Angola’s state oil company Sonangol has entered high-level talks with Botswana over the sale of a 30% equity stake in the $6.6 billion Lobito refinery, a project designed to dramatically reduce Angola’s dependence on imported refined fuels once completed.
Two senior Sonangol officials confirmed the discussions, with a company spokesperson acknowledging that talks had taken place with Botswana Oil regarding an equity participation. Botswana’s energy minister was quoted in media reports as saying the government was considering its options to secure a 30% shareholding in the 200,000-barrel-per-day facility. Neither Botswana’s energy ministry nor Botswana Oil immediately responded to requests for comment.
The development marks a notable shift in the refinery’s financing landscape. Zambia had been the first country to express interest in a stake, with Angola and Zambia holding an outline agreement on participation since 2018. Joaquim Kiteculo, CEO of Sonangol’s refining division, said he was surprised by Botswana’s interest, but confirmed that Angola remains open to new investors, while insisting it would retain a 51% majority stake in any restructured ownership arrangement.
Botswana is also separately considering a partnership with Namibia on that country’s proposed first refinery, as it looks to broaden its energy supply options.
Financing has been a persistent obstacle for the Lobito project. Construction restarted in 2023 after a lengthy pause, and no firm completion date has been publicly announced. Angola’s mines and petroleum minister is currently in China with a senior Sonangol delegation, seeking backers to close a $4.8 billion funding shortfall. Kiteculo said discussions in Beijing are expected to focus initially on securing $2.2 billion, followed by a further $2.6 billion. Sonangol, which has already invested $1.4 billion of its own capital in the project’s first phase, said it will continue investing with or without additional partners until completion.
Source: timeslive.co.za