation, should be shut down unless negotiations with the new Venezuelan government result in expansion plans, according to Energy Minister Phillip Paulwell.
The plant expansion has been delayed for eight years.
“In relation to Petrojam, this is a project that is well delayed. If Petrojam is not upgraded and expanded, we will have to shut it down. It is as simple as that,” Paulwell said at a press briefing at the Office of the Prime Minister on Thursday in Kingston.
“So we are awaiting the settling in of the new government and we were promised that as soon as that occurs, there will be a very important meeting with the players.”
Petrojam, the company, was incorporated 31 years ago. Government owns 51 per cent of the plant and Venezuela has the remaining 49 per cent since 2006.
Petrojam is projected to earn US$21.2 million net profit for this fiscal year ending April 2014 on US$1.9 billion of revenues. The capital expenditure for the year is projected at US$26.9 million.