Equatorial Guinea Looks to China for Refinery

In an effort to increase its ties with Chinese firms, Equatorial Guinea has approached Sinopec for the construction of a 20,000 bpd refining and petrochemical complex in the West African country. The refinery could later be expanded to 60,000 bpd according to Gabriel M. Obiang Lima, the country's minister of mines, industry and energy.

"We are planning to build a refinery, but will only use a small amount (of crude) coming from our own production," he told Dow Jones Newswires. "We are having discussions with Sinopec regarding that...we were expecting to sign something today, but the time has gone too fast."

The government has approached a number of global firms in regards to developing the refinery however, Lima said Sinopec would be the only company that would take an ownership stake in the project if chosen. The final decision is expected before the close of 2012.