Angola’s Lobito refinery project has reached a physical completion rate of around 23%, with production expected to begin in December 2027, according to an official report published by the Ministry of Mineral Resources, Oil and Gas.
The update followed a site visit conducted on Tuesday, Jan. 13, by President João Lourenço. The report said the refinery will be brought online gradually rather than all at once.
Priority units, described by authorities as the industrial core of the project, are scheduled to be completed by July 2027. Once these units are finished, a testing phase lasting about five months will begin, Ecofin Agency reported.
At the end of this testing period, the refinery is expected to start initial production in December 2027, although output at that stage will differ from volumes planned at full capacity.
According to the ministry, early production will mainly include gasoline and naphtha, an intermediate petroleum product that is expected to account for about 23% of total volumes, along with smaller quantities of gasoil.
Official figures show that the Lobito refinery project has so far created nearly 2,700 jobs, with roughly 80% filled by local workers. Data published in 2021 indicated that the construction phase could generate up to 8,000 jobs, underscoring the scale of the project.
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The refinery is being developed using funds already committed. Sonangol, Angola’s state oil company and concessionaire of the country’s offshore and onshore oil reserves, said it has invested more than $1.4 billion of its own resources, including nearly $330 million allocated to long-lead equipment purchases.
The presidential visit report said these investments correspond to an estimated financial progress of about 20% at the current stage.
The project’s financing is part of a broader structure. In April 2025, according to international media reports, Sonangol estimated the total cost of the Lobito refinery at $6.6 billion and said it was holding discussions with several international financial institutions to cover a financing gap estimated at $4.8 billion.
Alongside financing efforts, Sonangol has organized the project’s execution through contractual arrangements.
In 2021, the company launched an international tender to select a firm responsible for managing and executing the project, including engineering, procurement, and construction monitoring.
Following this process, the construction management contract was awarded in 2024 to U.S.-based company KBR. The financial terms of the contract have not been disclosed.
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Image Credit: Energy Capital & Power
