OREANDA-NEWS.  August 14, 2012. Ecuador's Minister Coordinator of Strategic Sectors, Jorge Glas, said Tuesday the Andean country expects results by October from ongoing talks with China's largest oil company and its biggest commercial bank to raise funding for the Refineria del Pacifico.

The nearly USD13 billion refinery, the most important infrastructure project for President Rafael Correa's administration, is a joint venture between state-run Petroecuador and Venezuela's Petroleos de Venezuela SA, or PdVSA. Fifty-one percent is owned by Petroecuador and 49% by PdVSA.

Ecuador has been negotiating with China National Petroleum Corp. and Industrial & Commercial Bank of China Ltd. (601398.SH), or IDB, since last year. Early this year, it signed a letter of intention that outlines the interest of both Chinese entities in providing financing.

"The negotiation is advancing," Mr. Glas said on the sidelines of an oil conference, adding that the Ecuador would like China National Petroleum to become a shareholder and financer. He said the IDB could finance the difference.

According to Mr. Glas, there are other banks interested in financing the project.

Refineria del Pacifico, a refining and petrochemical complex, will have a production capacity of 300,000 barrels per day.

Mr. Glas also said that a mission from Russia's Gazprom (OGZPY, GAZP.RS) plans to come to Ecuador in September or October to evaluate business opportunities in the gas area.

According to the minister, the Russian company is interested in the natural-gas business as well as in the domestic and industrial gas consumption. He did not provide further details.