Refineria Di Kòrsou Signed An Agreement With Klesch Group
WILLEMSTAD – Refineria di Kòrsou (RdK) and the Klesch Group signed an Asset Purchase and Sale Agreement (APSA) on Sunday, December 22 nd , 2019, setting a firm step towards securing the continuation of the “Curaçao Oil Facilities” consisting of the Curaçao refinery, the Utilities plant and the Bullenbay Oil Terminal.
With this major milestone, Curacao will be in the position to boost its energy sector and other associated sectors, which will contribute considerably to the economy of the island. RdK considers Klesch to be a well experienced business partner in the oil sector, capable to operate the “Curaçao Oil Facilities” of RdK successfully.
The APSA is the first binding agreement signed with Klesch and forms the basis for a long-term relationship between parties. The remaining documents will be finalized and signed in the coming months. The APSA entails sale of the “Curaçao Oil Facilities” with the land in long lease.
The Klesch Group
The Klesch Group is a privately owned international industrial commodities group with investments principally in the oil sector through Klesch Petroleum Holding Limited. The Klesch Group has a strong track record of acquiring large asset intensive businesses in highly regulated environments and has completed transactions with large international public companies.
The Government’s mandate for RdK (100% government owned entity) was to secure a long-term operator for the Oil Facilities.
A Project Management Organization (PMO) was installed by RdK which started the process of finding a new Operator for the “Curaçao Oil Facilities” in February 2019 . A thorough and transparent scrutiny process with well-defined criteria of which the participating parties were informed was followed.
The PMO supported by IHS Markit, issued teaser letters to more than 100 potential parties, held management presentations and followed by issuing process letters. The criteria used to select parties to enter non-binding proposals with, was set beforehand. Afterwards, Letters of Intent (LOI’s) were signed with multiple selected parties. The Klesch Group was selected and an exclusivity agreement was signed on September 4 th 2019 between RdK and the Klesch Group. Subsequently a detailed due diligence by the Klesch Group of the “Curaçao Oil Facilities” took place. During the past months, PMO and the Klesch Group negotiated in a constructive atmosphere, which resulted in the signed APSA.
Now that the APSA has been signed, parties will continue to work to fulfill conditions precedents agreed, with the aim to sign the two remaining agreements for closure in 2020. This is planned to take place in the second quarter of 2020.
Refineria di Korsou will take the necessary actions in the meantime to realize a smooth transition of the “Curaçao Oil Facilities” to the Klesch Group.