China National Petroleum Corp, or CNPC, could acquire a 30% stake in Ecuador's Refineria del Pacifico project, according to Rafael Poveda, the Andean country's Minister Coordinator of Strategic Sectors.

"We are in talks for CNPC to have 30% stake in the project," Mr. Poveda told Dow Jones Newswires on Wednesday.

Currently, Ecuador's state-run oil company, Petroecuador, holds a 51% stake in the refinery project and Venezuela's state-run oil firm Petroleos de Venezuela, or PdVSA, holds the remaining 49%. Mr. Poveda said that PdVSA will reduce its stake if Ecuador reaches an agreement with CNPC.

The minister said he expects to complete a deal with CNPC in the next three months.

"It has been a long process due to the magnitude of funding needed, but we are making good progress in negotiations," Mr. Poveda added.

Last year the board overseeing Refineria del Pacifico reduced the estimated cost of building the project by about 23%, eliminating two units at the complex. The current estimate is about $10 billion.

If Ecuador reaches an agreement with CNPC, 30% of the funds needed to build the refinery will be provided by the three partners. The remaining 70% will be financed by a group of Chinese banks headed by the Industrial & Commercial Bank of China Ltd. (1398.HK, 601398.SH, IDCBY).

Ecuador has been negotiating with China since 2011 to raise financing for the project announced in 2007.

Mr. Poveda said that the financing won't be tied to sales of Ecuadorean crude to China. Last year the Andean country sold about 80% of its oil exports to Chinese companies.

The plant is designed to use 17% of Oriente crude, 66.5% of Napo crude and 16.5% of Venezuelan crude, but the Venezuelan crude could be increased if necessary.

The Refineria del Pacifico, to be built in the coastal province of Manabi, will process 300,000 barrels of oil per day.

The plant is scheduled to reach full production capacity in 2016.

According to official data, Petroecuador and PdVSA have already invested more than $500 million in the project.

Ecuador expects between 40% and 45% of the refinery's production to be used for local consumption, and the remainder will be exported.

Currently, Brazilian company Norberto Odebrecht is preparing the site where the refinery will be built.

Ecuador produces about 504,000 barrels of oil per day.