"The oil refining segment in Angola will expand rapidly until the middle of this decade, fueled by the Cabinda refinery and the Soyo project", writes Fitch Solutions, pointing out that this growth in refining capacity "results from the multi-year strategy of government that aims to reduce dependence on imports and establish an integrated sector, ranging from exploration to production and refining".
In a comment on the oil sector in Angola, analysts at this consultancy owned by the same owners of the financial rating agency Fitch Ratings recall that "in 2021, Angola had only one active refinery [in Luanda], which had happened since 1955", with a capacity of refining of about 60 thousand barrels per day.
Last year, they add, the Cabinda refinery started operating, adding 30,000 barrels per day; with Phase II being implemented, in 2024 the refinery should be able to process over 30,000 barrels a day.
The Soyo refinery, for its part, is expected to start operating in 2025 and will add 100,000 barrels to Angola's refining capacity, which would bring the total to 233,000 barrels of oil, i.e., almost 25 percent of current production of the country, a little over 1 million barrels per day.
"We are cautiously optimistic regarding the deadlines for completion of the Soyo refinery; despite the ambitious start and delays that the project has faced in the past, the US-led consortium, responsible for building the refinery, has confirmed that the project is on track", add the analysts.
Angola produces more than 1 million barrels of oil per day, but has limited refining capacity, which means that it exports crude oil and then imports fuel.