Equatorial Guinea and Venezuela could possibly cooperate on the construction of a refinery in the West African nation. The two OPEC members could announce plans of a refining complex as soon as January according to Gabriel Lima, Equatorial Guinea’s minister of mines, industry, and energy in an interview with Bloomberg.
The $2 billion refining complex would be run by Venezuela’s state-run oil and gas firm PDVSA and would lead to strengthened ties between the two countries.
The refinery would allow for Equatorial Guinea’s light crude to be blended with Venezuela’s heavier grades, producing an oil supply that could make the planned refinery more competitive than others.
“We are studying the project and we have the financing — we just need an operator,” Lima said. “PDVSA has a large number of trained workers, and a shared language is very important. We can bring their people here to work in one of the plants.”
According to the Bloomberg report, Equatorial Guinea would supply 100% of the financing for the refining project.