Under a memorandum of understanding signed in June, Sonangol and CNCEC agreed to work together to raise the funds needed to set up the Lobito refinery, which was suspended in 2016.
On Sunday 22 October, Angola's state oil and gas company (Sonangol) and China National Chemical Engineering (CNCEC) formalised the signing of a binding agreement relating to the project to set up a crude oil refinery in Lobito.
Under the terms of the agreement, which comes four months after the parties signed a memorandum, CNCEC will provide technical assistance and supervise the construction of the Lobito refinery.
The new plant is expected to have a refining capacity of 200,000 b/d. A volume that will support the country's desire to limit expenditure on imports of refined petroleum products.
Stakeholders have not released financial details of the project, the main obstacle that has prevented its completion since 2016, but the initiative is expected to cost around $2 billion, according to some estimates.