Ver Angola

Energy

Sonangol moves forward with construction of the Cabinda refinery

The state-owned oil company announced at the end of last week that the British company Gemcorp Capital "made the final investment decision for the construction of the Cabinda refinery", which will have the daily refining capacity of 60,000 barrels of crude oil.

:

According to a statement from the National Fuel Society of Angola (Sonangol), the future Cabinda refinery will be built on the Malembo plain, about 30 kilometers north of the city of Cabinda, with demining and land treatment work for the construction of support infrastructures was completed in August this year.

The "final investment decision represents one of the main strategic objectives of the Angolan Government. The construction of this Refinery will provide an increase in the capacity for processing crude oil at national level and a considerable reduction in the country's dependence on the import of refined products, as provided for in National Development Plan ", pointed out the chairman of the Board of Directors of Sonangol, Sebastião Gaspar Martins, mentioned in the document.

Gemcorp's president, Atanas Bostandjiev, considered that private investment "demonstrates the company's commitment" to "the development of Angolan strategic assets".

"Gemcorp is excited to deliver this project and support the Angolan government's long-term strategic objectives of energy independence and job creation in Angola," said the administrator.

Gemcorp's intention to proceed with the construction of the Cabinda refinery was closed on Thursday, October 29, the day on which a public consultation on the project took place.

It is expected that during the first phase of the project, which is expected to cost 220 million dollars, production of 30,000 barrels per day is expected.

With the second and third phases of the project, whose development will total US $ 700 million, the refining capacity will increase by 30,000 barrels per day, to 60,000 barrels of crude per day.

The project will cover a total area of ​​313 hectares, but in the first phase it will occupy only 30 hectares. The land is located about 3.8 kilometers from the nearest village (Malembo).

With this project Sonangol expects that "approximately 2000 direct and indirect jobs for the community" will be created.

The Cabinda Refinery will be built in three phases, and the first phase is expected to start in the first quarter of 2022, "by which time the Cabinda Refinery will be able to cover fuel demand in the country," says one note on the public consultation held on Thursday.

"The second phase will end in the second quarter of 2023 and the third, and last phase, in the second quarter of 2024", adds the document.

In January of this year, Sonangol and Gemcorp Capital, a company based in London but with Russian capital, signed an agreement for the construction of this refinery.

Initially, the construction was awarded to the United Shine consortium, but the oil company announced that it had terminated the contract alleging "non-compliance with the agreed actions" and "non-guarantee" of financing, among other aspects.

Related