Sonangol advances plan for new refinery at Cabinda

State-owned Sonangol has officially signed an agreement with the United Shine consortium for construction of a new refinery in Cabinda, Angola. As part of the agreement, signed in Luanda on June 4, the United Shine consortium will move forward with construction of the high-conversion refiner, which will have a processing capacity of 60,000 b/d for production of diesel, gasoline, fuel oil, and Jet A1, Sonangol said.

State-owned Sonangol EP has officially signed an agreement with the United Shine consortium for construction of a new refinery in Cabinda, Angola.

As part of the agreement, signed in Luanda on June 4, the United Shine consortium will move forward with construction of the high-conversion refiner, which will have a processing capacity of 60,000 b/d for production of diesel, gasoline, fuel oil, and Jet A1, Sonangol said.

Signing of the agreement follows approval by Sonangol’s board of directors in November 2018 for United Shine consortium to build the proposed Cabinda refinery after an international tender process for the refinery’s construction that began in 2017 (OGJ Online, Nov. 14, 2018).

The United Shine consortium will hold a 90% stake in the refinery, with the national oil company’s subsidiary Sonangol Refinacion-Sonaref SA to hold the remaining 10%.

Details regarding members of the United Shine consortium and a timeframe for start of construction on the project, however, have yet to be disclosed.

The newly sealed agreement comes as part of Angola’s implementation of a strategy to develop the country’s refining sector, which—alongside Cabinda—also includes construction of planned refineries in Luanda and Lobito. Expansion of domestic refining capabilities comes amid Angola’s aim to reduce the country’s reliance upon—as well as associated costs for—currently imported fuel volumes.

Separately, as part of the June 4 signing ceremony in Luanda, Sonangol also reportedly announced award of a contract to the United Shine consortium for construction of the gasoline production unit at the operator’s existing 65,000-b/d Luanda refinery, according to local media reports from the region.

Sonangol has yet to reveal further details regarding this second contract or its future plan for the proposed new refineries in Luanda and Lobito.

Contact Robert Brelsford at rbrelsford@ogjonline.com.

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