Ecuador
Press Release

The National Government presented the tender to build a high conversion refinery on the Ecuadorian Coast

Bnamericas Published: Wednesday, March 11, 2020
The National Government presented the tender to build a high conversion refinery on the Ecuadorian Coast

This Ministry of Energy and Non-Renewable Natural Resources release was published using machine translation.

This March 11, the National Government, through the Ministry of Energy and Non-Renewable Natural Resources, presented the tender for the construction of a high conversion refinery, with a 100% private investment of USD 6,000 million. The development of the new refining project is framed in Executive Decree 861, of August 27, 2019, which authorizes this State Portfolio to start the execution of the project for the “Design, construction and operation of a high conversion refinery in the Region Costa del Ecuador ”, in accordance with current legal regulations and the Constitution.

The Minister of Energy and Non-Renewable Natural Resources, René Ortiz, indicated that the new refinery would have a capacity between 150,000 to 300,000 barrels of oil per day, which produces fuels with the Euro 5 Standard, depending on the market. "The decision of the National Government to build a new high conversion refinery responds to the need to cover part of the demand for fuels, which are currently imported to supply the local market. In this new refinery it is not contemplated to use money from the General State Budget because the investment is totally private ”, added the Secretary of State.

As part of the tender, qualified companies will undergo a competitive and transparent process of technical and economic offers, without any commitment to the State Budget. The concession for the operation and maintenance of the new refinery is expected to be for a period of 20 years.

Before executing this investment, the Ecuadorian State will grant environmental and operating licenses, through the competent entities.

It should be noted that the investor will be able to buy Ecuadorian FOB (Free on Board) crude in Esmeraldas, if he considers it so, and will be committed to selling the fuel to the country at prices, based on the Gulf of Mexico marker. Under this modality, the transportation costs that the company pays for this operation will not be assumed by the country.

The National Government will continue to develop the hydrocarbon sector projects in a responsible and sustainable way, making processes transparent and attracting resources to boost the country's economy.

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