RECOPE Ignores The Savings Per Liter with Chinese Refinery



Almost 6 years after it was spoken for the first time with a refinery in China and with 50 million colones invested in studies and consultancies; RECOPE still doesn’t say what would be the savings per liter of fuel with the new processing plant.

According to the company, the benefit for the final user would be defined in the future by the Autoridad Reguladora de los Servicios Públicos (ARESEP).

RECOPE isn’t capable of giving the exact amount in the total cost of the project and not even how much rent would it take during the first 15 years of contract.

This data depends, for the most part, on how much the firm, that’s going to take care of the construction, would charge.

That’s how the chief managers of RECOPE addressed the subject in a press conference to talk about the economic and environmental benefits of the plan, together with China.

“This is the number that we don’t yet have. Everybody asks ‘and how much is the rent going to be?’ Well, to have the rent you have to know exactly how much is the refinery going to cost and that’s what’s being sharpened right now”. – Explained Jorge Rojas, General Manager of the Refinery when he was asked about the rent.
He added that once they have the precise amount they will get it into a formula that they already have and the rent cost will be calculated there perfectly.

“This is why when they always ask: well and how much is the country going to save? How much is it going to cost? We can’t tell you exactly because that’s part of what’s being negotiated”.

Rojas also insisted that it’s impossible to define how much would be the savings per liter; that would include the ARESEP and there’s too much going on to give an estimated value.

In the press conference, the company indicates that only the difference between buying crude vs. finished products, with conservative calculations, would expect a saving for the country of about 21.000 millions.

When will it reach to benefit the pocket of the consumer? There’s no way to know. “We give the ARESEP the data of how big are our costs and revenue and they fix the price. They are the ones that will determine how much of this money will go directly to the consumer, via price”. He confirmed.

After insisting to Rojas about the saving per liter considering the estimation of this year’s economy he said: “You can make the division, you know how much we sell; Divide how much we sell by that. We have to be very sincere in this. We have to use the preliminary numbers because we don’t know which will be the oil price in 3 years”, He replied.

Dividing 21 million between the sales per year (2.902 million liters in 2012), the saving would be of around 7 colones per liter.

About the cost of the project, after insisting in a fixed price, Luis Carlos Solera, chief of economic and financier studies of the company, said that the most updated number is around 1.500 million.

To build the new refinery, RECOPE and the Chinese refinery CNPC made a new company together named SORESCO.
The refinery will process 65.000 daily barrels. Today the country consumes 50.000 barrels a day and all the fuel is imported already processed.

The dialog with the press about the refinery yesterday by the president of RECOPE, Jorge Villalobos, and other staff members opens the doors for the visit to the country of the president of China, Xi Jinping, and the maximum representative of CNCP, Zhou Jiping. The Asians will arrive to the country this Sunday and one of the subjects in the agenda is the refinery.

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