Angola’s Sonangol seeks $4.8 billion to bridge Lobito refinery funding gap, engaging Chinese and European banks to finance the 200,000 barrel-per-day facility.
Angola’s Sonangol seeks $4.8 billion to bridge Lobito refinery funding gap, initiating talks with Chinese and European banks to secure the necessary financing for the ambitious project.
Lobito sits in the Atlantic as the proposed site for Sonangol to establish a 200,000 barrel-per-day refinery that will become Angola’s biggest refinery when finished.
As the second-biggest crude oil exporter in Sub-Saharan Africa Angola needs to import 80% of its refined petroleum products.
The Lobito refinery development serves both strategic objectives of lowering domestic refined fuel imports and making Angola an exporter of refined products.
The Sonangol refining division CEO Joaquim Kiteculo reported that the entire project expenses amount to $6.6 billion with $5.3 billion dedicated to constructing the refinery facility.
The first stage of the initiative requires $950 million from Sonangol directly for constructing roads and building offices.
The company expects to obtain necessary funding which will trigger construction activities during the following year.
The company Sonangol seeks necessary funds from financial institutions that include Industrial and Commercial Bank of China and Societe Generale and Standard Chartered and Afreximbank.
The initiative represents part of a wider strategy that combines various funding sources to guarantee successful implementation of the project.
The Lobito refinery project functions as an essential development for Angola’s energy foundation while offering its economy greater independence.
The country seeks to boost both its global energy market presence and internal economic development by decreasing its import of refined products.
