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Petrojam's US$34m valuation assumes refinery ops will cease this year

Featured  Member of Parliament for  Manchester Central, Peter Bunting Member of Parliament for Manchester Central, Peter Bunting
Peoples National Party spokesman on investment, Manchester Central Member of Parliament Peter Bunting, says the Petrojam US$34 million valuation,  is based on the assumption that refinery operations will cease at the end of this year and 70 per cent of workers sent home.
 
Speaking to Emily Shields on  on RJR's call in programme, Hotline, Mr. Bunting  said  the valuation report indicates that the refinery will be operating as an import product terminal as of January 1 next year. 
 
"That means, instead of importing crude oil, it will import refined products like gasoline, diesel, kerosene etc. and they will just use the tank and the terminal facility  to offload thanj and to put them into tanker trucks and send them out to deliver to gas stations. There will be no refining operations," Bunting said.
 
In addition, he said the report provides a severance payment of one year's wages, totalling US$18 million for employees. 
 
Mr. Bunting said he was at a loss as to why the valuation was so low, as the nearly eighty acres of land on which Petrojam is located, is valued at in excess of one million US dollars per acre.
 
In the meantime, Energy Minister Fayval Williams, has admitted closure of the refinery was a consideration included in the 2018 valuation of Petrojam.
 
But she told Hotline host Emily Shields that no decision has been made to close the refinery.
 
Mrs Williams also addressed statements relating to a redundancy exercise, calling them "assumptions if there are no investments in the assets in Petrojam." 
 
"Over the last 12 years," she said, "there has been no major investments and that's why we are where we are right now, and if we continue to go forward without any major investments, this is what we will have."  
 
The Energy Minister said the government did not tell the valuators the factors to consider in placing a value on Petrojam. 
Last modified onMonday, 25 February 2019 21:09
  • Countries: Jamaica

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