Page 4 - DMEA Week 30 2021

DMEA COMMENTARY DMEA

Lobito tender decision by year-end

as Sonangol eyes 2026 start-up

Sonangol this week provided more detail about how it sees the
development of its long-awaited Lobito refinery playing out.

AFRICA FOLLOWING the recent launch of a tender to complete; however, early physical works could
for investment in Angola’s Lobito oil refinery in begin as soon as the end of Q2 2022.
Benguela Province, more details have been pro- Construction for a refinery of this type and
WHAT: vided about the process and state-owned Sonan- size is anticipated to take 48-52 months to reach
The company anticipates gol’s expectations. mechanical completion. With this in mind,
that the results of the Speaking to Radio Nacional de Angola Sonangol predicts that start-up operations on
ongoing investment (RNA), project co-ordinator Guiomar Correia some units will begin in 2025 or 2026.
tender for Lobito will be said that the 200,000 barrel per day (bpd) unit He added that the facility will provide 8,000
announced in December. would be completed in 2025 or 2026 at a total direct and indirect jobs during the construction
cost of $6bn. phase, and another 4,000 jobs once operations
WHY: He explained that he anticipates that the begin.
With early engineering bidding process will continue until around Meanwhile, Sonangol’s director of strategy
work expected to December, at which point Sonangol expects and portfolio management Helder Nuno Lis-
commence as early as to make an announcement about the results of boa said that participants in the tender will be
mid-2022, the company the tender and name the winner. Thereafter, the expected to present their financial and technical
is eyeing the beginning company has allocated three or four months to capacity for carrying out a project as well as illus-
of start-up operations in carry out the necessary contract negotiations trating their track record in similar investment
late 2025 or 2026. with the winning entity, which, as first reported and construction projects.
by Downstream MEA (DMEA) in late June, will He added that the tender process would be
WHAT NEXT: become the owner of the new facility. Attention subject to extensive due diligence in line with
The project is seen will then turn to ensuring private finances are in Sonangol’s operating standards.
costing a total of $5bn place for the development of the refinery.
and will require an Once this is complete, he said, “we will be in Process
investor with deep a position to commence the engineering work”. The tender process was launched on July 9 dur-
pockets to bring it to Correia noted that this could take around a year ing a ceremony attended by Minister of Mineral
fruition.

P4 www. NEWSBASE .com Week 30 29•July•2021