Chinatofundgiantoilrefineryin

Ecuador
Updated:2014020306:18

(ChinaDailyLatinAmerica)
Chinarecentlyagreedtoprovide$10billioninfundingtothemassivePacificrefineryprojectcurrentlyunderwayin
Ecuador.TheRefineriadelPacificoisamegarefineryforprocessingcrudeandthelargestpublicworksprojectinthe
country.
ThedetailsofthedealincludethattheIndustrialandCommercialBankofChinawillfund70percentoftherefineryand
stateoilgiantChinaNationalPetroleumCorp(CNPC)alsoknownasPetroChinawillpartnerinthedealwithPetroecuador
andVenezuela'sPDVSA.
BothPetroecuadorandVenezuela'sPetrleosdeVenezuelaarestateownedandcurrentlyhavea51percentand49percent
stakeintheprojectrespectively.
ExactlyhowitwillbedividedisnotyetclearbutCNPCwillbeworkedintohavea30percentsharebythetimethedealis
finalized.DeputyministerforstrategicindustriesAugustoEspinsaidthatthedealissettobecompletedtowardstheendof
March.
"Wehavethepaperworkquitefaralong,andweareworkingonthedocumentstohaveCNPCinontheRefineryofthe
Pacific,"hesaid.Thefinaldocumentswillthenbesubmittedtoallinvolvedpartiesforfinalapproval.Healsomentioneda
completiondateof2017.
PresidentRafaelCorreamadetheannouncementlastweekduringVicePresidentJorgeGlas'triptoChina.Hetoldforeign
pressthatitwas"practicallyadonedeal"andthatitis"tremendousnewsforthenation".
TherefineryprojectisexpectedtocutdomesticfuelcostsforEcuador.AlthoughEcuadorisamemberoftheOrganization
ofPetroleumExportingCountries,itisthesmallest,pumping500,000barrelsofcrudeaday.Becauseitdoesnothave
refiningcapabilitiesEcuadoractuallyneedstoimportoilproducts.
DeputyministerforstrategicindustriesAugustoEspinsaidthatthedealissettobecompletedtowardstheendofMarch.
VicepresidentofEcuadorJorgeGlasconcludedhisvisittoChinaonJanuary24.DuringhisvisitGlasmetwithChina's
VicePresidentLiYuanchaoandotherleaders,allthewhilestressingthespiritofcooperationbetweenthetwocountries,
sayingthatEcuadorhasbeenpavingthewaytoworkwithChinaforsometime.
EcuadorwillalsosoonallowvisafreeservicesforChinesetouristsmakingtravelbetweenthecountriesfarsmoother.Glas
laudedChina'sknowledgeandresourcesandsaidrepeatedlythathelookedforwardtoworkingwithCNPCandother
Chinesebusinessesinthefutureandhehopesforfarmoreinvestmentfromthecountryinadditiontothislatest.Glas'last
officialstoponhistourwasatasteelfactoryinTianjin.
Glasstressedthatthisisnotaonesidedrelationship.InaninterviewwithnewsagencyPrensaLatina,GlascalledChinaa
countrywiththetechnology,expertiseandfinancialresourcesrequiredbyEcuadortoachieveindustrialization.Though
Chinahasalottogive,Ecuador,foritspart,hasnonrenewablenaturalresourcesthatChinaneedstocontinueitssteady
paceofdevelopment,hesaid.
Ecuador"hasasurplusinhydrocarbonsandadeficitinliquidity,likeallpoorcountries,"makingthedealmutually
attractive",CorreatoldtheLatinAmericanHeraldTribune.
"Wedevelopingcountriesofcourseneedfinancing,andChinaistheworld'sleadingfinancier,eventotheUnitedStates,"
Correasaid.
Ecuadorisalsolookingtousetherefinerytospreadthewealth.Withittheyaimtoincreasedomesticoilproduction,stop
theimportofoilfordomesticconsumptionandplacethesurplusinmarketssuchasPeru,ChileandsomeCentralAmerican
countries.
ElianaKirshenblatinNewYorkcontributedtothestoryandcanbereachedatelianakirshenblat@chinadailyusa.com
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