The chairman of Angolan oil company Sonangol, Carlos Saturnino said that the consortium of shareholders that will relaunch the second phase of the Lobito refinery will be set up by the end of August according to Angolan news agency, Angop.

Saturnino was speaking in Luanda on the sidelines of a signing ceremony of a US$220 million cooperation agreement with Italian oil company ENI for general maintenance and increased gasoline production at the Luanda refinery.

Saturnino explained at the time that the process for the constitution of shareholders of the Lobito refinery began in December 2017 and in February the government received 28 proposals from different entities, 16 of which were competing for the Lobito refinery, seven for Cabinda and others without specifying either.

Of the last 16 proposals selected in the first phase, only seven were selected and are now being analysed with Sonangol to conclude a confidentiality agreement scheduled to come into force on Thursday.

Sonangol continues to operate its Luanda refinery with an installed capacity of 65,000 barrels of oil per day.

The Lobito Refinery project, with an initial investment of US$10 billion, provides for the daily processing of around 200,000 barrels of crude oil and the creation of 10,000 direct and indirect jobs.

Located in Morro da Quileva, 10 kilometres from the city of Lobito, in an area of ​​3,805 hectares, construction was suspended in 2016 by the then board of Sonangol, led by Isabel dos Santos, for revaluation of the work, taking into account the fall in oil prices.

Angola imports about 150 million euros’ worth of refined fuels per month. Sonangol produces just 20% of the country’s total consumption of refined products.

Angola’s oil reserves are estimated at 8 billion barrels and may increase, Saturnino said.

According to Saturnino, the reserves will increase based on new discoveries made in Block 15/06. (macauhub)