(Ecofin Agency) - China National Petroleum Corporation's (CNPC) Soraz oil refinery in Niger has resumed production after a 45-day shutdown due to a mechanical failure, according to a company spokesman.
The refinery, a joint venture between CNPC and the government, has a capacity of 20,000 bo/d and processes oil from the West African country's Agadem field which started production in 2011. "Output has restarted at Soraz," the refinery's head of communication, Magagi Dada, told Reuters. "The refinery has had a technical shutdown since mid-August but the problem has been fixed."
CNPC obstructed exports of oil products from the refinery in July with the aim of seizing this business from state-owned oil firm SONIDEP, union officials said. Supplies to the domestic market were also affected from August due to the refinery’s shut down.
Ousmane Idi Ango SONIDEP Director General on Wednesday stated that the government was not willing to relinquish control of the business.
The refinery's production has never reached its capacity, fluctuating between 12,000 and 16,000 bbls/d.
Under the terms of the agreement between CNPC and Niger, 7,000 bbls/d were reserved for the domestic market, with the rest available for export.