Downstream

The Cabinda Refinery aims to double capacity to 60,000 bpd. (Image source: Adobe Stock)

Cabinda Refinery in Angola is well on its way to generate first oil as soon as the next year kicks in, with commercial operations slated for July 2025, as informed by Marcelo Hofke, CEO Cabinda Refinery Corporation

"Cabinda is the first refinery built in Angola after independence and aligns with efforts by the government to decrease the necessity of processed import products," Hofke said to media outlets while speaking of the project's progress that began construction in 2023. 

The financial close for the refinery was reached in July last year at US$473mn, with US$138mn of equity already provided by the project sponsors and US$335mn project financing facility led by Africa Finance Corporation, African Export-Import Bank and a consortium of international and local financial institutions.

Currently aiming a production capacity of 30,000 barrels of oil per day, as well as products such as diesel and jet fuel during phase 1, Cabinda is preparing to double capacity to 60,000 bpd during phase 2, increasing produces with gasoline, diesel and gas. 

Reducing imports

The high significance of the project, which was launched with an aim to reduce import of derivatives, is put to perspective by founder and chief executive of Gemcorp, Atanas Bostandjiev's comments to Reuters, as he said, "Angola currently exports 98% of its crude and imports almost 100% of its refined products from Europe, so imagine how inefficient this whole system is." 

Since its origin in 2017 as a way of effective cost-cutting measures, there has been major shifts as the project ownership changed hands from United Shine to asset manager, Gemcorp. Today, as Gemcorp holds 90% interest, with 10% to Angolan National Oil Company Sonangol, Hofke maintains, "Today we have 2,800 people working on-site with 85% of them being Angolans. We are finalising a training programme in which we will train around 180 workers through next year to have a full capable workforce when we launch operations." 

Gas yield from OML 58 is processed in the Obite treatment centre for supply to NLNG. (Image source: Adobe Stock)

TotalEnergies and the Nigerian National Petroleum Corporation Ltd has reached a final investment decision (FID) for the development of the Ubeta gas field 

Located about 80 km northwest of Port Harcourt in Rivers state, the Ubeta gas field falls under OML 58 onshore license which is operated by TotalEnergies with a 40% interest while NNPC holds the other 60%. 

The development plan includes the installation of a 11 km buried pipeline to connect Ubeta's new six-well cluster to the existing Obite facilities, thus allowing emissions reduction and cost efficiency. A 5 MW solar plant is currently under construction at Obite to further alleviate carbon intensity. A completely electrified drilling rig will be deployed for production which is due to start in 2027.

During COP28, TotalEnergies signed an agreement with NNPCL among other African oil companies to deploy its advanced drone-based technology AUSEA on oil & gas facilities in Nigeria, and soon after, an inspection of OML 100 field in south-eastern Niger Delta confirmed that their joint venture has achieved zero routine gas flaring across all its assets, including OML 58. 

Favourable government initiatives

While things are looking up in terms of sustainable practices, Nigeria is also focusing on production optimisation, and its recent collaboration with SLB testifies this approach. 

The Ubeta field capacity is expected at approximately 70,000 bopd including condensates. The Obagi oil field and the Ibewa gas and condensate field that also belong within OML 58 are currently in production. The gas yield is processed in the Obite treatment centre for supply to the Nigerian domestic gas market as well as Nigeria LNG (NLNG) plant. 

TotalEnergies owns a 15% interest in NLNG, which is a liquefaction plant in Bonny Island, with an on-going capacity expansion from 22-30 Mtpa. 

With more than 90% of manhours to be worked locally, the major, along with NNPCL, is aiming to enhance local content.

“Ubeta is the latest in a series of projects developed by TotalEnergies in Nigeria, most recently Ikike and Akpo West. I am pleased that we can launch this new gas project which has been made possible by the Government’s recent incentives for non-associated gas developments. Ubeta fits perfectly with our strategy of developing low-cost and low-emission projects, and will contribute to the Nigerian economy through higher NLNG exports,” said Mike Sangster, senior vice president - Africa, exploration and production at TotalEnergies.

Independent Petroleum Marketers Association of Nigeria will acquire diesel at US$0.96 per l. (Image source: Adobe Stock)

The US$20bn, 650,000-bpd Dangote Refinery in Nigeria has completed its first shipment of diesel and jet fuel to the local market since it started production in January 

Under the terms of the contract, KBR will provide engineering, procurement and construction services to the new 200,000bpd-capacity refinery. (Image source: Adobe Stock)

Sonangol has awarded a project management contract to KBR for the design and construction of the Lobito Refinery in Angola