Doubts on Projected Refinery Profitability

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).

Among the conclusions reached by Honeywell, is: "... the project presented by HQCEC is not feasible because none of the required products can be produced according to specifications."

"For example, he cited would be difficult to reduce the amount of sulfur in diesel to 15 parts per million which is the target set by the country. Today it is 50 of sulphur ppm.

In the case of gasoline problems were detected in octane and aromatics limits" reported Nacion.com.

Recope will seek a third opinion before proceeding with the project.

Source: Nacion.com

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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%.

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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.

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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).

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