Angola’s Cabinda oil refinery is on track to begin production by April, as the project’s first phase nears completion ahead of schedule but over budget.
Atanas Bostandjiev, CEO of Gemcorp Holdings Limited, shared the update during the Financial Times Africa Summit, revealing that commissioning is set for early 2024.
The refinery will start supplying fuel to Angola’s market by March-April.
Owned 90% by Gemcorp, the project aims to reduce Angola’s dependence on costly fuel imports, as the country also seeks to phase out fuel subsidies.
Costs for the first phase reached around $500 million to $550 million, exceeding the initial estimate of $473 million.
Rising costs due to COVID-19 and inflation contributed to the budget increase, Bostandjiev explained.
The greenfield project will process 30,000 barrels per day of Cabinda crude from state-owned Sonangol, meeting 5-10% of Angola’s domestic demand.
A second phase will later double capacity and add a diesel and jet fuel unit.
Bostandjiev highlighted Angola’s current reliance on Europe for refined products, despite exporting 98% of its crude.
The refinery’s products could also supply neighboring markets, such as the Democratic Republic of the Congo, in future phases.
