• Submitted by: manso
• Business and Economy
• 05 / 29 / 2011

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The Cuban-Venezuelan project of building a new refinery in the northern port city of Matanzas is alive, an official with the state oil company said on state TV Friday.

Rafael Tenreyro, head of exploration at CubaPetróleo, did not provide any dates or other details.

The construction cost of a 150,000 bpd refinery in Cuba is likely to exceed $4 billion.

Russian oil company Lukoil is reportedly interested in investing in Cuba’s downstream sector; Matanzas could refine heavy crude Lukoil produces in Venezuela’s Orinoco basin. Also, Cuba itself might become a producer of offshore oil, which could be refined at Matanzas.

In 2010 Venezuela — Cuba’s partner in another refinery project — disbursed a total of $1.69 billion in investments and aid to Cuba, according to Venezuelan daily El Universal.

The facility in Matanzas would be the first new refinery since the 1980s, when Cuba began construction of a refinery in Cienfuegos, with partners from the Soviet Union. Cienfuegos, which had been mothballed since the fall of the Soviet Union, began operations in 2006, thanks to investments by Venezuelan state company PdVSA. The Venezuelan and Cuban partners are currently expanding the refinery from a capacity of 65,000 bpd to 150,000 bpd, with participation of a Chinese company.

Source: www.cubastandard.com/2011/05/28/official-confirms-refinery-project/