China to fund oil refinery in Ecuador

February 3, 2014

China recently agreed to provide $10 billion in funding to the massive Pacific refinery project currently underway in Ecuador, China Daily reported on February 3. The Refineria del Pacifico is a mega-refinery for processing crude and the largest public works project in the country.

The details of the deal include that the Industrial and Commercial Bank of China will fund 70 percent of the refinery and state oil giant China National Petroleum Corp (CNPC) also known as PetroChina will partner in the deal with Petroecuador and Venezuela's PDVSA.

Both Petroecuador and Venezuela's Petróleos de Venezuela are state owned and currently have a 51 percent and 49 percent stake in the project respectively. 

Exactly how it will be divided is not yet clear but CNPC will be worked in to have a 30 percent share by the time the deal is finalized. Deputy minister for strategic industries Augusto Espin said that the deal is set to be completed towards the end of March.

"We have the paperwork quite far along, and we are working on the documents to have CNPC in on the Refinery of the Pacific," he said. The final documents will then be submitted to all involved parties for final approval. He also mentioned a completion date of 2017.

President Rafael Correa made the announcement last week during Vice-President Jorge Glas' trip to China. He told foreign press that it was "practically a done deal" and that it is "tremendous news for the nation".

Deputy minister for strategic industries Augusto Espin said that the deal is set to be completed towards the end of March.

Copyright: China Daily, 2014