The Cabinda Refinery in Angola marks a significant milestone for the nation as it sets the stage for oil production, with the goal of achieving full commercial operations by July 2025. The CEO of Cabinda Refinery Corporation, Marcelo Hofke, announced that the project’s construction began in 2023 following financial closure in July 2022. The refinery aims to reduce Angola’s heavy reliance on imported refined products and asserts the nation’s strategic move towards energy independence. With a total project cost of $473 million, funding comprises $138 million in equity from sponsors and a $335 million financing facility led by institutions such as Africa Finance Corporation and African Export-Import Bank.
The initial phase of the refinery boasts a production capacity of 30,000 barrels per day (bpd), primarily focusing on the production of diesel and jet fuel. This phase sets the groundwork for a subsequent expansion that will double the capacity to 60,000 bpd. With the expansion, the refinery’s output will broaden to include not only diesel and jet fuel but also gasoline and gas. This sophisticated development is crucial for Angola, a country with a paradoxical dependence on imported refined petroleum products while exporting nearly all of its crude oil. Atanas Bostandjiev, CEO of Gemcorp, which holds a commanding 90% stake in the refinery, underscored the inefficiency where Angola imports almost all of its refined products despite exporting the vast majority of its crude.
Gemcorp’s considerable 90% ownership stake materialized after the initial project kickoff in 2017, alongside Angola’s national oil company, Sonangol, which maintains a 10% share. The Cabinda Refinery involves an extensive workforce comprising 2,800 employees, with an impressive 85% being Angolan nationals. A robust training program is in place to ensure approximately 180 employees are operationally prepared by the project’s launch. Hofke’s announcement highlights the importance of preparing local talent for the refinery’s operations, reflecting a commitment to the community and resource sustainability.
Overall, the Cabinda Refinery project stands as a landmark initiative poised to enhance Angola’s energy self-sufficiency and economic efficiency. By transitioning from a model dominated by crude oil exports to one where domestic refining plays a pivotal role, Angola paves the path for greater control over its resources and economic stability. The refinery’s progression represents a critical step in the country’s pursuit of optimizing its oil sector and achieving long-term gains in energy management and national revenue.
