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Financial close of Cabinda Oil Refinery

Published by , Senior Editor
Hydrocarbon Engineering,

Gemcorp Holdings Ltd (GHL), Africa Finance Corp. (AFC) and African Export-Import Bank (Afreximbank) have announced the financial close of the Cabinda Oil Refinery in Angola.

The US$473 million project is financed through US$138 million of equity already provided by the project sponsors and US$335 million project financing facility led by AFC, Afrexim and a consortium of international and local financial institutions. The project is being developed by GHL in partnership with Angola’s state oil company, Sonangol.

The credit facility covers the first phase of the project and paves the way for construction, which will enable the processing of 30 000 bpd of crude oil. In due course, the second phase will add another 30 000 bpd, bringing the refinery’s refining capacity to 60 000 bpd on completion.

Upon completion of the first phase, the refinery is envisioned to deliver ~10% of the country’s total demand for refined oil products, increasing to ~20% upon completion of phase 2, while creating over 1300 direct and indirect jobs in the process. To date, there have been 300 000 man-hours of training completed for the upskilling of local employees, with 1 million man-hours worked on the project, all completed injury free.

Other lenders also contributing to the project financing facility include The Industrial Development Corp. (IDC) of South Africa, The Arab Bank for the Economic Development in Africa (BADEA) and Banco de Fomento Angola (BFA).

This investment is playing a critical role in Angola’s energy security and delivering local employment opportunities while furthering the nation’s technological capabilities. It will also reduce the country’s reliance on imports to meet its current energy needs.

Gemcorp Chief Executive Officer, Atanas Bostandjiev, said: “We are extremely excited to be making this investment in the Cabinda Oil Refinery. The project stands to make Angola energy independent while leveraging its natural resources for the benefit of the community and the wider economy. We have benefitted immensely from the local expertise made possible by working closely with the Sonangol team and our partners, Africa Finance Corp. and Afreximbank, who share our vision to deliver this monumental life-changing infrastructure.”

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