Angola says it is possible for Lobito refinery to have more partners

23 March 2006

Cape Town, South Africa, 23 March – Angola has said it is possible for further partners to be involved in the project for a new oil refinery in Lobito, which currently involves Angola’s state oil company Sonangol and China’s Sinopec, Sonangol’s oil exploration director said Wednesday.

“There is still room for others to come in,” to the project, which requires an estimated investment of around US$3 billion, said Severino Cardoso speaking to the press in Cape Town.

The agreement between the project’s promoters outlines that Sonangol will have a stake of 70 percent, with the remaining capital in the hands of Sinopec.

The refinery, the second in Angola, will begin to be installed by the end of 2007 and will have a full capacity for processing 240,000 barrels of oil per day.

Cardoso added that Sonangol was also looking for partners for units for producing fuel from residual gases from oil exploration.

The traditional process for burning off these gases is due to be banned in Angola and other countries in the region from 2008, which will require that oil companies store, sell or process this by-product.

This month, Sonangol and US company Chevron said they were analyzing a potential investment of almost US$4 billion in a unit capable of producing 4 million metric tons of liquid natural gas.

This project should also involve Exxon Mobil, BP and France’s Total.

Sonangol recently created a subsidiary to manage Angola’s natural gas reserves, known as Sonangas. (macauhub)