Emerging markets asset manager Gemcorp has mobilized a $335 million financing facility for the construction of the Cabinda oil refinery in Angola alongside finance organizations, the African Finance Corporation (AFC) and the African Export-Import Bank (Afreximbank). With the financing facility, project partners Sonangol and Gemcorp have secured the relevant capital to proceed with the refinery’s development. The $335 million facility, in conjunction with $138 million in equity provided for by Gemcorp and Sonangol, covers the construction of the first phase of the refinery development.
Phase 1 comprises a crude distillation unit, desalinator, kerosine treating unit and auxiliary infrastructure. Additionally, it involves the construction and installation of a conventional float anchoring system, pipelines and a 1.2-million-barrel storage terminal. Initial construction commenced in 2020.
Gemcorp shared that with the credit facility, the project partners will also progress with Phase 2 of the development, comprising the addition of units for catalytic reforming, hydrotreating and catalytic cracking that will transform the project into a full-conversion refinery.
While Phase 1 will see the refinery process up to 30,000 barrels per day (bpd), satisfying 10% of the country’s total demand for refined oil products, Phase 2 will double processing capacity, satisfying up to 20% of demand. Gemcorp CEO Atanas Bostandjiev stated that, “The project stands to make Angola energy independent while leveraging its natural resources for the benefit of the community and wider economy.”
Afreximbank President and Chairman of the Board of Directors Prof. Benedict Oramah remarked that the “establishment of a modular oil refinery in Cabinda will add critical value to Angola’s main commodity and its largest export product, while contributing to a reduction in greenhouse gases by reducing the need to transport crude and refined products to and from Africa.” Meanwhile, the refinery serves as a critical economic contributor, with over 300,000 hours of training already been completed for upskilling local employees.
AFC President and CEO Samaila Zubairu added that, “Cabinda Refinery will generate significant employment opportunities which will help to build the skilled workforce of the future. It will save valuable foreign exchange and enhance Angola’s balance of payments. It will create spin-off industries that rely on the output of the refinery, thereby boosting the economy and driving long-term economic growth.”