PM Tables Bill to Retake Ownership of Shares in Petrojam

Prime Minister, the Most Hon. Andrew Holness, today (February 12), tabled a Bill, entitled ‘The Compulsory Acquisition (Shares in Petrojam Limited) Act, 2019, in the House of Representatives.

This is to retake ownership of the 49 per cent shares in Petrojam that are held by the Venezuelan State-owned oil and natural gas company, Petróleos de Venezuela (PDV) Caribe.

The Bill seeks to give effect to that decision and provides for: ownership of the applicable property to vest in the Accountant General in Trust for the Government and for compensation to be paid to persons having an interest in the applicable property in accordance with specified rules.

The existing ownership structure of Petrojam exposes it to serious risks, which threaten Jamaica’s energy security and economic stability.

These risks have been exacerbated and made more imminent by sanctions imposed by third-party countries. As a result, a decision has been taken to enact legislation to provide for the compulsory acquisition of the shares held in Petrojam Limited (“the applicable property”) by persons other than the Petroleum Corporation of Jamaica.

The Government’s decision to repurchase the shares is based on the need to safeguard the country’s interests.

This is particularly in light of increasing sanctions against the administration of Venezuelan President, Nicolas Maduro, initially by the United States through Executive Orders, the latest of which was issued in January, and subsequently Canada.