- Title: CUBA: Amid uncertainties, country seeks funding for refinery expansion
- Date: 12th February 2013
- Summary: CIENFUEGOS, CUBA (RECENT) (REUTERS) SIGN FOR CIENFUEGOS OIL REFINERY READING: "THE ALBA GROWS. HERE IS WHERE THE EXPANSION OF THE CIENFUEGOS REFINERY IS BEING BUILT. NOTHING WILL STOP US ON THIS ROAD." VARIOUS OF OIL REFINERY (SOUNDBITE) (Spanish) RICARDO CABALLERO, PRESIDENT OF CUBVENPETROL, SAYING: "What we're most worried about is having a good project, an efficient project, a project with high profit margins that will be attractive for financial institutions and let us get the money and move forward. That's what the team is worried about. We don't really see any change in Venezuela. Venezuela has a solid, strong government, and we have complete confidence Chavez is going to join their efforts soon." VARIOUS OF WORKER AT OIL REFINERY (SOUNDBITE) (Spanish) RICARDO CABALLERO, PRESIDENT OF CUBVENPETROL, SAYING: "This year should be a defining year for financing and for strategies of execution, such that by the end of this year or the beginning of next year we could be executing the project." VARIOUS OF CONTROL ROOM AT REFINERY (SOUNDBITE) (Spanish) RICARDO CABALLERO, PRESIDENT OF CUBVENPETROL, SAYING: "The Chinese are the main contract workers. They must be the main contract workers for the entire expansion project. No matter the model we are able to put in place, they will be with us. That's what we hope for during the entire process of development. That's what we predict with the Chinese and of course we are interested in that." CUBAN AND VENEZUELAN FLAGS POSTER AT REFINERY OF VENEZUELAN PRESIDENT HUGO CHAVEZ WITH FORMER CUBAN PRESIDENT FIDEL CASTRO VARIOUS OF CHIMNEY AT REFINERY
- Embargoed: 27th February 2013 12:00
- Keywords:
- Location: Cuba
- Country: Cuba
- Topics: Business,Industry
- Reuters ID: LVAIHWK0CG6X4R7HMTIAF8M1YNP
- Story Text: Cuba is looking for someone to finance a $6 billion expansion of its largest oil refinery amid uncertainties about China's role in the project and the future of its close ally and oil supplier Venezuelan President Hugo Chavez.
Ricardo Caballero is the chief executive of Cubvenpetrol, a Cuba-Venezuela joint venture running the refinery, which is located in the southern city of Cienfuegos. Caballero said this week the finishing touches are being put on a proposal to present to possible international financiers, but there was "no pre-determination" of who would foot the bill and there had been no talks with anyone about it.
"What we're most worried about is having a good project, an efficient project, a project with high profit margins that will be attractive for financial institutions and let us get the money and move forward. That's what the team is worried about. We don't really see any change in Venezuela. Venezuela has a solid, strong government, and we have complete confidence Chavez is going to join their efforts soon," he told reporters at the refinery.
The plan calls for expanding capacity from 65,000 barrels per day to 150,000 and building a liquefied natural gas plant. Once funding is obtained, it will take 45 months to complete the project, said Caballero, adding he hopes work will start in about a year.
"This year should be a defining year for financing and for strategies of execution, such that by the end of this year or the beginning of next year we could be executing the project," said Caballero, a veteran of Cuba's oil industry.
People involved in the expansion said more than two years ago China would build and finance the project, with the money backed by Venezuelan oil. But the deal has never taken wings.
Nothing has been disclosed publicly and the Chinese have been mostly silent on the matter. However, sources say China has never signed a final agreement due to questions ranging from Chavez' health to future oil and natural gas supplies to whether the project will be built by Chinese or Cuban workers.
"The Chinese are the main contract workers. They must be the main contract workers for the entire expansion project. No matter the model we are able to put in place, they will be with us. That's what we hope for during the entire process of development. That's what we predict with the Chinese and of course we interested in that," Caballero added.
The 58-year-old Chavez is recovering in Havana two months after his fourth surgery for cancer, described only as being in the pelvic region. He has not been seen or heard from publicly since the six-hour operation on Dec. 11.
Although Venezuelan officials say Chavez is improving, there are doubts about his future, and, consequently, about the future flow of Venezuelan oil to Cuba. - Copyright Holder: REUTERS
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