State-owned oil firm Sonangol has not received any formal communication from Botswana signalling its desire to acquire a stake in Angola’s new $6.6 billion Lobito refinery, a senior company executive said late on Tuesday.
Angola has been seeking partners to help finance the delayed refinery, the country’s largest and aimed at cutting its reliance on imported fuel, with financing shortfalls and potential partnerships drawing interest from neighbours.
Widespread media reports quoting Botswana’s Energy Minister, Bogolo Joy Kenewendo, in parliament on March 27, suggested that the government was offered and is weighing options to secure a 30% shareholding in the 200 000 barrel per day plant once it comes online.
Botswana’s Ministry of Energy did not immediately respond to multiple requests for comment from Reuters.
The information from the media was surprising, Joaquim Kiteculo, Chief Executive Officer of Sonangol’s refining division, told Reuters on the sidelines of an energy conference in Cape Town, adding that it was Zambia that had aimed to join the Lobito project since the beginning.
“It was our first time to hear that Botswana is interested,” Kiteculo said.
Angola and Zambia have a memorandum of understanding covering participation in the refinery. Botswana, a land locked country, is keen to boost storage capacity and diversify its fuel supplies as it also considers partnering with Namibia on their proposed first refinery.
–Reuters–
