No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeArchiveNational Oil Refinery president resigns in dispute over China-backed refinery

National Oil Refinery president resigns in dispute over China-backed refinery

National Oil Refinery (RECOPE) Executive President Jorge Villalobos resigned Thursday after the Comptroller General’s Office ordered a halt to plans to build a new oil refinery in Moín, on the northern Caribbean coast, citing conflicts of interest in the planning stage of the project.

After an investigation, the Comptroller General’s Office said that Huanqiu Contracting & Engineering Corp., the company that conducted a feasibility study of the project, is a subsidiary of the China National Petroleum Corporation, a partner with RECOPE in the construction of the refinery.

The conflict of interest is a violation of the concession’s contract, the office said.

“I think it’s an unacceptable error,” Environment Minister René Castro said at a press conference on Thursday.

Negotiations for the project, which largely would have been funded by China, started under the administration of President Oscar Arias, from 2006-2010.

 As RECOPE’s executive president, Villalobos directed the initial stages of the project, which was projected to cost $1.3 billion. The Chinese government had promised a $900 million credit, pending completion of the feasibility study.

The Moín refinery project sparked a fierce national debate over whether it would help ease fuel prices over the long term, as Villalobos had argued. Critics said taxpayers would foot the bill for a project that ultimately would drive fuel prices up.

In a fiery debate on TV’s Channel 7, opposition leader and former presidential candidate Ottón Solís blasted Villalobos, accusing him of lying to lawmakers to cover up the relationship between the Chinese companies. Villalobos denied the accusations. He resigned a day later.

“We have asked RECOPE for a Plan B that includes a feasibility study open for international bidding, and other options such as the use of biofuels or maintaining the status quo,” Castro said.

He added that officials would consider biofuels if studies show they can be used for up to 15 years, which is the estimated time the government will need to pay off the cost of the refinery.

RECOPE has 6 months to present a new plan.

Trending Now

Costa Rica’s Tourism Minister Dismisses Crime and Currency Concerns

Tourism Minister William Rodríguez López addressed growing concerns about crime and the strengthening colón’s impact on Costa Rica’s tourism industry, asserting that these issues...

Costa Rica’s President Stirs Debate with Oil Exploration Stance

President Rodrigo Chaves has sparked controversy with his recent comments on oil exploration and the Escazú Agreement, defending his positions in an interview with...

Costa Rica Tourism Slips Again in May 2025: U.S. and European Visitors Drop

Tourist arrivals to Costa Rica took another hit in May 2025, raising red flags for the country’s vital tourism industry. Data from the Costa...

Costa Rica’s UN Ocean Conference Role Slammed as Hypocritical

Costa Rica’s high-profile role in the 2025 United Nations Ocean Conference (UNOC3) in Nice, France, has triggered fierce criticism from lawmakers and environmentalists, who...

U.S. Warns Americans to Avoid Nicaragua Amid Authoritarian Risks

The U.S. State Department is urging Americans to skip travel to Nicaragua due to increasing authoritarianism that puts tourists at risk. The Level...

From Bookie to “Pura Vida”: A True Costa Rica Expat Story

I recently wrote about my fear that three decades after learning Spanish, I was now slowly losing my fluency, forgetting words I had once...
spot_img
Costa Rica Tours
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica