Page 4 - AfrOil Week 19 2021

AfrOil COMMENTARY AfrOil

Zambian Minister of Energy Mathew Nkhuwa (L) and Angolan Minister of P etroleum Diamantino Azevedo (R)
Zambian Minister of Energy Mathew Nkhuwa (L) and Angolan Minister of Petroleum Diamantino Azevedo (R)
AZOP pipeline moves forward

with construction study

Angola and Zambia have agreed to carry out a study for the construction of a cross-border fuel

pipeline connecting a planned refinery on the Angolan coast to diversify Zambian fuel supplies

THE governments of Angola and Zambia planned Lobito refinery in the coastal Benguela
have signed a memorandum of understanding Province to the Zambian capital, Lusaka. The
WHAT: (MoU) to carry out studies for the construction conduit is expected to have a throughput capac-
The two sides signed an of a refined product pipeline linking the two ity of 100,000 barrels of oil equivalent per day
MoU covering a study countries. (boepd), comprising gasoline, diesel and gas.
worth up to $2bn to The deal signed between Angolan Minister The project was initially led by Zambian cop-
determine the feasibility of Mineral Resources and Petroleum Diaman- per firm Basali Ba Liseli Resources, but the com-
of the 1,400-km pipeline. tino Azevedo and Zambian Minister of Energy pany was not mentioned in the MoU, which was
Mathew Nkuwa will see the two sides carry out signed by Angolan state oil firm Sonangol and
WHY: feasibility studies on the pipeline, a project that Zambia’s Industrial Development Corp. (IDC),
The two countries have may take up to two years to complete. Follow- which have taken up strategic equity positions.
been in discussions on ing the study, which has been budgeted at up to A shared-financing agreement was agreed in
the project for around a
decade. $2bn, Luanda and Lusaka will discuss taking a 2019.
final investment decision (FID). Following FID, the pipeline could be
WHAT NEXT: The Angola-Zambia Oil Pipeline (AZOP), constructed within five years, generating
With the Lobito refinery the plans for which have gone through numer- 12,000-14,000 temporary jobs as well as 4,000
still on the drawing ous iterations, is now expected to cost around permanent jobs in each country once complete.
board, many things must $5bn, roughly double the figure quoted around Zambian Ambassador to Angola Lawrence
fall into place before a decade ago. Chalungumana was quoted by Anadolu Agency
ground can be broken. Also known as the Refined Petroleum Mul- as saying: “This milestone agreement will bring
However, the MoU pro- ti-Product and Natural Gas Pipeline Project to an end a more than 10-year-old complex
vides at least a glimmer (AZOP), it is expected to run 1,400 km through negotiation process that shall lead to cheaper
of hope for progress. the so-called Lobito Corridor, connecting the fuel for Zambia.”

P4 www. NEWSBASE .com Week 19 12•May•2021