Comment on US Virgin Islands sues oil company over shuttered refinery

US Virgin Islands sues oil company over shuttered refinery

The complaint alleged a pattern of misconduct by executives at Hess, which operated with Venezuela's state-owned oil company what was once the world's largest refinery before closing it in 2012. Hess built the refinery on the largest mangrove lagoon on St. Croix, and the mishandling of crude oil and its byproducts at the facility led to extensive contamination of the aquifer. Owned through a joint venture called HOVENSA LLC, the refinery spun off billions of dollars more to its owners, according to financial records. The lawsuit said Hess and PDVSA entered into contracts that artificially boosted the cost of the Venezuelan crude it purchased and suppressed the cost of the petroleum products the refinery sent to Hess gas stations along the East Coast. Instead of negotiating with the government over modifying its agreement, the suit alleges Hess pursued a secretive plan to abruptly cease operating the refinery without notice prior to the end of the contract term to create panic within the government due to the ensuing economic crises.

 

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