Angola’s state-owned oil company Sonangol and investment management firm Gemcorp Capital LLP have partnered and made a final investment decision for the construction of the Cabinda Refinery in Angola.
The refinery will be developed in three phases using the latest technology from the U.S. for its design and operations. The companies will spend $220 million in phase one of construction, and the second and third phases – which will turn the plant into a total conversion refinery – will cost $700 million.
“The construction of this refinery will provide an increase in the processing capacity of crude oil and a considerable reduction in the country’s dependence on imports of refined products,” said Sebastião Gaspar Martins, Chairman of Sonangol. “This final investment decision represents one of the key strategic milestones of the Angolan Government. The construction of this refinery will prompt an increase in the domestic processing capacity and a reduction of dependency on imports of refined products, as foreseen in the National Development Plan. Sonangol is thrilled to be supportive of this private initiative, which presents both a great contribution to the socio-economic development of Angola and an incentive for increased foreign direct investment in the country.”
The project is expected to create approximately 2,000 direct and indirect jobs, while sustaining and supporting Angola’s economy. The refinery will also contribute to Angola’s energy security, reduce dependence on imports, and increase exports of higher margin refined products.
“The Cabinda Refinery private investment demonstrates Gemcorp’s commitment to the development of Angolan strategic assets and our ability to deliver in the most challenging of times. Gemcorp is excited to deliver this project and support the government’s long term strategic goals of energy independence and job creation in greater Angola,” commented Atana Bostandjiev, CEO of Gemcorp. “Through the Cabinda Refinery, Gemcorp will accelerate community outreach, training, and social impact. The long-term plan is for the Cabinda Refinery to maximize local employment and transition to operation by a full Angolan workforce over time.”