UPDATE 1-Valero says Aruba oks refinery tax settlement deal

* Valero to pay government 200 million Afl.

* Valero also to pay a minimum tax of $10 million per year

By Janet McGurty

TORONTO, May 31 (BestGrowthStock) – Aruba approved a tax settlement
deal on Saturday for Valero Energy Corp’s (VLO.N: ) idled 235,000
barrel per day refinery on the Caribbean island, a company
spokesman said on Monday.

The agreement leads the way to resolve all tax issues
pertaining to the Valero Aruba Refinery, and as Valero
considers strategic alternatives for the plant, a settlement
will help make the refinery more viable for Valero and for any
future buyer.

“This gives clarity to the cost structure and an idea for
potential future costs. It may lead to some decision making,”
said Bill Day, a spokesman for the company.

Under the terms of the settlement, Valero would pay the
government 200 million Aruba florin and make a minimum tax
payment of $10 million per year.

The refinery was shut in July due to financial losses
caused by the poor economy, the narrow price differential
between heavy sour and light sweet crude oils, and the disputed
issues.

Valero has kept all employees on the payroll until the June
1 deadline for the Parliament to approve the settlement.

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UPDATE 1-Valero says Aruba oks refinery tax settlement deal