The Angolan state oil company, Sonangol, has reached a final investment decision (FID) for the construction of the Cabinda oil refinery in Angola, according to Reuters.
In a joint statement from Sonangol and Gemcorp, the two companies announced: “The refinery will be the first private investment of this nature in Angola and will utilize the latest U.S. technology.”
It is expected that the refinery’s three phases could involve more than $900 million of capital expenditure (Capex).
Phase one of the project is expected to include a 30,000 barrels per day (bbl/d) crude distillation unit and storage facility. The second and third phases will transform the Cabinda refinery into a full-conversion refinery adding a further 30,000 bbl/d capacity.
This refinery project is an effort by the Angolan authorities to reduce its dependence on imports of refined products.