Jamaica and Venezuela have reached an agreement for the expansion of the Petrojam refinery in Kingston.
That’s according to Energy Minister, Dr. Andrew Wheatley who signed the agreement with his Venezuelan counterpart Nelson Martinez in Caracas last night.
The agreement, which has been ten years in the making, will increase the capacity of the refinery to 55-thousand barrels of petrol per day.
It’s expected that the deal will allow Jamaica to satisfy its domestic demand and have additional supplies available for export to other Caribbean nations.
The upgrade is expected to cost approximately USD$850-million.
The upgrade is part of the agreement which saw the State-owned Petroleos de Venezuela purchasing a 49-percent stake in the local refinery in 2008.
However, a number of factors, including increases in the price of oil on the international market prevented the partners from going ahead with the upgrade.