Angola’s First New Refinery in 50 Years Set to Begin Operations by Year-End

Angola’s First New Refinery in 50 Years Set to Begin Operations by Year-End

Angola’s oil and gas minister has confirmed that the country’s long-awaited Cabinda oil refinery will begin producing fuel before the end of 2025, marking a historic milestone as the first refinery built since independence nearly five decades ago. Oil and Gas Minister Diamantino Azevedo made the announcement at an inauguration ceremony attended by President João Lourenço, stating that Angola will have its first commercial derivatives produced at the facility by year-end.

The 30,000-barrel-per-day facility represents Angola’s second oil refinery and is expected to significantly reduce the country’s reliance on costly fuel imports. Currently, Angola imports approximately 72% of its fuel needs, roughly 3.3 million metric tons annually. London-based investment firm Gemcorp is the refinery’s majority shareholder, while state-owned oil company Sonangol retains 10% ownership and supplies the feedstock.

Investment in the first phase has reached $500-550 million, higher than initial estimates due to pandemic-related delays and inflation. The refinery’s first phase is expected to meet 5-10% of domestic fuel demand. A second phase will double capacity to 60,000 barrels per day and add a hydrocracking unit to produce diesel and jet fuel.

The development comes as Angola faces challenges with declining crude production, which slipped below 1 million barrels per day in July, the lowest since March 2023.

Sources: Reuters, Times Live, Africa Business Insider