Sonangol, Angola's state-run oil company, said it made a final investment decision with Gemcorp Capital LLP to build a refinery in the northern enclave of Cabinda that will reduce the country's dependence on imports.
The two companies will spend $220 million in the first phase of construction, which began in March, and includes installing half of the plant's processing capacity of 60,000 barrels a day. The second and third phases will turn the plant into a “total conversion” refinery, according to a statement Friday. Gemcorp will contribute 90% to the investment and Sonangol will contribute 10%.
“The construction of this refinery will provide an increase in the processing capacity of crude oil and a considerable reduction in the country's dependence on imports of refined products,” Sonangol Chairman Sebastiao Gaspar Martins said in the statement. The refinery should start operating in the first quarter of 2022.
Read More: Gemcorp Says Cabinda Refinery Pre-Construction Phase Completed
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