January
12, 2004
Hovensa to invest US$400mn-450mn
through 2006
(BNAmericas) -The 495,000 barrel a day
(b/d) Hovensa refinery in the US Virgin Islands
plans US$400mn-450mn capital expenditure from
2004-2006 in its clean fuels program (…).
Amerada Hess and Venezuela's state
oil company PDVSA each own 50% of the refinery.
The investment is to meet clean
fuel regulations in the US, and will not lead
to any capacity increase. Hovensa itself, rather
than its parents, will make the investment.
Hovensa's net debt is practically
zero, with US$400mn debt and almost US$400mn cash.
Furthermore, the refinery has "significant"
cash generation and so would not face problems
in raising the money for the investment.
