Angola now has a clear sight of the money with which it will build its much anticipated mid-sized refinery. Construction will begin on the site in 2015, according to Sonangol, the state hydrocarbon company and owner of the planned 200,000BOPD facility
The money will come from the Chinese, who decided to opt out of the partnership with Sonangol, the state hydrocarbon company, in the first place.
China Development Bank (CDB) has extended a $2 billion line of credit to Sonangol in a financing deal signed on December 12, 2014.
Seven years earlier, (in 2007) Sinopec, one of China’s top oil firms, walked out on the project over disagreement with Sonangol on equity to which it was going to be entitled to.
The 10-year loan agreement with CDB which opens prospects for other long-term financing, also will fund in part construction of Sonangol’s refinery in Lobito, a coastal city on the edge of the south Atlantic.