By EMMANUEL TUMANJONG
YAOUNDE, Cameroon -- Cedecorp S.A. will construct Cameroon's second refinery, giving the West African nation the chance of refining its own heavy crude, state-run Cameroon Radio Television reported Sunday.
An agreement between the company's representative Michael Eppler and Cameroon's Minister of Energy and Water Resources Basile Atangana Kouna was signed Thursday.
According to the terms of the accord, which is based on a build, operate and transfer agreement, Cedecorp will take 30 months to construct the new refinery on an area of 500 hectares in the Atlantic port town of Kribi, located some 300 kilometers southwest of Yaounde.
The new processing plant will produce between 200 and 300 bpd of refined fuel and Cedecorp will run the refinery for 10 years before handing it over to Cameroon.
The project will be entirely funded by Texas firm Refinery Technology, although the cost of the construction wasn't disclosed.
Cameroon exports almost all of its 21 million bbl of heavy crude to buy light crude from Nigeria, which is subsequently processed by Cameroon's lone government-run national oil refinery plant in the sister coastal town of Limbe in southwest Cameroon.
A rise in fuel prices at the filling stations in February 2008 resulted to the death of at least 40 people in clashes between government-deployed troops and angry protesters.
Dow Jones Newswires