Angola has made a significant step in its quest for energy independence after securing funding to support the construction of an oil refinery in the City of Cabinda.
Afrieximbank on July 17 announced the financing of the Cabinda Oil Refinery totaling $335 million partnership with the Africa Finance Corporation (AFC) and a consortium of international financial institutions.
In addition, the project’s sponsors will provide $138 million in equity and thus taking the total investment to $473 million.
The credit facility, according to Afreximbank, will cover the construction of the first phase, which has the capacity to process 30,000 crude oil barrels a day.
The second phase set to be constructed in due course will further enable processing of another 30,000 barrels, bringing the refinery’s refining capacity to 60,000 barrels a day.
Boosting Angola’s Main Export Product
Once complete, the Cabinda Refinery will help to boost Angola’s ability to process and commercialize oil which is its main trade commodity and export produce.
A refinery of the proposed capacity will hand Angola independence in exploiting its oil and consequently enhance the benefits from the oil sector to its economy.
Moreover, the project will create 1,300 direct and indirect jobs to the local population- according to the statement from Afreximbank.
In his statement, Afreximbank President Benedict Oramah noted that the project was part of its dedication to stimulate economic development in the continent.
He said that Afreximbank, which played a central role in making the funds available, was proud to be associated with the project aimed at boosting intra-African trade through the supply of refined products from Angola to near markets.
“Our participation in arranging the US$335 million financing together with our partners at AFC and Gemcorp, makes the project possible and will guarantee that it delivers development dividends in Angola and elsewhere in Africa,” the Afreximbank Chief noted.
“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.”
Angola is a leader in oil production with statistics from the International Trade Administration indicating that the central African country has an output of over 1.5 million barrels in a day.