By Peter Krupa
Tico Times Staff | pkrupa@tico…

Costa Rica appears to be on track to expand its petroleum refinery with the help of a Chinese oil company. The broad goals are to triple the refinery’s output and increase quality. Officials said the collaboration could also lead one day to oil drilling by the China National Petroleum Corp. (CNPC).

That worries environmental groups, as it would mean an about-face from a nationwide moratorium on oil exploration and open-pit mining, enacted by former President Abel Pacheco (TT, June 7, 2002).

Top officials from the corporation visited Costa Rica last week to form an exploratory committee with their Costa Rican counterparts. “The framework agreement we signed in October is now a reality,” said Costa Rica’s National Oil Refinery (RECOPE) President José León, referring to an accord between China and Costa Rica signed by President Oscar Arias. He added, “This initiative has the green light.”

Environment and Energy Minister Roberto Dobles said the purpose of expanding the Moín refinery would be to “meet the national demand,” which he said is estimated to rise to about 60,000 barrels per day in the near future. Currently, the refinery puts out about 18,000 barrels per day, Dobles said.

The other goal of the refinery upgrade is to increase the quality of the fuel refined in Costa Rica by, for example, decreasing the sulfur content. Details of the project have yet to be determined, but the committee will meet again in February in China and March in Costa Rica. Robles said that, in the long term, the agreement leaves the door open to oil exploration by the Chinese corporation.

However, for environmental groups concerned about the government calling off the five-year old moratorium on drilling, the deal is a move in exactly the wrong direction. About 100 protestors, armed with bicycles and drums, demonstrated Friday in San José, calling for government measures that would lessen, not increase, the country’s dependence on fossil fuels.

“While most of the world is eager for concrete action to end, mitigate and dramatically reduce CO2 emissions, Costa Rica is backpedaling and choosing to ally itself with China to increase its dependence on fossil fuels,” said Alicia Casas, Mesoamerican Facilitator for the international network Oilwatch