Swiss-based commodities trader
Glencore is negotiating the sale of its stake in a refinery
upgrade project in Colombia to state-run oil company Ecopetrol, Colombia’s energy minister said on Monday.
Earlier this month, the Colombian government said Glencore
was struggling to obtain financing for its 51 percent share in
the investment to boost output at the refinery in the port city
of Cartagena to 140,000 barrels per day (bpd) from 75,000 bpd.
Energy and Mining Minister Hernan Martinez said talks
between Glencore and Ecopetrol, which holds the remaining 49
percent stake in the project, were expected to reach agreement
over the sale later this week.
“It is a friendly arrangement because the project’s not
going to come to a halt,” Martinez told a news conference.
He estimated the cost of the project at $3 billion, revising
earlier estimates of $2.4 billion.
Martinez, who said the negotiations were focused on how much
Ecopetrol would pay Glencore for its stake, said Ecopetrol was
capable of financing the refinery upgrade project itself but
would probably seek a partner.
This is the latest sign that the spreading global crisis is
hurting Glencore after the company halted projects and sacked
hundreds of mining workers in Peru and Bolivia. (Reuters)