Botswana in Talks to Acquire 30% of Angola’s Lobito Oil Refinery Amid Global Fuel Supply Concerns
Botswana is moving to secure a stake in a multi-billion-dollar oil refinery project in Angola as countries worldwide seek to safeguard fuel supplies amid rising geopolitical tensions in the Strait of Hormuz.
The initiative reflects Botswana’s efforts to strengthen its energy security and reduce vulnerability to global supply disruptions.
As a landlocked nation that produces no crude oil, Botswana relies entirely on imports of refined petroleum products including petrol, diesel, paraffin, and liquefied petroleum gas most of which transit through South Africa.
Historically dependent on the diamond sector for revenue, Botswana is now diversifying its economic strategy in response to slowing returns from the mining industry.
Botswana in Talks for Lobito Refinery Stake
Local reports indicate that Botswana’s Minister of Minerals and Energy, Bogolo Kenewendo, confirmed in Parliament that the country has been offered up to a 30% stake in the Lobito Oil Refinery following President Duma Boko’s recent visit to Angola.
“We have started talks with Angola to join the building of their refinery project,” Kenewendo said, noting that discussions remain preliminary.
“The talks are ongoing as we want to ensure that Botswana’s future in the petroleum sector is secured.”
The Lobito project, led by Angola’s state-owned energy company Sonangol, is expected to have a processing capacity of approximately 200,000 barrels per day.
Initial cost estimates put the investment at around $6 billion, although the total may rise depending on financing and construction developments.
“Angola has petroleum, crude oil, and refinery infrastructure, and they have now given us an opportunity to take at least 30% of the refinery,” Kenewendo added.
Angola’s Oil Capacity Supports Strategic Partnership
Angola is one of Africa’s leading oil producers, with output estimated between 1.1 million and 1.2 million barrels per day.
Most of Angola’s crude is exported to major international markets, including China, India, and Europe. Sonangol manages both upstream and downstream operations and is spearheading efforts to expand domestic refining capacity, with Lobito at the center of this strategy.
Additional Fuel Supply Arrangements
Botswana is also exploring direct fuel procurement agreements with Sonangol.
“When SONANGOL buys fuel for Angola, it could also include Botswana,” Kenewendo said. She added that discussions are ongoing and that further updates will follow as negotiations progress.
The move marks a significant step in Botswana’s energy diversification strategy, potentially reducing the country’s reliance on imports through South Africa and positioning it to better withstand global supply shocks.
