The refining operations at the refinery were suspended in March, 2012.
Valero chairman and CEO Bill Klesse said the assets at the refinery can be used for crude and refined products terminal.
"With both deepwater berths and smaller berths, the terminal will have the flexibility to load the very largest crude ships," Klesse said.
"In addition, the scale and mixture of tankage will permit commercially attractive storage opportunities for our customers.
"Aruba’s proximity to growing markets and its business-friendly political environment make it an ideal location for our new terminal operations."
The company is expecting to reorganize the refinery into a terminal before the end of 2012.
Valero, meanwhile, will continue to supply jet fuel, gasoline, diesel, and fuel oil to the Aruba Island and also engage in third-party terminal services.
The company is also exploring options to restart the operations at the refinery, before transitioning it into a terminal.
