State-owned oil firm Sonangol has not received any formal communication from Botswana signalling its desire to acquire a stake in Angola’s new $6.6-billion (R108-billion) Lobito refinery, a senior company executive said late on Tuesday.
Angola has been seeking partners to help finance the delayed refinery—the country’s largest and aimed at cutting its reliance on imported fuel—with financing shortfalls and potential partnerships drawing interest from neighbours.
Widespread media reports quoting Botswana’s energy minister, Bogolo Joy Kenewendo, in parliament on March 27 suggested that the government was offered and is weighing options to secure a 30% shareholding in the 200 000 barrel per day plant once it comes online.
Memorandum of understanding
Botswana’s Ministry of Energy did not immediately respond to multiple requests for comment from Reuters.
The information from the media was surprising, Joaquim Kiteculo, CEO of Sonangol’s refining division, told Reuters on the sidelines of an energy conference in Cape Town, adding that it was Zambia that had aimed to join the Lobito project since the beginning.
“It was our first time to hear that Botswana is interested,” Kiteculo said.
Angola and Zambia have a memorandum of understanding covering participation in the refinery.
Botswana, a landlocked country, is keen to boost storage capacity and diversify its fuel supplies as it also considers partnering with Namibia on its proposed first refinery.
Angola is open to partnerships with new investors but will retain a 51% majority in any restructuring, Kiteculo said.
A source in Angola’s Energy Ministry said the refinery issue would likely be discussed once President Dumo Boko returns to Angola.
China’s finance key to unlocking Lobito
The Lobito refinery, part of Angolan plans to reduce its dependency on imported petroleum products, has been delayed for years due to the lack of financing.
Angola’s mines and petroleum minister is currently in China with a senior Sonangol delegation, seeking to drum up support to overcome a $4.8-billion funding shortfall for Lobito.
“I would say, in the first stage, it is going to be $2.2-billion and later, an additional $2.6-billion but the situation currently remains the same as before,” Kiteculo said of ongoing talks.
Sonangol, which has already spent $1.4-billion of its own capital for road and water infrastructure in the first phase of construction, will continue to invest with or without partners until the project is completed, he said.
- Sonangol, Angola's state oil company, has not received any formal interest from Botswana regarding a stake in the $6.6-billion Lobito refinery project.
- Angola seeks partners to help finance the delayed Lobito refinery, with Zambia already having a memorandum of understanding for participation.
- Media reports claimed Botswana's government is considering acquiring a 30% share, but Sonangol's CEO stated this was the first time hearing about Botswana's interest.
- Angola plans to retain a 51% majority ownership in the refinery, while actively pursuing funding, including a current delegation in China to address a $4.8-billion financing gap.
- The Lobito refinery aims to reduce Angola's fuel import dependency and is ongoing, with Sonangol investing its own capital for infrastructure regardless of partner involvement.
State-owned oil firm
Widespread media reports quoting Botswana's energy minister, Bogolo Joy
Botswana's Ministry of Energy did not immediately respond to multiple requests for comment from Reuters.
"It was our first time to hear that Botswana is interested," Kiteculo said.
Botswana, a landlocked country, is keen to boost storage capacity and diversify its fuel supplies as it also considers partnering with Namibia on its proposed first refinery.
A source in
"I would say, in the first stage, it is going to be $2.2-billion and later, an additional $2.6-billion but the situation currently remains the same as before," Kiteculo said of ongoing talks.
