The long-awaited Cabinda oil refinery, Angola's second, is set to be commissioned in January-February 2025, with initial fuel supplies reaching the local market in March-April, Atanas Bostandjiev, CEO of Gemcorp Holdings Limited, the project's largest shareholder, announced on Tuesday.
The project, owned 90% by Gemcorp and 10% by state-owned Sonangol, will initially process Angolan Cabinda crude at a rate of 30,000 barrels per day, supplying 5-10% of the country's fuel needs.
While the first phase of the refinery has been completed ahead of schedule, it has come in over budget, reaching $500-$550 million due to rising costs attributed to the COVID-19 pandemic and inflation, Bostandjiev noted. The initial estimate was $473 million, with the project originally slated for completion in July 2025.
The refinery will initially export fuel oil and naphtha, which cannot be processed locally, while supplying the local market with diesel and jet fuel, according to Bostandjiev.
A second phase is planned, expanding processing capacity to 60,000 bpd and adding a diesel and jet fuel-producing hydrocracking unit. Funding for this phase is expected to be finalized in April or May.
The project also holds potential for future exports to the Democratic Republic of the Congo in later phases.