Hovensa Seeking Investment Banker to Handle Refinery Sale

Hovensa aims to retain an investment banker to handle the sales process for the company’s silenced St. Croix refinery, a company official announced Wednesday.

In a statement released by the company, General Manager Sloan Schoyer said he was pleased by Monday’s Senate passage of the bill ratifying the Fourth Amendment to the concession agreement between Hovensa and the government. The bill was approved by a vote of 8-7.

“On behalf of myself and all of the employees of the company, I say thank you to all the members of the Legislature who voted in favor of the bill and to all persons throughout the Virgin Islands who promoted the approval of the bill in any way,” Schoyer said.

Approval of the bill starts a clock ticking on sale of the facility, and the company is wasting no time.

In anticipation of the governor signing the bill into law when it reaches his desk, Hovensa has begun to finalize arrangements “to retain a reputable investment bank experienced in the sale of oil and gas assets to conduct a bona fide sales process” in accordance with the agreement, according to Schoyer.

Section 2 (a.) of the agreement requires that such an investment bank be retained by Hovensa not later than 10 days following the ratification.

“Through the investment bank, Hovensa and its owners will consider offers by parties who wish to purchase the oil refinery and related facilities for operation as a refinery or for any other industrial and commercial purpose,” Schoyer said.

Hovensa also agreed to keep its fuel rack open and keep supplying it with fuel as long as the company continues to run an oil storage terminal on the property. The sales process is open for one year.

If the refinery is not sold in that time, the company will open the Limetree Bay Channel to commercial vessels heading to St. Croix Container Port, subject to insurance and any federal approvals that may be needed.

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