Angola: Cabinda oil refinery due to come on stream by April

The Cabinda refinery: a new chapter in Angola's energy independence

Angola, the second largest oil producer in sub-Saharan Africa, is preparing to strengthen its energy sovereignty with the forthcoming opening of the Cabinda refinery, scheduled for April 2024. The project, in which Gemcorp Holdings Limited has a 90% stake, will reduce Angola's dependence on fuel imports as the country looks to phase out costly fuel subsidies.

Atanas Bostandjiev, CEO of Gemcorp and the refinery's main shareholder, told the Financial Times Africa Summit that the refinery would come on stream in January-February 2024, with the first fuels available on the local market between March and April. Investment in the first phase is estimated at between $500 million and $550 million, exceeding the initial estimate of $473 million due to cost increases linked to the COVID-19 pandemic and inflation. Despite the financial challenges, construction was completed ahead of schedule in July 2025.

The Cabinda refinery, a unique greenfield project, will process Angolan crude oil supplied by Sonangol, the national oil company, with an initial refining capacity of 30,000 barrels per day (bpd), meeting around 5-10% of Angola's fuel needs. Eventually, a second phase will double processing capacity to 60,000 bpd and install a hydrocracking unit to produce diesel and paraffin. Completion of this phase is expected one to two years after the start-up of the refinery, with a final financing decision scheduled for April or May 2024.

"Angola currently exports 98% of its crude oil and imports almost all its refined products from Europe. This system is extremely inefficient", emphasised Bostandjiev. With China accounting for around 60% of Angola's crude oil exports in 2023, Angola hopes that the new refinery will optimise the use of its crude oil resources and reduce transport and import costs.

The Cabinda refinery plans to initially produce fuel oil and naphtha for export, while supplying the local market with diesel and aviation fuel. In later phases, it could also expand its fuel exports to the Democratic Republic of Congo, strengthening its regional role.

The participation of Gemcorp, an emerging markets investor based in London, is significant in a context where ESG standards are increasingly restricting Western investments in oil and gas projects. By investing in this refinery, Gemcorp is contributing not only to Angola's energy self-sufficiency but also to the improvement of its energy efficiency, an objective that is increasingly becoming a priority in the region.

With this strategic project, Angola is taking a decisive step towards energy independence and more sustainable industrial development. The Cabinda refinery marks a turning point for the country's oil sector, offering promising prospects for economic growth and energy stability.