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“... If the power belonged to the
people of Costa Rica, with more
reason should be Costa Rican
energy generated by oil.”
Francisco J. Orlich.
felt in the 70s, when production
in the U.S. peaked and started to
decline. Several Latin American
countries formed companies in
order to defend themselves in this
strategic industry. Pemex was the
first; it was and remains subject
of fierce attacks throughout its
history. Other company´s then
surface successfully such as
Brazil’s Petrobras and Ecopetrol in
Colombia.
Don Hernan Garron states in his
book, “The history of a contract”,
that the Orlich Administration,
in knowledge of this situation,
attempted to build a state-owned
refinery in Costa Rica under the
premise that: “... if electric energy
belonged to the people of Costa
Rica, then hydrocarbon fuel
generatedelectricityalsohad tobe
Costa Rican. ” The initial contract
stated that the government´s
involvement in RECOPE would
increase gradually and reach
100% of equity ownership over 25
years. This process was completed
before 1973 and it was approved
by the Legislative Assembly in
early 1974.
The
main
purpose
was
accomplished: to break the
vertical chain that made it
impossible to control the prices
of oil and take a step forward in
energy sovereignty. The second
step was taken in September of
1975: Advantage of RECOPES´s
strong financial situation was
taken and distribution companies
were nationalized. RECOPE sold
service stations to former dealers
of transnational corporations and
the tanker trucks to the old drivers.
The National Bank of Costa Rica
provided financing in a timely
manner and the Costa Rican
mixed oil system was created
with the advantage provided by
leverages and the strengths of
the state sector along with the
dynamism of many Costa Rican
entrepreneurs who grew from
that point onwards.
Today, 50 years later, a new
project for the modernization and
expansion of the refinery has been
considered. The aim is to build a
campus with 16 high conversion
units for the production of
increasingly
environmentally
friendly fuels. This will, in turn,
facilitate the introduction of new
alternatives like biofuels and
natural gas that may help diversify
the national energy matrix, in
accordance to the National Energy
Plan.
As in previous years, those
threatened by such plans make
significant attacks on refining
activity, but the national interest
must prevail over private interests.
The project has been submitted in
a transparent manner before the
scrutiny of all stakeholders whilst
being backed up by prestigious
international firms sustaining this
to be a project of the first order,
with a guaranteed return and
multiple benefits for the country.
50 YEARS OF HISTORY