The Costa Rican Comptroller vetoed an agreement that would have allowed the construction of a $1 billion petroleum refinery.
The accord that was signed in 2008 between the state-owned companies, Costa Rican Petroleum Refinery (RECOPE) and the Chinese National Petroleum Corporation (CNPC) and authorized by president Oscar Arias, would have allowed the construction of a $1 billion, 12,000 barrel refinery in the Costa Rican Caribbean .
The Government will request, again, the approval of the agreement for the construction of a $1 billion refinery with China.
The Costa Rican oil refinery, known by its Spanish acronym Recope, will request, for a second time, the approval of the General Comptroller of the Republic for the construction of a 12,000 barrels refinery in the Costa Rican Caribbean, together with the China National Petroleum Corporation (CNPC).
The Comptroller's Office approved an agreement between state-owned Recope and China for expanding the oil refinery in Moín.
Said agreement was signed between Costa Rican Oil Refinery (Recope), and CNPC International Ltd, a subsidiary of China National Petroleum Corporation. According to it, both companies will provide the necessary resources to increase production from 18.000 barrels to 60.000 barrels a day.
The feasibility study for the project was undertaken by a subsidiary of the Chinese company which is a partner in the project, a situation that is prohibited under the contract with the Costa Rican state refiner.
The Comptroller General of the Republic of Costa Rica also found "weaknesses in the feasibility study," and ordered the Board of the Costa Rican Oil Refinery Company (Recope) to refrain from using the feasibility study conducted by the Chinese company HQCEC "and any others that rely on this", which in practice means stopping the project of building a refinery at a cost of about $1.5 billion.
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