Angola’s Sonangol to have 70 percent stake in Lobito refinery

22 March 2006

Luanda, Angola, 22 March – Angolan state oil company Sonangol will have a 70 percent stake in the Lobito refinery, Sonaref, while its partner Chinese oil company Sinopec will keep the remaining 30 percent, the head of Sonaref, Carlos Saturnino, said Tuesday.

Speaking to financial news agency Bloomberg, Saturnino said that the refinery, Angola’s second such facility, would have the capacity to process 240,000 barrels of oil per day and that 80 percent of production would be exported to neighboring countries.

Work on building the refinery is due to begin by the end of 2007 and in an initial phase it will process 120,000 barrels of oil per day.

Total investment in the project is estimated at US$3 billion, according to Saturnino.

Angola currently has a refinery with a daily capacity for processing 65,000 barrels of oil, located in Luanda.

With the new refinery, Angola hopes to take advantage of the high price of fuel on the international market, and the greater added-value of these products.

Angola is currently the second largest oil producer in sub-Saharan Africa and forecasts point to an increase in production to over 2 million barrels per day within three years. (macauhub)