A deal between Curacao Refinery Utilities RV (CRU) and SPS Drilling E&P to lease 5.8 million barrels of oil storage capacity at the Bullenbay terminal on the Caribbean island fell through this week.

SPS had been planning to sublease the storage space to other companies, but the rates those potential customers were willing to pay was lower than it initially expected, prompting SPS to ask CRU, an affiliate of state-run Refineria de Korsou (RdK) to seek to renegotiate the deal.

RdK rejected a contract renegotiation, so SPS decided to walk away from the deal, according to the source and an internal communication by CRU seen by Reuters, in which the company also said there will not be layoffs as consequence of the broken deal.

Manuel Chinchilla, CEO of Southern Procurement Services (SPS), the parent company of SPS Drilling E&P, said: “We will not move forward with the deal as there was no agreement on tariffs.”

For more information visit www.spsdrilling-ep.com

5th November 2020