Angola Inaugurates Second Major Oil Refinery, Set to Nearly Double Capacity
Cabinda refinery begins operations after years of delays, targeting 60,000 barrels per day capacity
Angola officially inaugurated its Cabinda oil refinery today, marking a significant milestone that will put the country on track to nearly double its refining capacity and dramatically reduce expensive fuel imports. The facility represents a major step toward energy independence for the African oil producer.
After multiple construction delays, the oil refinery has completed the first phase of operations, with production and sale of fuels set to begin within three months. The initial capacity of 30,000 barrels per day of diesel and jet fuel represents approximately 10 percent of Angola’s current fuel requirements.
The second phase of development will eventually reach 60,000 barrels per day, nearly doubling the current capacity of 65,000 barrels per day from the existing Luanda refinery. This expansion will significantly reduce Angola’s reliance on fuel imports, which currently amount to over $2 billion annually.
The Cabinda refinery operates as a public-private partnership between UK-based Gemcorp and Sonangol, Angola’s state-owned oil company, under supervision of Angola’s Ministry of Mineral Resources, Petroleum and Gas. Construction created more than 3,300 jobs, with the majority going to Angolan workers, while training programs aim to prepare 5,000 Angolans for refinery-related careers. Originally estimated at $473 million, COVID-related delays and inflation pushed the final cost to over $500 million. Phase one was backed by multiple African financial institutions, with Africa Finance Corporation mobilizing $335 million and an additional $138 million raised through equity sponsors.
Source: macaonews.org
