China National Petroleum Corporation has signed a joint venture agreement with Costa Rica's state refinery RECOPE to build an oil refinery in Costa Rica.

This is the first oil and gas cooperation project in Central America since China and Costa Rica established diplomatic relations in June 2007.

According to the agreement, the parties will set up a joint venture in Costa Rica, with a total term of 25 years, to upgrade, reconstruct and expand Costa Rica's 1.2-million-ton refinery; to increase its processing capacity; improve product quality and environmental protection; and meet Costa Rica's demand for oil. The JV is expected to increase the existing oil refinery's processing capacity to three million tons annually. On addition, the two parties will conduct a feasibility study on a 10 million ton refinery.

The signing of the agreement is believed to be an important step in CNPC's energy cooperation in Central America.

CNPC specializes in oil and gas upstream and downstream operations, oilfield services, engineering and construction, petroleum material and equipment manufacturing and supply, capital management, finance and insurance services and new energy operations.