The Equatoguinean State through the national oil company (GEPETROL) and two companies under Chinese rights in this case, CRCC and CIRDL have signed a framework agreement for the financing and construction of a refinery. A first initiative of its kind to provide the country with this kind of oil facilities because despite the oil boom of which Equatorial Guinea has been producing since 1995, all the refining processes are carried out outside.
Although the construction cost of this “modern refinery meeting international standards in this area” has not been officially published, the terms of the agreement provide that it will be financed at 44% by Equatorial Guinea. and 56% by the Chinese companies CRCC and CIRDL. An agreement “in a win-win commercial context” indicated the two parties for this project in the pipeline since 2010.
With a minimum production of 20,000 barrels of oil per day, this modular refinery will be able to increase its capacity as needed, to cover national consumption of refined products, which is rising sharply. The construction of this refinery will bring added value to the national economy, indicated the Vice-President of the Republic Nguema Obiang Mangue, because in addition to the limitation of crude derivatives, it will also contribute to creating jobs and increasing sources of income. from the country.
According to the authorities, Equatorial Guinea, which is one of the ten largest oil-producing countries in Africa, wants through this project “to demonstrate the vision of its administration in its development program horizon 2035 in which the government is committed to industrialization of the country.
The work should begin “as soon as possible”, no later than the first half of 2023. Eventually, not only will the national supply be strengthened, but the surplus production might be exported to the sub-region, where the needs in petroleum products are also on the rise.
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