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Lusa - Business News - Angola: Gemcorp signals green light for construction of Cabinda oil refinery




Luanda Oct. 30, 2020 (Lusa) – Angolan state oil company Sonangol announced on Friday that British company Gemcorp Capital " has taken the final investment decision for construction of the Cabinda refinery," which will have daily refining capacity of 60,000 barrels of crude oil.
According to a statement from Sonangol the future Cabinda refinery will be built in the Malembo plain, some 30 kilometres north of the city of Cabinda, and demining and land treatment work to build support infrastructures was concluded in August of this year.
The "final investment decision represents one of the Angolan government's main strategic objectives. Construction of this refinery will provide an increase in national crude processing capacity and a considerable reduction in the country's dependence on imports of refined products, as foreseen in the National Development Plan," said Sebastião Gaspar Martins, chairman of Sonangol's board of directors, cited in the document.
The chairman of Gemcorp, Atanas Bostandjiev, said that the private investment "demonstrates the company's commitment" to "the development of strategic Angolan assets.
"Gemcorp is excited to deliver this project and support the long-term strategic objectives of the Angolan government for energy independence and job creation in Angola," he said.
Gemcorp's intention to move forward with construction of the Cabinda refinery was closed on Thursday, 29 October, the day a public consultation on the project was held.
It is expected that during the first phase of the project, which is expected to cost US$220 million (€189 million at the current exchange rate) 30,000 barrels per day will be produced.
With the second and third phase of the project, whose development will total USD 700 million (€600 million), refining capacity will increase by 30,000 barrels per day to 60,000 barrels of crude per day.
The project will cover a total area of 313 hectares, but in the first phase it will occupy only 30 hectares. The land is about 3.8 kilometres from the nearest village (Malembo).
With this project Sonangol expects "approximately 2,000 direct and indirect jobs to be created for the community".
The Cabinda Refinery will be built in three phases, with the first phase expected to begin in the first quarter of 2022, the second phase will end in the second quarter of 2023 and the third, and final phase in the second quarter of 2024," the document adds.
In January this year, Sonangol and London-based company Gemcorp Capital, with Russian capital, signed an agreement to build this refinery.
Initially construction was awarded to the United Shine consortium, but the Angolan state oil company announced that it had cancelled the contract on the grounds of "non-compliance with the agreed actions" and "no guarantee" of funding, amongst other aspects.
JYO/AYLS // AYLS
Lusa


Agency : LUSA

Date : 2020-10-31 11:09:01







 

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