Niger's Soraz refinery still not exporting despite restart

NIAMEY (Reuters) - China National Petroleum Corp's (CNPC) oil refinery in Niger is continuing to limit production to the domestic market rather than for export, despite resuming after a 45-day shutdown, its union and a company official said on Friday. The Soraz refinery, built as a venture between CNPC and Niger's government, has a capacity of 20,000 barrels a day, but has never reached that figure. Its head of communication Magagi Dada told local television on Oct. 1 it had restarted after a technical shutdown. Export sales, however, remain suspended because of a dispute between the refinery and Niger's state-owned oil firm SONIDEP over the price paid for crude oil. CNPC's original agreement with the state fixed a purchase price of $67 per barrel for crude supplied to Soraz. CNPC negotiated a price of $57 in July, but that figure is still well above current world crude prices. Exports were suspended over the summer due to the price row. "Production has certainly begun again, but a power struggle between Soraz and SONIDEP continues over exports," the union said in a statement, noting production by the refinery was therefore running at a low level. "This quantity (of production) cannot even sustain the refinery's costs, let alone make a profit," it said. Soraz spokesman Magagi Dada confirmed the refinery was limiting production to the domestic market. "The situation on the export front has not changed," he said. ($1 = 577.2700 CFA francs)