TAMPA, WILLEMSTAD - Seven Seas Water, an operating segment of AquaVenture Holdings Limited (NYSE: WAAS) (“AquaVenture” or the “Company”), a leader in Water-as-a-Service® (“WAAS®”) solutions, today announced that it has received a formal notice from Curaçao Refinery Utilities B.V. (“CRU”) that it is exercising its right to purchase the Company’s desalination facilities pursuant to the existing water supply agreement.
The existing water supply agreement with CRU began in December 2008, with the Company providing water from a desalination plant with an initial design capacity of 0.5 million gallons per day under a 5-year contract. This agreement has been amended several times, resulting in both expanded water production to the current design capacity of 4.9 million gallons per day and an extended contract expiration date of December 31, 2019. In addition, the contract expiration date will be extended to December 31, 2022 if CRU’s contract with Refineria di Kòrsou (“RdK”), the owner of the refinery, is extended as a result of RdK’s negotiations with the current operator of the refinery, Petróleos de Venezuela, S.A (PDVSA).
The contractual buy-out right requires payment to be made at the contract expiration date. The applicable buy-out amount, if consummated, will be either $3.5 million or, if CRU’s contract with RdK is extended as mentioned above, $2.5 million.
Olaf N. Krohg, Seven Seas Water’s CEO, commented: “We value the fruitful and constructive relationship that we have had with CRU over the last decade. During this time, we have regularly increased our water production to meet CRU’s water needs. According to published reports, RdK is also actively considering proposals from other parties to operate its refinery. We are actively working with CRU and RdK and remain open to constructively engaging with any future operator of the refinery, and will continue to deliver high levels of service through the duration of our contract.”