The $200m first phase of the project involves the construction of a 30,000 bpd crude distillation unit and storage facility
Angolan state oil firm Sonangol and investment group Gemcorp have made a final investment decision for the construction of the Cabinda oil refinery in Angola.
Planned to be developed in three phases, the refinery is estimated to be built with a total investment of $920m.
The refinery will constructed on the Malembo plain, 30km north of the capital of Cabinda.
The first phase of the project involves the construction of a 30,000 barrels per day (bpd) crude distillation unit and storage facility for more than 1.2 million barrels. It will be built with an investment of $220m.
The Cabinda oil refinery will utilise North American technology for its design, operation and development in 3 phases, with adherence to the principles of Equator.
Sonangol EP board of directors chairman Sebastião Gaspar Martins said: “This final investment decision represents one of the main strategic objectives of the Angolan Government.
“The construction of this Refinery will provide an increase in the capacity for processing crude oil at the national level and a considerable reduction in the country’s dependence on imports of refined products, as provided for in the National Development Plan.
“Sonangol is pleased to support this private initiative, which not only makes a major contribution to the socioeconomic development of Angola, but also encourages increased foreign direct investment in the country.”
Cabinda refinery to have 60,000bpd capacity
Under the second and third phases, work involves upgrading the Cabinda refinery into a full-conversion refinery with an additional 30,000bpd capacity.
The second and third phases of the project will see an investment of $700m. The refinery project is expected to create nearly 2,000 direct and indirect jobs.
Upon completion of the all phases, the Cabinda oil refinery will have a total refining capacity of 60,000bpd.
Expected to commence production in the first quarter of 2022, the refinery project will enable Angola to reduce its dependence on the import of refined products.
Last year, deepwater drilling contractor Seadrill collaborated with Empresa de Serviços e Sondagens de Angola, an affiliate of Sonangol to form 50:50 joint venture to operate four drillships concentrating on opportunities in Angolan waters.