Two Russian groups, Rail Standard Service and Fortland Consulting Company, will invest US$12 billion to build a refinery in Namibe and a rail link between the Benguela and Moçâmedes railroad, according to a presidential order.
The order authorising a private investment contract said that when the refinery reaches peak production, 11 years after the start of operations, it will process 400,000 barrels of oil per day, or a quarter of Angola’s daily production.
The investment also involves building integrated infrastructure to support the project, “namely the construction and management of a residential area for workers’ housing, a dock, power plant and a railway line linking the Moçâmedes Railroad [Namibe] to the Benguela Railroad,” according to the contract with the Private Investment Technical Unit (UTIP).
The project will be implemented by Namref, an investment vehicle set up by the two Russian groups (75% investment by Rail Standard Service and 25% by Fortland Consulting Company) and local partners, as stipulated in the contract, quoted by Portuguese news agency Lusa.
In addition to the licenses and 1000-hectare plot of land, in the contract the Angolan State undertakes to buy between 28,000 barrels of refined oil (in the first phase, within three and a half years) and 364,000 barrels per day (in the final phase within 11 years). (macauhub)