Angolan Cabinda Refinery Set To Commence production

Located in the oil-rich province of Cabinda, Angola, the new Cabinda crude oil refinery is poised to transform the country's energy landscape. With a price tag of $473 million for the first phase, this modular refinery is expected to start commissioning by the end of this year and reach full production of 30,000 barrels per day by July next year.

Cabinda, a coastal provpince in northern Angola, has a rich history dating back to the 19th century when it was a Portuguese colony. The province is home to vast oil reserves, making it a crucial player in Angola's oil industry. The new refinery is strategically located in this region, leveraging its proximity to oil fields and export markets.

The refinery's CEO, Marcelo Hofke, confirmed that the project is on track, with almost two-thirds of the construction completed. The first phase will produce naphtha, jet fuel, diesel, and heavy fuel oil (HFO), with naphtha and HFO earmarked for export due to limited domestic demand.

The Cabinda refinery is a joint venture between Gemcorp Holdings (90%) and state-owned Sonangol (10%). 

Gemcorp's group chief investment officer, Felipe Berliner, expressed enthusiasm for the project's potential, citing plans to expand capacity to 60,000 barrels per day in the second phase, with a total investment expected to reach $1 billion.

Berliner noted that the original funders, including Africa Finance Corporation and African Export-Import Bank, are keen to continue supporting the project. He also hinted at the possibility of further expansion, stating that Cabinda has the potential to reach 90 or 120,000 barrels per day capacity on the same site.

The Cabinda refinery will supply 10% of the country's domestic fuel market, doubling its market share upon completion of the second phase.