Two Chinese companies have signed a framework agreement to build a modular refinery in Equatorial Guinea.
China Railway Construction Corporation (CRCC) and CIRDL signed the deal with Gepetrol on August 16, in Malabo. The refinery will have 20,000 barrels per day of production.
Geptrol director Antonio Oburu Ondo signed the agreement in a ceremony overseen by Vice President Teodoro Nguema Obiang Mangue.
Equatorial Guinea will provide 44% of the financing, while the Chinese companies will provide 56%.
Nguema Obiang Mangue has said that other proposed refinery projects would have required Equatorial Guinea to cover all the costs. Bringing CRCC into the project reduces the up front cost.
A statement on the deal from the ruling PDGE party said the vice president was a backer of the scheme, which is a first for the country. The project will generate employment and boost the national economy, the statement said.
The vice president said the companies signing the deal should work to commission the refinery as quickly as possible.
The PDGE statement said the refinery would be a “win-win” for the Chinese and Equatorial Guinea. Previous comments on the refinery plan have put the cost at around $450 million.
The refinery will produce asphalt, plastics and other petroleum derivatives.