After years of uncertainty and decline in the Caribbean oil landscape, recent geopolitical shifts may be opening a new chapter for Curaçao’s long-troubled refinery sector — if the island is ready to seize the moment.
Yesterday, 2Bays announced it had terminated its long-term contract with Vigor, signaling a fresh start in efforts to reactivate refinery operations in Emmastad and Bullenbaai after prolonged contractual and operational difficulties. That move, at first glance a local corporate matter, may in fact coincide with historic changes underway in global oil markets.
On January 3rd, the United States asserted unprecedented influence over Venezuela’s vast oil reserves following a controversial military operation that resulted in the removal of President Nicolás Maduro. Washington has since moved to market millions of barrels of previously stranded Venezuelan crude and signalled it will control oil exports indefinitely, redirecting supplies that were historically bound for Asian buyers to U.S. markets instead. Sources indicate up to 30 million to 50 million barrels of oil may be sent to the United States at market prices under these new arrangements.
In parallel, international trading houses are positioning themselves for a larger role in Venezuela’s oil flows. Dutch-registered Vitol — one of the world’s largest commodity traders — has obtained a preliminary U.S. licence to begin negotiations on importing and exporting Venezuelan crude, alongside Singapore-based Trafigura, placing both at the table of upcoming White House discussions on energy strategy.
For Curaçao, these developments could be more than just geopolitical theatre. The island’s Isla refinery complex — customized to process the heavy crude typical of Venezuelan production — is now one of the few such facilities remaining active in the region. Aruba has already begun dismantling its refinery, leaving Curaçao with strategic oil infrastructure including storage and bunkering facilities at Bullenbaai that remain unmatched in the southern Caribbean.
Historically, Venezuela’s state oil company PDVSA leased and operated Curaçao’s refinery, but that arrangement has long lapsed amid Venezuela’s economic collapse and declining output. Today, Curaçao Refinery Utilities (CRU) oversees facilities that have sat largely idle as production in Venezuela dropped and refined product flows dried up.
Now, as the U.S. consolidates access to Venezuelan crude and sets the stage for renewed export flows — potentially even inviting energy firms and traders to formalise roles — Curaçao may find itself uniquely positioned to benefit. If Venezuelan oil begins moving again in significant volumes, exporters and traders such as Vitol will be looking for refinery and storage partners in proximity to their Caribbean supply lines, and Curaçao’s facilities could be a natural match.
Yet the opportunity is far from guaranteed. Venezuela’s oil infrastructure has deteriorated significantly over decades of sanctions and underinvestment, and experts warn that reviving meaningful production will require tens of billions of dollars in capital and years of work. Moreover, U.S. oil firms continue to demand legal and financial guarantees before committing large investments in Venezuela, reflecting the risk-averse nature of the industry even amid new policy shifts.
Still, Curaçao’s current position — equipped with the right infrastructure and now disentangled from unproductive contracts such as the one with Vigor — could allow it to play a pivotal role in regional energy flows as markets recalibrate. The presence of a Dutch company like Vitol in U.S.–Venezuela oil talks further underscores that European and Caribbean stakeholders are part of these emerging discussions.
The big question now is whether Curaçao’s leaders and private sector can act decisively to attract renewed oil investment, refinery activity, and trading interest to the island. After decades of ebbing fortunes in the refinery sector, this may be a moment of historic opportunity.
If seized wisely, it could usher in a new lease on life for Curaçao’s oil infrastructure — and with it, potential economic benefits for the island at a time when global energy politics are rapidly reshaping old alliances and markets.