Angola has launched tender to invite companies and individuals to invest in its Lobito refinery. Diamantino Azevedo, Angola’s oil minister said interested parties have four months to present their proposals to the National Fuel Society (Sonangol).
The country is looking to break its dependence on oil imports. In 2019, Angola imported US $1.7bn worth of fuel. Angola currently has a daily production of 1.2 million barrels of crude oil, a volume that could change in the near future as new fields come on line.
The refinery located in Benguela province is projected to process up to 200,000 barrels per day when completed. The project will provide 8,000 direct and indirect jobs in the construction phase and other 4.000 in the production phase. This will contribute to reduction of unemployment rate in the country.
Requirements for participation
The activities of the Lobito refinery have been at a standstill since 2016. So far economic feasibility study, the dredging of Lobito bay, preparation of terraces, heavy load road pipeline and some support infrastructures have been carried out.
According to the proposed corporate governance structure, private investors will own 70% of the company, with state oil firm Sonangol controlling 30% stake. Interested parties’ requirements for participation in the competition include the company’s financial and technical capacity and a track record in terms of investments in similar projects.
“Our perspective is to have, first, enough capacity to supply the internal market, but also additional capacity so that we can export essentially to the countries in the region. There is an outflow of oil derivatives from Angola to the Democratic Republic of Congo, so it is an interesting market. We have been working with our counterparts in the DRC to make the relationship more fruitful for our countries. Already in relation to Zambia, there is a proposal by the Zambian government to study the feasibility of a pipeline from Lobito,” said Diamantino Azevedo.