Ecuador expects to secure $5 billion from German and Chinese banks next year to build a huge refinery project in a joint venture with Venezuela state oil company PDVSA, a top energy official said. The Pacific Refinery, which will start construction next year, is one of the largest investment projects President Rafael Correa is working on with Venezuelan President Hugo Chavez. The project is intended to reduce domestic fuel costs. Luis Jaramillo, president of Ecuador state oil company Petroecuador, told Reuters late on Tuesday that Deutsche Bank AG and China Import-Export Bank have shown interest in financing $3 billion and $2 billion, respectively, for the project. “The German bank is waiting for a financial study in order to certify the feasibility of the project and approve financing,” Jaramillo said. Petroecuador and PDVSA have created a joint venture for the refinery, which is expected to have a capacity to refine 300,000 barrels per day of crude. Petroecuador holds 51 percent in the project and the Venezuelan company 49 percent. The project has an estimated cost of $12.5 billion. Chavez and Correa, the economy minister, have signed agreements for other oil development and exploration projects and energy sharing deals.
