A New Oil Refinery In Costa Rica Cutting Fuel Costs
Refinadora Costarricense de Petroleo operates the Puerto Limon refinery, which is located in Limon, Costa Rica. It is a non-integrated refinery owned by Refinadora Costarricense de Petroleo. The refinery, which started operations in 1967, has an NCI of 7.43.
President Rodrigo Chaves has announced that there is a high interest from multiple investors in establishing an oil refinery in Limon. The plan is to create jobs and reduce fuel costs in Costa Rica.
Chaves stated that this initiative is among many new major projects underway for the Caribbean province. He confirmed that Juan Manuel Quesada, the head of the Costa Rican Oil Refinery (Recope) is leading the discussions.
“Negotiations and discussions are underway. I’ve spoken with Juan Manuel Quesada to expedite certain legal matters. He won’t proceed with a refinery if $150 million of public funds result in nothing. Limonenses, don’t worry; there’s no cause for panic,” declared President Chaves.
Also Chaves states the financial responsibility for the project lies with the investors, the state will not contribute financially, learning from past experiences.
“Investors are in the process of gathering meetings to present their funding sources. Progress is being made, and while environmental studies are essential, we are committed to environmental protection. This is not a simple task; it’s a complex, sizeable, and sophisticated investment,” he emphasized.
In response to investor interest, Recope has already requested detailed technical and financial studies for evaluation, as stated by Quesada.
“We’ve asked interested parties to conduct a thorough, substantial technical and financial analysis. This will enable us to thoroughly evaluate the feasibility of this project,” he stated.
The institutional hierarchy has assured that approval will only be granted when they are certain it is a beneficial plan for the country, ensuring benefits for all Costa Ricans.
Chaves clarified, on October 4, that the joint refinery proposal differs significantly from the Soresco project.
The document was signed by the executive director of RECOPE, Jorge Rojas, the delegate of the CBD, Guo Lin, and the representative of the China’s government refinery, Wu Yam.
The memorandum serves to reaffirm their commitment to the refinery construction project, which will be located in the province of Limon, on the Caribbean region of Costa Rica. The project will cost about $1.2 billion.
Both Costa Rica and China agreed to ask the CBD for financing between $800 and $900 million dollars, for which they will submit a series of technical and financial requirements in the coming months. The remaining $340 or $ 440 million will be contributed equally by RECOPE and the Chinese state oil company.
According to RECOPE, the new refinery will save Costa Rica between $200 and $300 million in annual oil expenditures, and will expand the Moin refinery capacity in Moin.
Costa Rica's government has said that the deal only means having a line of credit available and that the administration has asked state universities for an analysis to determine whether the project is feasible.
