New Refinery Still Lacking Funding

Costa Rica is awaiting the release of a report on the expected profitability of the proposed new Moin refinery, which needs to be 16% or more, in order to gain the support of China's state oil company.

Thursday, March 29, 2012

In order to form a joint venture, the China National Petroleum Corporation (CNPC) asked its Costa Rican partner Recope for the minimum return of 16%.

"The feasibility study prepared by the Chinese company HQCEC confirmed that figure. However, Honeywell, a third company hired to analyze the feasibility study, questioned this return. Given this circumstance, Recope has saught another opinion. These are the results that everyone is anticipating before the Easter break", explained

Jorge Villalobos, President of Recope, is optimistic. "From the preliminary numbers and calculations we have made, the internal rate of return will be above 16%", he said.

For the implementation of this project, Recope and CNPC have formed a joint venture called Soresco.

More on this topic

Controversial Refinery Project in Costa Rica Stopped

June 2013

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.

Funding Agreed for Refinery in Costa Rica

December 2011

China and Costa Rica have signed an agreement for funding via the China Development Bank to build a refinery in the province of Limon.

The China Development Bank (CDB) will provide financing between $800 and $900 million and the rest will be contributed equally by the Costa Rican Oil Refinery (Recope) and the China National Petroleum Corporation International (CNPCI).

Doubts on Projected Refinery Profitability

September 2011

A feasibility study by a Chinese company for the development of a refinery in Costa Rica, is being questioned by the U.S company Honeywell.

Honeywell, a company specializing in oil industry, was hired by the Costa Rican Petroleum Refinery (RECOPE) to analyze the feasibility study was prepared by the Chinese consulting firm Huanqiu Contracting & Engeneering Corp. (HQCEC).

Financing Being Studied for Refinery in Costa Rica

June 2011

The Costa Rican Petroleum Refinery has begun to study funding models with representatives of Chinese companies.

Soresco, in a joint venture with Recope and China's CNPC oil, has almost completed the project’s feasibility studies.

The delegation will arrive in the country headed by Liu Jian, director of the finance department of CNPC, and will be attended by representatives of the China Development Bank and the insurance authorities SinoSure.

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