Angola’s Cabinda Oil Refinery to Begin Fuel Production by 2025, Reducing Reliance on Imports
Angola’s long-awaited Cabinda oil refinery, the first new refinery built since the country gained independence nearly five decades ago, is expected to start producing fuel before the end of 2025, Oil and Gas Minister Diamantino Azevedo announced Monday.
The 30,000-barrel-per-day (bpd) facility will be Angola’s second refinery and aims to reduce the country’s dependence on costly fuel imports, especially as the government gradually phases out fuel subsidies that have sparked violent protests in recent years, according to Reuters.
“By the end of the year, Angola will have the first commercial derivatives produced at this unit,” Azevedo said during an inauguration ceremony attended by President João Lourenço.
The refinery is majority-owned by London-based investment firm Gemcorp, with state-owned oil company Sonangol retaining a 10% stake and supplying the feedstock. Gemcorp has stated that the first phase of the refinery will meet 5–10% of domestic fuel demand.
Currently, Angola imports about 72% of its fuel needs, or roughly 3.3 million metric tons annually, according to Sonangol.
Investment in the first phase of the Cabinda refinery has increased to $500–550 million, exceeding initial estimates due to pandemic-related delays and inflation.
A planned second phase will double capacity to 60,000 bpd and introduce a hydrocracking unit capable of producing diesel and jet fuel.
The government is also reassessing other downstream projects. The proposed 100,000-bpd Soyo refinery is under review following challenges with its U.S.-led private developer, the Quanten Consortium.
Construction of the 200,000-bpd Lobito refinery, which faces a $4.8 billion funding shortfall, will resume after a “thorough review” and cost-reduction plan, Azevedo said.
Angola’s crude oil production is facing a decline. Output fell below 1 million barrels per day in July, the lowest level since March 2023, highlighting challenges for Africa’s second-largest oil producer.
The country, which left OPEC in late 2023 after a quota dispute, has been working to maintain production above the million-barrel threshold.
To reverse the decline, Angola has sought new investment. Equinor ASA and Chevron Corp. have recently increased activity, while TotalEnergies SE approved a $6 billion development last year.
Despite these efforts, Minister Azevedo emphasized that reversing falling output remains the government’s biggest challenge.
