logo

You are currently viewing: News

Back

18-01-2012

Hess announces charge related to closure of HOVENSA joint venture refinery

Hess Corporation announced today that it will take a $525 million after-tax charge against its fourth quarter 2011 earnings as a result of the shutdown of the HOVENSA L.L.C. refinery in St. Croix, U.S. Virgin Islands, a joint venture between Hess and Petroleos de Venezuela S.A. Following the shutdown, the complex will operate as an oil storage terminal.

HOVENSA said in a release today that its losses at the refinery have totaled $1.3 billion in the past three years alone and were projected to continue. HOVENSA’s losses have been caused primarily by weakness in demand for refined petroleum products due to the global economic slowdown and the addition of new refining capacity in emerging markets. In the past three years, these factors have caused the closure of approximately 18 refineries in the United States and Europe with capacity totaling more than 2 million barrels of oil per day. In addition, the low price of natural gas in the United States has put HOVENSA, an oil-fueled refinery, at a competitive disadvantage.

HOVENSA said it had explored all available options to keep the refinery operating but severe financial losses left it with no other choice.

Sponsor:

News Category:

Other News Items

  • Responsive image FCC catalyst solutions
  • Responsive image Top Performer in Portable Fuel Analysis
  • Responsive image Smart solutions for valves and valve automation
  • Responsive image Solve the Industrial Data Problem
  • Responsive image Level and density in FCC processes
  • Responsive image 6 - 8 May 2025,
    Dubai, UAE
  • Responsive image FCC Refining Catalysts
  • Responsive image Ejector Systems
  • Responsive image Chemical Treatments
  • Responsive image Better analyses. Better decisions.
SPONSORS