The Multinational Monitor


G L O B A L   N E W S W A T C H

Virgin Islands Wins a Deal from Hess

Leon Hess' bark is worse than his bite. For all his heavy-handed tactics, (See MM, April, }980) the chairman of the Amerada Hess Corporation has settled his contract dispute with the Virgin Islands-for the most part, on the government's terms.

The new contract, approved by the Virgin Islands' senate in early May, stipulates that the Hess company will:

  • pay a two cents per barrel fee on oil produced
  • pay more than double its current level of property taxes, to total about $10 million
  • sell fuel below market cost to the Water and Power Authority
  • increase employment training and hiring for technical, supervisory, and management positions
  • build a $3 million vocational school
  • resume expansion of its refinery.

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