Angola’s Sonangol says Botswana has not sought stake in $6.6 billion Lobito refinery deal

Sonangol E.P., Angola’s state-owned national oil company, says it has not received any formal communication from Botswana regarding participation in the $6.6 billion Lobito refinery project, pushing back against media reports of a potential equity stake.

The refinery, designed to process 200,000 barrels per day, is central to Angola’s strategy to cut fuel import dependence but has faced repeated delays due to financing gaps.

Angola has been actively seeking partners to bridge a multibillion-dollar shortfall, with Sonangol already investing about $1.4 billion in early infrastructure works including roads and water systems tied to the project.

Contradicting signals from the region

Joaquim Kiteculo, head of Sonangol’s refining division, said Angola was surprised by reports linking Botswana to a 30% stake and emphasized that Zambia remains the primary regional partner through an existing memorandum of understanding.

He noted that while Angola remains open to new investors, discussions around Botswana had not reached any formal stage, contrasting with earlier structured engagement with Lusaka.

Strategic stakes and ownership structure

Angola has reiterated that it will retain at least a 51% controlling stake in any future restructuring of the project. The government continues to position the refinery as a strategic asset aimed at reducing reliance on imported petroleum products and strengthening domestic refining capacity.

The project’s financing structure remains fluid, with Angola and Sonangol jointly weighing phased investment commitments to keep construction moving despite funding constraints.

Despite uncertainty, Angola says it remains open to new investors but will retain majority control of at least 51% in any restructuring of the project as it seeks to secure up to $4.8 billion in additional funding.

Angola’s energy ministry is currently engaging international partners, including a delegation visit to China, to accelerate financing discussions.