Angola to Begin Fuel Production at First New Refinery in 50 Years
Angola’s long-awaited Cabinda oil refinery, the first built since the country gained independence nearly five decades ago, will begin producing fuel before the end of 2025.
Angola’s long-awaited Cabinda oil refinery, the first built since the country gained independence five decades ago, will begin producing fuel before the end of 2025, Oil and Gas Minister Diamantino Azevedo said Monday.
The 30,000-barrel-per-day (bpd) facility will be Angola’s second refinery and is expected to reduce reliance on costly fuel imports as the government 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 at an inauguration ceremony attended by President João Lourenço.
London-based investment firm Gemcorp is the refinery’s majority shareholder, while state-owned oil company Sonangol retains 10% and is supplying the feedstock. Gemcorp has previously said the refinery’s first phase will meet 5–10% of domestic fuel demand.
Angola currently imports about 72% of its fuel needs, roughly 3.3 million metric tons annually, according to Sonangol. Investment in the first phase of the Cabinda plant has risen to $500–550 million, higher than initial estimates due to pandemic-related delays and inflation.
A second phase will double capacity to 60,000 bpd and add a hydrocracking unit to produce diesel and jet fuel.
Meanwhile, the government is reassessing other downstream projects. The proposed 100,000 bpd Soyo refinery is under review following challenges with its U.S.-led private developer, Quanten Consortium.
Construction of the 200,000 bpd Lobito refinery, which faces a $4.8 billion funding shortfall, will restart following a “thorough review” and cost-reduction plan, Azevedo said.
Meanwhile, Angola’s crude production is on a decline. Output slipped below 1 million barrels a day in July, the lowest since March 2023, showing the challenges facing Africa’s second-biggest oil producer.
The country, which quit OPEC in late 2023 after a dispute over quotas, has been working to keep production above the million-barrel threshold.
To stem the decline, Angola has sought new investment. Equinor ASA and Chevron Corp. have recently ramped up activity, while TotalEnergies SE last year approved a $6 billion development.
Still, Azevedo has cautioned that reversing falling output remains the government’s “biggest challenge.”
