On 9 March 2021 Bonaire Petroleum Corporation N.V. was granted an extension of payment at its own request. The extension of payment prevents BOPEC from being required to pay its debts and prevents third parties from getting recourse on BOPEC’s assets. However, in the near future, the terminal may be an interesting asset for foreign investors.
It is known for some time that the BOPEC oil terminal on Bonaire is facing difficult times. This is not only caused by the US sanctions against it sole shareholder, PdVSA, but also by the condition of BOPEC’s assets that does not comply with the applicable permits. This has caused the storage and transshipment operations of BOPEC to come to a halt. BOPEC used to operate the strategically located oil terminal in the Dutch Caribbean during many years and contributed to the economic activities on Bonaire. The revised legal framework as of 1 July 2016 required BOPEC to comply with changed environmental requirements and required further investments.
The decision of the court mentions that the tax authority on Bonaire has previously requested bankruptcy. BOPEC indicated, according to the court decision, that it is in negotiation with a party to receive the necessary financial means, to pay its creditors. The extension of payment prevents BOPEC from being required to pay its debts and prevents third parties from getting recourse on BOPEC’s assets.
For a foreign investor, the circumstances and developments mentioned above can be interesting. The terminals are situated on a central, strategic location in the heart of the Caribbean and offer a great opportunity.
We not only have a specialized team with experience in the oil and gas industry. Since one of our offices is situated on Bonaire, we also have local knowledge and are deeply rooted in the local economy. We are therefore able to assist you in the best way possible.