Cameroon to finish first phase of state refinery revamp in 2016

Cameroon’s state oil refinery will finish the first phase of a project to extend and upgrade its facilities in 2016, it said on Wednesday, allowing it to start boosting output this year.

Annual refining capacity will rise to 3.5 million tonnes from 2.1 million when phase one and two are completed. Separate figures for each phase were not available.

“The project constitutes a priority, the outcome of which will allow the company to increase its production, be more competitive,” Sonara said in a statement.

The central African country has sought to revamp its Sonara refinery for years. But falling oil prices have cut spending, prompting the government to seek other forms of financing.

The finance ministry announced last February it would seek to raise $1.5 billion from banks to refinance the refinery and fund other development projects.

The first phase of the project, about 87 percent of which has been completed, will cost 620 billion CFA francs ($1.02 billion). The second phase is expected to cost 315 billion CFA francs. ($1 = 610.5900 CFA francs) (Reporting by Sylvain Andzongo; Writing by Makini Brice; editing by Susan Thomas)