Angola’s Cabinda Oil Refinery to Launch in 2025, Aiming to Strengthen Local Fuel Supply and Reduce Import Dependency

In a promising development for Angola’s energy sector, the country’s Cabinda oil refinery, led by GemCorp Holdings Limited, is on track to begin operations in April 2025. This marks a significant milestone as the refinery, set to be Angola’s second, moves to cut down the nation’s reliance on imported fuel. According to recent statements from GemCorp CEO Atanas Bostandjiev, the refinery’s first phase completion has been accelerated, with commissioning expected between January and February 2025. The refinery will start production shortly after, with Sonangol, Angola’s state-owned oil company, set to supply 30,000 barrels of crude daily.

Transformative Investment in Angola’s Oil Industry

The Cabinda refinery will initially focus on supplying Angola’s domestic market, an effort strengthened by its capacity to refine up to 5-10% of the country’s fuel requirements. With a financial input of approximately $500 to $550 million, exceeding the initial budget due to pandemic-induced cost increases and inflation, the project represents a substantial investment. The Angolan government aims to ensure energy independence while addressing the challenge of fuel subsidies. 

Ownership of the refinery is distributed primarily between GemCorp, which holds a 90% stake, and Sonangol, with the remaining 10%. While the initial processing rate is 30,000 barrels per day, a planned second phase will further increase the refinery’s output to 60,000 barrels daily. This expanded capacity will also bring in diesel and aviation fuel-producing units, essential for reducing Angola’s reliance on foreign fuel.

As the continent’s second-largest oil producer, Angola’s refinery project aligns with a broader African initiative to reduce dependence on imported fuel. Following its first operational phase, the Cabinda refinery’s second phase aims to meet additional fuel demands, particularly diesel and aviation fuel for both local and export markets. Initial export destinations could include neighbouring nations like the Democratic Republic of the Congo, especially for products such as naphtha, which is not fully processed domestically.

Funding arrangements for the second phase are still under consideration, with decisions expected in April or May 2025. This phase will further strengthen Angola’s refining capacity, securing a more robust energy infrastructure within the region.