Dominican Today (Dominican Republic): Shell DR chief off to meet and address tattered image: “The Government-Shell relations have also grown tense from demands to modify the Refidomsa partnership contract, and have turned for the worse in the last few weeks…”: Wednesday 19 October 2005

SANTO DOMINGO.- The head of the Shell company in the country, Rafael Maradiaga, left today to participate in a high level meeting to address the deterioration that firm’s relations with the Government, its partner in the Dominican Refinery (Refidomsa).

It was reported that Maradiaga was called after reports were made public on differences regarding the destination of Refidomsa funds, and in the company operations management.

A source at Shell today told the newspaper El Nacional that that was the reason why they could not comment on the report of a "virtual no-liquidity" at Refidomsa, resulting from the lack of subsidy payments on the part of the Government.

However, the differences between the Refidomsa partners have reportedly widened, and it was learned that last week an incident occurred in Haina Port, when a crude tanker arrived from Venezuela which did not comply with the security specifications and Refidomsa’s technicians refused to unload it, first for that reason and because supposedly they were not aware of its arrival.

The argument regarding the tanker’s non-compliance with security norms was adduced because Shell refused to assume the risk of a spill, which if it occurred would be held responsible the terminal’s administrator. The source said that the Refidomsa presidency finally imposed its authority so that the ship was unloaded.

Another impasse is related to the demands, made public in more than one opportunity, from Refidomsa president Arístides Fernandez Zucco, that the Shell company, as Refidomsa administrator, hand over dividends which he said have been retained for years.

But Shell has counted with alleged liquidity problems because the Government is in arrears, corresponding to subsidy payments for the liquefied petroleum gas for domestic and transport use.

The Government-Shell relations have also grown tense from demands to modify the Refidomsa partnership contract, and have turned for the worse in the last few weeks after multinational was accused of placing obstacles to the Petrocaribe’ implementation, which Maradiaga denied after meeting with president Leonel Fernandez 2 weeks ago.

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