Published: October 20, 2023 2:05 pm
Author: RT
The African country will reportedly sign a $6 billion deal with China National Chemical Engineering
Angola is due to sign a contract with China National Chemical Engineering Co. (CNCEC) to build a long-delayed oil processing plant in the municipality of Lobito, Bloomberg reported on Friday.
“The processing capacities of the Lobito refinery remain at 200,000 barrels per day and the estimated cost of the investment is around $6 billion,” Diamantino Azevedo, minister of minerals and petroleum, announced after a meeting between Angola’s President Joao Lourenco and CNCEC Chairman Wen Gang.
Angola’s state-owned oil company Sonagol suspended construction works of the Lobito crude processing plant in August 2016. In November 2017, the company announced it was seeking investors in order to resume construction. Private investors will reportedly own 70% of the plant’s shares, while Sonagol will hold the remaining 30%, the company said at the time.
READ MORE: Kenya bags big deals with China
Under the agreement, China’s CNCEC will build and finance the Lobito refinery which should become one of the most significant infrastructure projects in Angola’s energy sector.
Once built, the processing plant would allow the Southern African country to become self-sufficient in terms of refined fuels such as gasoline, diesel and liquefied petroleum gas. Additionally, the refinery will enable Angola to export and supply neighboring countries with fuel.
For more stories on economy & finance visit RT’s business section
