(Ecofin Agency) - Soraz, the oil refinery in Niger owned by China National Petroleum Corporation's (CNPC), has announced facing short-term difficulties due to a fall in global oil prices, but still focused on selling its own products eventually.

The refinery, a joint venture between CNPC and the government, has a capacity of 20,000 b/d and processes oil from the West African country's Agadem field that began production in 2011.

The company stated in a statement that it was struggling to service a $980 million loan to the government by China's Exim bank used to build the refinery and refinanced in 2012 at a rate of 2 % over 20 years. "The plant has encountered recent financial and commercial problems, namely the lowering of the price of hydrocarbons on the international market, operating costs including payments for crude," Soraz's statement told Reuters.

"Soraz never made any secret of his legitimate desire to be able to market its products," it added.

A week ago, the state company which sells Soraz’s products said the refinery had built up six to eight months of arrears to CNPC-Agadem. An oil workers union says those debts amount to 100 billion CFA francs ($171.78 million). The refinery commenced production last week after a 45-day shutdown due to a mechanical failure.

The refinery's production has never reached its full capacity, oscillating between 12,000 and 16,000 b/d.

Under the terms of the agreement between CNPC and Niger, 7,000 bpd were reserved for the domestic market, with the rest available for export. ($1 = 582.1400 CFA francs)