This is nothing but a win-win situation for the DR. Ever since the refinery was in the hands of the US oil, there was never any intention of expanding it or upgrading any part. They simply used the refinery to conduct their spot market sales, controlling the inflow of raw oil always under the capacity of operations. Simply put, they made more money selling the DR already refined oil (gasoline+diesel+jet fuel) from the spot market, than having to pay the taxes and share revenues with the state from the products made in the refinery.
Having Venezuela for a non-majority partner in the refinery, places the DR on an exclusive supply line. That's to say that Venezuela will bring the oil, refined and sell it in the local market, without the gov having to secure large reserves of foreign currency on pre-order. The majority of the bill for the oil headed to the refinery will be paid back in goods other than US Dollars.
The deals taking place side by side, assures the DR a fair balance of trade with Venezuela all based on equal trade. Also the refinery will be expanded to handle the full needs of the country, and enough left over to resell to the regional market as well.
Having the DR keep the majority of shares (51%) provides the controlling missing before with the US Company. Again opening the DR to be able to offer a local subsidy to certain sectors.
The first order of biz will be to prepare the refinery to mix ethanol for the home market. Since flex fuel vehicles and other non-gas only will be the only allowed for import into the country.
Venezuela is facing some serious food shortages, which will without doubt become bigger as things are showing. The DR is able to over-produce certain goods like foodstuff with relative ease, a fact that agrees with the needs of both nations. We need their oil and they need more basic food for the poor masses.
Most of you forget that the never-ending blackouts and lack of electrical service is due more to the failure of the gov to meet the tab, as generators pay for their raw imports and must wait for long periods for the gov to pay the bill. Having a steady supply of energy for the generators, the gov both benefit for having profit derivate from the direct sale to them; as well as the ability to reduce the tab using the sold raw energy to generators in the first place. The debt created from this will then be paid using goods from the DR that need not be a toll to the CB and the foreign currency reserves!
Local producers will receive loans from the internal banks tied to the gov, so the only thing the gov will be directly responsible for is the actual profit margins to the internal industry.
