Sonangol lets contract for new refinery at Cabinda
State-owned Sonangol EP has let a contract for construction of a new refinery in Cabinda, Angola.
Following an evaluation process started in 2017, Sonangol’s board of directors has approved the United Shine consortium to build the proposed Cabinda refinery, which will have a processing capacity of no more than 60,000 b/d, the operator said.
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%, Sonangol says.
Details regarding members of the United Shine consortium and a timeframe for start of construction on the project were not yet disclosed.
The contract award comes as part of Angola’s implementation of a strategy to develop the country’s refining sector, which—alongside Cabinda—also includes construction of refineries in Luanda and Lobito.
Launched in 2017, the international tender process for construction of the Cabinda refinery also solicited bids for construction of a refinery in Lobito. The status of Angola’s selection for a partner on the Lobito refinery has not been disclosed.
The renewed program to expand Angola’s refining capabilities follows former Sonangol president Isabel dos Santos’s cancellation of a long-planned 200,000-b/d refinery at Lobito (OGJ Online, Nov. 16, 2017; Dec. 15, 2014).
Sonangol operates Angola’s sole 65,000-b/d Luanda refinery, which is currently offline for 60 days of planned maintenance beginning on Oct. 1 that was to include deep interventions for rehabilitation, replacement, and modernization works to maintain operational reliability, the company said in a release.
Refining support
On June 13, Sonangol said it signed an agreement with Eni SPA for technical and financial assistance with Angola’s refining sector with the specific objective of optimizing the Luanda refinery via installation of a platforming unit as well as provision of technical assistance aimed at improving reliability of the production processes, production quality, and increasing gasoline production capacity.
Financing under the agreement with Eni is be made in two modalities, including an estimated $60 million that will include planning and organization of the refinery’s general maintenance turnaround and as much as $120 million that would cover installation of a unit to increase gasoline production at the site, according to Sonangol.
The June agreement between Sonangol and Eni follows a memorandum of understanding between the companies signed in November 2017 establishing principles by which the parties would jointly assess new investment opportunities in the refining, renewable energy, exploration, and natural gas sectors.
Contact Robert Brelsford at [email protected].
