Cabinda Refinery to begin production in Angola early 2025

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."