Chinese-Angolan consortium will build oil refinery in Angola

9 July 2015

A consortium of companies from Angola and China Wednesday in Luanda presented a project for a new oil refinery that will require an investment of US$14 billion, reported the Angolan press.

The refinery, called “Prince of Kinkakala,” will be built in the municipality of Ambriz and will have a refining capacity of 400,000 barrels of oil per day. The consortium includes angolan state oil company Sonangol, with a 40 percent stake.

The remaining 60 percent of the share capital of the promoter consortium is held by Angolan private oil sector company iGPM International Global Services sector and by a group of unnamed Chinese companies.

The president of GPM International Global Services, John Feliciano Bifica, said the project includes construction of a power station, a university campus and a hospital complex.

Commissioning of the refinery is scheduled for 2020 and “completely reduces imports of the main products extracted from oil, starting with diesel, whose deficit is very high, and gasoline.”

This is the third refinery under construction in Angola – in addition to the only one in operation in the country, in Luanda, which is insufficient for the country’s needs – alongside the Soyo and Lobito refineries.

The only refinery that is currently operating was built in 1955, operates at just 70 percent of its installed capacity and, according to the International Monetary Fund, is “very inefficient” and production costs “exceed, in general, those of imported fuels.”

Sonangol later denied it was part of the shareholder structure of the consortium set up to build the “Prince of Kinkakala” refinery, in Ambriz, Bengo province.

The denial came in a statement which, despite not being available on the state company’s website, was cited by state newspaper Jornal de Angola (http://jornaldeangola.sapo.ao/politica/desmentido_da_sonangol). (macauhub/AO/CN)
Sonangol later denied it was part of the shareholder structure of the consortium set up to build the “Prince of Kinkakala” refinery, in Ambriz, Bengo province.
The denial came in a statement which, despite not being available on the state company’s website, was cited by state newspaper Jornal de Angola (http://jornaldeangola.sapo.ao/politica/desmentido_da_sonangol). (macauhub/AO/CN)
(macauhub/AO/CN)

MACAUHUB FRENCH