CASTRIES, St Lucia (CMC):

Preparatory work has begun for the construction of a multibillion-dollar oil refinery here by the global energy company, Hess Corporation, Communications and Works Minister Guy Joseph has announced.

"Quite a substantial amount of money has been committed to the feasibility studies and the studies undertaken so far conclude that there will be no problems putting in the refinery," Joseph told the Caribbean Media Corporation (CMC).

"From all indications things look very good because I don't think Hess would spend this kind of money in feasibility studies and all that for nothing."

The refinery, expected to cost more than US$5 billion, is to be built at Cul de Sac, an area 12 miles west of the capital.

"A direction has been given mapping out the area in which the Millennium Highway will be relocated to," Joseph said.

"The first thing that will happen is the realignment of the road. I expect this to start before the end of the year or the beginning of next year. It's not been decided whether Hess would do the work or whether the government would do it on the company's behalf. This would be sorted out in the days ahead," he added.

Further discussions

Recently, a high-powered St Lucia delegation headed by Prime Minister Stephenson King visited the United States for further discussions with representatives of the Hess Corporation on the project.

"The company is continuing to work with a major industry partner on the prospect of building a crude-oil refinery on St Lucia if conditions warrant. An evaluation is proceeding, but no conclusion has been reached," Director of Communication at Hess Corporation, Lorrie Hecker, told CMC.

Hess Corporation is a leading global independent energy company, engaged in the exploration and production of crude oil and natural gas, as well as in refining and in marketing refined petroleum products, natural gas and electricity.

On its website, the company said it was committed to meeting the highest standards of corporate citizenship by protecting the health and safety of its employees, safeguarding the environment and creating a long-lasting, positive impact on the communities in which it does business.