Sonangol - Lobito Refinery

General Information
Owner Sonangol
Masterplan Project (Parent Profile)
Location Lobito, Benguela Province, Angola
Status --
Sector Oil, Downstream, Oil Refinery
Contract Type Build Own Operate (BOO)
Onshore/Offshore Onshore
Greenfield/Brownfield Greenfield
Progress 0
Estimated Budget Value ---
Contract Value 0
Net Value $10000m
Award Date February 2022
Completion Date December 2027
Last Updated On November 2021
ProjectId (Old, New) 124847, 124847


Sociedade Nacional de Combustiveis de Angola (Sonangol), a company responsible for the management of oil and gas reserves in Angola is planning to construct a refinery on a 3,805ha area with a processing capacity of 200,000 barrels of oil per day at Lobito, Benguela, Angola.

The project is also known as Sonaref.

Project will create 8000 direct and indirect jobs during construction and 4000 jobs during production.

The refinery unit will process crude into the following products: unleaded gasoline, diesel, jet fuel (Jet1), illuminant oil, liquefied petroleum gas (LPG), and limited quantities of sulfur and oil coke.

The project will be developed in phases. Each phase will refine 100,000 barrels of oil per day.

Sonangol contracted Kellog Brown & Root (KBR) for Consulting, Engineering, Construction of Sonaref. The scope of the contract also includes designing, coordinating the activities of licensing the units, procurement of required patents, and used technologies. However, later the contract has been terminated.

KBL Group International Ltd has been appointed as the design consultant, to redesign the project.

The US$10,000 million project includes the following:

1. Installation of a pumping System

2. Installation of a powerful support system

3. Installation of a communication system

4. Construction of a refinery

5. Construction of a storage unit

6. Construction of a distribution unit

7. Laying of pipelines

Second Section

11 November 2021

Proposal evaluation period is ongoing including bid clarification phase until Novemebr 26, 2021. The winner is expected to be announced by December 10, 2021 followed by MoU preparation and singing is expected between 13th-30th December 2021, and later negotiation and signing of shareholders agreement between 2nd January and 28th February 2022.

15 October 2021

Sonangol held the public opening of the tender and received five proposals: 1. Consortium of LANPEC Technology Limited (China) and International Business Development Group – IBD (USA) 2. Consortium of Gemcorp Holding Limited and Omatapalo – Engenharia & Construção 3. Consortium of Hull Byth Man Power – General Trade and Provision of Services Ltd, AVIC International Beijing Co Ltd and China Huanquiu Contracting & Engineering Co Ltd 4. Layher Company (Pty) Ltd 5. GazMin International Company

09 July 2021

Sonangol invites qualified companies to respond to the Investment Proposal Request to plan, build and, in partnership with SONANGOL, own and manage (Build, Own, Operate – BOO) an oil refinery and related infrastructure. The proposal submission deadline is on October 14, 2021.

22 March 2021

The project has been put on hold because of high costs and issues around the project’s feasibility.

10 January 2021

Front-end engineering and design works were completed.

18 November 2020

Sonangol will soon update front-end engineering and design for the project, on which JGC Corporation of Japan plans to deliver engineering, procurement, and construction.

22 July 2020

The project is being reassessed, and the economic and financial feasibility study was completed.

28 May 2020

The developers are in the process of evaluating the received proposals to award the construction contract and structuring the shareholders for the project.

29 January 2020

The developer is in the process of evaluating the proposals.

05 July 2019

The developer is in the process of evaluating the proposals.

16 April 2019

GoA received a letter from the Government of Zambia (GoZ) expressing its interests to be a shareholder in the Lobito refinery.

15 March 2018

Sonangol has selected the seven best undisclosed proposals out of 16 received proposals, and submitted to the GoA for appreciation, recommendation, and decision on the contract.

11 November 2017

Sonangol invited interested companies to submit their proposals for the construction of Lobito refinery.

01 September 2017

The project is on hold.

01 February 2017

The project is on hold to review its development, phasing, and investment plans.

01 September 2016

The project is on hold to review its development, phasing, and financing.

21 June 2016

The construction work and the contracts involved in the project are suspended due to the drop in oil prices in the international market and also to re-evaluate the investment according to the market trend.

01 January 2011

Project is in the Design and Engineering phase.

01 August 2009

KBR and Sonangol signed an agreement for FEED.

01 March 2008

The project is in the early development stage.

01 January 2007

Sonangol announced plans to develop Sonaref Refinery.