Cabinda Refinery Begins Operations, Significantly Reducing Fuel Imports

Cabinda: The opening of the Cabinda Petroleum Refinery on September 1 marks the completion of the first phase of construction and the commencement of the commissioning process. This milestone precedes the start of commercial production, initially projected at 30,000 barrels per day. According to Angola Press News Agency, production and sale of fuels such as diesel, aviation kerosene (Jet A1), heavy fuel oil, and naphtha are expected to begin within approximately three months. The refinery's initial output represents a significant contribution towards reducing the importation of refined products in Angola. The commissioning process will involve processing tests for around three months to ensure the refinery meets the necessary quality standards for commercialization. The first phase of the refinery was funded with a budget of US$473 million, including US$38 million from partners and US$335 million in syndicated financing. The refinery is designed to process 60,000 barrels per day in subsequent phases, with gasoline production planned for a future phase. The reduction in imports is anticipated to begin immediately after commercial production starts and will continue as the refinery reaches full capacity. This will help reduce the state's dependency on imports, decrease its foreign exchange expenditure, and bolster energy security. The primary focus is to meet domestic fuel demand, with any excess production being exported to generate additional revenue for Angola. The first phase received financial backing from a consortium of international banks, including AFC, Afreximbank, Badea, IDC, and BFA. These partners, along with others, are expected to support the next phase of the project. During construction, over 3,300 jobs were created, predominantly filled by Angolans. Training programs, such as the Kuma Project, have been implemented, offering more than five thousand people training opportunities over 12 months, totaling 14 million man-hours. Beyond job creation and training, the project has also supported loc al communities in Cabinda through educational initiatives, health, and community programs. The project's delay in entering operation was attributed to its complexity and challenges posed by the COVID-19 pandemic, as well as disruptions in global supply chains. Despite these challenges, Phase I has been successfully completed. Phase II is already underway, with an investment of over six million dollars in basic engineering and technology licensing, essential steps before launching the construction contest. The Cabinda Refinery is a public-private partnership between Sonangol, a public company, and GEMCORP, a private investor. The management of the refinery is shared between Sonangol and GemCorp, under the oversight of the Ministry of Mineral Resources, Oil and Gas.