PHRT Remains Operational Amidst Contractual Revisions

In a recent development, Port Hamilton Refining & Transportation LLLP (PHRT) has addressed concerns following a “plant closing” notice issued by Pinnacle Services to its workforce stationed at PHRT. This alert, disclosed by the Consortium, hinted at potential significant implications for employment and refinery operations.

Upon consultation with PHRT after the disclosure of the Pinnacle announcement, it was revealed that the notice serves as a component of a tactical negotiation strategy rather than an outright decision to cease operations.

PHRT is actively engaged in discussions with prospective investors and financiers to rejuvenate the refinery’s operations. These talks include the possibility of reevaluating current agreements, such as the one with Pinnacle Services.

To adhere to the regulations set forth by the Virgin Islands Plant Closing Act and to afford Pinnacle Services adequate time to fulfill its obligations in the event of non-renewal, PHRT has issued a 90-day notice of its intention to terminate the existing contract. This approach is likened to the customary procedure of notifying about the cancellation of a homeowner’s insurance policy 30 days prior, while negotiations for renewal are still in progress.

PHRT has expressed a desire to maintain its partnership with Pinnacle Services, appreciating the expertise of Pinnacle’s personnel within the refinery operations.

Pinnacle Services, on January 25, acknowledged receiving notification from PHRT regarding the commencement of discussions with potential backers aimed at restarting the refinery. This includes the potential for amending current agreements to accommodate the requirements of these new stakeholders, specifically mentioning the contract with Pinnacle.

The provision of a 90-day notice by PHRT is a strategic move to renegotiate contracts in alignment with the prerequisites of prospective investors for the refinery’s relaunch.

“Pinnacle was given this 90-day notice by Port Hamilton as a precautionary measure to ensure compliance with the Virgin Islands Plant Closing Act, should there be no renegotiation and the current contract comes to an end,” stated Pinnacle, reinforcing the intent behind the notice as a step towards securing a favorable outcome for all parties involved.