Downstream

Afreximbank has framed a US$1.75bn facility for Sonangol. (Image source: Afreximbank)

Angola’s national oil company, Sonangol's projected operating and capital expenditure will be covered by a US$1.75bn syndicated receivables purchase facility that has been announced by African Export-Import Bank (Afreximbank) 

Brought into effect in collaboration with other mandated lead arrangers, the US$1.75bn facility has been designed with Sonangol's export-linked trade structures in mind. The move aligns with Afreximbank’s push for Africa’s prominence in global trade by promoting demand-intensive commodities for export. This strategic financing will support Sonangol in unlocking better access into the export market, which can prove to be a goldmine for the region given global oil supply volatilities. 

Elaborating on the strategic financing, Afreximbank's Global Trade Bank executive vice president, Haytham Elmaayergi, said, “The transaction will help Sonangol meet its operating and capital needs, sustain export flows, increase energy availability, and support Angola’s broader industrialisation and economic transformation, while directly contributing to increased African participation in global trade.” 

Afreximbank is taking an innovative approach in turning oil price volatility in favour of Africa by implementing de-risked structures. This eases security arrangements while securing returns for lenders. 

Afreximbank has framed the US$1.75bn facility in a catalytic and balance-sheet-led manner to ensure sustainable support to Angola's oil and gas sector. This will encourage Angolan operators to take up more exploration projects in the region, in turn boosting value creation and export strength. 

Acknowleding the facility as a strategic move in championing African business globally, Elmaayergi said, “This US$1.75 billion syndicated receivables facility underscores Afreximbank’s commitment to supporting African energy champions and safeguarding export capacity that is critical to our member states’ macroeconomic sovereignty and trade resilience. By deploying innovative structures that provide comfort to lenders while easing traditional security requirements, we are able to crowd source much needed capital into strategic sectors.”

The refinery will revitalise Ghana's downstream petroleum sector.

The Terna Oil Refinery has resumed crude oil refining operations after several years of inactivity

This follows the three-month execution of major turnaround maintenance (TAM) works on the Crude Distillation Unit (CDU). The work was backed by international engineering, safety, and operational standards.

The TAM work was followed by a comprehensive regulatory inspection from the National Petroleum Authority (NPA) and clearance for the resumption of refining activities. This marked the beginning of refining operations, with an entire line of petroleum products going to storage for the first time in a while.

With the refinery's official recommissioning and a phased transition planned toward attaining full operational capacity, TOR will currently focus in stabilising systems, optimising performance, and ensuring sustained operational reliability. The project will have a significant contribution in the revitalisation of Ghana's downstream petroleum sector.

In addition, TOR has completed the installation of a new furnace, F-61, which will soon be commissioned and integrated into the CDU. This critical upgrade will enable the refinery to restore its original nameplate capacity of 45,000 barrels per stream day (bpsd), up from the current operating level of 28,000 bpsd, with a clear strategic pathway to expand the capacity to 60,000 bpsd in the medium tenn, following the installation of a new Air-Cooler.

The Government of Ghana will formally commission and tie-in the F-61 furnace at a later date.

The Minister for Energy and Green Transition, John Abdulai Jinapor (MP), has played a major role in this development with his dedication, technical oversight and policy leadership.

Vitol Bahrain EC has a long-standing presence in Uganda's downstream sector.

As the Uganda National Oil Company aims to build a crude refinery, it has reached out to a unit of global commodities trader, Vitol, for a US$2bn loan to support the project alongside construction and infrastructure developments

According to Henry Musasizi, Uganda's junior finance minister, this seven-year tenor loan from Vitol Bahrain EC (VBA) comes with an interest rate of 4.92%. The minister worked on advancing the approval process for the credit line and the loan, which involved significant lawmakers, who sanctioned the development with a majority verdict.

Musasizi said that Vitol's support "presents an opportunity to access non-traditional financing to implement. ..projects and support the government in developing national infrastructure."  

Vitol Bahrain EC has a long-standing presence in Uganda's downstream sector, functioning as the sole supplier of refined petroleum products to UNOC, before the state-owned company sells it to retailers across the country.

Alongside the refinery, the loan amount will also be covering road construction, a petroleum products storage terminal and extension of a petroleum pipeline from western Kenya to Uganda's capital Kampala.

Previously, the UNOC also concluded a deal with the UAE-based Alpha MBM Investments, whereby a domestic refinery with a capacity of 60,000 barrels per day is in the pipeline. The agreement accords 60% stake on the refinery to the UAE firm while UNOC retains 40%.

Uganda is looking to begin commercial oil generation starting next year from fields in its west.

The refinery will gear Zambia's downstream growth. (Image source: IDC)

China Zambia Petrochemical Corporation will push ahead with its US$1.1bn crude oil refinery project in Ndola as it has received the Investment License from the Zambia Development Agency

A Special Purpose Vehicle jointly established by the Industrial Development Corporation and Fujian Xiang Xin Corporation, China Zambia Petrochemical Corporation will advance the refinery project as a significant driver of employment generation and economic stability in the region, making a positive difference for the rapidly evolving Ndola Industrial Zone. During the construction phase alone, the refinery will create more than 2,200 jobs. Once operational, it will sustain more than 600 direct and over 2,000 indirect jobs, with comprehensive skills-transfer and certified training programmes designed to build a highly capable local workforce with expertise in advanced petrochemical operations. This will solidify Zambia's energy security and stabilise fuel supply as the country will not have to rely as hevily on the import of refined petroleum products.

Set to begin operations starting next year, the refinery is expected to process 3 mn tonnes of crude oil annually. This staggering quantity will not only surpass Zambia's national fuel demand but also easily cover regional export markets. 

An integrated energy complex, the refinery will gear Zambia's downstream growth, ranging from LPG bottling and bitumen production to lubricants blending. Additional spill over investments are anticipated in storage infrastructure, rail upgrades, and feedstock supply for manufacturing plastics, fertilisers, synthetic materials, and asphalt. Small and medium enterprises (SMEs) are expected to benefit significantly through opportunities in logistics, maintenance, catering, and specialised support services.

"Today's handover of the Investment License marks a decisive shift from commitment to execution. This project is a cornerstone of our industrialisation strategy and a timely response to the country's need for affordable, reliable, and locally produced energy. Through CZPC, we are driving a transformative venture that will create jobs, enhance national self-sufficiency, and support long-term economic growth," said IDC CEO Mr Cornwell Muleya.

"FJXX is honoured to advance this project into its implementation phase in partnership with the Government of Zambia through IDC. With more than two decades of Industrial experience, we are committed to deploying advanced engineering technologies that will deliver a world-class refinery for the benefit of the Zambian people and the broader region," said Mr Huang Tieming, Chairperson of Fujian Xiang Xin Corporation (FJXX).