Angolan oil company Sonangol and United Shine on Tuesday signed a partnership agreement for the construction of a refinery in Cabinda province, the state-owned company said in a statement.
The statement added that the choice of United Shine followed a tender process launched by Sonangol in 2017 for the construction of a refinery that is expected to have a processing capacity of 60,000 barrels of oil per day for the production of derivatives such as diesel, gasoline, fuel oil and Jet A1.
The construction of the Cabinda refinery is among Sonangol’s priorities and is part of the National Development Plan under the government’s strategy of reducing the cost of importing oil derivatives.
The refinery will require an estimated investment of US$2 billion, to be financed by Russian bank VTB, and construction is expected to start in the next two months and is scheduled for conclusion in 2022.
Sonangol, in partnership with Italy’s ENI group, on Tuesday signed a contract with Kinetics Technology, a subsidiary of Italian group Maire Tecnimont, to build a new gasoline production unit at the Luanda Refinery, quadrupling current capacity to 1,200 tonnes per year. (Macauhub)