Angola: President João Inaugurates $473 Million Cabinda Oil Refinery

Angolan President João Lourenço has commissioned the Cabinda Refinery, marking a major milestone in the country’s ongoing efforts toward energy independence and economic diversification.

The refinery, a joint venture between Angola’s state-owned oil company Sonangol and private investment firm Gemcorp, was developed at a total cost of $473 million.

Of this amount, $138 million was provided in equity by the project sponsors, while a $335 million debt facility was arranged by the Africa Finance Corporation, the African Export-Import Bank, and a consortium of international and local financial institutions.

Designed to eventually reach a total processing capacity of 60,000 barrels of oil per day, the refinery will initially operate at 30,000 barrels per day.

Key products to be refined include diesel, aviation fuel, and other petroleum derivatives.

The refinery is expected to significantly increase the availability of refined fuels in the domestic market and reduce Angola’s reliance on costly fuel imports.

The government also aims to position the country as a regional hub for refined petroleum exports, especially to neighboring countries.

Speaking at the commissioning ceremony, the Minister of Mineral Resources, Petroleum and Gas described the Cabinda Refinery as a strategic asset that strengthens national energy security, creates jobs, enhances the value of the Cabinda Province, and demonstrates that the Angolan State continues to guide, with a firm hand, the management of mineral resources in the service of all Angolans.

Diamantino Azevedo clarified that Gemcorp does not control the crude oil or the refined derivatives. Instead, it provides a refining service under a processing fee model. In this arrangement, Sonangol supplies the crude oil — which remains its property — and the refinery processes it and returns the refined products to Sonangol, charging only a processing fee.

“What matters is not the shareholder photograph, but the contract that governs this project. Everyone must be certain that there is no loss of sovereignty. The oil and refined products always remain under the control of the Angolan State. True sovereignty is not measured in shareholder percentages; it is measured in the capacity for political decision-making and regulation — and that is firmly ensured,” the minister emphasized.

In turn, the Governor of Cabinda, Suzana de Abreu, described the commissioning as “a unique and historic moment — a dream come true — that will ensure natural resources are transformed locally, generating jobs, income, technology, and opportunities for growth for all.”

Gemcorp Director Marcus Weyll added, “As the Cabinda Refinery rises, so too do knowledge, skills, and opportunities for future generations. These values are integral to the pillars of our company.”

To date, the Cabinda Refinery has created 3,300 direct jobs and led to the training of 700 national executives.

More than 5,000 qualified technicians are expected to be trained, further reinforcing the socio-economic impact of the project on both the province and the country.

Source: https://energynewsafrica.com