OWN CORRESPONDENT, Lobito | Thursday
ANGOLA is to seek backers in Houston next week for its proposed $3.3bn oil refinery in the southern coastal town of Lobito, a senior state oil company official said.
”We have arranged a meeting with potential technical and financial partners for December 5 in Houston,” said Amadeu Correia de Azevedo, Sonangol’s national petroleum director.
Eleven of 15 companies approached have so far agreed to attending the session, Azevedo said, including South Korea’s Samsung and French engineering and oil services firm Technip.
The giant project, which some analysts say would be the largest single development in Angolan history, would process 200000 barrels a day of 24-25 degree API gravity medium-weight crude. Start-up is scheduled for 2006.
The facility would likely begin at a rate of 160000 barrels a day, the director said.
Potential markets include the eastern coast of the United States, Brazil, Namibia, Democratic Republic of Congo, Paraguay and Uruguay. It was unclear how long it would take the venture to recoup its investment.
The facility would supersede the 35 000 barrel a day refinery currently operating at Luanda.
Some industry analysts have warned the project does not look feasible.
The government intends to liberalise the sale of refined petroleum products and is preparing to offer an initial 60% of Sonangol’s distribution arm to local and foreign investors.
Angola pumps 750000 barrels of crude oil a day, almost entirely from offshore fields out of UNITA’s range. The government aims to hit 1.3 million barrels a day by 2005. – Reuters