Project Snapshot
Refinery of the Pacific
Facility Type: Refinery
Scope: New Construction
Owner: Refineria del Pacifico-CEM
Location: El Aramo  Ecuador
Region: Latin America & Caribbean
Modified:  September 14, 2010


Project description

On July 15, 2008, Ecuadorean President Rafael Correa and Venezuelan President Hugo Chavez unveiled plans to build the Refineria del Pacifico refinery and petrochemical complex in Ecuador's coastal Manabi province. According to Correa, the new "Refinery of the Pacific" complex is intended to help Ecuador export crude derivatives.

Although Ecuador produces 600,000 b/d of oil, it must spend $3 billion annually on imports of gasoline and other products because its three existing refineries cannot process heavy crudes.

In addition to gasoline, the 300,000-b/d refinery will produce diesel. Also, production of fertilizers, urea, agrichemicals, and fibers at the complex will mark Ecuador's first foray into the petrochemical industry. The complex's location on the Pacific in Manabi province will enable it to target markets such as Chile, Peru, the United States, and Peru.

Although Petroecuador and PDVSA are currently the sole owners of the mixed company, they expect to add as other Latin American state-owned companies as shareholders. In addition, they envision raising project financing in international capital markets for the $6.6 billion complex.

In March 2010, South Korean-based SK Engineering & Construction Co. announced that it had won a $260 million order for a basic engineering study to build the refinery. Later that year, in September, Dow Jones Newswires quoted Ecuador's strategic sectors minister as saying that his government was seeking on to three strategic investors in the $12.5-billion project.

The official indicated that several South Korean and Chinese companies had indicated in interest in buying stakes in the project. Also, he said that his government was hopeful that third parties such as foreign banks could provide approximately 70% of the funding for the project. In that scenario, Petroecuador and PDVSA would cover the balance of the project cost.

The refinery is projected to begin operations in 2013.

  Key Stats
Products:
gasoline; diesel; fertilizers; urea; agrichemicals; fibers
Construction type:
New construction
Post project capacity:
300,000 b/d
Project cost:
$12.5B
Project completion date:
2013
  Related Articles
Ecuador Plans to Process 16% Of Venezuelan Crude in Refineria del Pacifico
Sep 27, 2012 - Ecuador reportedly plans to process 84% of Ecuadorean crude oil and 16% of Venezuelan crude in the nearly $13 billion planned Refineria del Pacifico, a refining and petrochemical complex project run by state oil companies.
Ecuador Expects Refinery Talks with China to Show Results in October
Aug 01, 2012 - Ecuador's Minister Coordinator of Strategic Sectors said Tuesday the Andean country expects results by October from ongoing talks with China's largest oil company and its biggest commercial bank to raise funding for the Refineria del Pacifico.
CNPC, ICPC May Join Ecuador-Venezuela Refinery - Ecuador Minister
Apr 27, 2012 - China's largest oil company and its biggest commercial bank reportedly have shown strong interest in joining an Ecuador-Venezuela refining project.
China Could Finance Refineria Del Pacifico: Ecuador's Correa
Apr 23, 2012 - Ecuadorean President Rafael Correa said Saturday China could fully finance the $13 billion Refineria del Pacifico, a joint project between Ecuador and Venezuela's state oil companies.
Ecuador Seeks Investors for $12.5B Refinery - Official
Sep 10, 2010 - Ecuador is seeking strategic investors to buy a stake in a proposed $12.5 billion joint oil refinery project with Venezuela, Ecuador's Strategic Sectors Minister Jorge Glas said Friday.
SK Engineering Wins Study for $12.5B Ecuador Refinery
Mar 08, 2010 - SK Engineering & Construction Co., a South Korean builder, said Monday it has won a US$260million order for an oil refinery project in Ecuador.
Venezuela May Shelve Refinery Plans for Nicaragua, Ecuador
Nov 29, 2008 - Venezuela could shelve plans to build refineries in Nicaragua and Ecuador as part of a review of oil projects.
New Ecuador Refinery Advances Regional Integration Plan - Chavez
Jul 16, 2008 - Ecuadorian President RafaelCorrea and Venezuela's Hugo Chavez appealed to Latin American unity during a ceremony in El Aramo, Ecuador to inaugurate construction of a big petrochemical complex.
Venezuela, Ecuador Plan Pacific Coast Refinery Complex
Jul 15, 2008 - Venezuelan President Hugo Chavez and Ecuadorean President Rafael Correa on Tuesday officially unveiled plans for a joint-venture refinery to be located on Ecuador's Pacific coast.
Ecuador, Venezuela To Break Ground On Refinery Next Month
Jun 17, 2008 - The state-run oil companies of Ecuador and Venezuela will begin construction next month on a new 300,000 barrels-per-day refinery and petrochemical complex in Manabi, the office of Ecuadorean President Raffael Correa said Tuesday on its Web site.
Correa: China, S. Korea Interested In Pacific Refinery
Jun 02, 2008 - President Rafael Correa said China and South Korea have expressed interest in supporting construction of Refineria del Pacifico, a petrochemical project being undertaken by Ecuador and Venezuela.
Venezuela To Own 49% of Petroecuador Refinery
May 12, 2008 - Petroleos de Venezuela, or PdVSA, will have 49% of the shares in the Refineria del Pacifico-CEM, a company that will be established with Petroecuador to build a new refinery for heavy crude, Petroecuador said Monday.
Ecuador, Venezuela Agree to $5B Refinery Deal - Official
Jan 31, 2008 - Ecuador and Venezuela have reached agreement to build a refinery in Ecuador with a price tag of around $5 billion, Ecuador's Oil Minister Galo Chiriboga said Thursday.
Ecuador, Venezuela Launch Refinery Project
Jan 08, 2008 - Meeting in Quito on Monday, the energy ministers of Ecuador and Venezuela signed a letter of intent for the creation of a mixed company to build a refinery on Ecuador's Pacific coast.
Ecuador: Work on New Refinery Could Begin In March
Sep 27, 2007 - Construction of Ecuador's new refinery is to start in March at the earliest, pending completion of feasibility studies, Ecuador Interior Minister Gustavo Larrea said Wednesday.
Chavez and Correa: Work on Ecuador Refinery to Start Next Year
Aug 10, 2007 - Hugo Chavez on Thursday offered to help Ecuador build a $5-billion oil refinery, as the socialist leader pledged to spread his government's oil wealth to another South American ally.
PdVSA, Petroecuador to Sign Refinery Deal This Week
Aug 06, 2007 - Venezuelan President Hugo Chavez will travel to Ecuador Thursday to sign an agreement that will allow state-owned Petroleos de Venezuela SA to team up with Petroecuador to build a refinery, Ecuador's mining and oil minister said Monday.
Petroecuador Board Okays $4B Refinery Construction
Jun 27, 2007 - The board of directors of Ecuador's state-owned oil company, Petroecuador, has approved plans to build a new refinery at an estimated cost of $4 billion, interim Energy Minister Jorge Alban told Dow Jones Newswires Wednesday.
Heavy Oil Refinery on Ecuadorian President's Wish List
Mar 29, 2007 - Ecuador's President Rafael Correa called on China to strengthen bilateral cooperation between the two nations.



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