Joaquim Kiteculo, CEO of Sonangol Refinação e Petroquímica (Sonaref), talks to The Energy Year about progress on the USD 6.2-billion Lobito Refinery and Angola’s long-term prospects as an integrated refining and supply hub.
- Angola is building an integrated refining and logistics system. The Lobito and Soyo projects, the Cabinda and Luanda refineries and the Barra do Dande terminal are intended to connect domestic fuel production with storage, distribution and exports.
- The Lobito Refinery is moving towards equipment installation. With overall progress at approximately 28% in early 2026, the project is transitioning from civil works to structural steel erection, mechanical works and process equipment installation.
- Phased execution can sustain progress during financing negotiations. Sonaref is advancing engineering, procurement and early construction while discussions with international financial institutions and strategic partners continue.
Can you provide an overview of the Lobito Refinery’s status and the timeline to deliver this ambitious refinery project?
The Lobito Refinery is much more than a refinery; it is a strategic national project that will fundamentally transform Angola’s energy landscape and strengthen the country’s industrial base. With a planned processing capacity of 200,000 bpd, it will become Angola’s largest refinery and one of the most significant downstream investments undertaken on the African continent. Its objective is not only to satisfy domestic demand for refined petroleum products but also to position Angola as a competitive regional supplier.
As of early 2026, overall engineering and construction progress stands at approximately 28% after the successful completion of several early project milestones. Since groundbreaking, we have achieved significant progress across multiple areas: completion of the majority of detailed engineering required to support procurement and construction activities; advancement of major earthworks and site preparation; construction of key permanent infrastructure including roads, drainage systems and utilities; procurement of long-lead equipment essential for the refinery’s process units; mobilisation of international EPC contractors together with a growing Angolan workforce; continued implementation of our local content strategy; and establishment of robust project governance, HSSE management systems and quality assurance processes.
The project is now transitioning from the civil works phase towards large-scale structural, mechanical and equipment installation activities. Our execution priorities for the coming phases include accelerating structural steel erection, installing major process equipment, completing the principal processing units, electrical and instrumentation works, utilities and offsite facilities, commissioning and pre-start-up testing, and integrated performance testing before commercial operation.
Considering the complexity of financing a USD 6.2-billion project, can you provide an update on the financing and how Sonaref is managing execution risk during the process?
Financing is one of the most complex components in projects of this scale. We have advanced discussions with international financial institutions and strategic partners with the objective of establishing a financing structure that is robust, competitive and sustainable over the long term.
As is customary, financing discussions remain subject to the completion of due diligence, commercial negotiations and the satisfaction of conditions precedent. Until those processes are formally concluded, it would not be appropriate to comment on specific lenders, commercial terms or the status of individual negotiations. What I can say is that we remain fully engaged with the financing community and continue to receive positive interest.
From the outset, we have structured the project around internationally recognised project finance principles, and financing is progressing in parallel with project execution. We have adopted a phased execution strategy that allows engineering, procurement and early construction activities to continue while financing milestones are reached. Risk management is a central element of our execution strategy.
Ultimately, our goal is to secure the right financing structure. We remain confident in the project’s fundamentals. Please also note that, whether or not external financing is secured, Sonangol will continue allocating funds, as it has done to date, until the project is completed.
How are local content considerations being incorporated in the project, and what long-term economic impact do you expect when the refinery reaches full production?
The Lobito Refinery is a national industrialisation project designed to create lasting economic and social value for Angola. Even during the construction phase, the project is already generating significant socioeconomic benefits: employment opportunities for Angolan workers, demand for local goods and services, and support for SMEs participating in supply chains.
Local content is a key pillar of our strategy. Our objective is not simply to maximise the number of Angolans employed on the project, but to maximise the value retained within the Angolan economy – increasing the participation of local companies, strengthening national industrial capabilities and creating sustainable business opportunities that extend beyond the refinery itself.
We are implementing a programme to increase the participation of Angolan professionals at every level, from technicians and operators to engineers, supervisors and future plant managers. Throughout the construction and commissioning phases, experienced international specialists are working alongside Angolan professionals to ensure that operational knowledge is systematically transferred.
Looking beyond the refinery itself, the combination of the refinery, the Port of Lobito and the Lobito Corridor creates the foundation for an integrated industrial ecosystem with the potential to attract investment in petrochemicals, fuel storage and distribution, logistics, manufacturing, maintenance services, engineering and vocational training. Over time, we envision the emergence of a diversified industrial cluster where multiple sectors benefit from a reliable energy supply, improved infrastructure and enhanced regional connectivity.
What is your vision for Angola’s downstream over the next decade?
Within the next decade, Angola should evolve from being primarily a crude oil exporter and a net importer of refined fuels into one of Africa’s leading integrated refining and energy logistics hubs. Angola produces approximately 1.1 million bopd, yet for many years, we have relied on imported refined petroleum products to meet domestic demand. Our ambition is to reduce that dependency.
The commissioning of the Cabinda Refinery, the continued modernisation of the Luanda Refinery, the development of the 200,000-bpd Lobito Refinery and the future Soyo Refinery, together with strategic infrastructure such as the Barra do Dande Oceanic Terminal, represent the pillars of a new downstream strategy. Together, these assets will create an integrated refining and logistics system capable of reliably supplying Angola with high-quality fuels and positioning the country as a competitive exporter.
Energy security, for me, means much more than having sufficient fuel. It means ensuring that every Angolan household, business, industry, hospital, airport and transport network has reliable access to affordable, high-quality energy products regardless of disruptions in international markets. By the end of this decade, I expect Angola to have sufficient domestic refining capacity to meet national demand while generating exportable surpluses of gasoline, diesel, jet fuel, LPG and other refined products.