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Tuesday, March 19, 2024
HomeNewsArchivesDeJongh, Atlantic Basin Official, Sign Operating Agreement for Refinery

DeJongh, Atlantic Basin Official, Sign Operating Agreement for Refinery

Gov. John deJongh Jr. and Robert Moore, chief executive officer of Atlantic Basin Refining VI, sign an operating agreement Wednesday that, if approved by the Senate, will allow the company to begin the process of restarting the St. Croix oil refinery. Witnessing the signing are V.I. Attorney General Vincent Frazer, left, and Government House senior policy advisor Richard T. Evangelista.Gov. John deJongh Jr. and principals of Atlantic Basin Refining VI signed an operating agreement Wednesday that, once approved by the Legislature, will begin the process towards restarting the oil refinery on St. Croix’s south shore.

“Today’s signing is an important step towards finalizing the operating agreement that has been negotiated between the buyers of the refinery and the Government of the Virgin Islands prior to its submission for the Senate’s review and consent,” deJongh said Wednesday in a news release issued by Government House.

The operating agreement defines the rights and obligations of ABR VI going forward, including the rebuild and restart of the refinery, which will employ hundreds of Virgin Islanders and make payments to the government totaling more than $1.6 billion over the 22-year life of the agreement.

Robert Moore, chief executive officer of Atlantic Basin Refining VI, signed for the company.

“This agreement is a critical step towards getting the refinery back as an economic generator providing jobs and business activity on St. Croix," deJongh said. "It has been two and half years of a focused process to achieve this objective. The time is now for us to evaluate this opportunity, understand what it can achieve and then work with the prospective buyers to bring the refinery and the economy of St. Croix back to life."

The governor said approval of the agreement by the 30th Legislature can provide a much needed shot in the arm for St. Croix’s economy and generate hundreds of additional jobs to support refinery operations.

“The buyers have committed to employing more than 500 full-time staff at the refinery, 75 percent of whom must be Virgin Islands residents or current or former HOVENSA employees,” the governor said.

Government House announced the conclusion of the agreement Monday, and for the first time announced the name of the company purchasing the facility from Hovensa. The pending sale was announced Sept. 15.

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