Angola’s state oil company, Sonangol, is in advanced talks with Chinese and European banks to secure $4.8 billion in funding needed to complete its long-delayed Lobito refinery project.
The facility, once operational, will have the capacity to process 200,000 barrels of crude oil per day, significantly reducing the country’s dependence on imported refined fuel.
Despite being Sub-Saharan Africa’s second-largest crude oil exporter, Angola imports nearly 80% of its refined petroleum products.
The Lobito refinery is a strategic project aimed at reversing this imbalance, especially as the Angolan government begins phasing out fuel subsidies and pushing for greater energy self-sufficiency.
Construction of the refinery, located in the Atlantic port city of Lobito, resumed in December 2023, nearly a decade after work was first halted. Upon completion, it will become Angola’s largest refinery.
According to Joaquim Kiteculo, CEO of Sonangol’s refining division, the total cost of the project is estimated at $6.6 billion, with $5.3 billion allocated to the single-train refinery unit, which includes a hydrocracker. The remaining funds will go toward associated infrastructure.
“We’re not relying solely on Chinese banks—we’re also exploring other funding avenues,” Kiteculo said during an energy conference in Cape Town, South Africa.
He expressed confidence in raising the necessary capital, naming ICBC (Industrial and Commercial Bank of China), Société Générale, Standard Chartered, and Afreximbank among the financial institutions involved in ongoing discussions.
Sonangol is contributing $950 million of its own capital to finance the initial phase of the project, focusing on roadworks, administrative buildings, and other essential infrastructure.
China National Chemical Engineering Co. Ltd. has been contracted for engineering and construction, while KBR, a Houston-based firm, is providing consultancy services and led the front-end engineering and design (FEED) phase.
Kiteculo also denied media reports suggesting that Nigerian billionaire Aliko Dangote—who recently inaugurated Africa’s largest refinery in Nigeria—was looking to partner on the Lobito project, calling the claims “untrue.”
