Could you provide an update on Sonaref’s activities?

The Cabinda refinery is a 60,000 bpd processing capacity refinery divided into three phases. The first phase, which we have almost completed, has a processing capacity of 30,000 bpd. The second phase will start immediately after the inauguration ceremony and will add one more Crude Distillation Unit (CDU) with another 30,000 bpd processing capacity to make a total of 60,000 bpd. For the third phase, we will bring a new platforming unit to produce gasoline and a new RFCC to reprocess the heavy fuel oil we cannot export or use, turning this HFO into more valuable products such as LPG, diesel and gasoline.

We have finalized all agreements with Eni and contracted KT, the contractor working with us on the Luanda refinery. The Luanda refinery expansion project consists of building a new platforming unit, which we built in July 2022. Now, we can process 3 to 4 times more gasoline than in the past. This part of the project is complete, but we still have other projects.

We must bring a new HDS (hydrodesulfurization unit) to improve the diesel specification to Euro 5 standard. We also plan to bring a new RFCC because we have the same problem in the Luanda refinery as Cabinda – we produce mainly heavy fuel oil. We use some of it and export the remainder, but with the new RFCC, we want to reprocess HFO and produce more gasoline, LPG, diesel and kerosene. We have also finally reached an agreement with Eni to build a new biorefinery.

What is the petrochemical unit planned for the Luanda refinery?

Our strategy is to produce polymers. We have a key opportunity to market these in our domestic market and export them to the region. We have the strategy in place and are now looking into feasibility. We have much interest from the IFC, Chinese investors, and others abroad. We are working to understand how to implement and integrate these units into the refinery, as it is a very old refinery, and we are bringing in new units. 

Please tell us about the Lobito refinery project and its regional significance?

Lobito will play a significant role in the region, mainly because we expect most of the product going to Namibia, South Africa, Zambia and DRC. Thanks to Angola’s hydropower capacity, we have an oversupply of energy at a very affordable price, which relieves us from the pressure of providing diesel for power generation. This allows us to trade in more volume.

The Lobito refinery will help the country be self-sufficient in derivatives and access the premium price market in the region. We have invested around US$1.5 billion, and we are still talking to international financiers to mobilize the remaining US$4.8 billion, as the total cost is around US$6.6 billion. We are working with CNCEC, a state-owned company in China. We resumed the project in December 2023. We are moving slowly because of financial challenges, but we can complete it by the end of the first semester of 2027.

What is Sonaref's vision for Angola as a regional hub for refined products?

We want to become one of the biggest suppliers of derivatives for the SADC region because the market is there, and there are not many refineries. South Africa is dismantling refineries because it wants to move toward energy transition. The refineries in South Africa are not state-owned but owned by private entities that want to divest from fossil fuel facilities and investments. This allows us to be a big player in supplying derivatives to South Africa.

South Africa is a 300,000 bpd market in derivatives, and they expect to consume around 450,000 bpd by 2028. The DRC is a big mining area with much demand for diesel. In the future, we want to be a significant supplier of derivatives, mainly diesel, for the region. We want to start with the domestic market for petrochemical products while we assess the rest of the region. We have our marine terminal, from where we will dispatch products, and we can transport our products by railway to Zambia and DRC.